ESG Insider: Lack of consensus about energy transition on display at CERAWeek
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This week the ESG Insider team is on the ground in Houston covering the CERAWeek by S&P Global symposium. CERAWeek is one of the biggest events in the energy industry, convening global leaders to talk about energy and climate. Mainstage sessions on Day 1 made it clear that there is not a global consensus on what the energy transition will look like.
We heard US Energy Secretary Jennifer Granholm say that the US is undergoing an "undeniable " shift toward cleaner sources of energy despite an equally indisputable need to secure fossil fuel supplies for the foreseeable future.
"The momentum of the clean energy transition is undeniable. Even as we are the largest producer of oil and gas in the world, and the largest exporter of LNG [liquefied natural gas] in the world, the expansion of America's energy dominance to clean energy is striking,'' she told the conference.
But we heard a different message when CEOs of some of the world's largest oil and gas companies took the stage. Saudi Aramco CEO Amin Hassan Nasser, for example, described the phaseout of fossil fuels as a "fantasy" and said the world has been trying to transition “without a compass, on a road to nowhere.”
In this week’s newsletter, we feature S&P Global Sustainable1 research examining corporate support for nature-based solutions, which are actions to restore, protect and sustainably manage ecosystems to help address societal challenges. We also look at Japan's first sovereign transition bond sale, Europe’s low-carbon steel transition and bring you more from CERAWeek, where company executives explain why they think tax credits in the US Inflation Reduction Act for carbon capture projects are not sufficient to incentivize the industrial sector.
In the latest ESG Insider podcast episode, we explore the US Securities and Exchange Commission’s long-awaited rule requiring thousands of publicly traded companies to disclose certain climate-related information.
Chart of the Week
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Corporate support for nature-based solutions has room to grow
Nature-based solutions can help address the interlinked crises of climate change and biodiversity loss. However, new S&P Global Sustainable1 research shows that few companies appear to grasp the way nature-based solutions can contribute to decarbonization efforts, climate adaptation and ecosystem protection.
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Roadmap of Europe's low-carbon steel production projects
European steelmakers are switching technologies as they seek to reduce carbon emissions. Decarbonization projects in Europe are set to cut emissions by 30% by 2030 and entirely by 2050, and companies are shifting mostly to electric arc furnaces with the use of hydrogen where possible, according to an analysis by S&P Global Commodity Insights.
CERAWEEK: Carbon capture costs outweigh incentives, fail to attract hard-to-abate industries
Companies are committed to reaching net-zero goals outlined in the US Inflation Reduction Act (IRA) by tackling carbon emissions through large scale storage projects. But they have not rallied behind carbon capture projects in the IRA as costs remain a barrier to widescale deployment, company executives said at CERAWeek, according to S&P Global Commodity Insights reporting.?
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Greenwashing fears dampen global interest in Japan's inaugural transition bonds
International investors showed tepid interest in Japan's first sovereign transition bond sale, possibly due to concerns that the country's decarbonization financing tool is not sufficiently green, S&P Global Market Intelligence reports.
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Podcast
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ESG Insider Podcast
Unpacking the SEC's climate disclosure rule The US Securities and Exchange Commission on March 6 finalized a long-awaited rule requiring thousands of publicly traded companies to disclose certain climate-related information. The rule was paused by a federal court the following week. In this episode of the ESG Insider podcast, we examine the rule’s key elements and how it fits in the global climate disclosure landscape. >>Listen on Spotify , Google Podcasts or Apple Podcasts At CERAWeek, mapping one large utility's energy transition path In this special episode, we sit down on the sidelines of CERAWeek with Phil Nevels, Director of Corporate Strategy for AES Corporation, a Fortune 500 energy company with operations in the US, Latin America and Asia. Phil outlines how AES is working to meet its net-zero goals, including phasing out coal and expanding renewables and gas-fired generation.? >>Listen on Spotify , Google Podcasts or Apple Podcasts
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