ENERGY TRANSITION & CLIMATE CHANGE SOLUTIONS: Oct 3, 2020

QUOTABLES:

Once relegated to the sidelines of investors’ attention due to broad overreliance on subsidies and a lack of economic edge vs. traditional energy, clean energy and clean technology are in the midst of a new era of growth and competitiveness. 

CIBC, the index provider on the ALPS Clean Energy ETF (ACES)
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Today’s Headlines

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Main Headlines:

High-carbon retirement: What future is the Canada Pension Plan banking on?

he Canada Pension Plan (CPP) is one of the world’s largest public pension funds, with $434.4 billion in assets under management as of June. The mandate of the investment board that runs it (CPPIB) has been to manage funds in the best interests of Canadian CPP contributors and beneficiaries (Canada’s retirees) and to maximize investment returns – all without undue risk of loss. As CPP Investments CEO and president Mark Machin recently observed, “Our investment mandate and professional governance insulate our decision-making from short-term distortions and gives us license to help shape the long-term future.”

However, our Canada Climate Law Initiative analysis of CPPIB’s disclosures calls into question the kind of future that it’s helping to create. In our report, Troubling Incrementalism, we found that CPPIB was heavily invested in six high-carbon, billion-dollar investments, both in Canadian oil sands and in hydraulic fracturing in the United States. In four of the six cases examined, CPPIB established the companies in question, investing billions of dollars and putting CPPIB employees and former employees on the boards of the companies it had created.

The report raises questions about whether CPP Investments should continue to support the resource-intensive Canadian economy as it is now – financially risky and inconsistent with the low-carbon economy – particularly now that the federal government has committed to net-zero emissions by 2050. CPPIB’s investments in oil sands and fracked gas lost 23% last year, making Energy and Resources its worst-performing asset class. If CPPIB is projecting losses for a decade or more in an investment class, shouldn’t it be making long-term investments in new technologies, companies and future prospects?

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World News

Renewables Could Cover More Than One-Third of Energy Demand in Central and South Eastern Europe

New IRENA report explores cost-effective growth of renewables in Central and South Eastern Europe to save costs, enhance energy security and supply affordable energy to all citizens in the region.

Within ten years, the economies of Central and South Eastern Europe* could cover 34% of their rising energy demand cost-effectively with renewables, a new report by the International Renewable Energy Agency (IRENA) finds.

The Renewable Energy Roadmap for the Central and South Eastern Europe Energy Connectivity initiative (CESEC), released today at the meeting of CESEC Ministers hosted by the European Commission and the Croatian Ministry of Economy and Sustainable Development, shows that accelerating the take-up of renewables in the region could save CESEC citizens an estimated EUR 3 billion per year in energy costs in 2030. Furthermore, the economic value of avoided health, environment and climate damage could push total benefits to society up to EUR 35 billion per year in 2030, IRENA finds.

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NEWS AND VIEWS FROM AROUND THE WEB ON ENERGY EFFICIENCY & TRANSITION

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