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More than 40 % of electricity worldwide was non-emitting in 2023, and more than 90% of the growth in net power capacity came from wind and solar. This type of planned transition in the building sector is necessary to protect consumers from higher costs and strandedassets.
However, subsequent Conservative prime ministers – Liz Truss and Rishi Sunak – “didn’t understand the urgency”, according to the Rt Hon John Selwyn Gummer, Lord Deben, Conservative Party peer and former chair of the UK’s Committee on Climate Change (CCC) from 2012 to 2023. It’ll be a mess.”
There is also the risk that fossil fuel infrastructure is retired before the end of its economic lifetime and becomes a strandedasset—a liability taxpayers would likely pay for.” The province added 7,152 MW of new renewable capacity, mostly solar and wind, between 2010 and 2017, but just 466 MW between 2017 and 2023.
trillion in 2023 to $4.5 These represent a strandedasset risk of hundreds of billions of dollars and potentially locking in tens of billions of tonnes of carbon dioxide (CO2) emissions.” trillion by the early 2030s in the latest net-zero roadmap published this morning by the International Energy Agency. The pathway to 1.5 ̊C
The findings align with those of a 2023 EY survey of senior corporate finance leaders , which found that while sustainability remained as a top investment priority, it was also the most likely area to experience near-term budget cuts in the current inflationary and geopolitically unstable environment in order to meet short-term earnings goals.
But companies won’t meet the challenge by dodging it, or lobbying themselves into a corner, surrounded by their own strandedassets. He acknowledges that the transition away from fossil fuels poses a particular challenge for the chemical industry; demand for its products continues to grow, while its most critical input is under threat.
Skidmore added that following the initiation of “the global transition away from fossil fuels” set in motion at the COP28 climate conference, the future obsolescence of fossil fuels will cause new oil and gas licenses to create strandedassets, instead of supporting communities “to transition their skills and expertise to renewable and clean energy.”
million metric tonnes in 2023, almost double the amount produced in 2000, and is expected to double again by 2040. Other risks include strandedassets in cases where no effort has been made to look at how plastics are being made and used throughout value chains.
Just as critically, transition plans are about embracing the booming new clean economy, creating new markets, and investing in the next batch of winners as this shift continues to accelerate exponentially— and avoiding being left behind with dwindling markets, outmoded business models, and strandedassets. This year, a record $1.8
The company noted that emissions from oil products had already declined by around 9% in 2023 from the 2021 base, and said that the new target would represent a 40% reduction from 2016, including 8 percentage points caused by contracts being classified as held for trading purposes.
The announcement is meant to deliver on the 2023 subsidy phaseout deadline contained in Prime Minister Justin Trudeau’s December, 2021 mandate letters to Guilbeault and Finance Minister Chrystia Freeland. Carbon Capture Backed by Carbon Offsets?
As US and Canadian banking majors begin to publish their 2023 proxy statements, there has been a troubling mischaracterization of climate-related shareholder resolutions, misleading investors into thinking these resolutions are something they’re not. Proponents of the resolutions acknowledge the near-term need for fossil fuels.
Alongside strandedasset dangers for investors, the early phase-out of emerging markets coal fleets leaves countries open to legal, financial risks. India increased its coal production by 12% in 2023-24 compared to 2022-23, with the government aiming for a 7% annual production increase. This would lead to 1.5
Mining giant BHP’s bid to acquire Anglo-American would create the world’s biggest shipper of metallurgical coal and a global mega-polluter, exposing shareholders to strandedasset risk as the world moves away from fossil fuels, a think tank has warned.
Even so, we have developed a pipeline of over ten large nature-based solutions to be financed during 2023, with an overall potential of 40,000 hectares of agroforestry and productive restoration. It’s part of our fiduciary duty to be at the forefront of efforts to scale up and re-allocate capital. Yet the world is changing.
Those organisations that have not considered reducing these emission sources could be misunderstanding the double materiality risks they carry: the risks to their business, like strandedassets or reputational risks, and their contribution to making the Earth uninhabitable.
