Showing posts with label low carbon. Show all posts
Showing posts with label low carbon. Show all posts

Event - Renewable Energy World International

This event will take place on December 13-15, 2016 in Orlando Florida at the Orange County Convention Center (North and South Halls). Renewable Energy World International tracks are designed to be made horizontally applicable across all technology sectors. Hear from our track champions on what is being covered during these impactful conference sessions.

Building Relationships

Make connections with 20,000 other renewable energy professionals from around the globe. Learn from each other during multiple networking events.

Expand Your Knowledge

Hear from industry experts on topics such as Energy Storage, Distributed Energy Resources, Large Scale Renewables, Global Markets and Utility Integration and more. Conference Tracks CPC Pre-Conference Tracks CEU Training Courses

1,400 Companies to Choose From

Explore the newest technology and see products/services in power generation, renewables, and nuclear. Make deals right from the show floor.

To register click here.

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Event - Renewable Energy World Conference & Expo North America 2016

This event will take place from December 13 to December 15, 2016 in Orlando Florida. This BIG PICTURE' conference, will cover the full landscape of renewables. Attendees will hear from several Renewable Energy World International Committee Members about what HOT industry topics are being covered in this years conference.

Become An Exhibiting Company Showcase Your Brand. Get Results.

Why Exhibit? Get in front of 20,000+ industry professionals from 111 countries. Generate quality leads and reach our concentrated group of targeted decision-makers.

Sponsor And Stand Out Accomplish Your Goals.

Bolster your event investment's ROI by working with the sponsorship team. They'll build a customized option based on your company's goals.

For more information and to register click here.

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Green Banks Leverage Private Investments for Climate Finance

In addition to creating new jobs and improving the environment Green Banks are essential to ramping-up clean energy finance. Such banks are capable of helping to unleash the vast potential of climate focused investing. Green Banks reduce the cost of clean energy and efficiency. They are helping to change market thinking by taking a holistic, long-term view of industry support.

A Green Bank is a government-created institution that facilitates private sector financing for clean technology projects. Different Green Banks have different programs, however, they all leverage public funds to attract private investment.

In addition to providing capital and information these banks encourage private sector investments by helping to mitigate risk. They also help to standardize financial products to make them easier to buy and sell.

The tools used by Green Banks include low-interest or longer-term loans, interest rate buydowns, project equity stakes, small grants, and, as the market develops, credit enhancements.

In the US there are a number of Green Banks including the New York City Energy Efficiency Corporation, the Connecticut Green Bank, the Hawaii GEMS Program and the New Jersey Energy Resiliency Bank.

Internationally Green Banks include the UK Green Investment Bank, the Japanese Green Finance Organization, the Australian Clean Energy Finance Corporation, GreenTech Malaysia.

For years we have watched Green Banks contribute to meaningful climate progress by supporting things like renewables and energy efficiency initiatives.

The potential of green investment banking is huge, however governments can contribute to or detract from this laudable initiative.

As reported by the Independent exactly one year ago, the government in the UK announced plans to sell off part of the first bank in the world established to make money out of environmentally sustainable projects.

Launched by the government in 2012, the UK's Green Investment Bank will be privatized in a move that is expected to generate £1 billion. However, Chuka Umunna, the shadow business secretary, said the bank would be destroyed by privatisation. “It is unclear how the GIB can continue to perform its unique and vital function if it is sold off and it would be incredibly short-sighted if the important role it currently plays was lost,” he said.

In 2014 the Green Investment Bank backed 22 new energy projects worth £2.5 billion and generating enough energy to power 4.2 million UK homes.

As reported by Business Green in 2014, an investment Bank boss said that the UK's Green Investment Bank could mobilize £60 billion if government allows it.

Banks are an important part of creating the necessary infrastructure to support the transition to a low carbon economy. One high profile example is EV charging stations. While electric vehicles are an important part of the transition, green banks can support charging infrastructure which is essential to the widespread adoption of EVs.

As reported by Energy Manager Today, a study by the Center for Climate and Energy Solutions (C2ES) indicates that banks play a key role in the transition to a low carbon economy. This includes both expanding EV infrastructure and clean energy.

As reported by Sustainable Business, the first "Green Bank Academy" was attended by leaders from over 11 states including California, Hawaii, Illinois, Kentucky, Maryland, Massachusetts, Minnesota, New Hampshire, Washington, NY and Connecticut.

Green Banks can help fill the financing gap in the absence of government leadership. Mark Muro from the Brookings Institution, co-host of the Academy explained that Green Banks contribute to, "large-scale progress on big problems when the national government has gone absent."

In 2014 US Green Banks committed to spending $15 billion on energy Projects over 5 years. This investment could be leveraged to over US $40 billion in private investments. Here is a brief review derived from an EDF article on the major Green Banks in the US.

Connecticut's Green Bank

In 2012, Connecticut created the first green bank, known as Clean Energy Finance and Investment Authority or CEFIA. As reported by the EDF, CEFIA’s 2013 annual report indicates that for every dollar of ratepayer funds CEFIA invested, roughly $10 was invested by private sources. Much of this investment was focused on clean energy building upgrades that are part of Connecticut’s Property Assessed Clean Energy program. CEFIA also has an innovative financing solution for solar projects on commercial properties. In 2014 Connecticut's Green Bank (CEFIA), financed 1,160 projects and attracted over $180 million in private capital based on $41 million in state funds, resulting in 26.7 megawatts of new clean energy.

