Australia green fail is global net-zero liability 20 Jul 2022 Canberra is pledging action after a grim report detailing Down Under’s deteriorating environment. But coal and gas exports help fuel disasters at home and abroad, like Europe’s wildfires. Refusing to tackle it sends a gloomy signal about countries’ willingness to cut emissions.
ESG is more of a muddle than a fiddle 19 Jul 2022 Environmental, social and governance investing is under the spotlight. In this episode of The Exchange podcast, Bridgewater’s sustainable finance gurus Karen Karniol-Tambour and Carsten Stendevad explain how ESG’s main problem is a lack of clarity over its goals.
France Inc could turn a profit from EDF takeover 7 Jul 2022 President Macron’s administration may have to fork out 7 bln euros for full control of the energy giant. But spinning off its renewable arm could recoup that cash. And the nuclear branch’s long-term investment needs and associated risks are more suited to public ownership.
Green deals overcome markets flashing red 28 Jun 2022 Despite widespread investor risk aversion, China’s EV battery giant CATL just raised $6.7 bln in new equity. The decarbonisation theme is dominating big stock sales. Supply chains and higher costs are a concern, but the Ukraine war will help keep capital coming to clean energy.
Capital Calls: Russian default, Inflation and debt 27 Jun 2022 Concise views on global finance: Moscow defaulted on its foreign debt for the first time in over 100 years, leaving bondholders in limbo; the Bank for International Settlements wants rates raised “quickly and decisively”, but is also worried about higher borrowing costs.
Capital Calls: Bank stress tests, Japan inflation 24 Jun 2022 Concise views on global finance: U.S. lenders passed the latest Federal Reserve capital exams, but they’re bound to be more stressful next time; the country’s consumer prices rose 2.1% in May, intensifying a standoff between the central bank and bond investors.
Aussie energy crisis demands both carrot and stick 23 Jun 2022 Electricity trading restarted after a week-long hiatus. Canberra wants to pay generators to guarantee supply from 2025. Until then, outages will linger. A windfall tax, or the threat of one, on coal miners and gas drillers like Exxon Mobil and Santos could spark short-term fixes.
Green investors need to get their hands dirty 22 Jun 2022 Most money managers fight climate change by shunning stocks of polluting companies. By contrast, so-called transition funds target dirtier assets to clean them up. Though the approach brings risks, it could also deploy trillions of dollars of green capital in a smarter way.
Capital Calls: SoftBank Arm-twisting 22 Jun 2022 Concise views on global finance: The UK government may be eyeing desperate measures to keep SoftBank-owned chip group Arm's IPO in London.
Capital Calls: Hydrogen IPO, Call centre M&A 20 Jun 2022 Concise views on global finance: Despite Thyssenkrupp postponing its clean energy listing, De Nora is still pressing on with its own one at a lower 3 bln euro valuation; customer-service group Sitel agrees to buy 2.6 bln euro rival Majorel in a cash-and-stock deal.
Power providers tempt Wall Street-style backlash 17 Jun 2022 Australia halted electricity trading because generators were “gaming” the system, Prime Minister Anthony Albanese says. Such behaviour risks inviting widespread uproar as banks did during the financial crisis. It’s a bad spot to be in as a new government upgrades climate goals.
Expensive capital will slow the green transition 17 Jun 2022 Strategic investors with low-cost, long-term funding have put polluter India on course to hit 2030 goals. TotalEnergies’ plan to help Adani spend $50 bln on green hydrogen hints at ongoing support. But such sponsors may have to step it up as rising rates and risk aversion bite.
Aussie energy crisis is an embarrassment of riches 10 Jun 2022 A looming gas supply shortage and high-power prices are due to years of bad policy in a country that should be a renewables poster child. It’s a chance for new Prime Minister Anthony Albanese to layout a comprehensive clean energy plan that will foster a green investment boom.
Hydrogen IPO finds rare pocket of market optimism 6 Jun 2022 Italy’s De Nora, which makes components to produce a green variety of the gas, is seeking a June listing. That’s bold after choppy markets deflated other high-flying upstarts. Tapping into Europe’s drive to end its fossil-fuel dependency will help pump up a 5 bln euro valuation.
Global cracks complicate West’s energy transition 2 Jun 2022 Modern civilisation is built on fossil fuels. If past shifts are a guide, switching to renewable energy will take decades, says Edward Chancellor. Conflict with Russia and tensions with China make this harder. The West faces a choice between decarbonisation or deglobalisation.
Ukraine war helps China’s coal addiction stack up 2 Jun 2022 President Xi Jinping’s administration is boosting coal production to stave off power cuts. The top emitter is embracing the fossil fuel tightly as wealthy nations bid aggressively to replace Moscow’s natural gas supplies. The rational financial choice is a firm blow to net zero.
Busted AGL breakup clears smoggy climate thinking 30 May 2022 The $4.3 bln power producer is ditching half its board, including the CEO and chair, after billionaire Mike Cannon-Brookes rounded up support to torch a demerger plan. With the obstructive old guard gone, it can more swiftly shed coal, be it under new leadership or a new owner.
Stability and security trump threat of sanctions 30 May 2022 India is buying more Russian oil and coal, and a state-led group of companies is now eyeing Shell’s stake in an LNG project. Price volatility and climate woes are dictating national priorities. It’ll be thorny for the West to punish poorer countries for putting themselves first.
UK’s power tax plan may avoid tilting at windmills 24 May 2022 Shares in utilities like SSE and Drax dived after reports of Rishi Sunak eyeing up 10 bln pounds of excess profits. Windfalls from high power prices are hard to grab and North Sea oil is a better target. But the UK chancellor’s haul from power groups will still be far from zero.
Siemens Gamesa’s minorities can hold out for more 23 May 2022 The turbine maker’s parent wants to take it private at 18 euros a share, half its value in early 2021. After a slew of profit warnings, any exit looks tempting. But with big savings in store and 2.5 bln euros in the bank, Siemens Energy CEO Christian Bruch can afford to pay more.