Institutional Investors Group on Climate Change (IIGCC)’s Post

“Returns on fossil fuel investments are around three times higher than returns on renewables, largely because fossil fuels are more conducive to monopoly power while the renewable sector is highly competitive.” Highly recommend reading this piece on need to re look at the role of Central Banks to guide credit in more social and ecological directions. https://lnkd.in/g7jkSGHZ Consider reading the piece in private browser if you don’t have access to the article #climatechange #capitalism #monetarypolicy

GIF COMMENT: #NetZero policies may come under pressure as profitability forces banks and #energy giants to rethink rejection of #fossilfuels LONDON (ICIS)–Tell me what you think about Net Zero and I will tell you who you are – has become a zeitgeist of the #energysector and society at large in the past decade or so. After all, “science has settled” on man-made #climatechange, the media have certified this as “fact” and activists in their teens and eighties never let us forget about the dangers with actions that scream louder than words. Those who doubt the wisdom of the day have generally remained politically correct and silent. Under pressure from environmentalists and politicians, industry heavyweights have been changing their strategies, brand names and allocation of resources towards green projects, which – after all – come not only with moral high ground but also hefty subsidies. EIB’s #REPowerEU+ initiative in July 2023 increased the bank’s original renewable energy financing targets by 50% to €45 billion until 2027 . “This additional financing is expected to mobilise over €150 billion in new green investments, helping Europe cut its carbon emissions to net zero by 2050,” the EIB statement said. Private banks have also been keen to distance themselves from the dirty business of fossil fuels that currently cover about 80% of global energy demand. However, several headlines in the past few days have signalled that companies and banks may be cautiously changing their tune in order to deliver on their shareholders’ expectations... READ MORE #icis #energycosts #energypolicy https://lnkd.in/emKS8_JZ

Net Zero: an unavailable dream! JPMorgan sais it, as developing Countries evolve, so is their demand in energy to support their increase of standard of living. Electricity powers this economic transition and you still cannot produce a base load with wind and solar. The economic alone will put pressure on government to adapt their emissions targets. #netzero #ghg #jpmorgan #trudeau https://lnkd.in/efszSCjC

Average annual climate finance flows reached almost USD 1.3 trillion in 2021/2022. This increase was primarily driven by a significant acceleration in mitigation finance, with the energy sector receiving 44% of the increase. There is an enormous gap in the finance flows and range of needs. The strategic use of public funds and other concessional finance to mobilize significantly more private capital in emerging and developing economies is critical. https://lnkd.in/dag96C-j #climatefinance #renewableenergy #projectfinance #greeninvestments #3xrenewables

Check out our latest Horizons series Conflicts of interest: The cost of investing in the energy transition in a high interest-rate era. https://lnkd.in/gp7CyKGH

Perhaps no group of analysts in the world is as influential as the team that produces the International Energy Agency (IEA)'s reports on the energy sector and its green transition. In today's FT Moral Money newsletter I looked at new analysis from ShareAction of UK bank Barclays’ climate policy, which highlights how the IEA’s recent softening of language around fossil fuel investment could have serious financial implications. https://lnkd.in/e_ziug_4

👀 🌿 Can we afford to go green? The answer certainly depends on political will, but also on financial decisions. In this thought-provoking read, the Financial Times delves into how governments are exploring potential funding solutions for the green transition. Europe's Green Deal hinges on innovative financing mechanisms. There are many solutions, such as carbon taxes and green bonds. However, a key player is often overlooked: the European Central Bank. Their monetary policy can significantly impact green investments. Lower interest rates for green activities could unleash a wave of funding. 👇 Let's take a closer look at how the ECB could step in in the comments 👇 #europe #green #renewables #ecb #monetarypolicy #greenfinance #cleanenergy

ACEN, the Ayala group's listed energy platform, joined this year’s Climate Week NYC, the biggest annual climate event of its kind, with leaders from the world of business, tech, politics, academia and civil society. The company’s participation reinforces its pioneering role in the coal-to-clean energy transition through the use of transition credits. #renewableenergy #bonds #stockmarket #stocks #finance #Business #Corporation #Financial #Invest #Investment #investingtips

The FM Resilience Credit powers a new kind of investment. Now in its third year, the US$400M initiative uses premium offsets to provide clients the flexibility to transition to renewable energy and protect against climate risks. By the end of 2025, the combined credits—which have increased by $50M annually—will have unlocked $1B+ in premium offsets and reduced the economic impact of natural hazards by $30B+. #protectyourpurpose #wearefm