Javier – Eter Climate

Climate Change

Climate Change December 2022

Javier 5 de May de 2023 Leave a comment

The last month of the year, December 2022, brings two very important news to highlight and from Eter we want to comment on them:
Since the growth of climate change, multiple extreme events are occurring that were not occurring before, causing in the insurance sector a big problem. The cost of catastrophes in Spain alone amounted to 3,600 million euros in 2021, being 1,200 million insured assets. This meant that indemnities amounted to a total of 2.32 billion euros. For this reason, insurers are currently analyzing how to measure and estimate the premium according to the effects of climate change to optimize their capital and are responsible for many initiatives related to ESG.
Finally, as news to note is that the Australian government launched a consultation on the development of a climate risk disclosure framework for companies and financial institutions, with plans to make the reporting standards mandatory for large entities. The consultation envisages implementation of the standards from 2024 in recognition of existing climate change risk. This consultation also seeks to analyze the costs and benefits of aligning with other countries that already have standards related to climate change such as the EU and the US.

Links:
https://www.eleconomista.es/actualidad/noticias/12072428/12/22/El-cambio-climatico-un-quebradero-de-cabeza-para-el-sector-asegurador.html
https://www.esgtoday.com/australia-plans-mandatory-climate-reporting-for-companies/

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Climate Change

Climate Change November 2022

Javier 5 de May de 2023 Leave a comment

November was a big month for the climate change sector and we at Eter would like to highlight 6 news items that stand out as 2022 draws to a close.

The first is that the International Sustainability Standards Board (ISSB) will require companies to include climate scenario analyses in their reports. These scenarios are also closely related to the climate standards and laws that are being made and that have been discussed in previous months’ posts. EFRAG, for its part, approved the final version of the European Sustainability Reporting Standards (ESRS), which set out the rules and requirements for companies to report on sustainability-related impacts, opportunities and risks.
Also linked to the previous news is another piece of news related to the European Union, which seeks to reach 100 GW of renewable energy, doubling the installed capacity by 2022. The last announcement made by the European Union was that it will invest 300,000 million euros to reduce dependence on Russian fuel.

Recovering one of the previous posts and already with the closing of the fund, Energy Impact Partners (EIP), announced in October the closing of its Deep Decarbonization Frontier Fund, focused on climate technology, reaching commitments of US$485 million and surpassing the fund’s initial target of US$350 million.
The International Partners Group (IPG), announced the launch of a Partnership for a @Just Energy Transition, aimed at accelerating and supporting the Indonesian energy sector’s shift to clean energy sources. The agreement includes mobilizing $20 billion over three to five years, half of it in public sector contributions, with the remainder to be provided by the Glasgow Finance Alliance Task Force for Sector Improvement in Indonesia. This means many changes in the Indonesian energy sector, such as limiting emissions that year to 290 megatonnes.
Lastly, Iberdrola closed this month with the issuance of a 1,500 million bond, continuing with the green bond plan it had maintained throughout the year.

Links:
https://www.esgtoday.com/iberdrola-issues-e1-5-billion-green-bond/
https://www.esgtoday.com/us-japan-led-coalition-banks-to-mobilize-20-billion-to-support-indonesia-clean-energy-transition/
https://www.esgtoday.com/energy-impact-partners-raises-485-million-for-climate-tech-fund/
https://www.esgtoday.com/efrag-approves-european-sustainability-reporting-standards/
https://www.esgtoday.com/eu-to-double-renewable-energy-deployment-to-100-gw-next-year-von-der-leyen/
https://www.esgtoday.com/issb-to-require-climate-related-scenario-analysis-under-ifrs-climate-disclosure-standard/

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Climate Change

Climate Change October 2022

Javier 5 de May de 2023 Leave a comment

Continuing with the 2022 posts, in October 2022 we want to highlight 5 big news that have occurred.
On the one hand, the Swiss federal government finalizes the first inaugural issuance of $776 million in green bonds, these bonds are part of the 2050 zero emissions target and have been mainly split into two tranches of CHF 4.3 million in transportation and CHF 900 million in agriculture.
It was also announced this October that impact investment assets under management worldwide have reached $1.164 trillion, according to the estimate of a new report by the The Global Impact Investing Network Network (GIIN), surpassing the $1 trillion mark for the first time.
In addition, Macquarie Group Asset Management is funding Italian operator @Green Bidco Spa with $100 million through its Green Investment Group (GIG) investment platform. This acquisition reinforces Macquarie Asset Management’s commitment to manage its portfolio in line with the net zero target by 2040.
In this line Macquaire has acquired 140GWh through its investment in r.e. This moves positions it strongly in the European and global market. In the biofuel and Biomass business.
As last news to highlight, Ørsted and WWF join forces to ensure Biodiversity in the marine environments where Ørsted is developing its offshore projects.

