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Regulate business to tackle climate crisis, urges Mark Carney

Regulate business to tackle climate crisis, urges Mark Carney

Governments must step up their regulation of businesses to tackle the climate crisis, the former Bank of England governor Mark Carney has urged, because the financial free markets will not reduce greenhouse gas emissions alone.

Carney, who left the Bank of England last year before the first Covid-19 lockdown, is now one of the most influential figures working on Cop26, the vital UN climate talks to be held in Glasgow in November. He is a UN envoy on climate change and Boris Johnson’s finance adviser on the climate.

He said for the world to meet its climate goals, governments would have to force industries to follow clear rules, on everything from energy generation to construction and transport, and set carbon prices that would drive investment towards green ends and close down fossil fuels.

“We need clear, credible and predictable regulation from government,” he said. “Air quality rules, building codes, that type of strong regulation is needed. You can have strong regulation for the future, then the financial market will start investing today, for that future. Because that’s what markets do, they always look forward.”

Without such robust intervention from governments, markets would fail to address the crisis. “It wouldn’t happen spontaneously by the financial sector,” he said. “But we can’t get there without the financial sector.”

People must also press political leaders to act, Carney said. “When people have made it clear they have that objective [of tackling the climate crisis], and if there is public policy that translates those wishes into real action, a price on carbon, regulation of internal combustion engines for example, then financial markets – capitalism – will come up with the solutions to give people what they want.”

He pointed to Johnson’s promise to ban sales of new diesel- and petrol-driven cars from 2030. Car companies are responding: Nissan has announced a £1bn electric car hub in Sunderland, while Vauxhall’s owner, Stellantis, is making a £100m investment in Ellesmere Port. “We’ve seen the automotive industry saying, wait a minute, we have to make big investments in order to supply people with cars in the future,” Carney said.

However, Carney still sees a future for fossil fuels. In May, the International Energy Agency said if the world was to stay within 1.5C of global heating, there could be no more exploration or development of fossil fuel resources.

Carney argues that countries and companies could still carry on exploiting fossil fuels, despite this advice, if they use technology such as carbon capture and storage, or other ways of reducing emissions. “You have to take it on the specific projects. If [fossil fuel] producers are able, through considerable investment in carbon capture and storage, to get to net zero then that creates some room in the carbon budget.”

In Canada, for instance, where Carney is from and partly lives – and where, according to rumours, he is reported to be considering a political career – he said oil sands producers could continue to develop their high-carbon resources, if they reduce their emissions and Canada can make changes elsewhere. “Canada has an objective of 40-45% down on emissions by 2030,” he said. “I’m not going to dictate exactly how that is accomplished but the critical thing is the aggregate.”

Companies should also be able to use carbon offsets to meet climate targets, Carney insisted. The practice of offsetting – funding the planting of trees or protection of forests, or other projects that reduce carbon, to make up for a company’s or individual’s emissions – has become increasingly controversial. Some fraudulent schemes have been uncovered, in which carbon credits did not exist or did not represent an actual reduction in emissions. Other schemes have been found to fail to protect forests, allowing logging to continue while selling carbon credits based on keeping forests standing.

 

Carney has drawn criticism from green groups over his support for offsetting, but remains a staunch advocate. “I’m of the view that offsets can play a role because they extend the carbon budget,” he said. “It’s a bit like when we think about people living on a very tight budget. If you can find ways to save a bit of money here and there or earn a bit more money, you do it. That’s what this is.”

Part of the purpose of carbon credits is to protect areas of forest under threat, such as the Amazon or in south-east Asia, with the additional benefits of preserving natural ecosystems and helping indigenous peoples. The world has not yet found other ways of keeping rainforest protected, he said. “We may not like it that it makes sense to have private companies pay to stop [the burning] but it makes a lot more sense to do that and preserve the rainforest than to just let it happen. Unfortunately, we’ve been just letting it happen.”

Despite criticism of companies “greenwashing” before Cop26, and despite his acknowledgment that “we have left it very late” to begin seriously cutting emissions, Carney believes that harnessing capitalism and the power of money will bring about the changes needed in time to avoid climate breakdown.

