Blockchain could be used to facilitate trading
of carbon assets.
According to report by the non-profit Carbon Tracker Initiative, up to 80 percent
of carbon assets could become unburnable.
Digital collaboration across organizations combined with smart contracts will be designed to greatly improve efficiency
of carbon assets development and management.
At a recent investment conference sponsored by Royal Bank and Suncor I spoke about the likelihood that billions of dollars
of carbon assets will never see the light of day.
We're going to extract every last drop and burn every last drop,»» said Andy Behar, president of California - based As You Sow, an advocacy group and co-sponsor
of the carbon asset risk resolution.
Unfortunately, that's a distinction that some other supporters
of the carbon asset bubble meme don't seem to make, particularly with regard to oil and natural gas.
While North America's largest oil and gas company did announce for the first time that climate change is a reality, the company does not mention the potential risks
of a carbon asset bubble.
Not exact matches
Carbon Tracker, the analyst house which pioneered the stranded
asset or «
carbon bubble» theory, has warned a quarter
of global oil refining capacity could become unviable and be forced to shut down within 20 years due to falling demand.
My two cents:
carbon assets are going to be left in the ground for a variety
of reasons, not least
of which is emission constraints (that I think is the least
of the reasons given the power
of corporations and financiers over government).
It is time for
asset managers to take their lead from those progressive firms and investors who are embracing the low
carbon transition, and prepare themselves for a future
of greener investment patterns.
The development
of this new global
asset class is an opportunity to advance a low
carbon future...».
The
Carbon Tracker Initiative, a nonprofit organization that studies
carbon budgets, has warned that the remaining vast reserves
of unburnable
carbon will become stranded
assets.
Whenever capital
assets reach the end
of their productive lives, they should be replaced with energy efficient and low -
carbon alternatives wherever possible and prudent.
A small but growing number
of countries now have legal requirements for institutional investors to report on how their investment policies and performance are affected by environmental factors, including South Africa and, prospectively, the EU.36 Concern about the risks
of a «
carbon bubble» — that highly valued fossil fuel
assets and investments could be devalued or «stranded» under future, more stringent climate policies — prompted G20 Finance Ministers and Central Bank Governors in April 2015 to ask the Financial Stability Board in Basel to convene an inquiry into how the financial sector can take account
of climate - related issues.37
Moreover, Exxon Mobil expressed confidence that its oil and gas
assets were unlikely to become stranded even under much tighter regulation
of carbon emissions because the fossil fuels would be needed to grow the world's economies.
It would have to reduce the risks
of high -
carbon assets while simultaneously scaling up capital for the low -
carbon transition.
One step would be stress testing, engaging pension funds and companies to examine if they hold
carbon - intensive
assets on their books, said Martin Skancke, who spoke on the first panel and is chairman
of the Advisory Council
of Principles for Responsible Investing, a U.N. - supported initiative that has helped formulate a widely followed voluntary protocol
of responsible investment criteria.
It also allows for a smoother reallocation
of investment away from high -
carbon towards low -
carbon technologies and infrastructure, avoiding the risk
of stranded
assets and economic disruption.
Furthermore, there is a guaranteed market for PRISM's low -
carbon by - product — electricity — which eliminates the need to sell a fuel product and turns the UK's stores
of plutonium into an economic
asset.
He was way ahead
of the game before the more recent pronouncements
of unburnable
carbon and «stranded
assets ``.
It says investors that currently have high exposure to high -
carbon assets are at risk
of possessing «stranded
assets» — a term used to describe financially worthless investment stocks.
In his new film, Downsizing, he presents an intriguing solution to climate change and the world's population crisis, imagining an alternate reality where people have the opportunity to literally shrink themselves thus increasing the value
of their
assets and dramatically reducing their
carbon footprint.
Acer can also assist schools in reducing the
carbon footprint by providing an e-waste and
asset re-use service across a range
of commodity types, including mobility style devices such as laptops and desktop monitors, to name a few.
Another set
of carbon fiber
assets completes two - tone leather upholstery.
As a result, public pension sponsors and other
asset owners are facing a surge
of mandates to use their investing heft to achieve social goals such as reducing the
carbon footprint, improving gender diversity, and so on.
However,
carbon monoxide detection, fire alarms, the ability to turn your lights on and off, knowing when your kids come home when you're at work — all
of these monitoring services are attractive to consumers who want to protect their
assets and have peace
of mind.
Even if it was a
carbon copy
of what he did with just the
assets changed, any company is within their rights to do so so long as they don't use copyrighted code.
Adopt a goal
of requiring, or persuading, fossil fuel companies to disclose in their 10Ks and other filings the amount
of carbon held for ultimate release on the
asset side
of their balance sheets, and the range
of possible outcomes to their business if some
of those
assets are stranded.
Firms want a fair degree
of price certainty in long - term investment decisions, and the allocation
of carbon - based
assets (like permits) make a reduction
of permits in circulation in response to reductions in scientific uncertainty somewhat problematic.
Even a wedge
of natural gas has some value in this view, since it displaces a huge volume
of long - lived coal generation
assets, which increases the odds that zero
carbon sources will be able to muscle in later.
He just filed a piece on a German economist's conclusion that the lost
assets when forests are destroyed — water cleansing,
carbon holding, etc. — dwarf the global financial losses
of late.
Unless we brake hard, not on emissions, but on the creation
of carbon - based
assets, then we'll end up in a situation where SecularA's solution, trash - compacting much
of our civilization, will become necessary.
If there's going to be a market for
carbon, then the market's going to have to have confidence that what an investor is buying is actually a real
asset, and that the
carbon is being sequestered in a stand
of forest.
Formed in 2008 by CE2 Capital Partners and Energy Capital Partners, CE2
Carbon Capital, LLC is a company dedicated to building a portfolio
of carbon offsets and other
assets focused on reducing greenhouse gas (GHG) emissions in North America.
By «this
asset» Governor Malloy refers to Millstone Nuclear Power Plant, which provides 96 percent
of Connecticut's zero -
carbon electricity.
And Palo Alto has been able to achieve
carbon neutrality in large part because it has a set
of assets and attributes that most other cities lack.
This paper is designed to assist the TCFD members in assessing the «
carbon bubble» concept and «stranded
asset» risks inherent in the business - as - usual strategies
of many fossil fuel companies.
Properly set up, this system might represent a viable hedge: a mix
of fossil
carbon in the ground, and land for «green» energy could protect
asset values and corporate survival.
In the case
of fossil fuels, the
carbon bubble effect due to stranded
assets has motivated some divestment activity, in addition to the ethical / survival concerns over increasingly serious climate impacts due to fossil fuels consumption.
HERE is one Ceres investor statement by 190 real - money investors with more than US$ 13 trillion
of assets: «On 14 January 2010 the world's largest investors released a statement calling on the U.S. and other governments to quickly adopt strong national climate policies that will establish a stable investment climate and thus spur low -
carbon investments to reduce emissions causing climate change.»
Developing and implementing these strategies ensures alignment with the long - term goals
of the Paris Agreement, in a way that fosters increased prosperity for citizens, reduces the risk
of locking - in unsustainable and high - emission infrastructure, and will help to avoid stranded high -
carbon assets.
Once the financial impact
of stranded
assets are factored in, the
carbon bubble will collapse with large financial consequences for fossil fuel companies and their owners.
Even the threat
of impending regulation creates uncertainty for long - lived
carbon - intensive
assets.
Furthermore, the overlay analyses
of existing land designations and biomass
carbon highlight the need for the effective and sustainable management
of designated areas in order to reduce environmental harm and secure the valuable
assets they contain.
This hedging strategy will buffer the impact an extreme
carbon risk event might have on a portfolio while potentially capturing the upside
of the transition away from fossil fuel
assets.
So the darker hopes arise — maybe a particularly furious El Niño or a «
carbon bubble» where the financial markets realize that renewables have become more scalable and economical, leading to a run on fossil - fuel
assets and a «generational crash»
of the global economy that, through great suffering, buys us more time and forces change.
The combination
of needing to limit
carbon dioxide emissions and having fossil fuel companies that are valued by their proven reserves is what
Carbon Tracker, a non-profit organization, is calling the «
Carbon Bubble» in their new report, «Unburnable
carbon 2013: Wasted capital and stranded
assets.»
This can be achieved by, for example, considering the key drivers
of a company's current and future
asset base in the context
of carbon risks and developing tools that quantify risks for valuations.
It then outlines some
of the support programmes available for CDM projects in Africa, including: the UNFCCC loan scheme for countries with fewer than ten registered projects; the Africa
Carbon Asset Development initiative; the
Carbon Fund for Africa; the African Biofuels and Renewable Energy Fund; the UN Development Programme (UNDP)'s Millennium Development Goals
Carbon Facility; various World Bank
carbon funds and initiatives; and various national programmes for the purchase
of Certified Emission Reductions, such as Germany's KfW
Carbon Fund.
Our services are designed to provide leading financial institutions, corporations, governments, traders and developers with unbiased intelligence and analysis
of the factors that affect the pricing
of carbon market
assets.