Charlie Morrow

2024 is a milestone for humanity - it's the year emissions will peak, and the turning point as we enter the race to net zero. This represents a massive opportunity to invest in the necessary change to remove fossil fuels - Mark Brownridge writes a stellar opinion piece below, exploring the parallels to previous historic turning points and the role that venture capital can play. #financialimpact #energytransition #energyrevolution #cleantech #investingforchange

7

In an exclusive with Danielle Rossingh, Impact-Investor.com., Ninety One's Emerging Market Fixed Income team has announced the launch of the Sovereign Biodiversity Index to assess how governments are impacting nature and biodiversity. Portfolio Manager Peter Eerdmans said: “As #sovereigndebt investors, we need a practical way to assess how governments impact nature and the risks stemming from #biodiversity loss, as they can significantly influence economic performance and consequently a nation’s ability to service its debt. This is particularly key for investors in #emergingmarkets, where economies often rely heavily on nature, partly because of the relative importance of the agricultural sector.” https://nty.one/3YpMYAu #fixedincome #nature #deforestation #emergingmarketdebt #sovereigndebtinvestor #institutionalinvestor #naturefinance #climateinvesting #transition #netzero #netzerotransition #impactinvesting #sovereign #SDG #ecosystem

20

Delighted to share the 2023 clean energy infrastructure sustainability report, and to see Isha Sharma, ESG Manager at #NuveenInfrastructure, discuss how the clean energy team is avoiding emissions, protecting marine life during offshore wind construction, and funding local community initiatives. Read the full report to learn more. #cleanenergy https://bit.ly/3LE6SQL

9

In our latest Insight, EOS engager Will Farrell looks at physical #climate risk such as #flooding and #wildfires, and explains why local banks may have the edge in managing this. #ESG #stewardship #climatechange https://bit.ly/3yZgkLt

19

📢 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝗳𝗼𝗿 𝗻𝗼𝗻-𝗘𝗨 𝘄𝗵𝗼𝗹𝗲𝘀𝗮𝗹𝗲 𝗲𝗻𝗲𝗿𝗴𝘆 𝗺𝗮𝗿𝗸𝗲𝘁 𝗽𝗮𝗿𝘁𝗶𝗰𝗶𝗽𝗮𝗻𝘁𝘀. From November 2024, if you are based outside the EU, you must appoint an EU representative in the Member State where you operate. We can help: https://okt.to/wqgFNM The EU is introducing key changes to the Regulation on Wholesale Energy Market Integrity and Transparency, which impacts market participants from third countries. Don’t let the new requirements catch you off guard - we can provide EU representative services in the Netherlands to help you meet your compliance obligations under Article 9 of REMIT. Contact Evert Wind or Daniel Vijselaar to learn more about how we can support you. #REMIT #EnergyCompliance #EURegulation #ApexServices #EnergyMarket

1

TIL (today I learned): Energy CEOs with financial incentives for reducing emission rose 26 percentage points from 2021. Surprised? Check out our research for more details: https://okt.to/eJDI0N #SustainabilityQuarterly

14

Possibly another angle to discuss about European Securities and Markets Authority (ESMA) naming rules leading to exclusion or stricter transition pathways is the role of sovereign wealth funds that are not in scope. If EU regulated private sector investment funds dump stocks to rescue their mandates, does that just make those stocks better value/more attractive on a fundamental basis for the likes of Norges Bank Investment Management, given, eg, the Norwegian SWF (Global) had >USD6n market value holding in Shell PLC and >USD3.9bn holding in TotalEnergies as of end December 2023 (https://lnkd.in/esYZph3B) Meanwhile, KSA's Public Investment Fund (PIF) lists 4 cement companies in its portfolio...(https://lnkd.in/erDeyGPn an airline...(less surprising when you also consider Norway's other SWF (Domestic) is a key stakeholder in Norwegian Air Shuttle ASA...) #emissions #NZ50

