So-called ‘green bonds’ offer significant potential for financing capital investment in the chemical industry according to Sean Kidney, chief executive officer (CEO) of non-profit organisation the Climate Bonds Initiative.
Speaking in Milan at the fourth Italian national conference on chemistry and energy, he noted that according to the HSBC/Climate Bonds report
‘Bonds & Climate Change 2013’
, green and climate bonds are already a US$346bn sector, with issuance growing by 25% during 2012.
“The latest science shows that carbon emissions in industrialised countries will need to drop by at least 90% by 2050 in order to avoid severe climate change.” Kidney said. “The still largely petroleum-based chemical industry can play a leading role in this process.
“First, substantial progress is being made in switching to renewable biological feedstock. These are important developments in terms of a shift to a low-carbon industry.
“Secondly, the International Energy Agency (IEA) estimates that some 40% of investment in reducing greenhouse gas emissions to 2050 will be in energy efficiency. With an estimated 9% share of global energy use and large numbers of older plants, huge plant energy savings can be made with appropriate capital investment.”
The Climate Bonds Initiative, an investor-focused non-profit organisation promoting large-scale investment in the low-carbon economy, is examining the inclusion within its eligibility criteria of bonds used to finance such investments.
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.
Treasurers are more interested in cross-border payments and automation than real-time payments, as they are consistently asked to do more with less, argues Rick Burke, head of corporate payments at TD Bank in an exclusive interview.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
The EU and US’ shift in accounting standards may bring balance sheet losses and increase credit risk, according to James Elder, director of risk services at Standard & Poor’s (S&P) Global.