在2002年8月的可持續發展世界首腦會議上，可持續公共採購（Sustainable Public Procurement）概念首度被提出。此後，這一概念逐漸成為可持續生產和消費領域的關注焦點，並被納入公共採購制度的嶄新政策方向和推動全球可持續發展的重要實踐範疇。聯合國環境規劃署和聯合國經濟與社會事務部更將之視為馬拉喀什全球氣候行動夥伴關係（Marrakech Partnership for Global Climate Action）的關鍵一環。
Green Finance Advisor of Friends of the Earth (HK)
Climate litigation, after years of
development, is showing promising results globally, offering hope to climate
activists that polluters might finally be held accountable.
In the United States, the Vermont case[1]
represents a bold step towards holding fossil fuel companies financially
responsible for climate damages. It seeks to recover costs for infrastructure
damage, economic losses, and public health impacts caused by climate-related
events. Similarly, the Puerto Rico
government filed a lawsuit alleging that the fossil fuel industry engaged in
campaigns misleading consumers and the public about the impact of fossil fuel
emissions.[2] This lawsuit seeks compensation and remedies
that could cost the oil and gas companies billions. Notably, similar lawsuits against fossil fuel
companies are filed in California, Connecticut, and other states.
A joint-staff report released in April 2024
by the US House Committee on Oversight and Accountability and the Senate Budget
Committee exposed the fossil fuel industry’s deceptive commitments to reduce
emissions.[3]
The report, the culmination of a three-year investigation, uncovered misleading
statements about the alleged climate safety of natural gas, false promises on
new technologies, and obstruction of investigations. These findings, alongside other documents,
reveal that the oil and gas industry acknowledged the climate impact of fossil
fuels as early as the 1950s[4],
a stark contrast to the denial of major oil companies about climate change.
The evidence uncovered in the US
investigation could strengthen climate litigation efforts not only domestically
but also internationally. In Europe, the Paris Court of Appeal accepted a case
brought by NGOs and local authorities against an oil company.[5]
This case challenges the company’s failure to adequately report climate risks
and take action to mitigate them, reversing a pre-trial decision to dismiss the
case. This landmark case could pave the way for an unprecedented climate trial
against the oil giant under the “Duty of Vigilance” law. Additionally, this oil company faces other
legal challenges, including a recent criminal case filed against its executives
and directors.[6] Individuals and NGOs argue that these
executives, through their decision-making roles, are personally responsible for
the company’s contribution to climate change and subsequent deaths caused by
extreme weather events.
While the success of these climate lawsuits
remains uncertain, they represent a powerful wave of action. These cases bring
the climate crisis to the forefront of the legal system, challenging the
longstanding impunity enjoyed by the fossil fuel industry. By holding individuals accountable, these
lawsuits aim to dismantle the corporate shields that have protected the
industry from bearing the full weight of their actions and push for meaningful
change in the fight against climate change. Similar to the tobacco lawsuits,
which ultimately led to the Master Settlement Agreement[7],
these cases have the potential to reshape the energy landscape, forcing the
industry to take responsibility for its actions and accelerate the energy
transition to a sustainable future.
While the oil industry has been able to delay and deflect responsibility for decades, the legal landscape is shifting. The momentum for accountability is growing, fuelled by increased awareness of the climate crisis and its devastating impacts. Climate lawsuits could be the catalyst for a fundamental shift in the relationship between the fossil fuel industry and society. Just as the tobacco lawsuits ultimately led to a decline in smoking rates, these climate lawsuits could pave the way for a future where the oil industry is forced to prioritize sustainability over profits, ushering in a new era of clean energy and a healthier planet.
At the beginning of 2024, climate tech start-ups are running into a major bottleneck. Funding for companies ready to build commercial-scale facilities is declining. Investment dropped 20% in the first half of 2024 compared to the same period last year but backing for growth-stage companies fell even further.
But it’s not all doom and gloom. While climate tech investors are keeping a tight grip on the purse strings — due both in part to the tough macroeconomic climate and uncertainty ahead of the US election — deals and even mega-deals are still getting done. Climate tech start-up kicked off 2024, raising $8.1 billion.
Reasons for downward trend of investment
Solar & wind market uptake: Part of the reason for the fall is that more mature sectors like wind and solar need banks and governments – rather than early-stage investors – to fund big deployments. Solar and wind start-ups are getting a much smaller share of investment than in the past. This is because the technology and the markets for them already exist, it’s cheaper and profit driven.
Global risks focus: Globally, climate-related focus much concentrated to biodiversity loss, natural disasters and extreme weather events. Against this backdrop, in difficult geopolitical and financial times, investment needs to be channeled to where it will have the most impact.
Speeding-up supply chain decarbonization: Decarbonization technologies mostly exist in the market, so, investors are focusing funding companies in technology deployment, such as, renewable generation, power grids, green energy, transportation, energy storage and so on.
IPOs, SPACs, Acquisitions: Overall, IPOs, SPACs, and M&A transactions decreased by 50 percent in 2023. SPACs, in particular, saw an 89 percent downturn, signaling a potential collapse in that market for climate tech companies. Transportation and Energy saw the largest number of companies go public or get acquired, representing 64 percent of the sector’s total exits in 2023. More than 80 percent of M&A deals in the climate tech space were for undisclosed amounts.
Corporates: Since 2020, corporates have emerged as the most active acquirers of companies, responsible for 41 percent of all acquisitions. Notably, BP, Shell, and Schneider Electric have been particularly significant players.
Risks: Identifying potential impact driven climate tech involves HUGE RISK for investors, such as:
Technology Risk: Assessing technology risk, specially, for the new technology, often the single biggest issue investors face. Risk exists at each step through from concept to early and late prototypes, all the way to first-of-a-kind (FOAK) and commercial operation stages.
Execution or Project Risk: With a database of over 16,000 projects globally, Bent Flyvbjerg estimates that over 90 percent of projects (construction) aren’t completed on time, overrunning by an average of 60 percent.
Geographic Risk: The success of specific solutions will greatly depend on the local context. Some innovations may be more applicable or relevant in certain geographies than in others.
Geo-political Risk: With this rising geo-political issue, lack of law/regulation, inflation and FX volatility etc. posses additional risk for FOAK to take-off at scalable stage.
However, as discussed in my previous article (January), climate technologies need more money than venture capital firms usually provide, and they’re riskier than private equity and infrastructure funds are willing to support. To make these technologies more widely available, we need a different approach to financing. Like;
Public-sector support to lower the cost of capital and attract private investment.
Blended finance models, which combine public and private money, are important for funding riskier projects in the early stages.
Blended Finance Ecosystem
It is now widely accepted that the energy transition is a technological revolution which will play out over the next two decades — and potentially longer. It will harness the power of many new technologies, many of which are not the present options in their respective sectors.
So, it is imminent that we need blended finance to support projects or initiatives that aim to generate both financial returns and positive social or environmental impact. And keep continue financing innovation to create pathway to achieve environmental, social and economic impact towards sustainability & SDG.
Check out the above calendar for the fantastic green finance events for Aug and Sep 2024! Interested to join and know more about the events? Click the links below for details:
