The election of Ursula von der Leyen as the Head of the European Commission adds to momentum behind carbon emission reduction appetite in the EU. She promised a « European Green deal within the first 100 days of its mandate ». Objective: to make the European Union « the first carbon-neutral continent by 2050 ». She confirmed her support for a CO2 emissions reduction target of 50-55% in 2030 compared to the 40% currently agreed, and she is considering a carbon tax at the borders, a proposal supported by France since 2009 but fiercely rejected by Germany whose industry is a major exporter. The new President also mentioned her willingness to extend the European carbon market (the EU-ETS) to construction, road transport and maritime transport sectors.
Étiquette : Investissement Responsable
ESG in the US Market
Sustainable investment has evolved in the US market less rapidly than in Europe to date due to multiple reasons, one of which has been less ambitious regulation at the national level. ESG policy has become a partisan issue and the current administration has rolled back regulation, bucking the global trend. A recent whitepaper from Morningstar said that in the US, where climate change is a ‘contested concept’ ESG investment factors must be justified by explaining ‘why’, while in Europe they must explain ‘why not’. Despite this headwind, assets under management in ESG-oriented funds grew 40% to €684bn over the four years to the end of 2018.
The Circular Economy
In Geneva last month 180 countries agreed to limit the export of used plastics worldwide, in practice by requiring the agreement of the receiving state before export. For decades developed countries have been exporting plastic and toxic waste to Asia, claiming it will be recycled but in reality a significant proportion of it was buried due to contamination, incinerated or found on the ocean floor.
The European Green Wave
The environment may have been the real winner of the European elections last week.
Overall the centre has been squeezed, resulting in a high degree of fragmentation: populist parties won in Italy, the United Kingdom and France while voters were also seen to swing from the centre to the Greens and Liberals. 69 Green Party MEPs were voted into the European Parliament, a growth of 40% since the last election and to a 9% position. This has secured enough seats to make itself a valuable partner in any pro-EU functioning coalition.
The War on Plastic could affect oil demand more than expected
A war is being waged on plastics. Recent documentaries such as David Attenborough’s Blue Planet Series have highlighted the potential damage caused to sea and ocean life, the huge collection of it on the shore of global beaches and the environmental damage of its incineration.