chapter 3 pt5

Question 1

How much did the Global Commission on the Economy and Climate find the world is expected to invest in infrastructure over the next 15 years and what does this mean?

Answer 1

1. $90 trillion

Question 2

How much of the total listed equity market did the green economy make up?

Answer 2

1. 7.1%

Question 3

Describe change in the number of assets managed through public equity funds relating to the circular economy in 2021

Answer 3

1. have increased sixfold compared to the beginning of that year, from US$0.3 billion to US$9.5 billion

Question 4

What happens to products in the circular economy?

Answer 4

products and materials are repaired, reused, and recycled rather than thrown away, ensuring that waste from one industrial process becomes a valued input into another

Question 5

What does a levelised cost basis mean?

Answer 5

1. the average cost of electricity over a plant’s lifetime

Question 6

What happened to investments of key low-carbon energy technologies in 2022?

Answer 6

1. Passed the $1 trillion mark
   
   2. First year the investments in fossil fuel supply reached parity with low-carbon

Question 7

What are the top 2 sectors that were invested in?

Answer 7

1. Electrified transport
   Renewable energy

Question 8

How much of total GHGs does the built environment sector contribute to?

Answer 8

1. 40%
   
   2. Result of whole life-cycle carbon of building

Question 9

Describe electrification of automobiles

Answer 9

1. global sales of electric cars more than doubling in 2021 and capturing all the net growth in global car demand
   
   2. Nearly half of the 6.5 million BEVs sold worldwide in 2021 were in China
   3. just 535,000 were sold in the United States
      In Norway, 65% of car sales were BEVs

Question 10

What has contributed to green hydrogen price falling below grey hydrogen

Answer 10

1. the rise in gas prices in early 2022
2. the tax credits and renewable energy incentives of the Inflation Reduction Act are estimated to reduce the costs of green hydrogen production by almost half.

Question 11

According to BloombergNEF in 2023 what was the total investment in the low-carbon energy transition and where was the largest investor?

Answer 11

1. $1.77 trillion
2. China is largest investor: 38% total
3. EU states : 20%
4. US: 17%

Question 12

What areas of energy transition sector have the largest amount of funding?

Answer 12

1. 2021: Renewable> electrified transport > Heat
2. 2023: Electrified (36% increase to $634 billion) overtook renewable (8% increase to $623 billion)

Question 13

What other areas are showing growth in investment?

Answer 13

1. investment in hydrogen tripling year-on-year
2. carbon capture and storage nearly doubling
3. energy storage jumping 76%

Question 14

What is the goal of the Sustainable Energy Innovation Fund (SEIF)?

Answer 14

1. Created by the World Economic Forum to support clean energy projects
2. Matches private funding with public investment to drive innovation

Question 15

What is EIT InnoEnergy, and what does it do?

Answer 15

1. A public-sector initiative supporting sustainable energy innovations.
2. Invests in and accelerates clean energy startups and project

Question 16

When was the first Green bond issued?

Answer 16

1. 2007
   
   2. By European Investment Bank to raise funding for climate-related projects

Question 17

What are the top sectors green bond and loan proceeds went to in 2022?

Answer 17

1. Energy
2. Buildings
3. Transport

Question 18

.Why is there thought to be slowdown in sustainable debt issuance in 2022?

Answer 18

1. Higher borrowing costs for issuers overall
2. Increased skepticism around green-labeled instruments
3. Broader regulatory clampdown on greenwashing.

Question 19

Describe the shades of green methodology developed by Centre for international Climate Research (CICERO)

Answer 19

1. Dark green: allocated to projects and solutions that correspond to the long-term vision of a low-carbon and climate resilient future
2. Medium Green: allocated to projects and solutions that represent significant steps towards the long-term vision but are not quite there yet
3. Light green: Allocated to transition activities that do not lock in emissions. These projects reduce emissions or have other environmental benefits in the near term rather than representing low carbon and climate resilient long-term solutions
4. Yellow: allocated to projects and solutions that don’t explicitly contribute to the transition to a low carbon and climate resilient future or too little info to assess
5. Red: projects and solutions with no role to play in low-carbon and climate resilient future. These are the heaviest emitting assets with the most potential for lock in of emissions and highest risk of stranded assets

Question 20

What does lock in emissions mean?

Answer 20

refers to situations where investments or infrastructure choices commit us to a certain level of greenhouse gas (GHG) emissions for a long time

Question 21

hat is the goal of the Climate Bonds Taxonomy and sector criteria?

Answer 21

1. To align with the Paris Agreement goal of keeping global warming under 2°C (3.6°F).
   
   2. the range of sector criteria keeps expanding, adding transition sectors in 2022

Question 22

What qualifies an entity as a climate-aligned issuer?

Answer 22

Companies that generate 75% or more of their revenues from green business lines

Question 23

How much outstanding debt had climate-aligned issuers issued by September 2020?

Answer 23

1. US$913 billion, up from US$811 billion in June 2018

Question 24

What did the Luxembourg Green Exchange (LGX) launch to support sustainable finance?

Answer 24

1. A climate-aligned issuer segment to complement its green bond, sustainability, and social bond segments.

Question 25

What are the considerations for investors to assess whether assets are green/sustainable or not?

Answer 25

1. the eligibility of assets and criteria to meeting their sustainability-related objectives, 2. the use of proceeds effectively allocated to eligible projects, 3. the transparency and reporting requirements and key measures of impacts, and 4. the existence of a clear firm-wide sustainability strategy for the issuer or borrower.

Question 26

What are the Green Bond Principles?

Answer 26

1. The International Capital Markets Association sets out voluntary guideline 2. established in 2014 by a consortium of investment banks to promote the integrity of the green bond market by recommending transparency, disclosure, and reporting. 3. To ensure the integrity of the use of proceeds, external review is obtained through a second-party opinion provider that will track and report on whether proceeds are used as promised.

Question 27

What are the 4 pillars of the Green Loan Principles established in 2018?

Answer 27

1. There is clear green use of loan proceeds. 2. The project’s sustainability objectives have been clearly evaluated and communicated to lenders. 3. Loan proceeds are strictly managed through project accounts. 4. Detailed and strict reporting is mandated

Question 28

Based on a study by the OECD (Organisation for Economic Co-operation and Development) what are the 3 priority areas for action concerning the blue economy?

Answer 28

1. approaches that produce win–win outcomes for ocean business and the ocean environment across a range of marine and maritime applications, 2. the creation of ocean-economy innovation networks, and 3. initiatives to improve the measurement of the ocean economy via satellite accounts of national accounting systems.

Question 29

What is thought to be the potential increase in global value added by the ocean economy by 2030?

Answer 29

Doubled to over $3 trillion

Question 30

What does the BEDF aim for its roadmap to assist governments in?

Answer 30

1. preparing policy, fiscal, and administrative reforms, 2. identifying value creation opportunities from blue economy sectors, and 3. identifying strategic financial investments.

Question 31

What is cleantech

Answer 31

1. Encompasses investment asset classes 2. Tech 3. Business sectors which include clean energy and sustainable or green products and services