New York’s Green Bank

New York has the largest green bank in the US, with $1 billion in funding. Launched in 2013, New York’s Green Bank focuses on advancing the clean energy market by encouraging business partnerships.

Hawaii's Green Bank

Hawaii's Green Bank called GEMS launched in 2014 with a $150-million green bank called GEMS, that focuses on social justice. The program allows homeowners to finance solar projects that significantly reduce their power costs.

California's Green Bank

In 2014 California introduced a Senate bill that laid the groundwork for attracting private capital for a green bank that launched in 2015.

New Jersey's Green Bank

In 2014, Governor Chris Christie announced plans to launch an Energy Resilience Bank. Though technically not a green bank, the Energy Resilience Bank has proposed using federal Superstorm Sandy funds to finance the resiliency component of infrastructure projects that strengthen the state’s electricity grid during extreme weather events.

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Drivers of Green Investment Growth
New Sustainability Focused Finance Instruments
Opportunities in Sustainability Finance Highlighting Renewables & Energy Efficiency
The Panama Papers Highlight the Need for Sustainability
A World Bank Action Plan to Combat Climate Change
European Commissioner for Climate Action Urges Development Banks to Divest from Fossil Fuels

Green Finance Goes Mainstream in 2016

The world is embracing green finance as never before and all expectations are that this will increase as we move towards a low carbon economy. Financial systems should play an important role in the green economic transition said, Zhou Xiaochuan, the Governor of the People's Bank of China. Zhou was speaking at the Green Finance Symposium which took place on Saturday, April 15th in Washington.
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After years of volatility, green finance is emerging as a central part of our efforts to address climate change and transform our energy infrastructure. Green finance is preoccupied with adapting to the impacts of climate change and/or reducing greenhouse gas emissions. It is the means by which we can stream tremendous amounts of needed capital into emissions free sources of power.

Although a precise definition of green finance (GF) is somewhat elusive, generally speaking it can be understood as sustainable investment and banking, where investment and lending decisions are taken on the basis of environmental considerations. This applies to both the public and the private sector and it specifically entails environmental screening and sustainability focused risk assessment.

For years, GF was dismissed as being too risky. Now in the wake of the signing of the Paris climate accord, lenders cannot ignore the economics of climate action that make clean energy an attractive opportunity. Governments began seriously investing in clean technologies in 2005. However, the early years were fraught with challenges, not the least of which was the economic crisis of 2007 – 2008. Nonetheless, between 2005 and 2010, there was a 200 percent increase in the growth of GF.

There is well warranted optimism that 2016 will be the year in which green finance comes of age. Governments, businesses and global organizations are all getting on-board to make this a landmark year for GF.

In an article published in the Huffington Post, Nick Robins, the Co-Director of the UNEP Inquiry into a Sustainable Financial System, said:

"From a strategic perspective, 2015 built a new set of policy foundations for the global economy, signaling new directions for the financial system…So, if 2015 designed the foundations, the task for the financial community in 2016 is to take the practical steps to deliver the reallocation in capital that’s required, and doing this in ways that result in an orderly transition in global markets."

At a G7 meeting last summer, the world’s leading economies agreed to phase out fossil fuels. At this meeting, Angela Merkel said the leading industrialized countries were committed to raising $100 billion in annual climate financing by 2020 from public and private sources.

According to a new report, green finance has what it takes to deliver decisive climate action. The report says that GF is capable of keeping temperatures from rising beyond the upper threshold limits of 1.5 to 2 degrees Celsius set in the Paris climate accord. The report was produced by a partnership between Bloomberg New Energy Finance, Ceres and Ken Locklin of Impax Asset Management. The report, titled Mapping the Gap: The Road From Paris, finds that there is enough money in the global economy to finance the transition to clean sources of energy.

We have gleaned valuable insights about the feasibility of GF from a number of pilot projects. A report from the Climate Investment Fund (CIF) shows that green finance works. The report titled, "Learning by Doing: The CIF’s Contribution to Climate Finance," studied GF in 48 countries. CIF oversees more than $8 billion, which it uses to support projects in cleantech, forests, climate resilience and renewable energy.

This year, the Green Climate Fund has come of age and there are now a wide range of initiatives that support the growth of GF, including the SDGs and a rapidly growing green bond market.  The IMF is now focusing on climate change and the World Bank along with the IBD are contributing to the funding of clean energy in the developing world.

The G20 has indicated that it is committed to green finance. Mark Carney, the Governor of the Bank of England and Chairman of the Financial Stability Board, has said that GF has grown up and it is no longer a “niche”. In March, Carney said that in a bid to mainstream climate friendly funds, the G20 will make green finance a "priority". The G20 has explored the concept through its Green Finance Study Group and the subject will receive special attention at September's G20 meeting in Hangzhou.

Many governments are gearing up to get involved with GF and some nations have already implemented policies. As reported by Bloomberg, Indonesia plans to limit the ability of banks to lend money to projects that are deemed environmentally destructive. While this is a move will curb slash and burn agricultural practices in the country, it can be applied to any set of environmental parameters. A May 2015 WWF report stated that there are four major banks in Indonesia, Malaysia and Singapore that have embedded environmental factors as part of their credit-decision process. Last fall, the Association of Banks in Singapore introduced guidelines on responsible financing.

