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“Most of the market risk falls on private investors,” they add, overwhelmingly in Organisation for Economic Cooperation and Development (OECD) countries like Canada, with substantial exposure through investment funds, shareholdings, and pensions. Of the US$1.4
Governments can deliver even deeper emission cuts by following through and finalizing developing and announced policies. This type of planned transition in the building sector is necessary to protect consumers from higher costs and strandedassets. But getting closer to Canadas emission targets still requires more action.
Therefore, as we develop our renewables ecosystem, including hydro and energy interconnectors, balancing the energy grid becomes much easier.” They can make a huge difference through investing relatively small amounts of money in developing countries.” Supporting emerging economies’ transition will work to developed nations’ advantage.
The Cambridge Blockchain Network Sustainability Index puts the electricity consumption of Bitcoin networks above those of several developed countries, including Norway and Sweden. The first was the development of standards and technologies to have 100% renewably powered blockchains as soon as 2025. Is Bitcoin the next strandedasset?
Governments should compensate oil and gas investors for strandedassets to avoid costly tribunals, the International Institute for Sustainable Development (IISD) has said.
There’s a lot at stake: over the next decade, Canada will see around 470 natural resource projects , both conventional and “clean economy”–related, developed at a cost of nearly $525 billion, according to the FNMPC. Now, up to $5 billion in federal, plus billions in provincial, guarantees are available for oil and gas development.
A group of finance experts tasked with developing a definitive taxonomy of sustainability for Canadian investors has just filed a preliminary roadmap, but they likely won’t publish a detailed taxonomy until 2025. They have a big role to play in facilitating the transition to a low-carbon economy.”
Throughout the 21st century, China’s rapid economic development has fueled a steady rise in energy consumption, in contrast to the US and European Union, where it has plateaued and even started to fall ( Display ). For China, decarbonization considerations are tightly tethered to economic development and continued growth.
All told, 24 would-be LNG developers have received natural-gas export permits from the federal energy regulator, though many of those will not proceed. Ottawa is currently developing a transition taxonomy – essentially a guideline as to which types of investments are appropriate in the transition to a net-zero economy.
The result: Commercial office spaces could become strandedassets, subject to write-downs and operating losses. . In the short term, landlords are worried struggling companies will renegotiate leases or shift to a work-from-home model, requiring less office space writ large.
Cate Lamb, Global Director for Water Security at CDP, said: “To be able to act effectively, companies must develop a robust understanding of how they contribute to the plastic pollution crisis and formulate equitable and just transition plans to address this.
As I looked into the Constellation Prize, I saw that the prize sheds light on how engineering can be done to promote new modes of engagement, research, development, and design that elevate the values of environmental protection, social justice, human rights, and peace. Jay & Kristy Egg and Keith Schue.
CDP and Planet Tracker’s High and Dry: How Water Issues Are StrandingAssets , May 2022 report recognizes that “Water risk is already strandingassets across major sectors of the global economy.”. Ecolab has developed publicly available tools such as Smart Water Navigator and Water Risk Monetizer.
There is now 783 gigawatts (GW) of oil- and gas-power capacity under development—projects that are either announced or in the pre-construction and construction phases,” wrote Jenny Martos, project manager of GEM’s global gas tracker, and Julie Joly, the organization’s oil and gas programme director, in a post for Carbon Brief.
A group of more than 180 investors, representing $10 trillion in assets under management, have signed a joint statement calling on companies to cut their use of plastics, and address the financial risks of plastic use.
Delaying those actions “would lock in high-emissions infrastructure, raise risks of strandedassets and cost escalation, reduce feasibility, and increase losses and damages.” But some meeting participants warned that those delays are baked into the process by some of the key assumptions in the IPCC’s modelling.
Build more investor confidence in green infrastructure projects The greatest fear that many investors have around investing in green infrastructure projects is that they become “strandedassets.” As a result, the private sector will have to invest in the new infrastructure needed for sustainable development goals.
The developing regulatory landscape must also be understood and monitored closely. The ESG regulatory landscape is continuously evolving, and this should be a key consideration for asset managers.
Officials cast it as one major part of a process that also includes a phaseout of public financing for domestic fossil fuel projects through Crown agencies like Export Development Canada. Those guidelines are due to be released in 2024. In a release Monday, Oil Change International placed the total at $50 billion since 2019.
Canada’s Environment and Climate Change Minister Steven Guilbeault said: “By eliminating inefficient fossil fuel subsidies, we are encouraging smart and efficient government investment decisions that can increase Canada’s competitiveness in a decarbonizing global economy, while avoiding creation of strandedassets.
