Yearly Archives: 2017

PLEA Network

29 November 2017, Geoff Summerhayes, Executive Board Member, Australian Prudential Regulation Authority. The Weight of money: A business case for climate risk resilience. Tonight will be the first time I’ve substantially addressed APRA’s thinking around climate risk since a speech I delivered to the … Continue reading →

PLEA Network

28 November 2017, Moody’s Investor Service, The growing effects of climate change, including climbing global temperatures, and rising sea levels, are forecast to have an increasing economic impact on US state and local issuers. This will be a growing negative credit factor for issuers without sufficient adaptation and mitigation strategies, Moody’s Investors Service says in a new report. The report differentiates between climate trends, which are a longer-term shift in the climate over several decades, versus climate shock, defined as extreme weather events like natural disasters, floods, and droughts which are exacerbated by climate trends. Our credit analysis considers the effects of climate change when we believe a meaningful credit impact is highly likely to occur and not be mitigated by issuer actions, even if this is a number of years in the future. Climate shocks or extreme weather events have sharp, immediate and observable impacts on an issuer’s infrastructure, economy and revenue base, and environment. As such, we factor these impacts into our analysis of an issuer’s economy, fiscal position and capital infrastructure, as well as management’s ability to marshal resources and implement strategies to drive recovery. Extreme weather patterns exacerbated by changing climate trends include higher rates of coastal storm damage, more frequent droughts, and severe heat waves. These events can also cause economic challenges like smaller crop yields, infrastructure damage, higher energy demands, and escalated recovery costs. Read More here

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27 November 2017, Climate Home News. Cleaner coolants fund gets $540m – and US backing. Rich countries will pay $540 million over three years into a fund to support a shift to cleaner coolants, under a deal agreed in Montreal on Saturday. Notably, the US is set to contribute $37m, despite the Trump administration’s hostility to multilateral environmental agreements. It comes as the 1987 Montreal Protocol pivots from its initial focus on the ozone layer to addressing the climate impact of chemicals used in fridges and air conditioners. State department official Judith Garber said the US was starting the process to ratify the Kigali Amendment to the protocol, which sets a phasedown path for HFCs, a group of potent warming gases produced by these appliances. In a speech on Thursday that did not mention climate change, she hailed the Kigali Amendment’s “pragmatic and balanced approach” to reducing HFCs’ “environmental impact”. US chemical companies like Honeywell and Dow support the deal, seeing an opportunity to sell climate-friendly alternatives. The Kigali Amendment will enter into force on 1 January 2019, after Sweden became the twentieth country to ratify it on 17 November. Developing countries like India made clear their backing for an HFC phasedown depended on finance to help their chemical manufacturers switch to substitutes. Gaby Drinkwater of Christian Aid said in a statement: “Developing nations are where the demand growth in air conditioning systems will come from as the planet gets hotter. No one wants to see this demand creating a vicious cycle of rising greenhouse gas emissions.” David Doniger of the Natural Resources Defense Council wrote in a blog that developing countries appeared “optimistic” the funds were adequate. Read More here

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21 November 2017, Climate News Network, The devil’s in the COP 23 detail. A key takeaway from this year’s United Nations climate change conference (COP 23) is that, when it comes to putting a practical foundation under the high-minded pronouncements in the Paris Agreement, the COP 23 detail matters more than the headlines. That means the Paris process has entered a potentially perilous moment when the urgency of the climate crisis is mounting by the day, public expectations are (quite rightly) high, the commitment to action extends far beyond national governments – yet negotiators have to focus on nuts-and-bolts issues that are numbingly technical for the large majority of us, but will still determine the success or failure of a crucially important global deal. It means negotiators get to celebrate incremental but hard-fought victories that push the Paris “rulebook” closer to completion, while setting the stage for more obviously significant dialogue at next year’s conference in Katowice, Poland. And it means the discussions that most immediately match up with the world-wide momentum for climate solutions take place at the margins of the main event, in the hundreds of side meetings that coincide with the official proceedings. Read More here