A 2016 UNEP report titled, "The Financial System We Need," declares that the UK is a global hub for GF. London’s financial community is positioning themselves to lead green finance, while Hong Kong and Singapore are already leaders in GF.

As explained by Achim Steiner, Executive Director of the United Nations Environment, "2016 is set to be the year of green finance. Across the world, we are seeing a growing number of countries aligning their financial systems with the sustainability imperative."

Governments, financial institutions, investors and businesses have been pouring capital into clean energy at ever increasing rates. After a protracted period of intense volatility, green finance has finally arrived. It is now an unstoppable global force that is helping to build a clean power infrastructure.

Source: Global Warming is Real

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The Green Climate Fund Comes of Age
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World Bank to Finance More Renewables in the Developing World
Innovative Solar Financing Instruments
Drivers of Green Investment Growth
New Sustainability Focused Finance Instruments
Opportunities in Sustainability Finance Highlighting Renewables & Energy Efficiency
The Panama Papers Highlight the Need for Sustainability
A World Bank Action Plan to Combat Climate Change
European Commissioner for Climate Action Urges Development Banks to Divest from Fossil Fuels
A Large and Growing Chorus is Calling for an End to Fossil Fuel Subsidies

Climate Focus at the April 14th Democratic Debate

Climate related issues were a major part of the Democratic Presidential debate between Hillary Clinton and Bernie Sanders in Brooklyn, New York, on April 14, 2016. While the two candidates agree that climate change is an urgent issue, there are important distinctions between their respective policy positions.  Regardless of who wins the nomination, this debate establishes the Democratic party as the only choice for environmentally conscious voters.

Sanders is clearly the greener of the two, and he deserves credit for forcing Clinton to address these issues. However, intimating that his lofty climate agenda may be stymied by the legislature, Clinton pointed to his inability to actually pass climate focused legislation.

When Sanders was pressed on his intent to phase out nuclear power and the potential to have that energy shortfall replaced by greenhouse gas intensive alternatives, he said that "you certainly don't phase out nuclear tomorrow" and he pointed to his 10 million solar roofs program.

Here are excerpts related to climate, environment, clean energy, fossil fuels and COP21 from the debate.

Climate Change

CLINTON: Well, let me start by saying we need to talk about this issue and we should talk about it in terms of the extraordinary threats that climate change pose to our country and our world. And that's why for the last many years, both in the Senate and as secretary of State, it's been a big part of my commitment to see what could be done. SANDERS: Now, what I think is when we look at climate change now, we have got to realize that this is a global environmental crisis of unprecedented urgency...We have an enemy out there, and that enemy is going to cause drought and floods and extreme weather disturbances. There's going to be international conflict.

SANDERS: I am proud, Wolf, that I have introduced the most comprehensive climate change legislation...

CLINTON: Well, let's talk about the global environmental crisis. Starting in 2009 as your Secretary of State, I worked with President Obama to bring China and India to the table for the very first time, to get a commitment out of them that they would begin to address their own greenhouse gas emissions. I continued to work on that throughout the four years as Secretary of State...

CLINTON: ...because in order to deal with climate change, we have got to move as rapidly as we can.

SANDERS: All right, here is -- here is a real difference. This is a difference between understanding that we have a crisis of historical consequence here, and incrementalism and those little steps are not enough. Not right now. Not on climate change.

SANDERS: What I believe is that this country, if we stand together and not let the Trumps of the world divide us up...can lead the world in transforming our energy system and combating climate change...

Fossil Fuels

SANDERS: Now, the truth is, as secretary of state, Secretary Clinton actively supported fracking technology around the world. Second of all, right now, we have got to tell the fossil fuel industry that their short-term profits are not more important than the future of this planet.

CLINTON: ...well, I don't think I've changed my view on what we need to do to go from where we are, where the world is heavily dependent on coal and oil, but principally coal, to where we need to be, which is clean renewable energy, and one of the bridge fuels is natural gas. And so for both economic and environmental and strategic reasons, it was American policy to try to help countries get out from under the constant use of coal, building coal plants all the time, also to get out from under, especially if they were in Europe, the pressure from Russia, which has been incredibly intense. So we did say natural gas is a bridge. We want to cross that bridge as quickly as possible...

CLINTON: But there has never been any doubt that when I was a senator, I tried -- I joined with others to try to get rid of the subsidies for big oil. And I have proposed that again, because that's what I think needs to be done as we transition from fossil fuels to clean energy.

SANDERS: It is not their fault [fossil fuel industry workers] that fossil fuels are destroying our climate. But we have got to stand up and say right now, as we would if we were attacked by some military force, we have got to move urgency -- urgently and boldly.

SANDERS: We have got to lead the world in transforming our energy system, not tomorrow, but yesterday. And, what that means, Wolf, it means having the guts to take on the fossil fuel industry. Now, I am on board legislation that says, you know what, we ain't going to excavate for fossil fuel on public land. That's not Secretary Clinton's position.

Carbon Tax

SANDERS: Let us support a tax on carbon...:Something I don't believe Secretary Clinton supports.

SANDERS: And that means -- and I would ask you to respond. Are you in favor of a tax on carbon so that we can transit away from fossil fuel to energy efficiency and sustainable energy at the level and speed we need to do?