Link
https://www.esgtoday.com/switzerland-issues-inaugural-766-million-green-bond/
https://www.esgtoday.com/impact-investing-passes-1-trillion-for-first-time-report/

https://www.esgtoday.com/macquarie-backs-renewables-developer-falck-with-e100-million-financing/
https://www.esgtoday.com/orsted-wwf-partner-to-address-biodiversity-impact-of-offshore-wind-deployment/

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Climate Change

Climate Change September 2022

Javier 5 de May de 2023 Leave a comment

Back from the summer, the month of September 2022 returned with 7 news items to highlight.
On the one hand, Santander bank is committed to becoming a world leader in green finance by mobilizing 120 billion euros by 2025 and 220 billion euros by 2030. It is also promoting different initiatives as Green Investment, such as a carbon footprint calculator, an energy simulator to improve the efficiency of homes, a collaboration agreement to provide all its car leasing customers with cars and the recycling of its debit and credit cards in multiple other initiatives.
In southern Spain, the Malaga municipality of Ayuntamiento de Benalmadena launched a campaign to get its citizens to participate in climate change mitigation actions, raising awareness of this phenomenon. The same has happened in La Rioja, which has been working on the new climate change law that affects this region.
Carbon Collective, recently announced the launch of this exchange-traded fund, which benefits 200 companies in the sectors of clean energy, electric transportation, efficient buildings, circular economy, sustainable food,and industrial electrification.
This month the European Union once again highlighted the importance of climate change on the planet because it is a reality that is occurring, causing that in the future there may be conflicts even over water. This issue is not only being addressed by the European Union, but also by the USA and Canada.
Finally, based on data from the Climate Bonds Initiative (CBI), green bond emissions worldwide will reach 271,622 million dollars in 2022, but the important thing to note above all is that 8% of GDP will be needed to decarbonize the entire world economy, which means that companies and the public sector will have to invest a large amount of capital.

Links:
https://cronicaglobal.elespanol.com/global-content/banco-santander-acompana-clientes-transicion-economia-verde_722372_102.html
https://www.malagahoy.es/provincia/Benalmadena-participacion-plan-cambio-climatico_0_1724229477.html
https://aldianews.com/es/leadership/organizaciones/contra-el-cambio-climatico
https://www.ecoportal.net/paises/defensa-comun-europea/
https://www.abc.es/antropia/abci-negocio-cambio-climatico-20220915201303_noticia.html
https://www.europapress.es/epagro/noticia-andreu-afirma-ley-cambio-climatico-situa-rioja-vanguardia-materia-legislacion-medioambiental-20220907201154.html

canada circulareconomy cleanenergy climatechange collaboration economy energy finance future investment

Climate Change

Climate Change August 2022

Javier 5 de May de 2023 Leave a comment

Month of August 2022, in this month we want to show 4 news of the sector with a great impact and relevance.
On the one hand, in the month of August, the global decarbonization scenarios of the world’s major fossil fuel companies have been analyzed, they are not in line with the 1.5° C temperature increase of the Paris Agreement for 2100. With Equinor being at an average warming of 1.73°C , bp‘s ‘Rapid’ at 1.73°C in 2058, Shell‘s ‘Sky’ at 1.81°C in 2069 and the International Energy Agency (IEA)‘s Sustainable Development Scenario (SDS) at 1.78°C in 2056.

Another study to highlight is that of Ipsos, as it shows that Spain is the country where climate change is most perceived, but in general all the countries of the European Union are becoming increasingly aware, coming to believe that natural disasters will be more frequent and severe in the future, as we are seeing more and more.
The last study of this month also calls attention to the fact that Debt.com® also analyzed the perception in the United States, and the inflation problem that we are seeing in 2023 was already their concern now, but they know that they expect to pay more for an increasing number of hurricanes, floods, earthquakes, forest fires and storms, being this risk their “risk of tomorrow”.
As the last notable news of the month, Microsoft‘s climate change fund is investing $1 billion in climate change technology solutions in Israel, also seeking to grow start-ups in this area, thereby also seeking new technologies to reduce greenhouse gases.