“With the right regulation, with a rising carbon price, with a financial sector that is oriented this way, with public accountability of government, of financial institutions, of companies, yes, then we can, we certainly have the conditions in which to achieve [holding global heating to 1.5C],” he said. “That’s our objective.”

 


 

 Environment correspondent

Source The Guardian

The 10 best sustainable luxury fashion brands for 2021

The 10 best sustainable luxury fashion brands for 2021

Can sustainable and luxury fashion really go hand in hand?

When we think of the term ‘sustainable fashion’, words like cruelty-free, ethical, organic, and recycled spring to mind. The word ‘luxury’ however isn’t an idiom we tend to associate with the phrase ‘sustainable fashion’. Thankfully, spurred on by consumer demand and in part the pandemic, this is all set to change.

In fact, a whole host of luxe sustainable fashion brands are sashaying their way down Paris Fashion Weeks (albeit virtual) runways, making themselves known as champions for our planet’s dwindling resources, opting instead to use sustainable threads and manufacturing processes that have less of an impact on the world and the people in it.

This guide features everything you need to know about sustainable luxury fashion today, as well as the low-down on the latest luxury lines to embrace ethical fashion and the new eco-luxe labels who have seized sustainability from the start.

 

Even though Paris Fashion Week has been a quieter, more virtual, affair this year, the sustainable message has been at its heart. Photo by Dimitri Kuliuk from Pexels

 

Can High-end Fashion truly be sustainable?

There are many ways in which the fashion industry impacts the environment. From fabric sourcing to manufacturing, to distributing, sales, and dealing with returns. Sustainable fashion brands must ensure their design journey is one that avoids exploiting the planet and the people in it.

Despite what many think, with the right motivation from designers, sustainability and high-end can go hand in hand. Top luxe brands, including the famed Stella McCartney and Vivienne Westwood, are just a handful of the high-fashion houses producing ethical clothing ranges today – creating trends that not only complement our wardrobes, but our planet too – focusing on embracing quality working standards, organic materials or the latest sustainable fibre inventions.

This isn’t purely down to a luxury brands’ good nature, of course. A greater percentage of high-end shoppers are beginning to ask questions about the sustainability and ethics behind their favourite labels. If they are paying a premium, they want to know brands are also paying the appropriate premium to the people and planet they profit from.

 

A greater number of shoppers are starting to ask questions about sustainability and ethics when shopping. Photo by Heidi Fin on Unsplash

 

Joining the dots between luxury and sustainability

If, like many, you’re failing to join the dots between a high-end brand and it’s sustainability credentials, you’re not alone. Research shows that more and more of us are willing to pay a premium for sustainable clothing, but many of us don’t know what the word sustainability now entails.

There is so much noise in the industry now, such as false sustainability claims and contradictory data on a brands eco-credentials that it can be overwhelming. Many consumers who try to do their research end up with analysis paralysis. Even Stella McCartney said recently in her latest Spring presentation that she ‘Barely knows what sustainability means anymore’. So it’s not just consumers that are getting confused!

 

“I barely know what sustainability means anymore” – Stella McCartney

 

However, whether you’re a luxury shopper embarking on a greener journey, or a seasoned sustainability pro entering the luxury market, we can all do our part to ensure this segment of the fashion industry leads the way in the fashion revolution.

Be it learning more about the latest initiatives or lobbying our favourite eco-luxe designers to embrace their ‘green game’ in the most effective manner. As consumers, we hold the power.

 

Consumers hold the power to influence the fashion industry through their purchases. Photo by kyonntra on Getty Images Signature (Canva)

 

Sustainability Issues Facing Luxury Brands Today

High-end fashion brands are now, more than ever, facing a plethora of challenges. External stakeholders in the industry have expanded their attention from fast fashion to include designer brands. Challenging them to address sustainability issues through experience, innovation and collaboration.

Because of this, more and more of the big-name brand designers are getting on the sustainability train, fashioning garments that promise to outlive the fast-fashion pieces in our current wardrobes. The top improvements in luxury sustainable fashion brands is either through an amalgamation of innovative textile inventions, progressive production techniques or taking it back to the roots of traditional slow fashion production.

