Environment

COP27 deal is a blessing in a very good disguise

21 Nov 2022

The premier forum for fighting climate change ended in Egypt with a largely inadequate agreement to reduce global greenhouse gas emissions. But it did feature a small show of goodwill by rich countries. That might incentivise the big emitters of tomorrow to up their game.

Indonesia’s green step not yet a leap for mankind

18 Nov 2022

Jakarta will get $20 bln of overseas public and private cash to help it decarbonise. The deal struck at the COP27 summit paves the way to channel capital to poor countries at the required scale. But big foreign transfers are fraught. Lenders have plenty of reason to hesitate.

COP28 may make up for COP27’s shortcomings

17 Nov 2022

The global climate meeting has mostly failed to lure the same corporate big hitters as Glasgow did last year. In this Viewsroom podcast, Breakingviews columnists discuss how even if the gathering in Egypt’s Sharm El-Sheikh yields little progress, 2023 in the UAE could be better.

The shafts of light in a dark, dark world

14 Nov 2022

As the G20 kicks off, there are many negatives: a frying planet, economic crisis, conflict in Ukraine, and maybe a cold war with China. But there are positives too, says Hugo Dixon: Putin is losing, autocrats are struggling, and carbon emissions may peak earlier than expected.

Guest view: Climate finance club hands over baton

8 Nov 2022

It’s a year since banks, investors and insurers with a collective $130 trln convened in the Glasgow Financial Alliance for Net Zero. Despite some setbacks, the group has made progress, writes Huw van Steenis. Now it’s up to governments to help unlock more green investments.

How Joe Biden can help save the planet at COP27

7 Nov 2022

“Just transition partnerships” with states like India are essential to fight climate change and advance Western interests. America needs to join up its trade, geopolitical and climate policies, says Hugo Dixon, as the U.S. president heads to the U.N. climate conference in Egypt.

Climate fight’s main event battles sophomore slump

1 Nov 2022

COP26 put climate change centre stage in 2021, but this year war and energy crises have distracted attention. In this episode of The Exchange, the United Nations’ key COP27 players Mahmoud Mohieldin and Nigel Topping tell George Hay why the event could still make a splash.

Brazil gives flagging climate fight a timely boost

31 Oct 2022

Luiz Inácio Lula da Silva beat Jair Bolsonaro in the Latin American state’s presidential election. He could curb deforestation that makes the country a big greenhouse gas emitter. It’s a bright spot in a year when public and private sector momentum on climate change has slowed.

UK unveils overdue sieve for ESG alphabet soup

25 Oct 2022

Britain’s Financial Conduct Authority has sketched out rules classifying environmental, social and governance funds. The approach differs from Europe’s framework, adding to fund managers’ burden. Yet it may also be tougher and more consumer friendly, making greenwashing harder.

Aussies put net-zero nationalisation on the map

21 Oct 2022

The leader of Victoria says the state will take a controlling stake in new green power projects if he’s re-elected. That might crowd out capital. But done right, public ownership can spread financial risks and align policy with investors – just what the private sector wants.

Sovereign debt greens yet net-zero pledges darken

13 Oct 2022

Saudi Arabia’s wealth fund is the latest public body to issue securities to fund renewable assets. Strong buyer demand and the chance to flaunt action on climate change explain the boom. Yet national decarbonisation targets remain weak, and green bonds do little to improve them.

How West can mobilise trillions to help save Earth

10 Oct 2022

On top of stopping global warming, rich nations have geopolitical reasons to help the countries in the Global South transition from fossil fuels. America’s call for the World Bank to focus more on global needs like climate change is a step in the right direction, says Hugo Dixon.

Capital Calls: EasyJet, Nexi

27 Sep 2022

Concise views on global finance: The budget airline scraps its offset plan and focuses efforts on cleaner technology; the 12 bln euro payment company’s valuation gap with peer Worldline looks increasingly hard to justify.

Ukraine has more pluses than minuses for climate

26 Sep 2022

The Russian invasion has prompted other countries to boost gas production and burn more coal. Climate diplomacy is on ice. But this crisis will also prompt a dash for cheaper and more secure renewable energy. That helps the fight to slow global warming, says Hugo Dixon.

Pension funds are going too long on U.S. politics

1 Sep 2022

A new Texas investment blacklist that includes BlackRock is more symbolic than a real threat. But the anti-ESG push by states is putting pressure on retirement outfits as they grapple with falling markets. Politicians’ short-term whims are a bad match for long-term funds.

Water crisis investing is glass not even half-full

1 Sep 2022

Companies like Danone, Ecolab and Coke paraded some smart, profitable ways to adapt to flood and scarcity at an annual Stockholm confab. But those are often just pilot projects. And funding from VCs to governments is scarce. Preparing for global warming requires opening the taps.

Private jet crackdown is idea that could fly

25 Aug 2022

The French government is mulling clamping down on corporate flights, on both environmental and societal grounds. Whether it imposes punitive taxes or strict restrictions, the plan has few obvious downsides. It would be even more effective if other European countries hop aboard.

Investors add $10 trln activist wrench to H2O risk

22 Aug 2022

Water has long played second fiddle to emissions in battling climate change. Now Fidelity, DWS and 62 other money managers want big users from McDonalds to Microsoft to better manage and protect the resource. With droughts and floods set to inundate earnings, it’s past time.

U.S. climate win may distort global net-zero race

18 Aug 2022

The $430 bln legislation signed by President Joe Biden should spark faster uptake of solar, wind and hydrogen in the country. Over time, it could cut green power costs worldwide. But the U.S. plan’s reliance on subsidies risks thwacking Asian renewable energy supply chains first.

Climate fight can take heart from an old oil maxim

20 Jul 2022

Sages say high crude prices are their own cure. Similarly, hot weather now may avoid worse warming in future, if baking conditions at home make the West honour its pledge to finance developing states’ climate change struggle. That might get stalled net-zero plans back on track.