SANDERS: ... When you were Secretary of State, you also worked hard to expand fracking to countries all over the world.

Campaign Funding from the Fossil Fuel Industry

CLINTON: So, we both have relatively small amounts of contributions from people who work for fossil fuel companies. Best we can tell from the reports that are done. But, that is not being supported by big oil, and I think it's important to distinguish that.

SANDERS: But, as I understand it, 43 lobbyists for the fossil fuel industry maxed out, gave the maximum amount of money to Secretary Clinton's campaign.

Clean Energy

CLINTON: we have got to make a very firm but decisive move in the direction of clean energy...That's why I've set big goals. I want to see us deploy a half a billion more solar panels by the end of my first term and enough clean energy to provide electricity to every home in America within 10 years.

CLINTON: President Obama moved forward on gas mileage, he moved forward on the clean power plant. He has moved forward on so many of the fronts that he could given the executive actions that he was able to take.

COP21

CLINTON: And, I was surprised and disappointed when Senator Sanders attacked the agreement [Paris Climate Agreement], said it was not enough, it didn't go far enough. You know, at some point putting together 195 countries, I know a little bit about that, was a major accomplishment...

SANDERS: The issue here -- of course the agreement [Paris Climate Agreement] is a step forward, but you know agreements and I know agreements, there's a lot of paper there. We've got to get beyond paper right now.

CLINTON: Well, I'm a little bewildered about how to respond when you have an agreement [Paris Climate Agreement] which gives you the framework to actually take the action that would have only come about because under the Obama administration in the face of implacable hostility from the Republicans in Congress...

CLINTON: ...I was very proud that President Obama and America led the way to the agreement that was finally reached in Paris with 195 nations committing to take steps to actually make a difference in climate change.

See the climate positions of Bernie Sanders and Hillary Clinton.

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Green Bonds Emerging as a Major Force in Green Finance

The momentum driving green bonds is growing and they have emerged as a major instrument of green finance. Green bonds generate funding for sustainable development and clean energy technology. They attract debt investment capital and drive innovation in renewable energy, sustainable agriculture, forests and other environmental causes. At COP21 green bonds were touted as being one of the vehicles that could help deliver $100 billion annually by 2020 to support of climate action.

A 2014 HSBC report indicates that we will need to see $300 billion a year in investments to keep us below the upper threshold limit of 2 Celsius. If even a fraction of the $80 trillion bond market moved to environmental finance, it could tip the scales in the climate fight, says Angus McCrone, Chief Editor for Bloomberg New Energy Finance.

According to Ceres, we need to invest around $1 trillion each year in clean energy projects worldwide by 2050 to ensure that global warming is limited to 2 degrees Celsius.

The first green bonds were issued in 2007 by development banks. As of 2012 we were seeing investments of around $2 billion, by 2013 that grew to $11 billion and by 2014 it was around $36 billion. In 2014 three green bond indexes were launched (S&P Green Bond Index; Bank of America; Barclays Bank and index creator MSCI).

In 2015 there was $42 billion worth of green bonds issued. These bonds have grown quickly over the past few years and as reported by the EDF, in 2016 they are forecasted to reach about $50 billion.

Green bonds have become a powerful means for corporations to broadcast their environmental credentials. Apple issued $1.5 billion in bonds earlier this year dedicated to financing clean energy projects at its facilities worldwide. New York Metropolitan Transportation Authority issued $500 million in green bonds and Georgia Power issued $325 million to support investment in renewable energy.

As reported by Sustainable Business, in 2015 the World Bank issued $3.1 billion in green bonds including $600 million in fixed-rate 10-year green bonds. The Oslo Stock Exchange began listing green bonds. SunEdison's yieldco TerraForm Power, issued $800 million for 8-year junk bonds. Other top issuers were European Investment Bank with $5.6 billion in Climate Awareness bonds, German Development Bank KfW with $3.5 billion and GDF Suez with $3.4 billion. Toyota issued $1.75 billion, French Development Bank AfD issued $1.3 billion and Iberdrola issued $1 billion in green bonds. Vestas wind energy also issued green bonds.

"We are convinced that green bonds play an important role in unlocking the green market capital that is necessary to finance the transformation to a cleaner and more sustainable future," states Stefan Reiner, Director in Corporate Finance and responsible for the bond business of German development banks,

Mexico has successfully used green bonds as a financing mechanism to reduce emissions. In 2014 the Huffington Post reported that Africa will issue one billion in green bonds. In March 2015 the first Green Bond issued in Asia easily raised $500 million.

Some early concerns related to green bonds are being addressed including the lack of standardization. In January 2014 a group of leading banks took preliminary steps to create standardization in the market by issuing something called Green Bond Principles. As explained by Ceres’ Mindy Lubber: "As standards get stronger, we’ll see more growth in the market."

Groups such as Green Bond Principles and the Climate Bonds Initiative are giving investors the tools they need. To see a report and guide from Lloyds Bank on green bonds click here.

Green bonds are a game changer. Growth in the green bonds sector is evidence that banks are starting to see the potential of low carbon infrastructure projects. If a fraction of the 80 - 90 trillion bond market were diverted to green bonds it would significantly advance climate finance.