2

A shout-out to Jack Grogan-Fenn at ESG Investor for a short, snappy article on Scope Group's ESG Performance Score, highlighting our three-dimensional approach to evaluating corporate sustainability. https://lnkd.in/ekJgiYqC Read more about Scope ESG's 3D approach here: https://lnkd.in/ejMp_RxU Wendy Fernandez Garcia Tetiana Markiv Thong Huynh #ESG #sustainability

7

I'll lob this one into the ESG debate and the regulatory risk analysis ongoing in the AM industry. One assumes that if the particular weather pattern referenced persists over western Europe in coming years, then it may further jolt the majority towards more rather than fewer ESG regs linked to climate change - and in a way that speaks to people very differently than climbing gantries, etc. Hopefully things will be ship-shape for the upcoming D-Day 80 events. https://lnkd.in/eAgBrrfM

2

Really good discussions at this week's #Carbon Forward event in London: despite low #VCM prices, a surplus of bad #credits, poor liquidity in the secondary market and continued skepticism over the integrity of projects, the industry is clearly keen to rebuild and 'sort itself out' while companies still need carbon credits to meet their #climate commitments. #Fastmarkets and our new Strategic Markets Editor for VCM Sam Carew are very excited to be moving in this space soon, bringing more #transparency to this volatile market and supporting the industry's journey towards standardization and #decarbonization.

26

Emerging markets outside of China represent nearly one third of global emissions, yet they recieve less than 15% of global clean energy investment. To align with the goals of the Paris Agreement, we need investment in these markets to increase six fold to reach $1.6 trillion per year by the early 2030s. This past week we announced some important steps forward in Brookfield’s emerging market transition strategy: 🤝 Confirmed a target to raise $5bn for our dedicated emerging market strategy, anchored by a $1bn commitment from our partner ALTÉRRA. ⚒️ Announced our first deal with the IFC - International Finance Corporation to provide a $105m loan to our 550MW solar construction project in Bikaner, Rajasthan. These partnerships are driving us forward to find more investment opportunities that deliver value and impact, together. https://lnkd.in/dynY4ekd

88

3 Comments

In the wake of #COP29 in Baku, EOS at Federated Hermes Limited engager Will Farrell reflects on the key takeaways for investors and companies. #climate #netzero #climatechange #climatecrisis #JustTransition https://bit.ly/3VjTaYH

10

How robust is a company’s climate transition plan? This is what S&P Global Rating’s new Climate Transition Assessment is analysing. Check this first and newly released report.

31

COP29 achieves full operationalisation of Article 6 of Paris Agreement– unlocks international carbon markets 👉🏼 This is a process not an event that will continue to evolve and whilst there will be detractors on this milestone, it’s good to see an agreement after a decade. 👉🏼 There is still some way to go before carbon markets evolve to be what I deem a proper market with price discovery, but step by step we willl get there and ensure that path is of high integrity and benefits local communities where such projects reside. 👉🏼 The challenge is also the fact that by its very nature as I have written in various articles recently, the carbon market is decentralised as projects and investment / supply and demand are in different places. Geopolitics also plays a part. 👉🏼 That said what technology fragments, it can also knit together so that multiple markets and registries can interconnect and present themselves as a single virtual marketplace by way of a distributed hub and spoke model such as that which we have been advocating at ZERO13 based on the construct we have created. 👉🏼 You can have local, regional and global markets intertwined such that e.g. Kenya and Ghana can have their own local registries and markets if they want them. The African Union can run a regional market and infrastructure and the there can be a UNFCCC CDM 2.0 and global market construct all interconnected eradicating ‘walled gardens’ and siloes. 👉🏼 We at ZERO13 are committed to play our part in making carbon markets better as part of an industry driven collaborative effort. https://lnkd.in/eNTdzTCk COP29 Azerbaijan #carbonmarkets SECDEX Group GMEX Group United Nations UNDP African Union African Development Bank Group Dhrupun Shah Lincoln T. Asad Sultan