However, ensuring the wellbeing of customers, employees, and supply chain communities isn’t an easy feat, especially amidst a pandemic. The pressures to seem like a sustainable brand can lead to claims that are not 100 percent honest.

With high-end fashion comes power and money, and some brands will use their ample resources on campaigns to make them appear philanthropic and eco-friendly, while often cutting corners. This is when knowing what to look for is key to a sustainable investment.

 

Greenwashing

Put simply, greenwashing is a method used by many luxe brands to convey misleading information about how their products are manufactured and distributed. In a nutshell, companies using this method are making you believe that they are doing more to safeguard our planet than they are.

With a huge amount of greenwashing going on, it can be almost impossible to know which ethical clothing brands are 100 percent ‘ethical’, and which high-quality labels are putting what they preach into practice.

From clothing that features eye-catching labels to clever wording that suggests the threads you are about to buy are ethically sourced – words like clean, earth-loving, quality, happy, and green are being used to trick consumers into thinking they’re doing their bit for the planet.

 

 

Misconceptions of luxury vs sustainable fashion

When it comes to high-end clothing, many shoppers are under the misconception that the higher the price, the more ethical the attire. This is far from the truth. In most cases, you are paying for the label and not the quality or quantity of the fabric.

Other factors used by powerful labels to delude buyers into thinking they are sustainable is the introduction of small sustainable ranges to make them look like they are doing their bit for the environment.

Similarly, using recycled bags or packaging is a great sustainable incentive, but of little use, if the garments being housed in this packaging are made from a poly fibre or other non-degradable material.

Many ethically-created sustainable luxury fashion brands believe one of the biggest issues preventing their growth is this sustainable smoke-screen that large powerful labels create. This leads to a lack of understanding among consumers or an unwillingness to pay more for sustainable brands if a high-street brand is selling at a lower price and also (wrongfully) claiming sustainability credentials.

However, even though the majority of eco-labels’ price margins are slightly higher, these products are likely to last a lot longer, meaning you’ll spend less in the long run on replacement garments.

Before we go into our list, it’s important to remember that the most sustainable option is to not buy anything at all! If you are in need of a new purchase however, here is some advice on keeping your carbon footprint down when buying fashion.

 

How do I reduce my carbon footprint through buying fashion?

So, what can we do to lower our carbon footprint? Even if you’re already shopping for ethical and sustainable labels, there are several other things you can do to lower your footprint.

These include:

  • Supporting ‘circular’ or zero-waste labels
  • Investing in labels who support social and environmental organisations
  • Opt for in-store pick-up options if locally based and opt-out of speedy shipping
  • Prolong your favourite purchases by following aftercare guides, hand washing clothes and using eco-detergents
  • Pick clothing created from high-quality materials like organic cotton or community silk, which cause less harm to the planet
  • Try to reduce your clothing consumption in general by making your clothes last longer through repair and/or upcycling

So now to the list! One more quick point, if you find the majority of luxury brands on this list a little over your price limit, don’t worry, be sure to check out our article on how to shop ethically on a budget.

 

Top Luxury Sustainable Fashion Brands

From low luxe to high-end, many companies are doing their bit for the environment, incorporating innovation into their manufacturing and distribution methods to embrace brand sustainability in the fashion industry.

Thanks to these sustainable luxury fashion brands, who have taken it upon themselves to tackle flaws within the industry’s manufacturing methods, it’s easier than ever to keep sustainability firmly on our radars and invest in designer, conscious attire. Change starts at the top, and these guys are definitely at the top of their games!  

As well as manufacturing clothing and products that are kind to the environment and sustainably sourced, a number of these green brands also support environmental organisations and fair trade working conditions.

By investing in these eco-luxe labels, you too are doing your bit to support the environment, ensuring we’re on the right track to embracing a more sustainable fashion industry in the future.

 

1. Stella McCartney

Eco-Luxury Values | Ecosystem protection, social responsibility, measuring impact, cutting-edge sustainable technologies

Sustainable Materials | Re-engineered cashmere & silk, fibres from forests, recycled nylon & polyester, vegetarian leather, organic cotton. 

