Banks say they can help build scale in voluntary carbon markets, by providing services from market-making to deal origination and stewardship. But some say it is too early for such intervention, arguing that profits still need to go into developing technologies.
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Under pressure from the financial sector, the EU, G7 and other influential bodies are ramping up the push to achieve consistent measurement and reporting of sustainability impact amid concerns that separate initiatives are hindering this goal.
The founder of ClientEarth, James Thornton, explains how the environmental law charity takes on large corporates and governments to tackle climate change.
New research reveals many insurers are still shying away from tightening up their oil and gas policies in line with International Energy Agency recommendations. That said, they have made solid progress on coal, having generally closed the gap on the asset and liability side.
Businesses know the influence climate change is having on our environment. And while many will do all they can to accelerate the race to net zero, effective climate change risk modelling must form the backbone of these efforts.
In partnership with RMS
AkademikerPension, ATP and PensionDanmark are increasingly heavily focused on green investing but take different approaches to renewable energy and high-carbon assets, and to climate transition in general.
Over 2,000 governments and businesses have signed up to some form of net-zero commitment, but, in the midst of a 'code red' for humanity, 2050 feels a very long way away. Richard Mattison, president of S&P Global Sustainable1, discusses how we can accelerate progress.
In partnership with S&P Global
Banks account for around half of the $130trn in private capital Mark Carney said at the Cop26 summit was aligned with net zero, but there is widespread scepticism about the announcement. Senior executives from some of the biggest lenders give Capital Monitor their take.
There are calls for regulation to support the new global commitment to cutting methane levels, seen as one of the quickest ways to tackle climate change. But how it will be funded is unclear, and the absence of China, India and Russia from the pledge does not bode well.
The US Securities and Exchange Commission has long seemed oblivious to the dangers of environmental inaction, but things are changing fast under new leadership. Commissioner Allison Herren Lee tells Capital Monitor how the regulator is modernising to tackle climate change.
Despite positive noises at Cop26, analysis conducted by Capital Monitor of lenders’ fossil fuel policies underlines why critics remain sceptical of the Net-Zero Banking Alliance’s ability to get signatories to align with International Energy Agency recommendations.
The lender is the first globally to release a comprehensive sustainability strategy to exit fossil fuels and the first in Europe to have its climate goals validated by the Science-Based Targets initiative. We speak to its CEO about why he believes such moves make good business sense.
The loss of our forests could prevent the world from meeting the Paris Agreement target of limiting the increase in global temperature to 1.5°C. Over half of global GDP is covered by a national net-zero target, yet it is questionable whether any of these targets will be met without significant progress on deforestation.
In partnership with PRI
The stakes are higher than ever for the upcoming UN climate talks in Glasgow to deliver results on policy promises, but the absence of key players has tempered expectations. Still, there are positive signs of progress from the world of business and finance.
Risk managers must provide insight on how to act on climate change by analysing the latest scenarios to understand how it will impact exposures. Climate modelling, which captures climate change and climate variability, ensures there is sound scientific consensus around risk.
In partnership with RMS
Members of the European Parliament voted at the end of September to extend natural gas subsidies until 2027. Critics are slamming the decision, adding to pressure on governments to end support for fossil fuels. But even progressives acknowledge the tricky decisions involved.
The Nordic country is a pioneer in carbon taxation and a leader in green bond issuance. Åsa Lindhagen speaks to Capital Monitor about the country's green policies and fostering sustainable development.
With the US Congress divided over proposed climate and infrastructure bills, and plenty of financial sector opposition to President Joe Biden’s plans, major North American retirement funds stress the need for environmental policy stability.
Net-zero emission pledges are under growing scrutiny from investors amid worries over the gaming of carbon reporting. Governments are facing rising pressure to ensure accountability for such commitments.
The idea of incorporating gross national happiness into mainstream economic thought has long been a subject reserved for debating societies and 'lefty' thinkers. As politicians are cornered into taking immediate action on climate change, capitalism is in for a big surprise.
One-fifth – and counting – of the world’s largest companies have committed to achieve net-zero carbon emissions, largely by 2050. But there is no legal or regulatory recourse if they don't, and seemingly little appetite for that to change.
The British bank is calculating a carbon budget that should lead to an overhaul of its balance sheet. Starting by tightening financing policy for the oil and gas sector, the group will introduce a series of emissions-led sector targets by 2022. A bold move, but critics argue the plans lack clarity.
The IPCC’s latest report is unequivocal: humans are warming the planet. With Cop26 looming, everyone is clear that rapid policy action is required to mobilise trillions of public and private finance to reverse the damage done. We outline what policies they are.
Investors are increasingly joining the IMF, OECD and World Bank in pushing for a global system for carbon pricing. Implementing it remains politically problematic, but the ever-louder alarm bells over climate change are raising hopes it could happen.
Despite Seoul's commitment to reducing the country's reliance on fossil fuels, new coal-fired power projects are still raising funds. But the commodity's recent sharp price rise may focus the minds of corporate executives, bankers and government officials.
The German lender is turning down more deals that do not satisfy its increasingly strict sustainability criteria. But it still faces criticism for its financing of high-carbon industries.
With many classified funds containing questionable stocks, the EU’s Sustainable Finance Disclosure Regulation is upsetting asset managers who feel their focus on impact is being undermined as a result.
The Italian power company recently sold the largest-ever sustainability-linked bond, after issuing the world's first in 2019. It also has ambitious plans to cut emissions, add renewables capacity, and raise more sustainable funding.