Climate Risk

IEEFA Research

IEEFA U.S.: Energy transition to renewables likely to accelerate over next two to three years

IEEFA U.S.: Energy transition to renewables likely to accelerate over next two to three years

Coal, gas set to become biggest losers as renewable generation climbs quickly

March 31, 2021 (IEEFA) — The speed and scope of the energy transition to renewables will pick up pace over the next two to three years, according to the Institute for Energy Economics and Financial Analysis’ U.S. Power Sector Outlook 2021. Solar and battery storage adoption is enjoying almost exponential growth, and wind and solar […]

IEEFA: Santos’ Barossa gas field emissions create major risks for shareholders 

IEEFA: Santos’ Barossa gas field emissions create major risks for shareholders 

With export markets' changing expectations, investors and industry beware

31 March 2021 (IEEFA Australia): Santos’ proposed offshore Barossa gas field near Darwin, Northern Territory has the unfriendly tag of having more carbon dioxide than any gas currently made into LNG, finds a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). The gas contains so much CO2 that most of it […]

IEEFA: European gas pipeline companies mislead investors by underreporting CO<sub>2</sub>

IEEFA: European gas pipeline companies mislead investors by underreporting CO2

Reporting loophole means midstream operators aren't following the same guidelines as upstream or downstream sellers

December 14, 2020 (IEEFA) — European pipeline companies are using a loophole to market themselves as low-carbon businesses and avoid reporting on the climate effects of the natural gas they transport, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). The report, Hiding in Plain Sight—European Gas Pipeline Companies’ […]

IEEFA: Australia should be a net-zero emissions leader

IEEFA: Australia should be a net-zero emissions leader

Setting a target of net-zero emissions by 2050 would maximise employment, investment and export opportunities

11 December 2020 (IEEFA Australia): Australia must align itself with the global push to go carbon-neutral to maintain strong trade in a net zero emissions world, the Institute for Energy Economics and Financial Analysis (IEEFA) notes in its submission in support of a new climate change bill before the Australian parliament. The bill, introduced by Zali Steggall, […]

IEEFA Philippines: NPC-SPUG shift can drive savings to P13.5 billion per year

IEEFA Philippines: NPC-SPUG shift can drive savings to P13.5 billion per year

Shift from diesel to renewables can save electric coops P1.4-1.7 billion over next decade

3 December 2020 (IEEFA Philippines): The record-breaking disasters in the Philippines this year highlight the potential for renewable energy to power small island and isolated power grids and save the country up to P13.5 billion per year, and electric cooperatives an additional P1.4 to P1.7 billion over the next decade, finds a new report from […]

IEEFA: Japanese and Korean investment in risky PJM gas-fired power calls for strategic decisions

IEEFA: Japanese and Korean investment in risky PJM gas-fired power calls for strategic decisions

Investing in gas-fired power plant development faces substantial climate risk

2 December 2020 (IEEFA): Japanese and Korean investors should reassess the growing financial risks to both their new and existing gas-fired power projects in the United States’ Pennsylvania-New Jersey-Maryland (PJM) system, finds a new report by Norman Waite at the Institute for Energy Economics and Financial Analysis (IEEFA). The report, Growing Risks to PJM Network’s […]

IEEFA South Korea: Why leading ESG investors didn’t buy KEPCO’s green bond

IEEFA South Korea: Why leading ESG investors didn’t buy KEPCO’s green bond

Funding of new overseas coal projects is a red flag for sustainable investors

24 November 2020 (IEEFA South Korea): Korea Electric Power Corporation’s (KEPCO’s) recent green bond failed to attract leading sustainable investors, despite being 10 times oversubscribed, according to new research by the Institute for Energy Economics and Financial Analysis (IEEFA). The South Korean state-owned utility’s June 2020 green bond raised US$500 million from international financial investors. […]

and November 24, 2020 Read More →

IEEFA Japan: ¥26 billion loss on Australian coal power plant raises questions for Sumitomo and its investors

Sumitomo’s coal policies are lagging its trading house peers and the Japanese government

23 November 2020 (IEEFA Japan): As the government of Japan’s energy policy shifts significantly and Japanese trading houses exit coal projects overseas, Sumitomo Corporation continues to develop coal power projects and has seen its thermal coal output grow according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). The report, […]

IEEFA: Philippines coal moratorium highlights dramatic pivot to renewable energy investment for lower prices and power system resilience

IEEFA: Philippines coal moratorium highlights dramatic pivot to renewable energy investment for lower prices and power system resilience

Policymakers and industry leaders ready to embrace new energy technologies

3 November 2020 (IEEFA Philippines): The Department of Energy’s call for a moratorium on greenfield coal power plants marks a clear break with past policies and comes as the Philippines prioritizes the need for more resilient, flexible and lower cost alternatives to fossil fuel baseload power, finds a new report from the Institute for Energy […]