When it comes to sustainability, this is a designer label that won’t compromise on quality, constantly pushing boundaries and embracing new technologies to create an on-trend brand that is as stylish as it is sustainable.

In 2014, Stella McCartney launched Clevercare, an easy-to-understand, five-step labelling method, helping to educate consumers on clothing care and how to prolong the life of their favourite pieces. The result? A lot less waste, and probably the reason many fashionistas own at least one vintage Stella McCartney item.

To ensure the brand is always ahead of the game, regular audits are conducted to measure environmental impact.

In addition, the McCartney label is a member of the Ethical Trading Initiative, which ensures the careful selection of ethical-renowned suppliers, as well as collaborations with several environmental conservation organisations and NGOs, including Parley for the Oceans and Wildlife Works.

 

 

2. The Social Outfit

Eco-Luxury Values | Social responsibility, community engagement, waste reduction

Sustainable Materials | Repurposed and reused fabrics, donated deadstock

Australian-based brand, The Social Outfit, are a social enterprise and charity with an amazing mission. The label provides employment and training to refugees and migrant communities in all aspects of the fashion world, from clothing production to marketing. In many cases, working at The Social Outfit will be their first paid job and the first step of integrating into the Aussie way of life.

They also take their sustainability seriously. With a focus on waste reduction, they have saved tonnes of waste from landfill, through their goal to repurpose and reuse fabrics destined for the skip. So far they have partnered with over 28 Australian brands in this mission, including Alice McCall and Bec & Bridge!

 

 

3. Vivienne Westwood

Eco-Luxury Values | Environmental and human rights campaigns, cutting-edge sustainable technologies

Sustainable Materials | Silk, organic cotton, hemp, coir, tencel

Practising exactly what she preaches, Vivienne Westwood’s legendary label is setting an example to fashionistas across the globe by slowly transforming her brand into a sustainable masterpiece. How? Through adopting recycled and eco-friendly fabrics and using the label’s voice to educate people on Human Rights and Climate Change.

Her latest initiative is one that embraces modern-day sustainability, using collaborations and catwalk events as platforms to create awareness, encouraging ethical fashion fans to protect Mother Earth. The campaign focuses on three areas; Quality V Quantity, Gaia and Arts & Culture.

 

 

4. Eileen Fisher

Eco-Luxury Values | Transparent supply chain, non-hazardous dyes, workers rights, sustainable fibres

Sustainable Materials | Organic cotton, Recycled fibers, responsible wool, lyocell

Eileen Fisher has been creating elegant and ethical womenswear since 1984. She designs luxury sustainable pieces with a focus on minimalism and inclusivity, that flies in the face of constantly changing fashion trends.

Always leading from the front, her company started their first recycling programme back in 2009, taking back old purchases to repair, clean and sell at discounted prices. Now a Certified B Corp corporation, the brand has a strong focus on supporting women, the fair treatment of workers and creating a circular fashion economy that reuses and replenishes the resources involved.

 

 

5. Rare & Fair

Eco-Luxury Values | Sustainable natural fibres, social responsibility, community engagement, transparent supply chain 

Sustainable Materials | Natural cotton, organic cotton, community silk, handwoven fabrics

This boutique slow fashion brand focuses on the promotion of handmade clothes and accessories, created by artisans using sustainable, raw materials. Their aim? To embrace the ethical treatment of workers, use planet-friendly materials and reduce waste.

Their hand-loomed, natural clothing and products come straight from the hands of the artisans, then directly to you. Opting for this method allows Rare & Fair to fully back artisan communities and handloom weavers.

The styles, despite embracing traditional methods, boast modern designs, allowing customers to look and feel great, knowing that they’ve done their bit towards supporting these ancient production techniques.

 

 

6. Reformation

Eco-Luxury Values | Local production, carbon neutral, waste reduction

Sustainable Materials | Repurposed clothing, upcycled fabrics and salvaged deadstock

LA based contemporary fashion label, Reformation, was doing sustainable before sustainable was…well, fashionable! All of their production stages, from design to shipping and everything in between, takes place at their innovative eco-facility in downtown Los Angeles.

