Sustainability

Glasgow’s carbon market overhaul is only half done

18 Nov 2021

The U.N.’s COP26 summit agreed tougher accounting standards for emissions credits, a market ex-BoE Governor Mark Carney hopes can swell to $100 bln a year. It’s a step forward, but loopholes remain. Companies that don’t like greenwashing have a strong incentive to help police it.

Australia deserves to pay climate risk premium

18 Nov 2021

Canberra adopted a net-zero emissions target mainly to keep the country from being punished by investors. Its newly released assumptions on electric vehicles, mining and more confirm a lack of seriousness in the plan. Sustained pressure from fund managers could make a difference.

Thyssenkrupp finds lost hydrogen lottery ticket

17 Nov 2021

The ailing 7 bln euro German group’s shares soared amid hopes it might list its electrolysis unit. With a few tweaks, its chlorine-making kit can produce hydrogen, a big enabler of a no-carbon world. That promise means its paltry current sales could yield a 5 bln euro jackpot.

Ariston IPO is enticing play on green energy wave

17 Nov 2021

The family-owned maker of heat pumps and water heaters is going public in Milan at a valuation of up to 4 bln euros. With demand for energy-efficient heating systems set to boom, it’s in a sweet spot. A discount to rivals A.O. Smith and NIBE Industrier should help inflate demand.

Bitcoin miner’s green patina is fool’s gold

17 Nov 2021

In a somewhat novel twist for the power-sucking cryptocurrency business, Iris Energy relies mainly on renewables. That probably helped boost its valuation in a $1.6 bln IPO, but it feels like style over substance. And the climate hype cannot mitigate some serious risk factors.

China’s central bank tries brighter shade of green

16 Nov 2021

A new lending programme could, by one estimate, lead to nearly $1 trln of investment in clean energy projects. It’s a bolder policy than from Western peers, and also a clever way to tackle the stagflation dilemma. Runaway stimulus remains a risk, as does misallocated capital.

Breakdown: COP’s bare minimum is still a ratchet

15 Nov 2021

Glasgow’s UN global climate shindig needed to outline a clear path to halve emissions by 2030 and secure way more cash for developing states. It managed neither. Still, the final agreement, and a joint U.S.-China pact, make it harder for companies to delay on climate change.

Capital Calls: Lordstown Motors, CVC

12 Nov 2021

Concise views on global finance: Shares of the short seller-targeted electric vehicle startup are falling as it drifts into the slow lane; the private equity company aims to bulk up with a 1.6 billion euro offer for Amsterdam-listed Intertrust.

Sika has scope to focus on grander form of defence

11 Nov 2021

The $55 bln Swiss group is paying $6 bln for BASF’s old construction chemicals unit. Two years ago, bulking up helped see off hungry French rival Saint-Gobain. Now three times the size, Sika can use deals like this to position itself at the good end of a hard-to-green sector.

Viewsroom: GE goes for breakup; COP not out yet

11 Nov 2021

Though Larry Culp’s move to separate the U.S. industrial conglomerate into three parts marks the end of an era, the decision was inevitable, John Foley argues. And the UN climate do kicks off its second week with one step backward. George Hay and Rob Cox check in from Glasgow.

U.S.-China climate pledge adds psychological lift

11 Nov 2021

The world’s two biggest polluters surprised COP26 with a joint statement, albeit one with few new greenhouse-gas cuts. At least it tries to separate global warming from other diplomatic problems, and it should help others set their sights higher. Something is better than nothing.

Carmakers muddy private sector’s COP green sheen

10 Nov 2021

Volkswagen and peers have snubbed a Glasgow pledge to end petrol vehicle sales by 2040. Banks’ net-zero promises last week suggested companies might offset inadequate state action. The carmaker rebuff is a reminder that governments still have their hands very much on the wheel.

Capital Calls: Google, Twitter, Swedish grocer

10 Nov 2021

Concise views on global finance: The search giant’s defeat in appealing a $2.8 bln EU fine is tolerable if American judges don’t follow; the social media network hopes to charge hardcore U.S. users a monthly fee; ICA Gruppen’s top shareholder takes the $12 bln retailer private.

Cox: Whiff of Donald Trump redux hangs over COP26

9 Nov 2021

The former U.S. president isn’t in Glasgow, but as nations sign up to long-term green commitments many wonder if he’ll boomerang back to the White House in 2024. The hope is that things will be too far along to unwind should he return. That lends urgency to the deliberations.

The Exchange: Bank of America boss Brian Moynihan

9 Nov 2021

With a $2.8 trln balance sheet, BofA is one of the largest banks in the Glasgow Financial Alliance for Net Zero. Moynihan tells Rob Cox what this means operationally, how the bank is helping “hard to abate” firms to transition, and what it’s like to be back at conferences.

Rolls-Royce nuclear plans piggyback green success

9 Nov 2021

The UK engineer and partners are pumping 195 mln pounds into a unit to build small commercial reactors. As with wind and solar, the British government is helping by promising to buy the plants’ electricity. It should mean a lucrative side hobby for the group run by Warren East.

Capital Calls: Hedge funds, Rogers, Inmarsat

8 Nov 2021

Concise views on global finance: The industry’s assets are above a new threshold, but it’s a business reaching a limit; the head of the Canadian telecom giant has won a court victory; U.S. rival Viasat pulls the UK-based satellite operator into its orbit for a pricey $7.4 bln.

COP background chatter supports Greta’s bad vibes

8 Nov 2021

The young activist declared the global climate shindig in Glasgow a failure at a weekend protest. In public, financiers and policymakers are bullish about the scope of new private-sector pledges to drive decarbonisation. In private, they fret mightily about energy security.

Banks’ green push requires more stick than carrot

4 Nov 2021

Global standard-setters are mulling how to tackle climate risk. One popular idea, fiddling with regulatory risk weights to encourage greener lending, may backfire. Better to hammer slow-moving banks with extra capital requirements while pressing on with real climate stress tests.

Mark Carney is key-man risk for bank net-zero club

3 Nov 2021

Finance firms with $130 trln of assets are pledging green targets thanks to the former BoE governor’s arm twisting. That’s good, but Carney’s job is only half-done while JPMorgan and co decide detailed goals. Were he to head off to run Canada, the momentum might get lost.