Links
https://israelnoticias.com/economia/el-fondo-de-innovacion-climatica-de-microsoft-llega-a-israel/
https://www.comunicarseweb.com/node/36410
https://www.ipsos.com/es-es/espana-el-pais-europeo-donde-mas-personas-perciben-el-cambio-climatico-como-una-amenaza-personal
https://www.prnewswire.com/news-releases/el-cambio-climatico-tiene-preocupados-a-los-estadounidenses-por-el-futuro-la-inflacion-los-tiene-preocupados-por-el-hoy-867600976.html

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Climate Change

Climate Change June 2022

Javier 5 de May de 2023 Leave a comment

Throughout the month of June 2022 making this month in total we want to highlight 3 relevant news.
On the one hand, True Green Capital Management LLC
(TGC), a private equity fund manager focused on renewable energy infrastructure, announced the final closing of its True green Capital Fund IV, with $660 million in committed capital, exceeding its $500 million target. The firm’s current investment portfolio includes utility-scale and sub-utility solar power plants.
The next news to comment on is that the consortium formed by insurance group Crédit Agricole Assurances and energy investor Energy Infrastructure Partners (EIP) have signed an agreement to acquire 25% of Spanish energy company Repsol‘s renewable energy business, Repsol Renovables, for €905 million. Repsol Renovables currently has a portfolio of more than 1.6 GW of installed renewable capacity in Spain, the United States, Chile and Portugal.
Finally, the @Government of Singapore announced the publication of its Green Bond Framework, taking another step towards its inaugural green bond issuance to help finance its green transition plan and support the development of the country’s sustainable financial market.
The government anticipated that its initial bond offering was to raise approximately SGD35 billion (US$25 billion) through green bond issuances through 2030.

Links:

https://www.esgtoday.com/true-green-capital-management-raises-over-650-million-for-renewable-energy-infrastructure-fund/
https://www.esgtoday.com/credit-agricole-eip-acquire-e900-million-stake-in-repsols-renewables-business/
https://www.esgtoday.com/singapore-prepares-to-kick-off-inaugural-25-billion-green-bond-program/

climate climatechange energy finance greenbonds greendeal insurance investment management privateequity renewableenergy sustainable

Climate Change

Climate Change May 2022

Javier 5 de May de 2023 Leave a comment

In the analysis of May 22, Eter analyse the sector that will affect us all at professional, personal and business level.
During the month of May 22 the European Union formulated two major advances in its climate change regulation, on the one hand, the ~European Commission formulated stricter rules for the future European Green Bond Standard to improve transparency and reduce greenwashing, aligning with the European taxonomy. On the other hand, EFRAG announced the initial draft for the sustainability reporting standard. This standard affects more than 50,000 companies compared to the 12,000 affected by the current standard. This report covers a broad set of ESG-related topics ranging from climate change to workers in the value chain and corporate conduct governance.
Alongside these EU standards comes other government-related news as well, Germany, the Netherlands, Belgium and Denmark sign a €135 billion offshore wind pact to create the “green power plant of Europe,” seeking to create wind farms with an output of 150 GW by 2050. The pact will also contribute to large-scale production of green hydrogen, setting combined targets of 20 GW of production capacity by 2030.
May also sees American Express unveil its first $1 billion sustainability bond issue. This bond is part of a $3.5 billion bond series. This green bond can cover multiple projects such as Circular Economy, Green Buildings and Energy Efficiency and Renewable Energy.
As this legislation is advancing Deutsche Bank introduces mandatory ESG ratings for suppliers, also in case of having a contract with the bank over 500,000 euros will require an ESG rating to see if it complies with the bank’s own regulations, this is because the bank itself wants to participate in promoting a green economy.
Finally, in remarkable news, the Bank of England announced the results of its biannual climate change test exercise and concluded that UK banks and insurers are likely to be able to absorb the physical and transitional costs of climate change, but will face significant financial difficulties, particularly if measures to address climate change are insufficient or delayed.

