Renewable Energy

Europe energy fallout will cascade down the years

12 Sep 2022

The gas crisis is a long-term problem which will make the region poorer and less competitive while saddling it with higher public debt. Dealing with this as well as high inflation will cause further political ructions which will cascade down the years, says Hugo Dixon.

Adani’s Fitch debt spat is good news all round

8 Sep 2022

The U.S. group’s CreditSights unit rankled the $255 bln opaque Indian behemoth last month by calling it “deeply overleveraged”. But it got Adani’s executives talking more, and investors now have two clearer views of the company to weigh up. That’s a transparently good outcome.

Shell’s next boss looks a shoo-in

2 Sep 2022

The $192 bln energy group’s veteran CEO Ben van Beurden is likely to depart next year. Shell’s heads of oil drilling, refining, and finance all merit consideration. But gas and renewables boss Wael Sawan, who holds the key to Shell’s future revenue growth, is the logical choice.

Climate both dries and drowns case for hydropower

31 Aug 2022

The IEA and others reckon hitting net zero requires doubling the energy source’s output. But aridity from China to the Americas highlights a big vulnerability. Flood risk is even more widespread. Add environmental degradation and hydropower is often more trouble than it’s worth.

Paris and Berlin’s windfall tax timidity is futile

19 Aug 2022

France and Germany oppose a raid on firms profiting from the energy crisis. Berlin could borrow more, and President Macron has pledged not to hike taxes. Yet given it won’t make investors see either country as way more business-friendly, the reluctance makes little sense.

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.

Australia green fail is global net-zero liability

20 Jul 2022

Canberra is pledging action after a grim report detailing Down Under’s deteriorating environment. But coal and gas exports help fuel disasters at home and abroad, like Europe’s wildfires. Refusing to tackle it sends a gloomy signal about countries’ willingness to cut emissions.

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.

France Inc could turn a profit from EDF takeover

7 Jul 2022

President Macron’s administration may have to fork out 7 bln euros for full control of the energy giant. But spinning off its renewable arm could recoup that cash. And the nuclear branch’s long-term investment needs and associated risks are more suited to public ownership.

Green deals overcome markets flashing red

28 Jun 2022

Despite widespread investor risk aversion, China’s EV battery giant CATL just raised $6.7 bln in new equity. The decarbonisation theme is dominating big stock sales. Supply chains and higher costs are a concern, but the Ukraine war will help keep capital coming to clean energy.

Capital Calls: Russian default, Inflation and debt

27 Jun 2022

Concise views on global finance: Moscow defaulted on its foreign debt for the first time in over 100 years, leaving bondholders in limbo; the Bank for International Settlements wants rates raised “quickly and decisively”, but is also worried about higher borrowing costs.

Capital Calls: Bank stress tests, Japan inflation

24 Jun 2022

Concise views on global finance: U.S. lenders passed the latest Federal Reserve capital exams, but they’re bound to be more stressful next time; the country’s consumer prices rose 2.1% in May, intensifying a standoff between the central bank and bond investors.

Aussie energy crisis demands both carrot and stick

23 Jun 2022

Electricity trading restarted after a week-long hiatus. Canberra wants to pay generators to guarantee supply from 2025. Until then, outages will linger. A windfall tax, or the threat of one, on coal miners and gas drillers like Exxon Mobil and Santos could spark short-term fixes.

Green investors need to get their hands dirty

22 Jun 2022

Most money managers fight climate change by shunning stocks of polluting companies. By contrast, so-called transition funds target dirtier assets to clean them up. Though the approach brings risks, it could also deploy trillions of dollars of green capital in a smarter way.

Capital Calls: SoftBank Arm-twisting

22 Jun 2022

Concise views on global finance: The UK government may be eyeing desperate measures to keep SoftBank-owned chip group Arm's IPO in London.

Capital Calls: Hydrogen IPO, Call centre M&A

20 Jun 2022

Concise views on global finance: Despite Thyssenkrupp postponing its clean energy listing, De Nora is still pressing on with its own one at a lower 3 bln euro valuation; customer-service group Sitel agrees to buy 2.6 bln euro rival Majorel in a cash-and-stock deal.

Power providers tempt Wall Street-style backlash

17 Jun 2022

Australia halted electricity trading because generators were “gaming” the system, Prime Minister Anthony Albanese says. Such behaviour risks inviting widespread uproar as banks did during the financial crisis. It’s a bad spot to be in as a new government upgrades climate goals.

Expensive capital will slow the green transition

17 Jun 2022

Strategic investors with low-cost, long-term funding have put polluter India on course to hit 2030 goals. TotalEnergies’ plan to help Adani spend $50 bln on green hydrogen hints at ongoing support. But such sponsors may have to step it up as rising rates and risk aversion bite.

Aussie energy crisis is an embarrassment of riches

10 Jun 2022

A looming gas supply shortage and high-power prices are due to years of bad policy in a country that should be a renewables poster child. It’s a chance for new Prime Minister Anthony Albanese to layout a comprehensive clean energy plan that will foster a green investment boom.

Hydrogen IPO finds rare pocket of market optimism

6 Jun 2022

Italy’s De Nora, which makes components to produce a green variety of the gas, is seeking a June listing. That’s bold after choppy markets deflated other high-flying upstarts. Tapping into Europe’s drive to end its fossil-fuel dependency will help pump up a 5 bln euro valuation.