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Drivers of Green Investment Growth
New Sustainability Focused Finance Instruments
Opportunities in Sustainability Finance Highlighting Renewables & Energy Efficiency
The Panama Papers Highlight the Need for Sustainability
A World Bank Action Plan to Combat Climate Change
European Commissioner for Climate Action Urges Development Banks to Divest from Fossil Fuels
A Large and Growing Chorus is Calling for an End to Fossil Fuel Subsidies

IDB to Double Climate Related Projects

In October last year Inter-American Development Bank (IDB) announced that it is going to double its climate related projects by increasing financing by between 25 and 30 percent by 2020. The IDB was established in 1959, it offers long-term financing for economic, social and institutional development in Latin America and the Caribbean.

As reviewed in an October, 2015 press release, starting in 2018 the bank will begin screening projects for climate risks and resilience. This will ensure that money invested goes towards environmentally sustainable projects and achieves the stated goal of helping these countries to meet their INDC targets.

The IDB is working with private sector finance to provide financing for adaptation and resilience. As a newly consolidated entity the IDB will offer innovative financial products, such as green bonds.

Historically the IDB has devoted 14 percent of its financing to climate related projects between 2012 and 2014.

Related
Green Finance Goes Mainstream in 2016
Green Bonds Emerging as a Major Force in Green Finance
The Green Climate Fund Comes of Age
The Climate Investment Fund's Low Carbon Development
World Bank to Finance More Renewables in the Developing World
Innovative Solar Financing Instruments
Drivers of Green Investment Growth
New Sustainability Focused Finance Instruments
Opportunities in Sustainability Finance Highlighting Renewables & Energy Efficiency
The Panama Papers Highlight the Need for Sustainability
A World Bank Action Plan to Combat Climate Change
European Commissioner for Climate Action Urges Development Banks to Divest from Fossil Fuels
A Large and Growing Chorus is Calling for an End to Fossil Fuel Subsidies

The Allure of Low Carbon Investment Opportunities

Investors are waking up to the opportunities afforded by the low carbon economy. The benefits of emissions reduction extend far beyond averting a climate catastrophe. Decreasing our GHG emissions will help create jobs, alleviate poverty, improve public health and even provide greater food security.

The math supports climate action and the economics are becoming harder to refute. Market forces are driving a steady flow of capital and investors are finding it impossible to ignore the return potential of low carbon technologies.

We have never confronted such a portentous and daunting challenge as the climate crisis, nor have we ever seen such a stellar opportunity. This is a unique investment that offers phenomenal returns, while fostering socio-economic growth.

The case for a low carbon economy is getting stronger and concerns that it will bankrupt the economy are proving to be false. Early in 2016 IRENA indicated that doubling the amount of clean energy by 2030 compared to 2010 levels, will increase GDP by $1.3 trillion.

As explained in the background of a EurActiv.com article, the amount of money that needs to be invested to cut emissions to sustainable levels is estimated at between 500 ($568) and 1,500 ($1,705) billion euros per year.

Nations like the US are poised to formally ratify the emissions reduction pledges they made at COP21. Most of the world's leading emitters have already announced plans to massively increase their renewable energy capacities. These commitments are expected to grow over time.

At the beginning of the year, Mindy Lubber and Christiana Figueres wrote,
"The winds of change from Paris are already shifting policy and financial flows towards ever cleaner and renewable energies and sustainable infrastructure."
The size of the opportunity is enormous. US Secretary of State John Kerry said that climate change presents an opportunity that could far surpass the tech boom of the 1990s. The climate crisis is, "a multitrillion-dollar market with billions of users worldwide." Kerry said. "[C]lean energy is one of the greatest economic opportunities the world has ever seen...There are opportunities literally everywhere you look."

Research from the New Climate Economy corroborates Kerry's claim and finds that low carbon investing in cities alone could generate savings of between $17 and 22 trillion by 2050. For example, New York City has reduced its GHG emissions by 19 percent since 2005, and it plans to reduce emissions 80 percent by 2050.

Clean energy has grown six fold in the last decade and in 2015 we saw big changes in the energy sector. A record 330 billion was invested in new clean energy initiatives. According to Global Trends in Renewable Energy Investment 2016, since 2004, the world has invested $2.3 trillion in renewable energy. This will only grow reaching an astounding $68 trillion in energy investments by 2040. The IEA says that we will need $90 trillion of new energy investment by 2030.

As explained by Lubber and Figueres:
"The actions needed are legion, but so too are the rewards for investors and companies who make the shift early and embed the transition rapidly."
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The Green Climate Fund Comes of Age

The Green Climate Fund (GCF) is a United Nations climate finance mechanism designed to assist the developing world.by mobilizing funding for mitigation and adaptation. The GCF mission is to expand collective human action to respond to climate change. It will do this in large part  through the transfer cutting-edge climate technologies. This includes things like smart-grid technologies, electric vehicles and components used in solar electricity generation.

The GCF draws upon resources from public, private, and philanthropic sources. It was first established at COP16 as an operating entity of the Financial Mechanism of the Convention under Article 11. The GCF supports projects, programmes, policies and other activities in developing country Parties. The Fund is governed by the GCF Board.

Dollars and Sense

The GCF is an important part of green finance and it is essential to climate action in poorer nations. Advanced economies have agreed to jointly mobilize $100 billion for the fund every year by 2020. The G20 has promised to contribute $10 billion to the GCF and leaders at a G7 Summit in June 2015, reiterated the GCF's role as a key institution for global climate finance.

