Report: Climate change will wipe $2.5 trillion off global financial assets
Climate change could cut the value of the world’s financial assets by $2.5 trillion, according to a new study. In the worst case scenarios, often used by regulators to check the financial health of companies and economies, the losses could soar to $24 trillion, or 17 percent of the world’s assets, and wreck the global economy. These are the findings of a new study by researchers at the Grantham Research Institute at the London School of Economics and Political Science (LSE) and Vivid Economics, published in the journal Nature Climate Change. The report also shows the financial sense in taking action to keep climate change under 2°C. In this scenario, the value of financial assets would fall by $315 billion less, even when the costs of cutting emissions are included. “Our work suggests to long-term investors that we would be better off in a low-carbon world,” said Prof Simon Dietz of the LSE. “Pension funds should be getting on top of this issue, and many of them are.” He said, however, that awareness in the financial sector was low. (Guardian)
Report: The countries ‘decoupling’ emissions from economic growth
Over 20 countries have seen a reduction in their carbon dioxide emissions in recent years while still growing their GDP, according to the World Resources Institute (WRI). A new analysis compared emissions data from BP with World Bank data on GDP across 67 countries between 2000 and 2014. It found that 21 nations, including France, Germany, the UK, and the US, saw emissions drop while GDP continued to rise. In Britain, for instance, emissions in 2014 had fallen 20 percent from their 2000 levels, while the economy grew by over a quarter in the same period. Carbon Brief extended the WRI data to include 216 countries, and to estimate the impact of “offshoring” of emissions. This analysis found that 35 countries had increased their real GDP while cutting CO2 emissions. Singapore achieved the largest emissions reduction in percentage terms (46 percent). However, only 21 countries achieved decoupling when accounting for CO2 contained in imported goods. Canada and Poland were among the countries whose imports of CO2 undermine domestic reductions. (Business Green, Carbon Brief)
Tax
Pfizer, Allergan call off $160 billion merger after US moves to block inversions
President Obama’s campaign to stop American companies from heading overseas to avoid US taxes has scored its biggest win yet as pharmaceutical giant Pfizer has called off a $160 billion merger with Dublin-based Allergan. The sudden collapse of the deal comes just days after the Treasury Department made a rule change that appeared to be aimed specifically at the transaction, stripping it of many of its benefits. The deal, the largest proposed inversion in history, would have relocated Pfizer’s headquarters to Ireland and shaved about $35 billion off its tax bill. At the time the deal was announced, both Pfizer and Allergan stressed that tax benefits were not the only reason for the deal. Lawmakers and business groups have expressed concern that the US administration appeared to target a specific deal rather than adopt a broader remedy – but more comprehensive tax reform has proved to be a fraught issue between Democrats and Republicans. (The Washington Post)
Circular Economy
EU vows tough enforcement of circular economy package
The circular economy package of waste and recycling laws will be backed by tougher European Commission enforcement than seen under previous administrations, an official has told plastic industry delegates. Fulvia Raffaelli, deputy head of unit at DG Grow, the lead department on the Package, said the current Juncker Commission was “more committed” to policing its rules than its predecessor. The circular economy package was controversially withdrawn and re-tabled by the Juncker Commission as part of its drive for ‘better regulation’. Commission First Vice-President Frans Timmermans promised MEPs the new package would be “more ambitious” than the one forward by the previous Barroso Commission. The Commission argues that additional measures, such as initiatives focusing on designing products to make them easier to recycle, made the new rules more ambitious. (edie)
Energy
Ikea aims to become number one residential solar retailer
Swedish home-furnishing giant Ikea is rolling out its residential solar program in the UK, Netherlands and Switzerland in the coming months before expanding its solar sales points in stores globally. It aims to be the largest residential solar retailer in the world. Building on its pioneering role in installing large solar arrays atop its stores in the Europe, the US and Australia, Ikea will now introduce sales points within its stores at which homeowners will be able to purchase solar systems. “Ikea’s ambition is to help and inspire their customers to live a more sustainable life at home and the residential solar program is one step on the way to reach that ambition,” said Håkan Nordkvist, Head of Sustainability innovation at Ikea. “Last year there were 770 million visits to Ikea stores worldwide and the company sees that as a great platform to fulfil our ambition and for people to be able to live a more sustainable life at home.” (RenewEconomy)
COMMENTS