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IEEFA Research

IEEFA Update: Santos won’t solve the problem of Barossa LNG with carbon capture and storage

IEEFA Update: Santos won’t solve the problem of Barossa LNG with carbon capture and storage

Leaving the ‘dirty’ gas in the ground might now be the best course of action

20 October 2021 (IEEFA Australia): Even if it employed carbon capture and storage, Barossa gas will continue to release financially risky carbon dioxide emissions onsite, onshore and across the supply chain, making it one of the more expensive and dirtiest gas projects in the world, finds a new report from the Institute for Energy Economics […]

IEEFA: Australia’s climate policies could push New South Wales into a debt spiral

IEEFA: Australia’s climate policies could push New South Wales into a debt spiral

Climate policy failure will shrink Australia’s GDP by 6% and increase net debt in NSW to 100% by 2060, with taxpayers footing the bill

20 October 2021 (IEEFA Australia): Australia’s failure to commit to net zero targets or any credible climate policy is a growing economic threat to New South Wales and other states, argues a new report by the Institute of Energy Economics and Financial Analysis (IEEFA). The Reserve Bank of Australia’s deputy governor Guy Debelle last week […]

and October 20, 2021 Read More →
IEEFA U.S.:  Pension funds investing indirectly in Ohio’s Gavin coal plant are at risk as financial, environmental disadvantages mount

IEEFA U.S.: Pension funds investing indirectly in Ohio’s Gavin coal plant are at risk as financial, environmental disadvantages mount

Declining demand for coal plants, credit agency downgrades and investor scrutiny create challenges for Lightstone investment prospects

October 14, 2021 (IEEFA) — The major pension and retirement funds that own a piece of the General J.M. Gavin (Gavin) coal plant in Ohio face increasing challenges from their investment. Most investors do not know that they own a share of the plant and some are just beginning to realize it, according to an […]

IEEFA: Accepting gas power plants as sustainable investments in Asian taxonomies heightens greenwash risk

IEEFA: Accepting gas power plants as sustainable investments in Asian taxonomies heightens greenwash risk

Accommodating the gas sector risks diluting standards and discouraging new pools of green capital

21 September 2021 (IEEFA Asia): Incorporating gas-powered generation as a sustainable investment into Asian taxonomies could have unintended consequences, finds a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). Doing so could lock Asia into a high-emitting future while also posing a credibility and greenwashing problem that Asian policymakers and ESG […]

and September 21, 2021 Read More →
IEEFA: $5.1 billion spend on offshore gas exploration until 2027 could have fostered 2.5GW of renewable capacity and 4,800 jobs

IEEFA: $5.1 billion spend on offshore gas exploration until 2027 could have fostered 2.5GW of renewable capacity and 4,800 jobs

The government is increasing issuance of gas exploration permits in the offshore sector ignoring risks imposed by global decarbonisation

20 September 2021 (IEEFA Australia): Increasing issuance of exploration permits over production, the Australian government has given the green light to oil and gas giants including Santos and Woodside to potentially spend $AUD5.1 billion throughout the next six years on risky offshore exploration activities despite industry-low success rates and the global energy transition, finds a […]

IEEFA: Eastern Australia is the 7th most expensive domestic gas market in the world

IEEFA: Eastern Australia is the 7th most expensive domestic gas market in the world

Investors are pouring money into a gas-fired recession

22 July 2021 (IEEFA Australia): Of the major exporters, eastern Australia has wholesale contract gas prices that are the 7th most expensive globally, being over 5½ times those of Qatar, the second largest exporter of LNG; over 3 times the price of gas in the U.S.; and nearly 5 times the price of gas in […]

IEEFA: Global investors are moving away from the massive climate-related risks associated with fossil fuels

IEEFA: Global investors are moving away from the massive climate-related risks associated with fossil fuels

Top debt and equity investors committed over $300 billion in 2020 into building renewable energy capacity

19 July 2021 (IEEFA Australia): Despite the economic disruption from COVID-19, top global debt and equity investors are continuing to drive capital into the renewable energy infrastructure sector due to its consistency in providing investment opportunities, finds a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). “Global investors are accelerating their […]

IEEFA: Gas power plants assuming a constant capacity factor are being financially overvalued

IEEFA: Gas power plants assuming a constant capacity factor are being financially overvalued

Investors beware, capacity factor trends and LCOE analysis show gas-fired power plants likely to be stranded assets into the future

24 June 2021 (IEEFA Australia): The Australian government may be relying on inaccurate financial assumptions for its gas-fired recovery as most gas- and coal-fired power plants in Australia, the UK, the U.S. and China are being operated less and less – what’s called a declining capacity factor, finds a new report by the Institute for […]

IEEFA: Vanguard funds destroy shareholder wealth with US$290bn in fossil fuels creating a 5.6% performance drag

IEEFA: Vanguard funds destroy shareholder wealth with US$290bn in fossil fuels creating a 5.6% performance drag

A global laggard that has minimal transparency, is passive on climate, and is abrogating its fiduciary duty to best manage risk for investors

22 June 2021 (IEEFA Australia): Vanguard Group, the world’s second largest asset manager, is leaving its investors to face profound wealth destruction risks as the world’s largest investor in fossil fuels, all while insisting climate change is a priority for the company, finds a new report by the Institute for Energy Economics and Financial Analysis […]