As of February 2016, the Green Climate Fund had raised $10.2 billion in pledges from 42 state governments.

In March the US agreed to formalize their $3 billion pledge that was made in 2014 and send its first installment of $500 million. As the world's largest economy the  US is also the world's largest donor.

Formative Hurdles

There were a host of problems that plagued the GCF from its inception including the fact that the adaptation fund has been persistently below its capitalisation targets

Very early on it came to light that Japan had used its initial climate finance to construct three coal fired plants in Indonesia. This prompted green groups to send a letter the GTF asking them to adopt an explicit policy to ensure that its funds will not be used directly or indirectly for financing fossil fuel or other polluting energy initiatives.

The GCF has also been criticized for its lack of accountability and transparency, but in 2016 the GCF has vowed to disclose as much information as possible including webcasts of their meetings.

Coming of Age

As explained in a recent Nature article, "The Green Climate Fund (GCF) has had an inauspicious start to life — but 2016 could be the year it springs into action."

"This year will be important for demonstrating that the GCF can fund transformational actions in developing countries," says Niranjali Amerasinghe, who studies climate finance at the World Resources Institute in Washington DC.

As of December 2015 the fund had approved $168 million for eight climate projects, including wetland resilience programmes in Peru and climate-resilient infrastructure in Bangladesh. In March the fund approved projects worth $2.5 billion for 2016. For example, Odisha, India will benefit from a GCF financed project that will raise the ground water levels in ponds leading to increase in irrigation facility in the 13 districts of the state.

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Reasons to be Optimistic about a Global Climate Agreement in 2015

World Bank to Finance More Renewables in the Developing World

After being called out for hypocrisy, the World Bank is working to redeem itself through massive investments in renewable energy. The International Monetary Fund and the World Bank Group are holding their annual "Spring Meetings events" in Washington, DC, on April 12-17, 2016. It will be attended by thousands of government officials, journalists, civil society organizations, and participants from the academia and private sectors. The meetings will feature seminars, regional briefings, press conferences, and many other events focused on the global economy, international development, and the world's financial markets.

The World Bank has repeatedly warned of dramatic temperature increases and has called for bold action and countries to adopt aggressive targets to cut greenhouse gas emissions. In 2013 World Bank President, Dr. Jim Yong Kim, pledged that the bank will do everything it can to address climate change. The bank has been looking at business through a "climate lens" he said and he further suggested that we include the cost of carbon in energy pricing (carbon pricing) and end fossil fuel subsidies.

While the bank supports renewable energy, they have been criticized for simultaneously supporting fossil fuels. Between 2008 and 2013 the bank provided US$18 billion, or almost half of its energy lending, for fossil fuels and coal in particular.

This is at odds with Jim Yong Kim Promise to factor in global warming "with every investment we make and every action we take." In a Washing Post op-ed he warned that "we need to get serious fast” to avoid the looming “climate catastrophe."

In the wake of this disconnect between word and deed the World Bank has decided to increase its spending on renewable energy in 2016. They are specifically planing to invest in enough renewable energy in developing countries to power 150 million homes.

As outlined by US News, these plans were released in 59-page climate action plan that outlines how these investments will help poorer nations to meet the goals set in the Paris climate accord.

The World Bank's private-sector arm will increase its climate investments from $2.3 billion-a-year to $3.5 billion a year by 2020. The stated goal is to spur a $13 billion a year in private investments.

The bank also plans to help developing countries add 30 gigawatts of electricity to power 150 million homes without emissions of heat-trapping gases.

The World Bank Group said it spends about $10.3 billion a year on climate, which is slated to rise to $16 billion a year by 2020.

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Environmental Differences Between Hillary and Bernie in the Flint Presidential Debate

Hillary Clinton and Bernie Sanders faced off in a presidential primary debate at the University of Michigan in Flint, on March 6, 2016. During this substantive debate some salient differences emerged between the two remaining Democratic presidential contenders.

These differences included Sander's relatively stronger emphasis on combating climate change, and opposition to both fracking and campaign finance from the fossil fuel industry.

Both candidates pledged that they would reverse the Citizens United ruling (the Citizens United Supreme Court ruling allows powerful interests like the fossil fuel industry to disproportionately influence government. It also undermines climate legislation andfails to protect the planet from corporate influence).

Fracking

COOPER: The issue of climate change has been a major talking point for both of you. I wanted to bring in Sarah Bellaire, she’s a student at the University of Michigan at Dearborn who says she’s currently undecided.

Ms. Bellaire has a question on fracking, which, for viewers, is a process of oil and gas drilling that’s led to a significant increase in American energy production and jobs, but also raises serious environmental concerns.

Sarah, your question is for Secretary Clinton, but you’ll both be able to weigh in. Sarah?


QUESTION: Fracking can lead to environmental pollution including, but not limited to, the contamination of water supply. Do you support fracking?

COOPER: Secretary Clinton?

CLINTON: You know, I don’t support it when any locality or any state is against it, number one. I don’t support it when the release of methane or contamination of water is present. I don’t support it — number three — unless we can require that anybody who fracks has to tell us exactly what chemicals they are using.

So by the time we get through all of my conditions, I do not think there will be many places in America where fracking will continue to take place. And I think that’s the best approach, because right now, there places where fracking is going on that are not sufficiently regulated. So first, we’ve got to regulate everything that is currently underway, and we have to have a system in place that prevents further fracking unless conditions like the ones that I just mentioned are met.