According to its website, The Constellation Prize “sheds a light on how engineering can be done to promote new modes of engagement, research, development, and design that elevate the values of environmental protection, social justice, human rights, and peace.”.
Panellists warned PRI in Person delegates against the risk of strandedassets, insisting on the need to prepare society for challenges to come. There are the planetary limits, and the social new contract that we must sign – we have to see our development within these two limits. Progress is heterogeneous. Canada is lagging.
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. These plants are expected to operate for decades and risk becoming “strandedassets” if they retire early.
In the eBook, Black & Veatch’s water and energy experts propose that developing robust decarbonisation roadmaps will help mining companies manage and understand limited budgets, technology timelines and complex regulations over potentially a 30-year span, a timeframe similar to making major infrastructure investments.
Workers, suppliers, communities and consumers should not be forgotten by institutional investors when developing net zero transition strategies. . The post Stranded Workers a Risk in Unjust Transition appeared first on ESG Investor. Orderly path to net zero requires social and natural dimensions to be built into transition plans.
Data and models exist, but they’re incomplete and still developing. The evolving climate drives physical risks—damaged or strandedassets and business-interruption costs from severe weather events. But a model like that would have many assumptions at each stage, which could delay development.
Financial institutions that start with managing their own footprint and supply chains will deliver limited climate impact compared to aligning their balance sheets to lower emissions investments that embed resilience and minimize their exposure to strandedassets.
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
Sustainable economies like these can help us to realize the United Nations’ Sustainable Development Goals (SDGs). This blend of free markets and state control is the dominant economic system in the vast majority of developed nations in the world today. Increasingly this also includes offshore renewable energy development.
Alongside strandedasset dangers for investors, the early phase-out of emerging markets coal fleets leaves countries open to legal, financial risks. Currently, despite a recent update issued by developed nations involved in JETPs in Indonesia and elsewhere, progress on existing frameworks has been slow and fraught with complications.
Ex-BoE chief calls for “radical new approach” to mobilising investment in emerging and developed markets; also warns of strandedassets. Given the enormous resources of GFANZ, a radical new approach to mobilising private capital investment in emerging markets and developing economies can be developed,” he said.
The report’s authors appear to demonstrate how this resistance will escalate as new leases are sold and crude oil projects are developed, threatening the long-term viability of projects and investments.
This year, investors filed resolutions at seven major US and Canadian banks — Bank of America, Citibank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Wells Fargo, and Royal Bank of Canada — urging these banks to adopt policies to phase-out clients engaging in new fossil fuel exploration and development.
At the last meeting in April , measures were developed to eliminate problematic plastic products, but negotiators have yet to agree on rules to slash production and consumption. Risk of strandedassets Many major asset owners and managers have vociferously supported the treaty.
However, the question remains whether the programmes now being developed will deliver success if they are bifurcating their engagements. A stewardship programme that offers comprehensive engagement on climate and sustainability issues to responsible investment clients is commendable, provided it is done effectively.
Sixty-nine percent of listed equities reporting via CDP’s platform stated they are exposed to water risks that could “generate a substantive change in their business”, said CDP’s report on how water issues are strandingassets. Water risk factors and strandedassets.
The development team is working to quantify this energy and carbon-reduction benefit — along with potential CAPEX and OPEX savings — so stay tuned for those metrics. Sustainable software development. An exciting, emerging area of sustainable computing is sustainable software development (SSD). Developer Sustainability Dashboard.
Investment fonds are optimizing their property asset portfolios from an energy efficiency perspective. While highly energy-inefficient buildings run the risk of becoming strandedassets, investments into energy management and optimization can increase property value significantly.
At COP26, IFRS introduced a new International Sustainability Standards Board (ISSB) to develop a comprehensive global baseline of sustainability disclosure standards. The World Economic Forum launched the Measuring Stakeholder Capitalism Initiative seeking to accelerate convergence among the major ESG standard setters.
Change is already underway within the fossil fuel industry, as developments in the Netherlands, United States and Australia indicate. Set a target The Science Based Targets initiative ( SBTi ) has developed guidelines on setting science-based targets (SBTs) for the financial sector that require the inclusion of financed emissions.
The Inter-American Development Bank (IDB) is supporting countries in the region to achieve these ambitious goals, along with some foreign governments like Germany. The dialogue explored the vision and challenges for countries to achieve decarbonization by 2050.
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. German think tank Agora also predicts that DRI will outcompete CCUS.
Beyond disclosure According to Segal, the intent of CAFA is to go “beyond disclosure” by requiring financial institutions of all types to align capital with climate action. “[The bill] places assurance that financial institutions will develop transition plans that align with keeping warming below 1.5°C,” C,” she said. “It
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