· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on the Financial Times or enjoy below:
🗞️ Driving the news: Oil and gas companies have not faced higher borrowing costs compared to less polluting firms, despite UN-led efforts to limit lending to fossil fuel sectors
• S&P Global Ratings found that since 2010, these companies’ borrowing costs in the US and Europe have largely aligned with those of other sectors
🔭 The context: Despite oil and gas contributing to over half of global energy-related CO2 emissions, financial initiatives like the Glasgow Financial Alliance for Net Zero have not significantly impacted their access to capital markets
🌍 Why it matters for the planet: The sustained financial support for fossil fuel industries suggests that environmental concerns are not a primary factor in funding decisions, potentially undermining global decarbonization efforts
⏭️ What's next: The Net-Zero Banking Alliance is considering including emissions from banking services in its climate targets
• However, recent global energy demands and the profitability of oil and gas companies suggest that these industries will remain significant energy contributors
💬 One quote: “Oil and gas are not going to go away. They’re going to have a piece of the energy pie, just a bit less of it” (Thomas Watters, S&P Global Ratings)
📈 One stat: Oil and gas accounted for more than half of global energy-related carbon dioxide emissions in 2022
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