ESG Insider: COP28 to focus on fossil fuels trajectory, global stocktake
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The annual UN climate meeting known as the Conference of the Parties, or COP28, will kick off in just two weeks, and it’s slated to focus on major cross-cutting themes ranging from the state of the energy transition amid geopolitical tensions to financing climate resilience in communities on the front lines of climate risks.
Underlying the conference’s themes is the question of whether the two-week event that begins on Nov. 30 will prompt countries and companies to step up their climate ambitions, including on the topic of fossil fuels. Held in Dubai, COP28 will take place in a region where more than one-third of the world's oil exports are produced.
In an interview with S&P Global Commodity Insights, Fatih Birol, the head of the International Energy Agency (IEA), said countries need to signal the need for an orderly retreat in fossil fuel use, starting with coal. But he acknowledged that this is a difficult area to find consensus. The IEA provides analysis, data, and policy recommendations focused on ensuring energy security and helping the world transition to clean energy. The IEA's net-zero roadmap calls for a rapid shift away from fossil fuels.
The conference will also feature the first global stocktake of countries' progress on achieving the goals of the 2015 Paris Agreement on climate change, which is one of several topics we explore in this week's episode of the ESG Insider podcast previewing COP28.
In this week’s newsletter, we explore how rising interest rates and higher costs in the renewables supply chain could slow the pace at which European utilities move toward their net-zero targets. And we look at how a Category 5 hurricane that hit Mexico in October is likely to qualify as a major loss event for one large global reinsurance company. We also examine how the EU's new green bond standard is likely to skew the market in favor of banks and other larger issuers. Note: The ESG Insider newsletter is off next week, next publishing on Nov. 29.
Chart of the Week
COP28 could be turning point for energy markets: IEA's Birol
A "successful" UN Climate Change Conference in Dubai hinges on a stronger commitment to climate goals by key fossil fuel producers, the head of the International Energy Agency said in a wide-ranging interview with S&P Global Commodity Insights.
Path to net-zero: Cost surge puts European utility targets under pressure
European utilities are sticking by their net-zero targets, but the path is getting steeper. Rising interest rates and a surge in costs in parts of the renewables supply chain are making the delivery of new wind and solar capacity more expensive and putting installation targets at risk.
Munich Re expects Hurricane Otis bill to be above €30M major loss threshold
Munich Re expects its claims bill from Hurricane Otis to exceed the reinsurer's €30 million threshold to qualify as a major loss, CFO Christoph Jurecka said. Jurecka said Otis claims would be particularly difficult to assess because it was the first time a Category 5 storm had hit that area and noted that the range of insured loss estimates so far had been wide.
New green bond standard in Europe to divide market
The green bond market is likely to skew in favor of banks and other larger issuers when a newly adopted European standard takes effect. The European Union's much-awaited Green Bond Standard — effective January 2025 — aims to improve the transparency, comparability and credibility of the green bond market. It also aims to help investors assess the environmental, social and governance stance of issuers more closely.
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This week on the ESG Insider podcast, we explore what to expect from COP28, including what’s at stake and what big themes will be discussed. Saugata Saha, President of S&P Global Commodity Insights, explains the significance of the first-ever global stocktake that will be discussed and finalized at COP28. And we talk to Dan Feldman, who served as Chief of Staff and Counselor to US Secretary John Kerry when he was appointed the first Special Presidential Envoy for Climate. He explains how the conference will unfold and the different players involved from both the public and the private sector.
>>Listen on Spotify, Google Podcasts or Apple Podcasts
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