IEEFA: Chinese regulators urged to tighten rules for carbon neutral bonds

IEEFA: Chinese regulators urged to tighten rules for carbon neutral bonds

Bond proceeds going to coal-dominated state-owned enterprises – ESG investors beware

1 June 2021 (IEEFA): China’s carbon neutral bonds fail to restrict the use of funds to green projects and are adding to the working capital of coal-dominated state-owned enterprises (SOEs), according to a new briefing note from the Institute for Energy Economics and Financial Analysis (IEEFA) which calls for deeper reforms to green finance standards […]

More News and Commentary

New York City pension funds pledge net-zero investments by 2040

Bloomberg ($): New York City’s retirement funds pledged to reach net-zero greenhouse gas emissions across its investment portfolios by 2040, becoming one of the first cities to do so. The plans call for doubling investments in renewable energy, energy efficiency and other climate-related solutions to more than $8 billion by 2025, according to a statement […]

October 21, 2021 Read More →

Investor coalition with $60 trillion urges utilities to speed net-zero pace

Reuters: A coalition of investors with more than $60 trillion in assets under management is preparing to call on electric utility companies globally to move up their timeline by as much as 15 years to bring their net greenhouse gas emissions to zero. Utilities account for about 40% of emissions worldwide, more than any other […]

October 21, 2021 Read More →
IEEFA Update: Santos won’t solve the problem of Barossa LNG with carbon capture and storage

IEEFA Update: Santos won’t solve the problem of Barossa LNG with carbon capture and storage

Leaving the ‘dirty’ gas in the ground might now be the best course of action

20 October 2021 (IEEFA Australia): Even if it employed carbon capture and storage, Barossa gas will continue to release financially risky carbon dioxide emissions onsite, onshore and across the supply chain, making it one of the more expensive and dirtiest gas projects in the world, finds a new report from the Institute for Energy Economics […]

IEEFA: Australia’s climate policies could push New South Wales into a debt spiral
and

IEEFA: Australia’s climate policies could push New South Wales into a debt spiral

Climate policy failure will shrink Australia’s GDP by 6% and increase net debt in NSW to 100% by 2060, with taxpayers footing the bill

20 October 2021 (IEEFA Australia): Australia’s failure to commit to net zero targets or any credible climate policy is a growing economic threat to New South Wales and other states, argues a new report by the Institute of Energy Economics and Financial Analysis (IEEFA). The Reserve Bank of Australia’s deputy governor Guy Debelle last week […]

and October 20, 2021 Read More →

WSJ: ExxonMobil board mulls scrapping Vietnam, Mozambique projects

Wall Street Journal ($): Exxon Mobil Corp.’s remade board of directors is debating whether to continue with several major oil and gas projects as the company reconsiders its investment strategy in a fast-changing energy landscape, according to people familiar with the matter. Members of the board—which includes three directors successfully nominated by an activist investor […]

October 20, 2021 Read More →

Ford Foundation to divest from coal, oil and natural gas

Associated Press: The Ford Foundation, one of the largest private foundations in the United States, announced Monday that it will divest millions from fossil fuels, following similar investment decisions made by other sizable foundations in recent years. For years, climate activists have put pressure on endowed institutions, like Ford, to end their investments in companies […]

October 19, 2021 Read More →

Banks using loopholes to dodge pledges to stop funding Arctic drilling

Wall Street Journal ($): Some of the world’s largest banks, including Goldman Sachs Group Inc., HSBC Holdings and BNP Paribas SA pledged in recent years to stop direct financing of Arctic oil exploration. The idea was to choke off money for fossil-fuel extraction in a pristine natural environment. A battle has broken out among investors, […]

October 19, 2021 Read More →
IEEFA U.S.:  Pension funds investing indirectly in Ohio’s Gavin coal plant are at risk as financial, environmental disadvantages mount
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IEEFA U.S.: Pension funds investing indirectly in Ohio’s Gavin coal plant are at risk as financial, environmental disadvantages mount

Declining demand for coal plants, credit agency downgrades and investor scrutiny create challenges for Lightstone investment prospects

October 14, 2021 (IEEFA) — The major pension and retirement funds that own a piece of the General J.M. Gavin (Gavin) coal plant in Ohio face increasing challenges from their investment. Most investors do not know that they own a share of the plant and some are just beginning to realize it, according to an […]

IEEFA Update: To be taken seriously, Australia needs a credible emissions reduction plan

Regional leadership up for grabs in the energy transition

The global transition to clean energy has ended its initial phase of incremental growth and is on the brink of transformational change. However imperfect may be the outcomes of November’s United Nations COP26 Climate Change Conference in Glasgow, policy, economic and financial forces are now combining to drive the rapid adoption of renewable energy around […]

October 13, 2021 Read More →

IEEFA Update: India and Australia’s richest race to net zero by 2030

Global finance is aligning with industry leaders

It appears that Reliance Industries’ Mukesh Ambani and Fortescue Metals Group’s Andrew Forrest have drunk the same cool-aid as the Chair of the biggest asset manager in the world, BlackRock’s founder Larry Fink. The richest man in India set his firm towards a net-zero emissions by 2035 pledge in June 2021 while Australia’s Andrew Forest […]

October 12, 2021 Read More →