COOPER: Senator Sanders, you?

SANDERS: My answer — my answer is a lot shorter. No, I do not support fracking.

COOPER: Senator Sanders, though…to Secretary Clinton’s point, there are a number of Democratic governors in many states who say that fracking can be done safely, and that it’s helping their economies. Are they wrong?

SANDERS: Yes.

Climate Change

SANDERS: I’m glad you raised the issue of climate change, because the media doesn’t talk enough about what the scientists are telling us, and that is, if we don’t get our act together… the planet that we’re gonna leave our children may not be healthy and habitable. I have introduced the most comprehensive climate change legislation in the history of the Senate, which, among other things, calls for a tax on carbon, massive investments… in energy efficiency, wind, solar and other sustainable energy. This is a crisis we have got to deal with now.

I happen to be a member of the Environmental Committee. I have talked to scientists all over the world. And what they are telling me — if we don’t get our act together, this planet could be 5 to 10 degrees warmer by the end of this century — cataclysmic problems for this planet. This is a national crisis. And I talk to scientists who tell me that fracking is doing terrible things to water systems all over this country. We have gotta be bold now. We gotta transform our energy system to energy efficiency and sustainable energy. We’ve gotta do it yesterday.

CLINTON: Well, first, let me say I think I have the most comprehensive plan to combat climate change. It sets some very big goals, a half billion more solar panels deployed by the end of my first term, if I’m so fortunate to be president. And enough clean energy to power every home by the end of my second term.

What I am looking at is how we make the transition from where we are today to where are today to where we must be. I worked with President Obama during the four years I was secretary of state to begin to put pressure on China and India and other countries to join with us to have a global agreement which we finally got in Paris.

So I am committed to and focused on how we make that transition. I’ve already said we are taking away the subsidies for oil and gas, but it is important that people understand that a president can’t go ordering folks around. Our system doesn’t permit that. I am going to set the goals. I will push everybody as hard as I can to achieve those goals. We will make progress on clean renewable energy and create millions of jobs through that.

CLINTON: We need to do more to help create clean energy as a source of good jobs

Campaign Finance from the Fossil Fuel Industry

COOPER: Secretary Clinton’s gonna be able to respond. But, Senator Sanders, you’ve been very tough lately. Last week, you said this about Secretary Clinton.

Quote, “just as I believe you can’t take on Wall Street while taking their money, I don’t believe you can take on climate change effectively while taking money from those who would profit off the destruction of the planet.”

COOPER: Are you suggesting that she’s in the pocket of the fossil fuel industry?


SANDERS: No, what I am suggesting is that we have a corrupt campaign finance system. And instead of standing up to that finance system… And instead of standing up to that finance system, Secretary Clinton has super PAC, which is raising huge amounts — well, I hate to say the word “huge,” every time I say huge it…

SANDERS: A lot of money from Wall Street and from the fossil fuel industry. I am doing it a different way. I have 5 million individual contributors who have gone to BernieSanders.com to make a $27 contribution. I don’t take money from the fossil fuel industry.

COOPER: Senator Sanders, on the — on the campaign trail, Senator Sanders often refers to a fundraiser in January that was hosted by executives from a firm that has invested significantly in domestic fracking. Do you have any comment on that?

CLINTON: I don’t have any comment. I don’t know that. I don’t believe that there is any reason to be concerned about it. I admire what Senator Sanders has accomplished in his campaign. I have more than 850,000 donors, most of them give less than $100. I am very proud of that. And I just want to make one point. You know, we have our differences. And we get into vigorous debate about issues, but compare the substance of this debate with what you saw on the Republican stage last week.

SANDERS: But here’s the difference. Here is the difference. It’s not a personal difference. We just do things differently. All right. I honestly — look, we have a corrupt campaign finance system. And what Secretary Clinton is saying and what every candidate who receives from the fossil fuel industry or the drug companies or Wall Street say, not going to impact me. The question the American people have to ask is, why are these people putting millions of dollars into candidates if it’s not going to make a difference? 

Citizens United

SANDERS: And that is why, by the way, that is why one of my top priorities, if elected president will be to overturn this outrageous Citizens United Supreme Court.

CLINTON: And that is one of the many reasons we must all support President Obama’s right to nominate a successor to Justice Scalia and demand that the Senate hold hearings and a vote on that successor because there are so many issues at stake. On the first day of my campaign, I said, we are going to reverse Citizens United. And if we can’t get it done through the court, I will lead a constitutional amendment effort to reverse it that way.

See the climate positions of the remaining Democratic presidential candidates: Bernie Sanders and Hillary Clinton.

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France: One of the Most Sustainable Countries in 2015

In 2015 France stood out as one of the most sustainable countries in the world due to the scope of their national efforts and the wider economic implications of their actions. While Nordic countries and their neighbor Germany have ranked very highly on a number of national sustainability assessments, France must be including on any list of the greenest European countries in 2015. France is listed among the top ten countries in the Environmental Performance Index (EPI) ranking of 180 nations. 

As hosts of the COP21 climate talks last December French leadership was essential. This is particularly true in light of the Paris terror attacks that took place just prior to the start of the final round of negotiations. Under the leadership of Francois Hollande France has been a global climate leader. In addition to being the host of the most important climate conference in human history, France introduced a number of sustainability measures in 2015. From managing food waste to supporting renewable energy France showed that it is walking the talk last year.