Each collection is made using salvaged deadstock, offcuts, upcycled fabrics, repurposed vintage clothing or new sustainable materials. Their gorgeous new leisurewear, Ref Active, is produced using recycled plastic bottles.

Find out more about all of Reformation innovations and materials they use here.

 

 

7. Dai

Eco-Luxury Values | B-corp certified, Living wage guarantee, waste reduction

Sustainable Materials | Eco-certified textiles, recycled fabrics

It’s always been a problem finding sustainable office wear, especially that also ticks the comfort box as well. Dai’s creator, ex investment banker Joanna Dai, was so unimpressed with her workwear that she decided to create her own. Setting out on collections that delivered performance, versatility and function but which she was as comfortable to wear as her yoga pants!

The brand is also big on the sustainability front. 88% of their textiles are eco-certified and their Eco Luxe Essentials range is made from trees certified sustainably managed forests, meaning biodegradable and compostable. On top of that, they pay all of their staff above the London Living Wage.

 

 

8. Acne Studios

Eco-Luxury Values | Sustainability targets and reporting, External monitoring of labour conditions

Sustainable Materials | Recycled and repurposed fabrics, organic silk, organic linen, lyocell

Celebrated for their contemporary, uber-cool style, Acne Studios increased their collection in 2020 with the addition of a sustainable line titled ‘Repurposed’. Using a series of discarded offcuts and recycled fabrics, which otherwise would have gone to waste, the Swedish brand has created a variety of capsule lines, which have since been launched quarterly.

Acne Studios have been a member of the Fair Wear Foundation (FWF) since 2008, who supports the brand to monitor and improve labour conditions, including an external and independent ‘Brand Performance Check’. This means the brand is open to their faults and constantly trying to improve year on year, all of which can be found in their annual sustainability report.

 

 

9. Re/Done

Eco-Luxury Values | recycling and repurposing,  heritage marketplace, free repairs, waste reduction

Sustainable Materials | Recycled and repurposed demin, cotton and upcycled mixed fabrics

Re/Done, another guilt-free, sustainable brand, offers on-trend pieces made from recycled materials. They first hit the scene in 2014, and have been renowned for upscaling worn Levis into bespoke, contemporary styles ever since.

The eco-conscious brand is extremely focused when it comes to adopting the latest tech to create the best sustainable fashion results. Since its launch, their offering has grown in a big way. On top of their celebrated jeans, they now design high-quality t-shirt styles, sweats and dresses, as well as a select few suits.

Often seen hanging off celebs, this cult sustainable brand is a must buy if you’re looking for a guilt-free, chilled vibe with affordable price points.

 

 

10. Maggie Marilyn

Eco-Luxury Values | Sustainability strategy, locally produced, transparent supply chain, circular production

Sustainable Materials | Organic cotton, ethical silks, FSC viscose

Maggie Marilyn is a New Zealand based designer who creates glamorous luxury designs using organic cottons and ethically produced silks. All manufacturing is done in her home country of New Zealand. She is on a mission to transform the fashion industry to one that is “transparent, circular, regenerative and inclusive”.

What we love about this brand is that they don’t just talk the talk. They produce their own sustainability strategy in line with the United Nations Sustainable Development Goals as well as a suppliers code of conduct. This isn’t a box ticking exercise for the brand, with regular updates on the performance of their strategies and new targets set annually.

 

 

Hopefully you’ve managed to find your next perfect ethically-made luxury item within this list. It would be great to hear from you what is your favourite eco-luxe label or the latest sustainable initiatives from your favourite brand. Comment below!

 


 

By Maxime Ducker (Founder and Chief Editor, Our Good Brands)

Source Rare and Fair

Got eco anxiety? Here are 10 reasons for climate optimism.

Got eco anxiety? Here are 10 reasons for climate optimism.

Last week, a report from the World Meteorological Organisation found that the world is warming faster than previously believed, and could warm by between three to five degrees Celsius by the end of the century—that’s almost three times the goal set by the Paris climate agreement.

