ESG Insider: Wildfires create public health and business risk across Canada and the US

A series of early-summer wildfires across Quebec, Canada blanketed eastern North America in smoke last week, causing air quality to plummet across heavily populated areas such as Toronto, New York City and Washington, DC. The fires have burned about 8.1 million acres so far, already breaking Quebec’s annual record for area burned.

Scientists have?projected?that drier and hotter conditions due to climate change will increase fire activity in many places in North America over the coming decades, which poses an increased risk to public health. A 2021 scientific study?found?that the particulate matter — microscopic solids or liquids in the air that can be inhaled — from wildfires in Southern California was 10x more harmful to human health than particulate matter from other sources such as industrial plants, ports and traffic emissions.

Wildfires exacerbated by climate change are also impacting key sectors of Canada’s economy. Dozens of?mines and exploration sites?for metals such as copper and gold are located near some of the largest fires burning in Quebec. And farther west, in Alberta, wildfires in May have?stalled?Canada’s natural gas production.

In addition to coverage of the fires, this week's newsletter explores how a prominent nature-based carbon credit method in Australia could expire without being replaced, even as demand for these offsets is expected to increase. And we examine how low demand for green hydrogen in the US is driving developers to seek buyers overseas.

This week’s episode of the ESG Insider podcast explores the EU's Green Deal Industrial Plan, which is meant to boost investment in clean-tech industries and to make the EU more competitive globally amid the transition to a low-carbon economy.?

Chart of the Week

Quebec set to ease fire restrictions, but smoke still dogs miners

Wildfires in Quebec appeared to ease enough in some areas by June 9 that certain exploration-halting restrictions could soon be lifted. And Rio Tinto Group began the recovery process at suspended iron ore operations in the province's east, though mines in southwestern Quebec still faced disruptions amid heavy smoke.

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Ongoing Canadian wildfires not expected to break 2016 insured loss record

While images of smoke-drenched New York City made striking headlines last week, insured losses from the wildfires still raging across Canada are not expected to match 2016's record year.?

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Australia faces tight nature-based carbon credit supply as key removal method expires?

Australia is expected to face a shortfall in nature-based carbon credits supply over the next two to three years as a key method for carbon removal expires in 2023 with no replacement expected this year, industry sources told S&P Global Commodity Insights.

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Gray hydrogen customers slow to go green, so US developers chase overseas demand

The US has a robust domestic hydrogen market, but as clean energy developers chase federal incentives for low-carbon hydrogen production, legacy customers have shown little interest in paying a green premium.?

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ESG Insider Podcast

Unpacking the EU's Green Deal Industrial Plan

In this episode of the ESG Insider podcast, we’re turning our attention to the European Union and digging into the Green Deal Industrial Plan. We talk to a senior research fellow at the Centre for European Reform, a think tank; the Head of Sustainable Finance Advisory at Pinsent Masons, a multinational law firm headquartered in London; and a partner at climate advisory firm Kaya Partners.

Listen on?Spotify,?Google Podcasts,?or?Apple Podcasts

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