In 2015 France passed important green energy legislation that will quadruple the country's carbon tax by 2020. They also installed a 300 megawatt solar PV plant that is now the largest such facility in Europe. France is striving to get almost a quarter of its energy from renewables by 2020 and 40 percent by 2030.

France has also made green and solar roofs mandatory on all new constructions and they have restricted the number of fossil fuel powered vehicles that can travel on city roads. France has also made sustainability reporting mandatory.

Alongside government efforts French companies are assuming a leadership role. For example Air France and a hundred or so other corporate leaders endorsed a statement that included calls for "prompt and decisive action on climate change." The statement sought to lay out a framework to combat climate change and stimulate economic growth. It explicitly called for more clean energy.

French power stations are pushing for an energy roadmap. Électricité de France and other companies that comprise the Global Sustainable Electricity Partnership (GSEP) sent a letter to governments urging them to provide a clear pathway outlining the move away from fossil fuels and towards low-carbon energy.

France is also investing in clean power in the developing world. The French and Jordanian Prime Ministers signed an agreement for a $44 million loan to build a transmission corridor for renewable energy.

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Climate and Clean Energy in the Third Democratic Presidential Debate

Watching the third Democratic debate, the conspicuous absence of any questions on climate change could have led viewers to think they had tuned into a Republican debate. Although not a single question was asked about climate change, which is startling given the fact that the debate comes only a week after the COP21 agreement was announced, Sanders and O'Malley did manage to briefly mention climate change and clean energy. Clinton conspicuously ignored the topic altogether. She may think this is a good way to win over Republicans who are disillusioned with front running GOP candidate Donald Trump. However it is also a great way to alienate her base.
The debate took place on Saturday December 19th. ABC News hosted Democratic presidential candidates Hilary Clinton, Bernie Sanders, and Martin O'Malley. The 3 Democrats vying for the presidential nomination faced off on foreign policy and domestic issues at St. Anselm College in New Hampshire.

Here are excerpts of Sanders and O'Malley's climate and clean energy remarks made during the debate:

Sanders: I'm running for president because we have a campaign finance system which is corrupt, where billionaires are spending hundreds of millionaires of dollars to buy candidates who will represent their interests rather than the middle class and working families. I'm running because we need to address the planetary crisis of climate change and take on the fossil fuel industry and transform our energy system away from fossil fuel to energy efficiency and sustainable energy.

O'Malley: We were the only state in American that went four years in a row without a penny increase in college tuition. We invested more in our infrastructure and we squared our shoulders to the great business opportunity of this era and that is moving our economy to a 100 percent clean electric energy future. We created 2,000 new jobs in the solar industry and we fought every single day to adopt more inclusive economic practices.

O'Malley: The other big challenge we have is climate change. The greatest business opportunity to come to the United States of America in 100 years. We need to embrace this. I have put forward a plan that does this, that moves us to 100 percent clean electric grid by 2050. Join this campaign for the future. New leadership is what our country needs to move us out of these divided and polarized times. Thank you.

See the climate positions of the original full slate of Democratic presidential candidates: Martin O'Malley, Bernie Sanders, Hillary ClintonLincoln Chaffee, Larry Lessig and Jim Webb

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Innovate or Die: The Next Big Trend in Sustainability

Innovative approaches to sustainability are rapidly becoming the next frontier of corporate differentiation. Being more innovative is not only essential to improve the bottom line, it is also a pathway to growth.

The combination of rapid technological change and slow economic growth are driving innovation. At the macroeconomic level innovation is essential to profitability and economic growth, at the level of the individual organization, innovation is increasingly a key success factor.

Innovation is an imperative for companies looking to do more with less. It is becoming increasingly clear that we can reduce emissions and tackle climate change. However, innovation is absolutely necessary if we are to expedite emissions reductions. Reducing carbon emissions makes good business sense and innovations that respond to the market demands of the low carbon economy are destined to prosper.

There is a large and growing pool of data that supports the contention that with the help of innovative new technologies sustainability affords good business opportunities. This view was corroborated by an October 2014 analysis from the World Resources Institute (WRI). According to the WRI report titled Seeing Is Believing: Creating a New Climate Economy in the United States, emerging technologies could help the US achieve deeper reductions even faster with targeted policy support.

According to a PricewaterhouseCoopers (PWC) report titled Breakthrough Innovation and Growth, executives are looking to innovation to drive growth. The report surveyed 1757 corporate executives in 25 countries and found that 93 percent of executives are looking to innovation to drive growth.

One of the most interesting findings is that while organizations want innovation they do not know how to get it. A total of 81 percent of respondents indicated that they do not believe their organizations know how to lead innovation.

Companies are not living as long as they used to and innovation is one of the primary ways they can lengthen their life span.

To succeed in today's marketplace companies need to engage innovation in a methodical fashion. This entails developing well thought out and fully integrated plans for innovation. This goes far beyond generating a good idea and extends into detailed strategies for implementation.

The corporate world is adopting sustainability as a strategic imperative that is being dictated by the market. However, it is no longer enough that businesses simply engage sustainability, they are now faced with increasingly powerful pressures that are driving them to innovate as a matter of survival.

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