Climate Insider’s Post

#Barclays today publishes a revised #ClimateChange Statement to progress its climate strategy and continues its focus on clients actively engaged in the energy transition. Following Barclays’ commitment to finance $1trillion of Sustainable and Transition Finance by 2030, Barclays also releases a Transition Finance Framework to support us to meet that target and facilitate the transition finance needed to decarbonise high-emitting sectors.

Investors accelerating climate action 🌿   Last week was a major milestone. Barclays, one of our key investors, has restricted financing for new oil & gas and committed $1 trillion towards sustainable finance.   This is the kind of leadership we need to accelerate decarbonisation. It signals the risks of investing in outdated technologies and shifts significant money to innovative companies slashing emissions.   As pioneers in sustainable refrigeration, we're proud to have Barclays double down on backing the technologies enabling the low-carbon future.   The cold chain drives immense emissions but also offers huge reduction potential. With supportive investors like Barclays, we believe we can transform the industry by deploying viable electric alternatives at scale.   https://lnkd.in/eEaH4_ia   #sustainablefinance #cleanenergy #coldchain #decarbonization #netzero

It was great to welcome some positive climate action news this week with Barclays’ public commitment to end all asset finance for new Oil & Gas projects and associated transportation infrastructure. This is good news and provides further evidence that collective pressure from a spectrum of groups can make a difference. However, the Bank has left itself some critical loopholes. So it’s worth examining what this means and where it leaves us.  Well Barclays, who were the biggest funder of fossil fuels in Europe between 2016 and 2022, have joined the 17 out of 24 largest European banks in finally making a commitment to end all asset finance for new Oil & Gas projects and associated transportation infrastructure. They have also agreed to restrict financing for existing clients unless they: - Make Net Zero aligned emissions reduction targets by 2030; - Set targets to reduce methane emissions by 2030; - Commit to end flaring* by 2030 It’s worth noting however that all of the above only apply to Scope 1 and 2 emissions and not Scope 3 where the largest emissions are likely incurred. Barclays have also made some symbolic commitments such as restricting funding for new clients with large investments in capacity expansion; committed to stop financing ultra deep water projects; and assessing clients transition plans. While this all sees Barclays moving in the right direction the Bank has still to update its policies on fracking; the demands it places on its clients need more teeth; and it needs to call for its clients not to engage in Oil & Gas expansion. In sum, this is not Barclays ending its financing of fossil fuel projects and therefore from our perspective is a start but does not yet go far enough! Source: ShareAction banking team https://lnkd.in/etxG6aFK *flaring is the burning of the natural gas associated with oil extraction.

$9.2 trillion annually is the investment need to become net zero by 2050, according to McKinsey & Company.. Financial Services has the opportunity to lead, drive transparency and accelerate this transition to a lower carbon economy by financing/investing on innovation for renewable energy, modernizing the power grid, and financing different industries to develop more sustainable products/services. Empowering financial inclusion could reduce the poverty and equality gap. In the meantime... #sustainability #finance #innovation #renewableenergy #people #planet #prosperity #esg

As the urgency to address climate change intensifies, one of the biggest challenges for the world is how to pay for the required mitigation and adaptation activities, such as the transition to renewable energy, new technology development, and building adaptation and resilience. Around $3.4 trillion in mitigation finance is needed annually in the current period 2020 – 2025. With such a huge requirement, it is perhaps not surprising a shortfall in funding exists. In this Viewpoint, Arthur D. Little sets out some priorities for businesses, financial institutions, and government — working collaboratively — to narrow the funding gap: https://lnkd.in/dkQ4mRBD #climatechange #finance #investments

How can we valuate the upside of climate solutions? Despite a decrease in corporate investment from 30.6% to 15.2% between 2018-2022, GIC has created a framework predicting the incremental value of decarbonization technologies. The supply chain could bring an additional $5-11tn investment value by 2030. Mature solutions like renewables and sustainable vehicles show the most promise. To fully realize this, institutional investors must augment their exposure to potential climate outcomes. #ClimateFinance #Decarbonization #InvestmentFramework #wef

Barclays updated its climate change strategy, focusing its capital and resources on supporting energy companies to decarbonize and transition towards a low-carbon economy. The new strategy includes the introduction of a Transition Finance Framework and a new Energy Transition Group. With this approach, Barclays aims to accelerate the transition to a sustainable future and support the energy sector in achieving their climate goals. Read more about the new strategy and framework here: https://lnkd.in/gTwecJ3Q #Barclays #ClimateChange #EnergyTransition #Sustainability

Big step: 𝗕𝗕𝗩𝗔 𝗳𝗼𝗿𝗺𝘀 𝗮 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝘄𝗶𝘁𝗵 𝗞𝗞𝗥 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 $200 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 𝗶𝗻 𝗶𝘁𝘀 𝗚𝗹𝗼𝗯𝗮𝗹 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 BBVA and leading global investment firm KKR have formed a new strategic partnership to support the decarbonization of the economy. As part of the strategic partnership, BBVA has committed $200M (€187 million¹) to KKR´s Global Climate Strategy, which invests in solutions at scale to support the transition to a low-carbon economy. Both companies made the announcement during Climate Week, which is being held in New York this week. As Javier Rodriguez Soler says "we are confident that the second part of this decade will see strong growth of new low carbon infrastructures. It is an immense opportunity. Our goal is to become a leader in deploying advisory and financing to support our clients in US and Europe sectors like Energy, Construction, Mobility and others in building the infrastructures of the future. This ambitious partnership with KKR will be a key piece of our sustainability strategy. Teams from both groups will work together to take advantage of this opportunity of growth for our businesses" According to The World Bank, "685 million individuals are without electricity, 2.2 billion lack drinking water, 3.5 billion lack safe sanitation... Addressing these challenges requires about $1.5 trillion every year through 2030 - 4.5% of the GDP of low- and middle- income countries" "Traditionally, governments have led infrastructure financing. But the world is traversing difficult times, and governments are experiencing unprecedented fiscal stress. Public budgets alone do not stretch far enough to cover the scale and diversity of the challenges we are facing. Private capital mobilization is crucial to addressing this gap".

“While the target to net zero is still some time away, we have to face up to the reality that the variables have changed,” As I've posted on for some time rate damage (or duration risk) is the single largest financial impediment to ambitions. Unfortunately, you can't address this through engagement strategies. It can only be done through lower rates, reduced return expectations or subsidizing capital intensity. #esg #greenfinance

Barclays' new energy policy is a significant step forward towards a low carbon economy, leading to the withdrawal of our shareholder resolution. Proud of our contributions at @Candriam to these advancements through collaborative engagement led by @ShareAction. Let's continue driving positive change together! #candriam #investing4tomorrow