Governance, risk & compliance
Above: Floating wind farms are an ideal alternative to dependence on Russia for energy.
Above right: Werner Hoyer, president of the European Investment Bank.
Conservative members in the party’s latest leadership contest, a poll found. Just 4% of those surveyed by pollster YouGov said hitting the UK’s net-zero emissions target by 2050 should be one of the top priorities for the next prime minister. And though Rishi Sunak eventually did go to the latest climate summit in Egypt, you nonetheless get the sense that the environment isn’t top of his agenda.
“Public support, no matter how generous, won’t be enough to bankroll the transition to a new zero and climate resilient future.”
For some activists, meanwhile, publicity stunts are the only way to get their message heard – hence the various attacks on paintings and sit-ins we’ve all seen over recent months.
150 Euractiv £72.5m
The value of Van Gogh’s ‘Sunflowers’ painting, which was splashed with tomato soup by climate activists.
Sky 50 For the greater good
The number of campaign groups that urged Brussels not to label gas as green in the EU Taxonomy.
As far as public demonstrations and grassroots activism is concerned, there’s only so much it can achieve without green financing from large corporations. As Hoyer puts it: “Public support, no matter how generous, won’t be enough to bankroll the transition to a net-zero and climate-resilient future.” The EIB hopes to avoid blurred lines and ‘greenwashing’ by opting for “robust methodologies for defining and tracking climate finance” – with no room for excuses. Having just been at the Climate Week in New
York, Hoyer stresses that even the war in Ukraine cannot be used as a way to backtrack on climate commitments made. “On the contrary,” he says, “never was climate action more urgent than now.” Europe’s reliance on Russian fossil fuels is something Hoyer is incredibly conscious of, arguing instead for investment in floating wind farms in France and Portugal and more energy-efficient housing in Poland. In Spain, meanwhile, green financing from the EIB and the Instituto de Crédito Oficial will help renewable energy
company Iberdrola build a large-scale green hydrogen production plant – one of the largest for industrial use in Europe. All the same, Hoyer says more action is needed from governments, development banks and the private sector. “First, we need to give investors, businesses and households the right incentives and the right regulatory frameworks to ensure they direct their funds toward low-carbon projects.
“Second, we must place more emphasis on the decarbonisation of hard-to-abate sectors, such as heavy industry, shipping and aviation,” he continues. “And third, we must scale up adaptation finance and integrate adaptation considerations into all of our projects globally.” For Hoyer, then, the drive towards net zero requires pressure from all directions. “Financial intermediaries are increasingly expected to engage with their borrowers and investees and support them in their transition to a low-carbon and climate-resilient world.” At any rate, financial markets play a key role in tackling climate change and achieving the UN’s Sustainable Development Goals.
“As the EU climate bank,” Hoyer adds, “we are fully committed to supporting the private sector in its green transition.” The EIB, therefore, hopes to play an active role in “crowding-in other investors” – and funding sustainability wherever possible. “We will not succeed in combatting climate change, and limiting the climate change impacts already happening today,” Hoyer stresses, “if we do not redirect the financial flows to low-carbon and climate resilient projects.” So when will these critical global projects actually get going? Ideally, fifty years ago. But right this second will have to do. ●
Future Banking /
www.nsbanking.com
Rafa Fernandez/
Shutterstock.com; European Invesstment Bank
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