In an article on green finance, Michael Wilkins, Head of Sustainable Finance, says that the growth of the green finance market was spurred by the Paris Agreement and “the general realisation within the financial sector that climate change could pose a real systemic risk.”
To read the full article please click here.
Following extreme weather events last year, the international community has issued multiple calls to strengthen infrastructure against extreme weather events and the expected impact of climate change. Writing for the Cambridge Institute of Sustainable Leadership (CISL), Miroslav Petkov, Director, S&P Global Ratings explores the need for and potential rise of adaptation infrastructure finance.
Read the full article here
Writing for EnviroLine, Nicole Martin, Senior Director at S&P Global Ratings, argues that widespread, comprehensive, systematic disclosure can serve to support more consistent and transparent analysis of climate-related risks. In turn, this allows all stakeholders to better understand both the long- and short-term consequences of climate change for the financial markets.
Read the full article here.
Sustainable infrastructure is key to the low-carbon transition, argues Michael Wilkins, Head of Sustainable Finance at S&P Global Ratings in a blog contribution for the Centre for the Understanding of Sustainable Prosperity (CUSP).
Infrastructure can both mitigate the effects of climate change and help protect communities from its effects. In both cases, this works to ensure a sustainable, prosperous economy. Yet to meet environmental and infrastructure targets, financing is crucial. Wilkins considers how the flow of sovereign and private capital can actively support the construction of both low-carbon and resilient infrastructure.
To read the full piece, please click here.
Last year’s COP23 event focused on the need to accelerate climate change mitigation and adaptation efforts, and increase infrastructure resilience. But where will the money come from?
Writing for the Energy Institute’s publication Energy World, S&P Global Ratings Analyst, Jessica Williams, discusses how enabling private sector finance will likely be critical for decarbonisation ambitions to be met.
To read the piece online, please click here. Please be advised that membership to the Energy Institute is required.
Global Trade Review has cited the head of corporate responsibility at Commerzbank, Ruediger Senft, on the impact of climate risk on global commerce.
Senft explains that while trading companies and commodity producers face “real and urgent challenges”, they can “look to their banks for expertise on how to build resilient, future-proof supply chains”. He argues that “instead of retrenching from trade, we need to work out how to make the trade that we do finance more sustainable.”
In the wake of COP23, climate change negotiations are already bringing repercussions on many energy and infrastructure sector assets: from enhanced resilience and low‐carbon transportation projects, to the conversion or shuttering of fossil fuel power plants.
S&P Global Ratings – along with Norton Rose Fulbright – writes in Responsible Investor on how we can expect these discussions to continue throughout 2018 and what the impact of decisions made at COP23 might mean for infrastructure. The industry experts quoted, including S&P Global Ratings’ Michael Wilkins, Head of Environmental and Climate Risk Research, were participants at the International Project Finance Association’s (IPFA) “COP23: Outcomes and Impact on the Energy Infrastructure Sector” event in November 2017.
To read the full piece, please click here (please note the paywall).
Image Credit: CC Search user: CECAR (License).
After a year of multiple extreme weather events around the world, there was growing sense of urgency for action at COP23, particularly from the small island states and developing countries looking to focus more attention on climate change adaptation.
As such, S&P Global Ratings’ produced a report “COP23: Two Degrees, With Separation” examining the nationally determined contributions (NDCs); America’s continued role in the fight against climate change; and the possibility for blended finance as a means to reach climate goals (i.e. the provision of both public and private funding from a range of different sources, including sovereign, development, and multilateral lenders as well as private entities).
The report’s key takeaways were covered by Sustainable City Network here.
Image Credit: CC Search user: Carl A (License).
The 2015 Paris Climate Agreement, so far ratified by 168 countries, formalises nations’ efforts to combat climate change. These targets, however, come with a significant price tag: the total implementation cost for countries that have submitted specific financial figures to meet their Nationally Determined Contributions (NDC) stands at about US$5.3 trillion.
S&P Global Ratings’ latest report Paris Agreement Climate Pledges: Where Will the Money Come From? concludes that sovereign green issuances may not be enough – and that countries may need to mobilise private sector funds to bridge this gap.
Following distribution by Moorgate, the report was covered by The Financial Times, Private Wealth, Daily Caller, Business Standard, and Responsible Investor.
Image credit Creative commons user: Tom Shockey. (License).
Following the latest U.N. Climate Change Summit (COP22) in Marrakesh, the Financial Stability Board’s (FSB) Task Force on Climate-Related Financial Disclosures (TCFD) released its much-anticipated climate-related financial risk recommendations. These recommendations aim to provide specific climate-related guidance for organisations in the financial and non-financial sectors, including: asset managers, asset owners, banks, insurance companies, energy, transportation, and agriculture, among others.
The recommendations intend to tackle a lack of coherent financial reporting frameworks, the difficulties faced by investors, creditors, and the obstacles faced by regulators in using existing financial disclosures to determine whether financial systems are vulnerable to climate-related risks.
In a new report, S&P Global Ratings expresses that the adoption of the recommendations by market players will be strong. It regards application of the recommendations as likely to increase the quality of climate risk disclosure and opportunities for companies and investors worldwide. This is because previous voluntary recommendations from the Enhanced Disclosure Task Force were widely carried out, with implementation rates reaching as high as 92 percent in countries like the U.K.
More about this S&P Global Ratings report can be read in specialist titles such as Business Green, Markets Media, Structured Credit Investor, and Climate Home (a subscription may be required).