December 30, 2008
On the 4th December 2008, five leading financial institutions signed up to the Climate Principles, new guidelines developed to deal with the risks and opportunities posed by climate change.
The initial take-up was not as wide as hoped, possibly due to the financial crisis. However, Banks Crédit Agricole, HSBC, Standard Chartered, and reinsurers Swiss Re and Munich Re in signing up to what the Climate Group describes as “the first comprehensive industry framework” to address climate change.
The Climate Principles address the management of operational greenhouse gas (GHG) emissions. More importantly, they provide strategic direction on managing climate change across the full range of financial products and services, including: research activities; asset management; retail banking; insurance & re-insurance; corporate banking; investment banking & markets; project finance.
January 25, 2007
London, 11 January: A group of investment banks is to investigate how best to include climate change in investment decisions.
The London Accord will seek to provide investors with more information on how best to make investments that address climate change. Sponsored by the City of London Corporation and BP, the project already has the support of investment banks including Morgan Stanley, Bank Sarasin, HSBC, Société Générale, Credit Suisse and Canaccord Adams.
“If you look at the field of climate change and investment decision-making, lots of people are aware of it and want to integrate it into their decisions. But not many people are sure of how you go about it,” said project director Jan-Peter Onstwedder, who was previously head of risk in BP’s supply and trading business.
Extract from Environmental Finance
August 23, 2006
Investment rose from from USD 30 billion in 2004 to USD 38 billion in 2005. A REN21 report estimates that at least 85 renewable energy companies or divisions have market valuations greater than USD 40 million, up from 60 companies or divisions in 2004. The estimated total market valuation of companies in this category is USD 50 billion, double the 2004 estimate, as several high-profile initial public offerings have recently taken place. The solar PV industry invested record amounts in new plant and equipment (about USD 6 billion), as did the biofuels industry (more than USD 1 billion).
In the last year there were many new policies adopted to support renewable energy, and several more were extended, revised, or discussed. Not only were the EU and US active, but more than 16 developing countries as well, including Brazil, China, Egypt, India, Mexico, Thailand, and Uganda.
A number of countries dramatically stepped up targets and mandates for biofuels – ethanol and biodiesel mixed with conventional fuels. The number of countries with “feed-in” policies for the purchase of power from renewable sources increased to 41, and the number of countries with future targets for the share of energy from renewables increased to at least 49.
July 19, 2006
The number of project finance deals in the Remewable Energy sector is growing more rapidly than ever, Richard Stuebi explains why:
Structured energy project finance has been relatively commonplace in supporting the development of new energy facilities over the past 20 years. Central to the concept of project finance is disaggregating risk and parceling it out to specific parties who can accept that risk. As a result, project finance works great for the 30th or 40th deal of the exact same type, but it is typically very hard to use project finance approaches for funding the development of facilities using innovative technologies or commercial arrangements.
Accordingly, project finance has historically been somewhat problematic for renewable energy interests to procure. Financiers central to structuring the deal were either unfamiliar or uncomfortable with the risks posed by renewable energy technologies, most of which have not been in commercial operation for decades. This lack of project finance capacity has thus been a major barrier to the widespread deployment of otherwise viable renewable energy technologies in commercial-scale projects.
The good news is that project finance capacity is increasingly opening its doors to renewable energy opportunities. Financial professionals with deep knowledge of the true abilities of renewable energy are finally beginning to amass capital to deploy in sponsoring the development of renewable energy projects.
posted by Richard T. Stuebi click here to link to full article
Project Finance International have just published a new report Financing Renewable Energy: Funding the Clean Alternative, which (for a price) gives details on every renewable financing deal this millennium, plus analysis on future prospects.
June 23, 2006
Banks are increasingly being asked by NGos and shareholders to ensure they have adequate investment policies in place and to ensure their investments are sustainable. This includes directing a suitable proportion of their investment towards solutions for climate change. It is good to see big international banks setting the standard and acting as a driving force for improvements across the market.
A report comparing the nature of Dutch bank investments has claimed that the climate policies of the big Dutch banks are insufficient and lag behind those of big international banks such as the Bank of America and Citigroup: ‘Investing in Climate Change: the Role of Dutch Banks and the Climate Performance Index. Friends of the Earth Netherlands (Milieudefensie) today presented these results during the annual meeting of the branch organisation for Dutch banks, NVB and called on all Dutch banks to improve their climate policies.
Many international banks recognise the role they play in causing climate change. They accept their responsibility by investing billions in the solution. Carbon dioxide (CO2) emissions are a criteria for approving investments and loans at the Bank of America, J.P. Morgan Chase and Citigroup. The Bank of America has a seven percent reduction target for the CO2 emissions of its investments in the energy sector.
The research for ‘Investing in Climate Change: the Role of Dutch Banks’, was conducted by Dutch Sustainability Research. The report and the Friends of the Earth Netherlands’ Climate Performance Index suggests that Dutch banks are failing in the area of climate policies. They claim that they lack concrete targets to reduce the greenhouse gas emissions of their investments.