21 May 2015
Mirova/Natixis Asset Management
21 Quai d’Austerlitz
Over the last three years, Carbon Tracker analysis has been highlighting that the risk to fossil fuel companies from climate change and recent related economic trends (e.g. falling cost of renewables) is that this downward pressure to a two-degree or low-carbon world will cause declines in demand for and price of their commodities.
For fossil fuel companies, “climate risk” translates to “market risk.”
Trends in the energy system have the potential to change the economics for fossil fuel extractives companies. While these trends will implicate many aspects of disclosure, investors first need to understand how these trends will impact fossil fuel companies’ financial condition.
In the context of the Paris Business Climate Summit, Carbon Tracker is organising a high-level roundtable in partnership with CDC Climat Research, UNEP Financial Inquiry and UNPRI. The event will bring together financial regulators and policy-makers, investors and asset managers to discuss their role in driving an orderly energy transition. Setting up new financial regulatory standards requires immediate action in order to avoid to build up in the system the risk of stranded assets and dysfunctional capital allocation.
The participants will be invited to discuss the following points:
• First phase: what is the problem and why is it relevant to financial regulators?
• Second phase: what can financial regulators do: step one effective disclosures.
• Third phase: where in the market are better disclosures required and into what regulations would such requirements fit?
• Fourth phase: a review of what initiatives are already underway, i.e. BoE, Carbon Tracker & Ceres, G20
• Conclusion: how to integrate this topic in the core financial agendas in time for Paris COP21.
This event is available through invitation only.