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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 […]

IEEFA: New power and energy master plan must be designed in Bangladesh’s best interests, not Japan’s

IEEFA: New power and energy master plan must be designed in Bangladesh’s best interests, not Japan’s

JICA must deliver a low or zero emissions plan as promised, not fund Matarbari 2 coal plant

24 May 2021 (IEEFA Bangladesh): Clear understandings from the Bangladesh government’s recently released 8th Five-Year Plan must be incorporated into the new energy and power master plan currently under development by the Japan International Cooperation Agency (JICA) to drive zero carbon transformation and financial sustainability in the energy system, finds a new report from the […]

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: Frackers produce positive cash flows in 2020 with deep capital expenditure cuts

IEEFA: Frackers produce positive cash flows in 2020 with deep capital expenditure cuts

Beleaguered fracking sector generates $1.8 billion cash flow, but only after $20 billion cuts in capex

March 24, 2021 (IEEFA)—A cross-section of 30 shale oil and gas producers marked the first full year of positive free cash flows since the fracking boom began—but only after deep cuts to capital expenditures that raise troubling questions about the industry’s future. The report by the Institute for Energy Economics and Financial Analysis (IEEFA) found […]

IEEFA Australia: Port of Newcastle’s roadblock on the path away from thermal coal

IEEFA Australia: Port of Newcastle’s roadblock on the path away from thermal coal

Planned fossil fuel exit by the world’s largest coal port is paralysed by lending constraints and a secret NSW government deal

The Port of Newcastle’s planned exit from fossil fuels suffered further setback last month after ANZ withdrew financing from the terminal, presently the world’s largest port for exporting thermal coal. ANZ had previously been a major lender to the port, however divested its position during the latest round of refinancing of approximately A$900 million in […]

March 18, 2021 Read More →

More News and Commentary

IEEFA: Green bonds are driving cost-effective finance to clean energy in India

IEEFA: Green bonds are driving cost-effective finance to clean energy in India

Indian green bonds attractive in global low interest rate environment

Green bonds have become a key financial instrument for mobilising cost-effective foreign debt capital into the Indian renewables market. Since 2016 Indian corporates and financial institutions have raised around US$14.43bn through green bonds as per Bloomberg New Energy Finance (BNEF) data. In 2021 to-date, Indian companies have attracted US$4bn in green bonds, already beating the […]

August 19, 2021 Read More →

World’s largest sovereign wealth fund adds pressure on Arctic oil bids

The Barents Observer: The Norwegian Government Pension Fund Global, also called the Oil Fund, is stepping up its attention to the environment. A new expectation document on biodiversity and ecosystems warns companies that environmental protection will be instrumental for the Fund’s future investments. The document calls on companies to assess their direct and indirect impacts […]

August 19, 2021 Read More →

BHP confirms talks with Woodside to sell its petroleum business

Wall Street Journal ($): BHP Group Ltd. said it is considering the sale of its petroleum business, a move that would reduce its exposure to fossil fuels amid growing pressure from investors and governments for resources companies to cut emissions. BHP, the world’s biggest mining company, said it is in talks with Woodside Petroleum Ltd. […]

August 16, 2021 Read More →

New York State pension fund reviewing holdings in 42 shale companies

Reuters: The third-largest U.S. public pension fund on Thursday said it is launching reviews over climate concerns on $640 million invested in 42 shale oil and gas firms, including ConocoPhillips (COP.N), Hess (HES.N) and Pioneer Natural Resources (PXD.N). The move by the New York state pension fund comes days after the United Nation’s Intergovernmental Panel […]

August 13, 2021 Read More →
IEEFA: Months after tumultuous ExxonMobil annual meeting, no substantial change expected

IEEFA: Months after tumultuous ExxonMobil annual meeting, no substantial change expected

Despite pressure, old leadership and old habits haven’t changed at ExxonMobil

The ExxonMobil shareholder meeting this year will go down in the annals of business as either the start of a new era of progress on climate change or evidence of a tired, ineffectual system of shareholder rights that governs U.S. companies.  The jury is out on the long-term impact, but for the moment there has […]

August 6, 2021 Read More →

ExxonMobil reportedly considering promise to reach net zero by 2050

Wall Street Journal ($): Exxon Mobil Corp. is considering a pledge to reduce its net carbon emissions to zero by 2050, according to people familiar with the matter, in what would amount to a significant strategic shift by the oil company. In March 2020, Exxon Chief Executive Darren Woods described ambitious carbon reduction targets made […]

August 6, 2021 Read More →

Dutch pension fund urges Korea to nix coal-fired power plants

The Korea Herald: Amsterdam-based APG Asset Management, a subsidiary of Dutch pension fund administrator APG, warned in a letter to the South Korean government that its failure to scrap a plan to build coal-fired power plants here will constitute a “significant risk factor” to its investment in Korea. The letter, disclosed by Seoul-based nonprofit Solutions […]

August 5, 2021 Read More →

Brookfield, TPG have $12.4 billion combined for climate investments

S&P Global Market Intelligence ($): Investors on July 27 said they have raised a combined $12.4 billion in initial commitments for two separate funds that will finance efforts to limit climate change. Brookfield Asset Management Inc. said it secured $7 billion for its Brookfield Global Transition Fund, and TPG Capital LP announced a first close […]

July 28, 2021 Read More →

Australia’s No. 2 pension fund announces complete thermal coal exit

Sydney Morning Herald: Australia’s second largest superannuation fund has completely divested from thermal coal and ploughed $1 billion into renewable and low-emission technology in the year since it declared it would reshape its business in line with climate targets. According to its progress report, Aware Super, formally First State, has reduced emissions in its listed […]

July 28, 2021 Read More →

Biggest Italian bank to end coal financing by 2025, fracking by 2030

Reuters: Italy’s biggest bank Intesa Sanpaolo ISP.MI on Tuesday said it would end with immediate effect the financing of coal mining with a view to phasing out exposure to the sector by 2025. Answering questions from shareholders ahead of its annual general meeting in April, Intesa had said it was reviewing its coal financing policy […]

July 28, 2021 Read More →