Nicole Buendia Hubo

This chart introduces an example decision-tree that an equity analyst could follow when interpreting climate change scenario analysis. Helps equity analysts decide whether to invest, divest or ignore the scenario analysis, and reduce the climate risk while accounting for transition risks. This chart is featured in Kepler Cheuvreux report 'Transition risks: How to move ahead', available here https://lnkd.in/gbMh2jMv Many thanks to Sayuri Yahampath and Josh Kahn for producing this summary and helping #changefinance4good Find more research on transition risks here https://lnkd.in/gU4RCjW8 #climatechange #scenarioanalysis #ESG #climaterisk #equity #transitionrisk

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[📘 #fridayreads] New EDHEC-Risk Climate Impact Institute research highlights urgent need for aggressive climate policies to safeguard global equity values❗ The paper has been conducted within the research chair on "Upgrading Climate Scenarios for Investment Management" established by EDHEC Business School and Scientific Beta 🤝 🔗 Download the publication 👉 https://bit.ly/3WbArxX #research #climaterisk #climatepolicies #climatescenarios #equityvalues #equityvaluations

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NGFS at #COP29 | Taking stock of the #greening of the financial system 📢 The NGFS is proud to release its Synthesis report on the greening of the financial system, offering a comprehensive view on recent progress and remaining gaps. Join us for an in-depth discussion of the report’s findings and other NGFS deliverables on #FinanceDay, in Baku and online! 🌐 This Synthesis report provides essential insights for #COP29, shedding light on the steps needed to embed climate, nature, and transition considerations into financial decision-making. Key topics include: - An assessment of climate finance alignment with #ParisAgreement objectives and a review of current funding gaps. - Insights into scaling up green finance instruments. - An overview of financial regulation, supervision and policy practices to foster a resilient green financial ecosystem. The report synthesises data and insights from NGFS members, observers, and knowledge partners such as the International Monetary Fund, OECD - OCDE, The World Bank, WWF, and Climate Policy Initiative to present a holistic view of progress and areas needing action.   ➡ Join us at the German pavilion today from 15:30 (UTC+4) to discuss these findings with leading voices from across the sector and explore the role of #supervision and #regulation, the utility of climate #scenarios, nature and climate #data, and the mobilisation of #climatefinance. 🔗 Read the report: https://lnkd.in/echzxRj6 🔗 See the full agenda and watch the event: https://lnkd.in/e5qE-R2d 🔗 Read more about NGFS publications at COP29: https://lnkd.in/e2mKEcAd

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On today's #FinanceDay at #COP29, we are pleased to have contributed to the new Synthesis report, published by Network for Greening the Financial System (NGFS) today. Together with key NGFS members, CPI provides crucial insights on scaling up climate finance and aligning financial systems with the #ParisAgreement.

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☔[#ResponsibleInvestment] | NYC Climate Week in late September shed light on the escalating danger of extreme weather, with events becoming more frequent and severe as climate change accelerates. Despite this, #climate adaptation remains critically underfunded, and its financing cannot wait further. A diverse coalition of stakeholders from both public and private sectors must collaborate to address this significant financing gap through blended finance, partnerships and innovative solutions. 👉Read the paper to discover how investors can integrate physical climate risk assessments into their #investment strategies and explore the innovative financial tools and approaches that can bolster climate #adaptation. ⤵︎ https://lnkd.in/e6i9xQZ6

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What’s New in Verra’s Latest CCS Methodology Update? Learn how this tech adapts to project expansions, shared infrastructure development, and future innovations >> https://lnkd.in/gjSiE-Dx Verra, a leading non-profit VCM registry in the US has recently released its Verified Carbon Standard (VCS) modular methodology VM0049 for carbon capture and storage (CCS). #verra #carbonpricing #carbonscapture #carbonoffsets #carboncredits #carbonmarkets #carbonnews #carbonprices #ccs #ccus #climatechange #cleanenergy #decarbonization #emissionsreduction #energytransition #esg #greenhydrogen #netzero