IEEFA update: Australia’s gas-led recovery is flogging a dead horse

With LNG worse for the climate than coal, Australia must adjust to our export markets shrinking

With polluting emissions from LNG 13% higher than gas, and Australia’s primary export destinations targeting net zero emissions and therefore less dirty LNG, Australia’s gas-led recovery is looking increasingly like the Australian government is ‘flogging a dead horse’. Australia’s core export markets for LNG, coal and iron ore – Japan, South Korea and China – […]

November 3, 2020 Read More →

More News and Commentary

Swiss Re to exit coal insurance market by 2040

Bloomberg: Two years after committing to cut its net emissions to zero by 2050, Swiss Re gave more specifics Tuesday on how it plans to achieve its target. The world’s second-largest reinsurer said it intends to reduce the carbon intensity of its corporate bond and equity portfolio by 35% from 2018 levels by the middle […]

March 16, 2021 Read More →

French insurance firm Axa drops RWE over coal

Bloomberg: Axa SA, France’s biggest insurer, is dropping German energy giant RWE AG as a client in a decision that highlights how taboo the coal business has become. Not even an appeal from RWE Chief Executive Officer Rolf Martin Schmitz to his counterpart at Axa, Thomas Buberl, was enough to persuade the insurer to retreat […]

March 12, 2021 Read More →

Activists renew campaign against half-built, 2.1GW coal plant in South Korea

Global Construction Review: A massive coal power project South Korea is facing renewed scrutiny after activists called for a state audit of domestic banks that are providing $1bn of its $4.3bn cost, The Korea Herald reports. The 2.1GW power station is being developed by Samcheok Blue Power Plant in Gangwon Province with completion scheduled for […]

March 11, 2021 Read More →
IEEFA: Australia’s US$40.5 billion clean up bill for its offshore oil and gas industry

IEEFA: Australia’s US$40.5 billion clean up bill for its offshore oil and gas industry

Much of the cost will fall on the Australian government via the tax system

Australia’s US$40.5 billion clean up bill for offshore oil and gas wells and facilities will cost US$40.5 billion, with half of the work starting this decade, according to a report produced with the support of major Australian operators. Equipment to be removed includes 57 platforms with a total weight of 755,000 tonnes, equivalent to the […]

IEEFA Australia: No amount of government subsidies can halt decline of gas

IEEFA Australia: No amount of government subsidies can halt decline of gas

Batteries are replacing coal not gas

Today, the early closure of Yallourn coal-fired power station in Victoria was announced. The closure is four years earlier than anticipated and points to the rapidly changing  economics of power production in Australia. Put simply, coal and the more expensive gas can’t compete against cheaper renewables. EnergyAustralia announced Yallourn will be replaced with a 350 megawatt […]

Marubeni to cut its coal generation capacity in half by 2025

Reuters: Japanese trading company Marubeni Corp said on Tuesday it aims to cut its greenhouse gas emissions to net zero by 2050 and it moves forward its 2030 goal of halving its net coal power generating capacity from 2018 level to 2025. The move comes as Japanese trading houses speed up their efforts to shift […]

March 10, 2021 Read More →

Japanese trading firm Sojitz to exit coal, oil projects by 2030

Argus Media: Japanese trading house Sojitz is planning a complete withdrawal from thermal coal, oil and coking coal projects as part of a new sustainability strategy. Sojitz announced today a target to reduce its stakes in thermal coal projects by more than half by 2025 and to zero by 2030. The company originally planned to […]

March 8, 2021 Read More →

Hungary to complete coal phaseout by 2025, five years ahead of plan

Euractiv: The country’s last coal power plant will be shut down in 2025 instead of 2030, Hungary’s secretary of state for EU affairs announced earlier this week. “Our plan is to reach 90% carbon neutral electricity generation by 2030,” said Attila Steiner, on Tuesday (2 March) at the annual summit of the Powering Past Coal […]

March 8, 2021 Read More →

Japan’s Dai-ichi Life to cut CO2 emissions in investment portfolio 30% by 2025

Nikkei Asia: Dai-ichi Life Insurance will aim to reduce carbon dioxide emissions from its investment portfolio by 30% by 2025, a potentially trend-setting step by one of Japan’s top institutional investors. The insurer, which manages 36 trillion yen ($337 billion) in assets, plans 700 billion yen in sales by fiscal 2023 to reduce its holdings […]

March 5, 2021 Read More →

U.S. oil production not likely to top pre-pandemic levels—Occidental

CNBC: Occidental CEO Vicki Hollub said Thursday that she doesn’t envision U.S. oil production returning to pre-pandemic highs. “I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan. “And so I do believe that that’s going to be part of […]

March 5, 2021 Read More →