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Alongside the progress of a bill in California calling for fossil fuel divestment by public-sector pensions, and the SEC’s plans for climate-risk disclosures , this new assault on greenwashing moves US policy closer to its European counterparts, where fund disclosure rules are already reshaping the market.
In the statement it referred to metallurgical coal as “carbon steel materials”, drawing accusations of greenwashing. This leaves it heavily exposed to reputational, regulatory and stranded-asset risk, leading many investors to avoid it.
A coalition of environmental groups is calling on the federal government to regulate climate commitments made by banks and other financial institutions to avoid greenwashing and accelerate change. . The post Advocates urge regulation of banks’ climate commitments to avoid greenwashing appeared first on Corporate Knights.
And while there are instructive parallels with the catalytic impact of the ParisAgreement on identifying and mitigating climate risks by the private sector, there are also important differences. For investors and companies with assets within those key biodiversity areas, this raises the issue of strandedassets.
The document also holds out the possibility of subsidies for carbon trading deals under Article 6 of the Parisagreement, and for Indigenous participation in fossil fuel projects. After that massive an investment, “no way the pipeline is going to recover costs,” Morningstar analyst Stephen Ellis told Bloomberg News in March.
The taskforce will also consider guidance on avoiding greenwashing strategies, and the simplification of assessing, comparing and interpreting transition plans. . C of global warming promised by signatories of the ParisAgreement. . The UK isn’t the only part of the world considering mandatory transition plans. .
And there are wider issues around the VCMs already in operation, such as credit pricing, third-party verification and reducing the risk of greenwashing. . While the ETA will offer a “fixed price” for corporates, there are concerns that too low a price could reduce the quality of the credits and expose the market to greenwashing risk. .
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