But amid the doom and gloom, there are reasons for us to be optimistic. Even Assaad Razzouk, the outspoken chief executive of Singapore-based renewables firm Sindicatum, has started to believe there is hope for the planet. On his podcast Angry Clean Energy Guy, recorded on Thursday, Razzouk highlighted 10 reasons for climate optimism. Those reasons are as follows:

 

Climate action is intensifying

The corporate response to climate change is growing ever stronger, and governments are finally responding too, prompted by a global upswell in climate activism.

“Do you think the point of the Extinction Rebellion protests is to close roads? Or that Greta Thunberg travels by boat because she wants to save fuel? Of course not. The point is to increase awareness about the climate emergency. And, boy, have they been successful,” said Razzouk on his podcast.

 

Cost reductions [of renewables] have basically taken fossil fuel power out of the game. It’s just that some countries don’t know that yet.
Assaad Razzouk, chief executive, Sindicatum Sustainable Resources

 

Among the big corporates to think harder about reducing their impact are Kellogg’s, the cereal company, which aims to train 500,000 American farmers in techniques that lower greenhouse gas emissions, and the big tech giants Facebook, Google and Apple, which want to only use renewables to power their energy-guzzling data centres.

In Southeast Asia, the only region in the world where coal is growing in the energy mix, the regional bloc’s three biggest banks, UOB, DBS and OCBC, all declared in an unprecedented 11 days for corporate climate action in May that they would all stop funding new coal-fired power plants.

As for consumers, the demand for green products is another reason for the eco anxious to quit the Xanax. According to study by market research group Nielsen, a quarter of all store sales in the United States will be from sustainable products by 2021.

Meanwhile, governments including Ireland, the United Kingdom, California and the European Union, which recently declared a state of climate emergency, have taken bold leaps to curb emissions. In Asia Pacific, the leader is New Zealand. The government has passed a law to cut carbon emissions to almost zero by 2050, go 100 per cent renewables by 2035, plant one billion trees and invest $15 billion in transit, biking and walking infrastructure.

Oil and gas cost of capital is rising

The cost of capital for oil and gas is growing, which has meant that the market value of America’s energy sector not only fell this year, but the whole sector is now worth less than Apple’s stock, Razzouk said.

He pointed to the downgrading of the credit rating of Exxon Mobil, one of the world’s biggest (mostly oil) energy companies, as a result of the rising cost of gas extraction, and the nose-dive in market value of fracking giant Chesapeake over the last decade (down 98 per cent), as signs that the era of fossil fuels dominance is coming to an end.

“Over the next few years, Big Oil will find it increasingly hard and increasingly expensive to finance new projects,” said Razzouk.

Renewables costs are still falling

The costs for renewable energy tech fell to a record low last year, according to the International Renewable Energy Agency, with the biggest fall in solar, down by 26 per cent.

Razzouk pointed to bids to build solar parks in Dubai, which have seen costs plummet by 71 per cent in five years, and a 31 per cent fall in the cost of offshore wind—now the cleanest and cheapest baseload power in the world—in the UK in two years, as evidence that costs are continuing to fall for clean energy.

“These cost reductions have basically taken fossil fuel power out of the game. It’s just that some countries don’t know that yet,” said Razzouk.

Transport is going electric—fast

The number of public charging points for electric vehicles has increased five-fold in four years, from less than 200,000 in 2015 to 1m in 2019, the price of lithium-ion batteries has fallen by 87 per cent in a decade, and cities are being redesigned away for electric vehicles, Razzouk noted.

And automative manufacturers have finally caught on. According to Razzouk’s calculations, 84 models are being rolled out over the next two years from the likes of Volkswagen (VW), Audi, Porsche, Mercedes, Ford, Toyota, Honda, Nissan, Range Rover and Jaguar, and automakers such as BMW, VW, General Motors and Peugeot are now offering electric scooters and electric bicycles, not just cars.

 

We are winning [the climate fight]. For now, slowly, slowly, but soon we’re going to be winning all of a sudden.

 

“The transition to electric cars would have been a lot less painful for the car industry if it had spent the last decade preparing for it instead of fighting it. So today they’re laying off people when they shouldn’t have, had they been thinking.”

