Accounting for decarbonisation and reducing capital at risk in the S&P500

This document is the Accepted Manuscript version of the following article: Colin Haslam, Nick Tsitsianis, Glen Lehman, Tord Andersson, and John Malamatenios, ‘Accounting for decarbonisation and reducing capital at risk in the S&P500’, Accounting Forum, Vol. 42 91): 119-129, March 2018. Under embargo until 7 August 2019. The final, definitive version is available online at doi: https://doi.org/10.1016/j.accfor.2018.01.004.This article accounts for carbon emissions in the S&P 500 and explores the extent to which capital is at risk from decarbonising value chains. At a global level it is proving difficult to decouple carbon emissions from GDP growth. Top-down legal and regulatory arrangements envisaged by the Kyoto Protocol are practically redundant given inconsistent political commitment to mitigating global climate change and promoting sustainability. The United Nations Environment Programme (UNEP) and European Commission (EC) are promoting the role of financial markets and financial institutions as drivers of behavioural change mobilising capital allocations to decarbonise corporate activity.Peer reviewe

Going for zero: state decarbonisation strategies for prosperity in a zero-emission world

This paper explains why states should have a decarbonisation strategy and explores some key policy elements. Abstract Across the world, governments at all levels are implementing policies to reduce carbon emissions, address local air pollution, improve energy productivity, grow new industries and address energy security concerns. While these initiatives are as yet insufficient to avoid dangerous climate change or achieve the internationally agreed goal of avoiding 2°C warming above pre-industrial levels, the trend is clear. What is also clear is the ultimate destination or strategic objective that these policies need to have: the progressive phase-out of emissions to reach net zero levels, or ‘decarbonisation’. The OECD, World Bank and latest IPCC report have warned that avoiding irreversible and severe climate change impacts will require the global economy to be decarbonised before the end of the century. This requires energy systems, particularly electricity, to decarbonise well before then. Private sector actors are also moving forward. Leading multinational business groups and corporate leaders have called for action to achieve net zero global emissions by 2050. The financial sector is increasingly aware of the risks of ‘stranded assets’ resulting from both global decarbonisation efforts and the physical impacts of climate change. In Australia recent political and policy turmoil saw state governments retreat from many past climate policy initiatives. However some governments are now reconsidering their position and the risks posed to their economies and communities should they be left behind by this global trend toward decarbonisation. This paper explains why states should have a decarbonisation strategy and explores these key policy elements: Setting binding emission limits on major emitting facilities Incorporating carbon considerations into policy and planning processes Using procurement and management policies to help build markets for lower emission goods and services Continuing to develop and link energy efficiency policy frameworks Providing assistance: funding, technical, regulatory, trainin

The governance of innovation diffusion – a socio-technical analysis of energy policy

This paper describes a dynamic price mechanism to coordinate electric power generation from micro Combined Heat and Power (micro-CHP) systems in a network of households. It is assumed that the households are prosumers, i.e. both producers and consumers of electricity. The control is done on household level in a completely distributed manner. Avoiding a centralized controller both eases computation complexity and preserves communication structure in the network. Local information is used to decide to turn on or off the micro-CHP, but through price signals between the prosumers the network as a whole operates in a cooperative way

An enabling framework for carbon capture and storage (CCS) in Europe: An overview of key issues. CEPS Policy Brief No 2019/03, 23 September 2019

here are few credible scenarios for reaching the EU’s long-term climate policy objectives, such as net-zero by 2050, without the large-scale deployment of CCS technology. Carbon capture and storage technology is a pre-requisite for the decarbonisation of energy-intensive industries, which in the EU are responsible for about a fifth of all greenhouse gas emissions. At the same time, carbon capture technologies have only been tested at smaller scales and are not yet available at scale for the multiple energy-intensive industries that need them. To prepare for largerscale CCS deployment in the period after 2030, steps should be taken today to address economic as well as political barriers, and thereby support development of key infrastructure and technology. In doing so, policy should focus on improving the investment case for both CCS as well as low carbon industrial products that carbon capture makes possible. This includes specific financing models that account for the high capital intensity of CCS, regional variation in industrial clusters, infrastructure and storage availability as well as the need to combine both private and public money

Smart grid interoperability use cases for extending electricity storage modeling within the IEC Common Information Model

Copyright @ 2012 IEEEThe IEC Common Information Model (CIM) is recognized as a core standard, supporting electricity transmission system interoperability. Packages of UML classes make up its domain ontology to enable a standardised abstraction of network topology and proprietary power system models. Since the early days of its design, the CIM has grown to reflect the widening scope and detail of utility information use cases as the desire to interoperate between a greater number of systems has increased. The cyber-physical nature of the smart grid places even greater demand upon the CIM to model future scenarios for power system operation and management that are starting to arise. Recent developments of modern electricity networks have begun to implement electricity storage (ES) technologies to provide ancillary balancing services, useful to grid integration of large-scale renewable energy systems. In response to this we investigate modeling of grid-scale electricity storage, by drawing on information use cases for future smart grid operational scenarios at National Grid, the GB Transmission System Operator. We find current structures within the CIM do not accommodate the informational requirements associated with novel ES systems and propose extensions to address this requirement.This study is supported by the UK National Grid and Brunel Universit

A Global Carbon Market?

This paper explores the prospects for a global carbon market as the centrepiece of any serious attempt to reach the ambitious goal for greenhouse gas (GHG) reductions set by climate scientists. My aim is to clarify the extent to which we know what policy might best support global decarbonisation. I begin by discussing what we might mean by a global carbon market and its theoretical properties. I proceed to discuss the EU Emissions Trading System experience and the recent experience with the Australian carbon tax. Next, I assess the evolving carbon market initiatives in the US and in China. In the conclusion, I apply some principles of 'good' energy policy making to the prospects for a successful global carbon market

The political economy of decarbonisation: exploring the dynamics of South Africa’s electricity sector

South Africa’s coal-dominated electricity sector, a key feature of the country’s minerals-energy complex, is in crisis and subject to change. This offers potential opportunities for decarbonisation. Despite positive examples of decarbonisation in South Africa’s electricity sector, such as a procurement programme for renewable energy, there are structural path dependencies linked to coal-fired generation and security of supply. Decarbonisation goes far beyond what is technologically or even economically feasible, to encompass a complexity of political, social and economic factors. Meanwhile, decision-making in electricity is highly politicised and lack of transparency and power struggles in the policy sphere pose key challenges. Such power struggles are reflected in national debates over which technologies should be prioritised and the institutional arrangements that should facilitate them

Granular technologies to accelerate decarbonization

Of the 45 energy technologies deemed critical by the International Energy Agency for meeting global climate targets, 38 need to improve substan- tially in cost and performance while accelerating deployment over the next decades.Low-carbon technological solutions vary in scale from solar panels, e-bikes, and smart thermostats to carbon capture and storage, light rail transit, and whole-building retrofits. We make three contributions to long-standing debates on the appropriate scale of technological responses in the energy system. First, we focus on the specific needs of accelerated low-carbon transformation: rapid technology deployment, escaping lock-in, and social legitimacy. Second, we synthesize evidence on energy end-use technologies in homes, transport, and industry, as well as electricity generation and energy supply. Third, we go beyond technical and economic considerations to include innovation, investment, deployment, social, and equity criteria for assessing the relative advantage of alternative technologies as a function of their scale. We suggest numerous potential advantages of more-granular energy technologies for accelerating progress toward climate targets, as well as the conditions on which such progress depends

UK energy in a global context: synthesis report

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