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COP29 faces climate finance challenge : Accelerate low-carbon energy transition and climate resilience Key Highlights: 🔸US Withdrawal from Paris Agreement: President-elect Donald Trump plans to exit the Paris agreement again, raising concerns about coordinated global climate action. 🔸Finance Target: Negotiators are working towards a New Collective Quantified Goal (NCQG) of $1 trillion+ annually for climate finance, a significant increase from the previous $100 billion target (achieved in 2022). 🔸Leadership Absence: Notable global leaders (e.g., Narendra Modi, Emmanuel Macron, Kamala Harris) are not attending COP29, reflecting potential waning political momentum. 🔸UN Perspective: António Guterres emphasized the urgency of emissions reductions at a 9% annual rate to meet the 1.5°C Paris target. Wood Mackenzie Analysis 🔸Investment and Warming Projections: 1. Investment Gap -Achieving net-zero emissions by 2050 requires $78 trillion in energy and natural resource investment, 40% more than the current $55 trillion projected. 2. Warming Projections -Base case: 2.5°C warming by 2100. -Delayed transition: 3°C warming if low-carbon technology adoption slows. 🔸Implications of COP29 Outcome: -Positive Scenario: A $1.3 trillion/year finance deal under negotiation would signal that UN climate efforts are progressing. -Negative Scenario: Failure to secure a deal would indicate faltering international coordination. Other Energy Updates 🔸Nissan Struggles: Nissan plans to cut 9,000 jobs and reduce manufacturing capacity by 20%, citing competition in China and the US, especially in hybrid and EV markets. 🔸US Strategic Petroleum Reserve -Finalized purchase of 59 million barrels at an average price below $76/barrel. -Cancelled planned sales for 140 million barrels, following emergency sales in 2022. 📌 Source: Wood Mackenzie   #COP29 #BakuClimateSummit #FinanceForClimate COP29 Azerbaijan

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🚀 New Guide Alert : How to measure financed emissions in private equity portfolios? 📊💼   Did you know that for financial institutions, the main source of Scope 3 emissions is their investment portfolios, also known as financed emissions? 🌍📉 For many financial entities, an astounding 99% of total GHG emissions are financed emissions.   In the private equity (PE) sector, the urgency of robust Greenhouse Gas (GHG) reporting has never been greater. With growing regulatory pressures and the increasing demand for sustainable investment practices, frameworks like the GHG Protocol and PCAF are now indispensable. 📚💡   To help financial institutions in calculating the financed emissions within private equity portfolios, we created a dedicated guide that covers:   ✅ The importance of carbon footprint management in the private equity sector ✅ Detailed methodologies for measuring financed emissions ✅ Practical steps for implementing PCAF standards ✅ How to align with regulatory requirements such as the EU Taxonomy and SFDR This guide is essential for financial institutions aiming to achieve net-zero emissions and enhance transparency in their investment practices.   👉 Download the guide now: https://lnkd.in/du3Ri7sy   #SustainableFinance #PrivateEquity #GHGReporting #NetZero #FinancedEmissions #ClimateAction #Sustainability #GreenInvestment

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Between 28-30 April 2024, the G7 Climate, Energy and Environment ministers met in Turin (current presidency sits with Italy). They adopted a 'Joint Declaration' that gives a precise follow-up to the goals agreed at COP 28. It sends a clear message to others, particularly the major economies, on the level of commitment that is needed to adequately address the challenge of climate change. so what are top message from their meet up ? Click below to read. #G7 #Climatechange #JustTransition #NDC #onepointfive

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🗞️ Weekly 10 ESG news (#2) For this second edition of my weekly review in which we discuss all things ESG in the US/UK/Nordics and more : •⁠ ⁠Private markets are drivers of the green transition •⁠ ⁠Movement in the mining industry with mergers ahead •⁠ ⁠Recommendations on climate literacy by the Harvard Business Review Have a great read ! 🌍

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📢🌍 Now live on UNFCCC: Biennial Assessment and Overview of Climate Finance Flows 📈 CPI has again supported this global data-collection and analysis effort, which is vital for informing decision-makers' ambition and actions at COP29. The UN Climate Change Standing Committee on Finance assists the COP on measurement, reporting and verification of the support provided to developing country Parties.   🔎 Explore this sixth Biennial Assessment report, which covers climate finance flows in 2021-2022: https://bit.ly/3NSlz3X.   Congratulations to colleagues Barbara Buchner, Chavi Meattle and Gaoyi Miao for making CPI’s contribution possible. #climatefinance #climatechangedata #COP29 #netzero #sustainablefinance

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Last Friday (4/19), HKEX published conclusions to its consultation on the enhancement of climate-related disclosures. Under the new rules: Scope 1 and Scope 2 GHG emissions disclosure: - All issuers on HKEX: Mandatory disclosure from FY2025 Scope 3 GHG emissions disclosure: - LargeCap issuers (80% of the HSCI composite’s market capitalization): “Comply or explain” from FY2025; Mandatory from FY2026 - Other Main Board issuers: “Comply or explain” from FY2025 - GEM issuers (small and mid-size): Voluntary from FY2025 It is encouraging to see that, out of 115 submissions during the consultation period, 95% were supportive of Scopes 1 & 2 disclosure and 78% were supportive of Scope 3. Hope this trend will soon be expanded to Shanghai, Shenzhen, and Beijing exchanges. HKEX announcement: https://lnkd.in/gvCsgHm6 Consultation conclusion paper, with the final rules: https://lnkd.in/gzAk7wJ9 Implementation Guidance: https://lnkd.in/g_KuP82m

