Energy Transition in Europe | www.energy-cities.eu

Our research as environmental economists and macroeconomists confirms that both the effects of climate change and some of the policies necessary to stop it could have important implications for financial stability, if preemptive measures are not undertaken. Public policies addressing, after years of delay, the fossil fuel emissions that are driving climate change could devalue energy companies and cause investments held by banks and pension funds to tank, as would abrupt changes in consumer habits.

The good news is that regulators have the ability to address these risks and clear the way to safely implement ambitious climate policy.

While climate impacts are already materializing, the regulators urge financial institutions to account for their exposure to “physical climate risks” when taking decisions, and to disclose how they do so. This represents a true challenge for financial institutions, in terms of expertise and risk management tools.
The ClimINVEST European project organized a direct collaboration between climate experts and financial institutions across Europe to identify and address the challenges of physical climate risk integration in finance. It results in publicly available resources that can be accessed through the figure below.

The EU’s “sustainable Taxonomy” has been sometimes portrayed as a binary tool defining which economic activities are sustainable and which ones are not. In fact, it can benefit a wide cross-section of Europe’s economy, writes Nathan Fabian.

Nathan Fabian is Chief Responsible Investment Officer at PRI, a United Nations-supported international network of investors promoting sustainable investment. He is also chairperson of the European Commission’s Platform on Sustainable Finance, an EU advisory body.

At a time of converging economic, health, climate and environmental crises, the European Union has committed to strong public investment to transform its economy. In parallel, the European Investment Bank (EIB) is in the process of setting out its “roadmap” for becoming the EU Climate Bank.

The long discussed plan, though a seminal milestone, risks becoming too watered down as it is stretched to become everything to everybody. The new version now raises as many questions as it answers…

Les banques centrales doivent adapter leur politique au changement climatique, considère le gouverneur de la Banque de France. Nicolas Hulot, invité par l'institution à une conférence, a mis en garde contre le risque de crise financière que fait peser "l'aveuglement climatique."

In November 2019, the European Investment Bank announced that it was stopping fossil fuel investment. Elsewhere, ratings agencies raised concerns about the risks oil majors were carrying by not adjusting to a low-carbon future. The growing push against fossil fuel investments comes on the back of pressure from activists and politicians, as well as doubts over their future worth. But divestment will not happen by itself, regulation is needed too. Last month, we sat down with Molly Scott Cato, Green MEP and economist, to discuss the EU’s sustainable finance package, alternatives to the current banking model, and the role speculation played in Brexit.

An astonishing global shift is under way: 127 countries have now stated that by mid-century their overall emissions of carbon dioxide will be zero. That includes the EU, US, and UK by 2050 – and China by 2060. Companies are enthusiastically signing up to similar “net zero” goals. Finally the international community seems to have accepted the scientific fact that we need to stop adding greenhouse gases to the atmosphere to stabilise our climate. Dare we hope that the climate crisis can be brought under control?

The European Green Deal reinforced the European Union’s effort to reduce EU-wide emissions (compared to 1990 levels) and to achieve no net emissions of greenhouse gases by 2050. Such ambitions will require a revision and strengthening of existing EU and national climate policy instruments, which includes the EU Emissions Trading System (ETS).

As the European Commission considers extending the EU ETS scheme to the transport and building (heating) sectors, this CERRE Energy & Climate report assesses the potential impacts and feasibility of such a development.

This handbook is an indispensable guide to climate activists and policy-makers alike towards an overhaul of the financial system to stop climate chaos.

With the COVID-19 pandemic forcing governments to spend on an unprecedented scale to sustain businesses and households, there has never been a better time to restore the state to its proper role as a rudder for the broader economy. The market alone is simply no match for the challenges of the twenty-first century.

The coronavirus is a deadly human tragedy, causing untold grief and pain. It is also rocking the world’s economies as people lose income and businesses struggle to stay afloat. Yet there are lessons to be learned for the climate crisis

Oriana Tannenbaum and Rushad Nanavatty at Rocky Mountain Institute (RMI) have gathered data that puts a price on not making the necessary investments in tackling climate change. For the U.S., a 4.5°C warming scenario (by 2050) will cost $5.2tn. At a more drastic 6°C the cost is $17tn. These projections are hard to do when …

In November 2019, the European Investment Bank announced that it was stopping fossil fuel investment. Elsewhere, ratings agencies warned of the risks oil majors were carrying by not adjusting to a low-carbon future. The growing push against fossil fuel investments comes on the back of pressure from activists and politicians, as well as doubts over their future worth. But divestment will not happen by itself, regulation is needed too. Last month, we sat down with Molly Scott Cato, Green MEP and economist, to discuss the EU’s sustainable finance package, alternatives to the current banking model, and the role speculation played in Brexit.