Sustainability

UK power market deficiencies flash red at bad time

20 Sep 2021

Britain may spend hundreds of millions of pounds propping up its energy sector. Soaring prices are a global problem, but the UK has a more liberal market and fewer alternative power sources. It’s a poor look as Boris Johnson prepares to lecture others on cutting carbon emissions.

South Africa is litmus test for climate solidarity

15 Sep 2021

Despite its relatively small size, the Rainbow Nation’s economy is a big CO2 emitter. Yet Pretoria can ill afford a switch from coal due to soaring public debt. A $10 bln aid plan could be the answer, if lenders can close their eyes to the financial and political risks.

Norway readies fresh round of green air guitar

14 Sep 2021

The Scandinavian state is on track for a left-wing coalition pledging to do more on climate change after eight years of conservative rule. But rapid cuts to national hydrocarbons output aren’t likely. Given Norway has a $1.4 trln wealth fund, it can afford to go beyond gesturing.

Road to COP: Hydrogen comes faster than you think

14 Sep 2021

At this fall’s United Nations climate summit, world leaders will seek to take concrete steps to fight global warming. Green hydrogen could help, but it’s still too expensive. Snam CEO Marco Alvera tells Lisa Jucca why the hydrogen energy revolution is likely to surprise us all.

High gas prices demand creative climate thinking

13 Sep 2021

The rising cost of the fossil fuel in Europe risks bigger energy bills for households. Public ire would make it harder to secure a decent deal at November’s global climate summit. Politicians can avoid that by taking steps to shield the poorest from the costs of decarbonisation.

RWE makes for a good coal wind-down guinea pig

10 Sep 2021

The 22 bln euro German utility’s new activist wants it to ditch carbon-intensive lignite assets faster. If the government wants to hit tougher CO2 emissions targets, RWE will have to. The least-bad way forward may be for Berlin to assume the offending power plants itself.

German election offers more continuity than chaos

8 Sep 2021

A three-way coalition may lead the EU’s largest economy after September’s poll. A grouping of left, right, or green lawmakers could take months to form and shirk reforms at home and in Europe. Climate change and the pandemic aftermath will still shape policy for the better.

Review: Covid-19 and the crises yet to come

3 Sep 2021

2020 was one of the most seismic years in world history. Adam Tooze’s “Shutdown” recaps how the pandemic exposed the fragility of an interconnected world, while uncovering some pockets of strength. It’s a troubling test run for future challenges, most notably from climate change.

Guest view: Climate’s lessons for the water crisis

27 Aug 2021

Tackling carbon emissions is at last mainstream thanks to data, science, a clear message and plenty of capital. Martijn Wilder, co-founder of climate advisory and investment firm Pollination, argues that drawing on those can help alleviate worsening floods and water scarcity.

Maersk’s green ships have first-mover disadvantage

26 Aug 2021

The $53 bln container giant is buying eight vessels powered by carbon-neutral methanol. Maersk gets a green halo, and customers could shoulder its increase in costs. The catch is that clean fuel alternatives currently in development are likely to be cheaper, and greener.

Dixon: Afghan crisis is climate risk, opportunity

19 Aug 2021

The Western alliance may be so damaged it can’t provide climate leadership. Global decarbonisation plans would fail to build momentum, storing up massive financial pain. But there’s a chance the West will regroup – and devise a Pax Planeta to replace the failed Pax Americana.

Intel offers pointers to ease U.S. water crises

17 Aug 2021

A federal agency is for the first time slashing how much the Colorado River supplies to some states. Climate change means the problem may in time affect California. The chip giant’s efforts to save water in Arizona show how business can help mitigate problems caused by aridity.

BHP boss goes a seismic three for three

17 Aug 2021

After paying a record dividend on the back of soaring iron ore, Mike Henry is boldly remaking the $178 bln miner. He’s selling oil and gas, charging into potash and collapsing the dual-listed structure. Even with fresh questions on capital use, a valuation uplift looks warranted.

Aussie coal bailout begins with fair share of pain

13 Aug 2021

Power producer AGL’s CEO says everyone should pitch in to wean the country off the black stuff. Fair, but it also sounds like a pitch for taxpayer aid from a company that dug itself into a hole. A credible plan would ensure shareholders and executives bear the brunt.

Viewsroom: Battling the climate emergency

12 Aug 2021

A new U.N. report on global warming gives financiers fresh reasons to take bigger steps to help avert or mitigate the consequences, Breakingviews editors argue. A plan by the UK’s Prudential and the Asian Development Bank to close coal-fired power stations offers a model.

UN climate warning is a gauntlet for green finance

9 Aug 2021

Carbon emissions from human activity are “unequivocally” to blame for global warming, a new report says. Financial markets are belatedly coming up with solutions, like a Prudential-inspired plan to close coal plants. All their creativity is needed to tackle the planet’s crisis.

Coal bad bank fund dangles complex climate kudos

5 Aug 2021

The ADB and the UK’s Prudential could buy Asian power plants fuelled by the pollutant, close them early and foster green energy. Bragging rights from cutting carbon should bag the needed cash. But investors will have to accept the risks and the iffy optics of profiting from coal.

Cox: Saudi may have a super-green future after all

5 Aug 2021

At a recent G20 summit, the kingdom didn’t just align with U.S. and European climate crusaders. Its delegates even tried to break an impasse with India on coal. It’s a sign of how confident Saudi has become in its ability to manage, and profit from, the energy transition.

BP’s oil price boon is a mixed blessing

3 Aug 2021

Rising crude values allowed the $84 bln UK group to raise its payout and give CEO Bernard Looney more funds to pivot away from fossil fuels. But the bonanza could focus investor minds on less speedy rivals with scope to pay higher dividends, like Shell. That may hurt BP’s appeal.

Ferrari’s new boss faces early electric test

2 Aug 2021

The EU wants to ban new fossil fuel-powered cars from 2035. That’s likely to force incoming CEO Benedetto Vigna to accelerate the $42 bln sports-car maker’s plans to shift to battery power. How to do that without denting its luxury margins will require some deft driving.