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Shell plans to sell a portion of its nature-based carbon projects as voluntary carbon markets face declining credit prices and skepticism over project integrity. CEO Wael Sawan is prioritizing high-return ventures like fossil fuels, marking a pivot from Shell’s previous low-carbon commitments. While maintaining a minority stake, Shell aims to explore advanced carbon removal technologies, such as direct air capture, reflecting an evolving carbon market and a strategic focus on profitability over large-scale carbon offsets. https://lnkd.in/g-gAr7a9 #Shell #CarbonCredits #EnergyTransition #NetZero #VoluntaryCarbonMarket #ClimateAction #CarbonRemoval #SustainableEnergy #DirectAirCapture #CarbonOffset

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[#LetsTalkFS] In November 2024, the #NGFS published phase V of its climate scenarios, introducing a new damage function for physical risk assessment. Our experts explain how this function captures diverse economic impacts using high-resolution datasets and lagged variables, highlighting significant effects on GDP, inflation, unemployment, and interest rates. Read more: https://lnkd.in/gdXgsqqW #ClimateRisk #FinancialStability #SustainableFinance

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Shifting from Financial Stability to Price Stability: A New Approach for Central Banks Central banks need to move beyond a narrow focus on financial stability to address the broader implications of climate change. In a new paper, economists David Barmes and Simon Dikau argue that climate and transition-related factors are key drivers of inflation. They propose that central banks incorporate sustainability within their price stability mandates to effectively combat climate risks. Discover how this shift in focus can lead to a more resilient and sustainable financial system. 🔗 Read the full article >> GreenCB.co/3RE7GJ6 #ClimateChange #CentralBanking #PriceStability #SustainableFinance

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Almost halfway into 2024, some charts, analysis and considerations about the main trends of European #powermarkets : 1) #emissions from the power sector keep declining in double digits year-on-year. After a record low fossil generation in 2023, we have witnessed the continuation of the same trend in the first months of 2024, with around 20% less carbon emissions than last year in the January-May period. April&May 2024 are so far the months with the lowest carbon emission from the power sector in Europe #ever recorded, even below the record month of April 2020, in the worse period of the COVID19 pandemic. We see however risks for increased emissions in Q4 '24, especially if constraints in the European #powergrid will remain. 2) From the #demand side, the recovery in the power sector remains weak: we calculate so far 1.5% higher demand than last year, and we expect this trend to continue throughout 2024. Demand destruction is still hitting Europe quite hard, though with significant differences across countries, and a stronger recovery in the Nordics and in the UK. Embedded #solar generation is growing in every country, and it is often difficult to capture and to quantify explicitly; we just launched our third embedded solar model (Spain), and we will probably add a forecast model for France soon. 3) #volatility is here to stay: in a matter of a few weeks we have witnessed both record-low prices (first negative hours in Spain, record high number of negative hours in France,...), and record-high prices (last Monday intraday prices reached the ceiling at 9999 EUR/MWh on record high discrepancies between day-ahead forecast and actual renewable output). Also, record low #captureprices and record high #curtailment of renewables and nuclear technologies, as we have pointed out in other posts. 4) The deployment of #renewables continues at sustained pace, and we expect this year for the first time renewables (wind, solar, hydro & biofuels) to cover more than 50% of European demand. The largest increase come from wind and solar, which are expected to add ~80 TWh year-on-year from 2023 to 2024, and about 100 TWh per year in the remaining part of the decade. 5) The recent increase in #gas prices coupled with the renewables rich spring months have hit hard gas-fired generation in Europe, whose contribution to the power mix has been reduced to ~20 TWh/month (!) in both April and May, corresponding to barely ~10% of the power demand in these months. So far gas generation is down 17% year-on-year, and coal+lignite generation is down 22% year-on-year, mostly during the winter months. Last year in this period we saw quite a lot of lignite-to-gas switch, while this is definitely not the case this year, with lignite plants in the money for most hours in Germany, leaving gas plants in charge of covering just peak hours. As usual, data and analysis on LSEG Data & Analytics , coverage of the figures/charts ~90% of EU27+CHE+NOR+GBR.

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Asia-Pacific power utilities, where coal-fired power generation accounts for more than a quarter of revenue and have a Climate Vulnerability Signal of above 50 for 2035, face a ‘high’ risk of pressure on their Standalone Credit Profiles (SCP) due to climate-related transition risks over the long term, Fitch Ratings says in a new report. Our long-term risks assessment factors in the transition plans already announced by these utilities, thereby highlighting that these issuers will most likely have to enhance their efforts towards energy transition to avoid potential negative rating action due to climate vulnerabilities. Analysis by Girish Madan and Diana Xia #esg #climaterisk #netzero #apac #utilities #gencos #bondmarkets

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[#LetsTalkFS] In November 2024, the #NGFS published phase V of its climate scenarios, introducing a new damage function for physical risk assessment. Our experts explain how this function captures diverse economic impacts using high-resolution datasets and lagged variables, highlighting significant effects on GDP, inflation, unemployment, and interest rates. Read more: https://lnkd.in/ef9EZtVV #ClimateRisk #FinancialStability #SustainableFinance

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