Links:
https://www.esgtoday.com/efrag-releases-proposed-european-sustainability-reporting-standards/
https://www.esgtoday.com/american-express-files-for-inaugural-1-billion-sustainability-bond-issuance/
https://www.esgtoday.com/eu-lawmakers-move-to-toughen-expand-green-bond-rules/
https://www.esgtoday.com/germany-netherlands-belgium-and-denmark-sign-major-offshore-wind-pact-to-deliver-the-green-power-plant-of-europe/
https://www.esgtoday.com/deutsche-bank-introduces-mandatory-esg-ratings-for-suppliers/
https://www.esgtoday.com/boe-climate-stress-test-finds-climate-risk-manageable-for-banks-but-highlights-high-cost-of-inaction/

bank circulareconomy climatechange economy energy eter europe europeanunion future offshorewind renewableenergy sustainability

Climate Change

Climate Change April 2022

Javier 5 de May de 2023 Leave a comment

In Eter we want to keep analysing the relevant information of 2022 in this case, in April 2022 there are several remarkable events.
As already happened, in March the Canadian government invested 5 billion dollars in a green bond and following its climate change policies it will require from 2024 onwards both banks and insurers to report on climate-related risks. As was already beginning in the European Union and the United States, Canada will also require these reports.
On the other hand, Deloitte is starting to invest in climate change solutions with an initial investment of 1 billion. As JPMorgan Chase & Co. has done throughout last year and the year before and in April 2022 they show that they have invested $285 billion in support of climate, community development and sustainable development projects and initiatives through 2021.
As in previous months Iberdrola signs a €1 billion green loan to finance the development of renewables across Europe and thanks to the new loan brings Iberdrola’s ESG financing to more than €41 billion.
Like other investment funds KKR is adding to renewables by launching a new Asia-focused renewable energy investment platform this month that will initially focus on the development, construction and operation of solar, wind and energy storage projects in Taiwan and Vietnam, with a view to expanding into other Asian markets.
Finally, TPG announced the final close of its climate solutions-focused strategy, TPG Rise Climate, raising $7.3 billion from institutional investors and global corporations with a focus on decarbonization, green industry and agriculture.

Links
https://www.esgtoday.com/canada-introduces-mandatory-climate-disclosures-for-banks-insurance-companies-beginning-2024/
https://www.esgtoday.com/deloitte-invests-1-billion-in-sustainability-climate-practice/
https://www.esgtoday.com/jpmorgan-ramps-sustainable-finance-activity-to-285-billion-in-2021/
https://www.esgtoday.com/iberdrola-signs-e1-billion-green-loan-to-fund-renewables-development/
https://www.esgtoday.com/kkr-launches-renewable-energy-investment-platform-in-asia/
https://www.esgtoday.com/tpg-raises-over-7-billion-for-climate-solutions-fund/

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Climate Change

Climate Change March 2022

Javier 5 de May de 2023 Leave a comment

From Eter we appreciate several news throughout the month of March 22 making this month a month of much movement with 6 relevant news.
On the one hand, Macquarie Group‘s GIG hires Jonathan Cole, from Iberdrola, to lead a new business called Corio Generation, focus on offshore wind energy, which aimed to have a pipeline of 15 GW of wind energy projects in April 2022. In addition, the group are boosting their business worldwide, aiming to reach 228 GW by 2030, a big investment in the wind energy sector.
On the other hand, Iberdrola successfully closed a green bond issue worth 1 billion euros in renewable offshore wind installations in France and Germany. Together with Iberdrola, Bank of America, Citi, BNP Paribas, HSBC, BBVA, Santander, Sumitomo Mitsui Banking Corporation, Intesa Sanpaolo and ING participated.
The following news, although not from a fund, is from Deloitte and its Survey showing that more and more companies in all sectors are aware of climate change and its impact on investments.
As can be seen and has been seen throughout the months the Canadian government is investing on the issuance of green bonds, being March the month where they are launching a 5,000-million-dollar bond for the financing of green infrastructure and environmental protection projects.
At the end of March, two other important news items were released: on the one hand, the European Union made a proposal to increase the environmental impact categories in the European taxonomy; these changes seek to encourage financing flows and investments in different projects to improve the environment.
Finally, this month, EQT Group announced the pricing of two sustainability-linked bonds for a total of 1.5 billion euros for the companies in its portfolio.