Report from Verisk Maplecroft concludes a disorderly energy transition is ‘all but inevitable’ for G20 economies. The world’s leading economies are on track to miss their climate targets and are headed towards a disorderly energy transition, research published last week by risk intelligence company Verisk Maplecroft has warned. An analysis of the emissions reduction efforts of more than 198 nations published late last week urged the G20 countries responsible for 80 per cent of global emissions to “yank the handbrake on emissions” so as to reduce the turbulence that is set to result from the combination of the net zero transition and escalating climate impacts. “Our data underscores that it is clear there is no longer any realistic chance of an orderly transition,” said Rory Clisby, one of the co-authors of the report. “Companies and investors across all asset classes must prepare for at best a disorderly transition and at worst a whiplash from a succession of rapid shifts in policy across a host of vulnerable sectors.” Overall, the paper concludes that a disorderly energy transition is “all but inevitable” for all the countries in the G20. As such, it recommends that investors from all asset classes develop hedging strategies to navigate what is set to be a turbulent period for markets and that sovereign debt investors engage with policymakers to accelerate the net zero transition and minimise short term disruption.
Business Green 1st June 2021 read more »
Imports from high-polluting countries could face new taxes, the environment secretary has said. George Eustice confirmed that the government was looking at plans for a carbon border tax that could protect British products from more carbon-intensive foreign rivals. In comments that may worry the most committed free-traders in the Conservative ranks, Eustice said the government was looking at levying an “adjustment tax” on those with the worst environmental records. “There are some quite complex difficulties with free trade deals which economists are grappling with at the moment right around the world,” he told the BBC. “In a world where you want the sovereignty to set your own environmental standards and to mean what you say on that, you do have to consider what happens in the context of international trade.
Times 1st June 2021 read more »