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European steel has a relatively low emissions intensity, but it has been under pressure from cheaper imported steel. Unfortunately, many of those imports have been sourced from countries with a significantly higher emissions footprint. According to the race to replace domestically produced steel is increasingly being won by the dirtiest
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"The purpose of the margin of safety is to render the forecast unnecessary." - Ben Graham Arguably one of the most important pieces of climate legislation over the past twelve months is the Inflation Reduction Act (IRA). Signed into law in mid-August 2022, the IRA includes almost $370
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California consistently ranks among the worst states in America for air pollution. The topography of the state means that air pollution becomes trapped, often resulting in a thick smog enveloping the cities below. The Golden State is the most populous state in the US, with the fifth largest economy in
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Market turmoil in European energy markets last year continues to have an impact on the hedging activities of many of the continents utilities, with some putting their hedging activities on ice as market liquidity evaporated and margin calls soared. The question now is whether or not utilities are done and
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Carbon markets are just the start of a revolution putting a price on natural capital
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The collapse of three mid-tier American banks in quick succession, followed by a hastily arranged weekend rescue deal of one of Switzerland’s “systemically important banks” may have some carbon market investors nervously suffering from déjà vu given the obvious parallels with events 15 years earlier. March 2008: Bear
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A market based approach to pricing carbon is founded on the most basic of economics problems – scarcity. The science of climate change makes the case that there is a limit to how much additional carbon dioxide can be pumped into the atmosphere before we hit certain thresholds associated with global
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The ‘sailing ship’ effect – also known as the ‘last gasp effect of obsolescent technologies’ - occurs where competition from new technologies stimulates improvements in incumbent technologies and the firms that produce them. For example, the advent of steam power inspired the makers of sailing ships to innovate, transforming the structure from
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A recent shipment of ‘carbon neutral’ LNG between Australia and Taiwan is the first of its kind to be delivered under a new framework supposed to give greater clarity over its origin. The stakes could not be higher. The continued growth in LNG over the next couple of decades hinges
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High premium to other North American carbon markets will increase calls to link up with California
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As Europe gradually moves towards net zero, opportunities to cut emissions even further are likely to become significantly more challenging. Rather than cut emissions, another option for heavy emitters is to capture their carbon emissions at source, before they enter the atmosphere, and then permanently sequester the carbon. As this
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What does the carbon futures curve tell us and why is it important?