But the electric mobility revolution is not just about cars. Taiwanese electric bicycle firm Giant is selling 600,000 units a year, while there are 100 different electric planes in development.

Perhaps most promising of all is that new technology enables electric vehicles to supply energy back to the grid, rather than suck from it.

“There’s an emerging technology called vehicle-to-grid (V2G), and that allows a plug-in vehicle to act as a form of energy storage. So the batteries in your car can be used to let electricity flow from the car to the distribution network and back,” Razzouk said.

Climate litigation

According to Columbia Law School, there are 1,640 lawsuits fighting fossil fuel companies and governments over climate change right now.

“Even though we are in a planetary emergency, we are fighting back,” said Razzouk, who noted that climate lawsuits are exposing the “misinformation and obfuscation” of Big Oil, which has long known of the impact of their operations on the climate.

“The wheels of justice are slow and sadly, justice maybe cannot be guaranteed to prevail in some countries, but the sheer number of lawsuits and the dedication, commitment, and passion I’ve seen from those launching them is a big cause for optimism,” Razzouk said.

Banks are waking up to the climate reality

Beyond credit ratings agency Moody’s considering stripping Exxon Mobil of its triple-A rating, the European Central Bank is considering including climate considerations in how it conducts its monetary policy. “Now that would be a huge move because central banks are by far the biggest influence on financial markets,” said Razzouk.

Monetary policies, Razzouk explained, have an implicit “carbon bias” because carbon exposure is almost irrelevent for normal credit ratings. If that changed, financial markets would stop mispricing climate risks—which would be a huge lever for change, he said.

The war on plastic

A report from the International Energy Agency, released in October 2018, found that plastic and other petrochemicals are becoming the biggest driver of global oil demand—ahead of cars, planes and trucks—and will make up nearly half of oil demand by 2050.

But the global fight against plastic pollution could put a big dent in oil demand, Razzouk said.

This drop in demand will have consequences for the cost of capital of oil and gas companies. This means that they will be able to do no more new oil and gas exploration and close down, gradually, Razzouk suggested.

Reforestation

Though forest fires have raged in Indonesia, the Amazon, California and Australia this year, many countries around the world are building forest fortresses to lock in carbon and safeguard water resources, and there are now more protected nature and marine areas than at any time in history.

China, India and Pakistan are rolling out massive tree-planting schemes, Ethiopia recently planted 350 million trees in a single day as part of an initiative to plant four billion trees, and in Western Europe, forests have grown by an area larger than Switzerland in a decade.

Peak emissions

After increasing at the fastest rate for seven years in 2018, global carbon emissions are set to rise much more slowly this year, according to data from the Global Carbon Project.

The global economy grew by 3.5 percent per year, but emissions grew by only 0.8 per cent per year, Razzouk pointed out. “Now that’s still a disaster because they [emissions] are growing. But the growth phase is slower. We’ve seen a 1.5 per cent increase in 2017, 2.1 per cent in 2018 and now it’s dropped to 0.8 per cent.”

“One more push by all of us, and we will set off on a downward slope for emissions,” he said.

Citizen activism

Even just a year ago, it couldn’t reasonably be believed that much of the world really cared about the climate crisis, Razzouk said.

Now though, he said, he sees much more commitment to tackle the climate emergency.

“We have activist lawyers, activist teachers, activist unionists, activist engineers, activist consultants, and activist politicians. We even have some activist bankers. We even have some activist oil and gas professionals working at changing the oil and gas fat cats from the inside. And most important of all, we have activist citizens everywhere I look.”

Clilmate solutions are available, and slowly but surely, they are being implemented, and soon they will be as ubiquitous as our mobile phones, he said.

“We are winning [the climate fight]. For now, slowly, slowly, but soon we’re going to be winning all of a sudden,” said  Razzouk, who started his podcast by declaring that a friend recently unfollowed him on Twitter, because he found his tweets to be “too depressing.”

Singapore-based renewables executive Assaad Razzouk is the creator of the Angry Clean Energy Guy podcast series, and has 137,000 followers of his environment-themed Twitter account.

 


 

By Robin Hicks

www.eco-business.com