Against an uncertain policy backdrop, 2023 also witnessed growing tensions between asset owners and managers, notably in the UK, with the latter not seen as providing sufficient support for their clients’ net zero-aligned strategies, particularly during the proxy voting season. Lee suggests not. “In
On 7 July, at the 80 th Meeting of the Marine Environment Protection Committee (MEPC 80), IMO member states endorsed the regulator’s ‘ 2023 IMO Strategy on Reduction of GHG Emissions from Ships ’. Some companies will start acting and some won’t; there’s more risk of strandedassets.” What role should investors play?
To better stimulate investment in climate resilience across Australia and New Zealand, the Investor Group on Climate Change (IGCC) has developed its ‘ Road to Resilience ’ strategy. Further, only 9% have implemented a response to their physical risk exposure.
Demand for gas may surge further in 2023, but its demise could well be sooner and sharper – and the risk of strandedassets much higher – than might have been predicted before Russia’s tanks rolled toward Kiev.
With global governments already under pressure to sign binding agreements to ‘scale down’ fossil fuel use at COP28 in November 2023, the economic and political case for developing renewables to replace existing energy infrastructure as well as for new energy capacity is growing. Globally, meeting the Paris targets of 1.5°C
This leaves it heavily exposed to reputational, regulatory and stranded-asset risk, leading many investors to avoid it. In 2023, the coal division contributed over CA$5 billion (US$3.64 The acquisition of EVR will only add to that. billion) to the company’s approximately CA$7 billion gross profit.
iv In 2023, the International Maritime Organization (IMO) set a target of achieving net zero emissions by 2050. Investing in fuel flexibility is the most financially viable way to avoid the risk of strandedassets, concludes the document. Without action, this could increase by more than 45% by 2050.
The IPCC Climate Change 2023: Synthesis Report, compiled by almost 300 scientists across 67 countries, draws together all the contributions from IPCC’s sixth assessment cycle, showing how action on climate change must be accelerated throughout the decade. The AR5 Synthesis Report contains over seven years’ worth of new peer-reviewed science.
During a media briefing hosted by the Interfaith Center on Corporate Responsibility (ICCR), lead investors, including the New York City (NYC) Comptroller’s Office, As You Sow and Sierra Club Foundation, outlined their proposals for the upcoming 2023 proxy season.
These plants are expected to operate for decades and risk becoming “strandedassets” if they retire early. billion for its energy transition between 2023 and 2027. These countries need more financing and alternative energy solutions, while at the same time, many have young coal fleets and new plants still under development.
We have a clear dialogue with a company before they are blacklisted but will continue to engage because we want to be able to invest in them again.” Strandedassets AP7 is a member of the Paris Aligned Asset Owners Initiative, a global group of 56 asset owners with over US$3.3
The importance of water-related risks was underlined last month with the commitments to a more ambitious Water Action Agenda signed last month at the UN’s first dedicated water summit in 50 years, part of a focus throughout 2023 on getting the UN Sustainable Development Goals back on track.
Over the course of 2022-2023, the TPT will be making recommendations, preparing detailed sectoral templates, creating guidance on third-party verification, and producing a pathway for future work on transition plans for consultation. . “No No two companies’ transition journeys are the same, even if they’re in the same sector.
billion of first-phase financing, through mechanisms including grants, concessional loans and investments and risk sharing instruments, but it has taken time for details to be worked out on how funding would be channelled to support decommissioning of soon-to-be-strandedassets. . The deal committed US$8.5 Article 6.4
The International Energy Agency (IEA) has been predicting since September 2023 that demand for all three fossil fuels will peak this decade before going into terminal decline. Brooks agreed that future gas demand looks like it will be more ephemeral, and thus less attractive for manufacturers to really bring on added capacity.
With more than 25 years of experience in sustainable development, energy and climate, Mendiluce was named one of Time magazines 100 most influential people on climate in 2023. Countries that have fossil fuel assets, they need to understand that the demand is going to decrease. This interview has been condensed and edited.
We must grasp the opportunity of the Global Stocktake to establish it as a key moment to raise climate ambition in the 2030 targets, by 2023 at the latest. It makes no long-term sense to continue pumping money into an asset that is already destined to eventually have no value — a strandedasset. ANALYSIS: NEWS: .
The courts, investors , banks and insurers are all making this point and this compelling argument is buoyed by increasing examples of strandedassets. A total of 208 educational institutions have divested their assets from fossil fuels. It is fitting that educational institutions are divesting in droves.
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