Time for EU to assist its solar panel industry 17 Jan 2024 Meyer Burger’s stock tanked 35% after it threatened to shut Europe’s biggest photovoltaic plant unless it gets German incentives. Stuck between US subsidies and cheap Chinese products, continental players are weak. Turning support for fossil fuels into green aid would help.
Green investors will learn the art of stockpicking 21 Dec 2023 Wind and solar stocks had a torrid 2023, as stars like Orsted crashed. But renewables investment is strong, input cost inflation is abating and rates may have peaked. Investors able to pick developers in the right sector, or suppliers in the right regions, may find bargains.
Santa puts coal stocks in stockings for last time 19 Dec 2023 Producers of the dirty fuel, like Peabody and Arch Resources, have generated excellent returns over the past two years, a trend that may continue in the near term. But government policies are rapidly eroding demand. Fewer investors will want the shares in Christmases future.
Renewable will increasingly mean mostly solar 7 Dec 2023 Cheap green power is eating coal and gas, but solar's price is falling fast. It isn’t an exact wind substitute, so even costly offshore farms have a future. Texas shows the future, where solar now accounts for 7% of generation and has grown 5 times as fast as wind since 2019.
Cable makers are green investing’s dark horses 28 Sep 2023 Net zero requires annual grid investment to more than double to $750 bln by 2030, plus the building of more solar and wind farms. That’s a boon for makers of power lines like Prysmian and Nexans. Green investors searching for growth may increasingly pay them more attention.
UK net-zero ‘pragmatism’ is an odd way to get real 4 Aug 2023 PM Rishi Sunak says he cares about decarbonisation, but is also signing off new oil schemes. Uncertain energy transition costs make that a logical political strategy. But the government’s own data suggest relying on volatile gas over renewable power could be an expensive mistake.
Europe’s oil major sweet spot could yet turn sour 4 May 2023 Shell, BP and Total are still making fat profits, and investors seem fine with a slower route out of oil. Rising rates also make wind projects look even less enticing than fossil fuel ones. But longer term, Europe’s oil titans may lose their head start in the shift to net zero.
Rich countries and India should cut a climate pact 10 Apr 2023 Helping the world’s most populous nation grow in a green way is one of the best things that could happen for its people and the planet. While there are many obstacles to a deal between the G7 and India, the prize is great enough for both sides to overcome them, says Hugo Dixon.
EU and US green arms race misses bigger picture 16 Mar 2023 The European Union’s response to Joe Biden’s Inflation Reduction Act gives member states leeway to push back with their own green subsidies. Yet plans for production targets are misguided. To decarbonise while managing China risks, it’s better to seek common ground with the US.
Europe is playing catch-up in green subsidy race 9 Feb 2023 The U.S. unveiled $369 bln of climate subsidies for consumers and manufacturers. In this Viewsroom podcast, Breakingviews columnists explain why Brussels may need to launch a similarly ambitious plan or risk losing its share of jobs of the future.
China ban would slow, not halt, Western solar push 3 Feb 2023 Reacting to the chip war, Beijing may ban the export of technology for making solar panels, a $235 bln sector it currently dominates. Yet the West already has green energy know-how. Creating a rival industry without Chinese expertise may be slower and costlier but not impossible.
Tycoon-burned Sun Cable would shine with new owner 1 Feb 2023 Top backers Andrew Forrest and Mike Cannon-Brookes may compete to buy the insolvent solar power export firm. They are pursuing risky plans. Keeping the energy in Australia should allow rival mooted bidders like Macquarie and Iberdrola to pay more and generate better returns.
Europe’s energy crisis nears winter of discontent 18 Oct 2022 Germany, Italy and others have scrambled to replace Russian gas and pipeline attacks have become a concern. The Oxford Institute for Energy Studies’ Jack Sharples tells The Exchange podcast Europe must learn to live with less power. Next year may be even more challenging.
RWE’s U.S. swoop is investors’ gain, Europe’s loss 3 Oct 2022 Germany’s largest utility is paying $7 bln to make a push in U.S. solar power just as juicy subsidies are set to fuel a clean energy boom. That and a fair price tag should please investors. The move risks depriving Europe of green investments as it fights an energy crisis.
Net zero woes go beyond lack of global cooperation 20 Sep 2022 The International Energy Agency frets that poor collaboration between states will keep emissions high. But the struggles of green groups like ITM Power suggest countries aren’t doing enough to help domestic markets either. Energy policy needs to do more than fight today’s crisis.
Capital Calls: Ralph Lauren 19 Sep 2022 Concise views on global finance: The $6 bln retailer known for its iconic Polo shirts is cheaply valued compared to European counterparts.
American solar plan one-ups gas-junkie EU 4 Aug 2022 A U.S. bill is offering $30 bln in tax credits to companies to build solar panels at home. That will help crack China’s control of the green supply chain. The EU could increase solar capacity seven times by doing something similar. That requires better coordination and focus.
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.
Europe may swap one energy dependency for another 9 May 2022 The bloc is ramping up investment in renewable sources to help kick its addiction to Russian oil and gas. Yet China currently controls at least 75% of the solar panel supply chain. To gain its energy freedom, Europe will also need to invest in manufacturing at home.
New England chooses expensive dirty power 19 Jan 2022 Like Japan, the area has shut down nuclear plants and is relying more on gas, wind and solar. But unwillingness to build pipelines and upgrade electric transmission creates a system that is costlier, dirtier, and potentially more unstable than need be.