24

1 Comment

Following the announcement last week on the timeline for UK endorsement of #ISSB, this week the FCA published details in its Primary Market Bulletin of how its rulemaking will be affected. In particular: - Once the UK endorsement is completed in 2025, the FCA will consult on amending its rules to move from TCFD to UK-endorsed ISSB disclosure standards. It also intends to consult on strengthening its expectations for listed companies’ transition plan disclosures, with reference to the Transition Plan Taskforce (TPT) Disclosure Framework at the same time. - Companies may also wish to start reporting voluntarily against ISSB Standards prior to the conclusion of the UK endorsement process. The FCA may explore additional guidance to support issuers subject to its Listing Rules by indicating how reporting based on ISSB Standards can remain consistent with its existing TCFD-based rules, which issuers must continue to meet. https://lnkd.in/ekGUJWu4. 

9

It's me, in podcast form When Enel missed a KPI on its sustainability-linked bonds, it could have marked a moment of maturation for a youthful product, but issuance volumes are plummeting. Meanwhile, the international banks that lend to Turkey's financial institutions seem to prefer to make green loans rather than the sustainability-linked versions they made previously. We ask what is going on with sustainability-linked products — does all of this signify the last rites for an asset class that was supposedly so well-suited to funding the green transition? with Ana Fati Jon Hay Ralph Sinclair David Rothnie

17

1 Comment

EFRAG has issued proposals for how climate transition plans should be addressed by companies under the Corporate Sustainability Reporting Directive. The next big question will be how closely these recommendations align with those to have come out of the Transition Plan Taskforce, because those are the ones expected to underpin global standards on climate transition plan disclosures. #csrd #esrs #transitionplans #climatestrategies #netzero #cs3d #csddd #taxonomy #EU #efrag https://lnkd.in/eiCmENA3

74

4 Comments

Interesting article from Alice Ross on the opportunities available in the renewable energy infrastructure investment trust sector for Financial Times. She explains that it has been a tough period, with renewable energy infrastructure funds trading at an average discount of 32%. But "analysts believe that the sell-off in the sector as a whole has been indiscriminate, and that there are bargains to be found." Alice writes, "The longer-term outlook for renewable energy has been given a boost by the Labour government, which has set a clean power target for 2030, up from the previous target of 2035. In theory, that means the net asset value of many of the trusts should rise over the longer term, though analysts are sceptical the government’s plans to encourage more private investment into the sector will succeed. "A more concrete positive for the sector is falling interest rates. That should make infrastructure assets look attractive again relative to government bonds, analysts believe, given their yields of 6-8 per cent compared with 4-4.5 per cent on gilts. Other bright spots include a recent uptick in power prices, and the ongoing case for growth in the renewable energy sector in the years ahead. Comments from analysts: @Iain Scouller Stifel Research who recommends Greencoat UK Wind PLC, Bluefield Solar Income Fund (BSIF) and Octopus Renewables Infrastructure Trust (ORIT). Elliott Hardy, CFA Winterflood Investment Trusts who says it is important to look at the positive steps boards have taken to try and improve things such as share buybacks.  Matthew Hose Jefferies who predicts a period of “creative destruction” where some funds will die — particularly the smaller ones — while other larger funds will survive and narrow their discounts. Victoria Hasler, Hargreaves Lansdown. Alice is clear that "the sector still faces challenges." Power prices, specific issues, high levels of borrowing and discontinuation votes were all mentioned. She concludes, "All in all, investors have a lot of hurdles to look past in the renewable energy infrastructure sector to feel they are really getting a bargain. Much will depend in the coming year on energy prices as well as board behaviour." Nick Britton, CFA, MCSI Nick Gardner Juliet Webber Vanessa Booth Richard Stone Gay Collins Stephanie Coxon Cathy Pitt Alexander Denny Tom Harris Sachin Saggar Tom Poynton Paul Flood Ben Conway William MacLeod James Armstrong Lisa Ferris Foresight Environmental Infrastructure (FGEN) The Renewables Infrastructure Group Limited (TRIG) Stephen Lilley Matthew Ridley Minesh Shah Matt Setchell David Bird Chris Gaydon https://lnkd.in/ey6d8vYJ

24

1 Comment