Evelyne Pflugi

Next investment hype? Globally accredited carbon credit exchange focusing on a few economic pillars and participation of a consortium of well known banks from SEA. It’s definitely better than talking about the gold standard in tracking carbon emission. Sounds good in theory and which government is guilty of this? Mandatory requirement may just give birth to the next investment hype or ‘scam’ in the coming months. But again, who came out with this concept in the first place? If you know you can buy forgiveness, why not increase the pollution at your factory or take that extra unnecessary flight or continue to invest in high-growth capitalism?

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Climate tech, impact and energy transition are some of the most active fund thematic I'm seeing amongst asset managers. Whilst impact funds attracted just $23.8 billion of total private capital raised (led by a couple of mega funds), there are some major drivers that asset managers are now not only actively exploring this space, but launching their own funds: 🌎 Pension funds, corporates, insurances and endowments increasingly have sustainability, green and ESG criteria they have to meet in their portfolio; 🌎Private capital allocation to sustainable strategies is increasing and becoming crucial not only to portfolio creation, but performance; 🌎ESG and sustainability are regarded as major drivers of value creation and exit value- up to 70% in most cases- it's a serious risk mitigation and diversification strategy. 🌎EU and US regulatory frameworks are now playing into capital allocation, with 56% of investors having refused a GP based on ESG grounds 🌎In public markets, sustainable funds have beaten fund returns by a median return of 10.9%. With climate, impact and energy now covering well-trodden sectors including infrastructure- this is starting to actively translate to PE/VC 🌎Some strategies such as ODDO BHF plan to allocate to funds and co-investments- giving a potential exposure to over 2000 companies significantly improving the potential upside.

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#lgim #new_etf European asset manager Legal & General Investment Management (LGIM), announced the launch of the L&G Energy Transition Commodities UCITS ETF, a new fund aimed at providing investors with exposure with commodities that are key to the energy transition. Steven de Vries, Head of Wholesale UK, Europe and Latin America at LGIM, said: “Demand for strategies that provide inflation risk mitigation and uncorrelated market exposure has been significant of late, not least due to the macroeconomic backdrop. Overlay this with the uniqueness of the proposition the Energy Transition ETF presents, and this becomes a particularly compelling strategy.” According to LGIM, the new ETF provides access to a combination of commodities central to the energy transition, targeting three distinct commodity groups with supportive demand-side economics, including transition metals required for production, storage and distribution of clean energy; lower-carbon transition energy sources that can aid in addressing peak energy demand and hard-to-abate sectors, such as natural gas and ethanol, and; carbon pricing, that increases the cost of emissions and incentivizes the switch to lower-carbon activities. https://lnkd.in/dzEuMnrE

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☢️ Your Portfolio’s Next AI Power Play Could Go Nuclear Global electricity demand is amping up just as the push to reduce carbon emissions takes hold. And that’s making nuclear energy – known for its reliable, continuous clean power generation – especially attractive. At last year's COP28 climate conference, 22 nations committed to TRIPLING the world’s nuclear power capacity by 2050. That’s expected to significantly boost demand for uranium and benefit companies developing the next generation of advanced nuclear technology, known as "small modular reactors" (SMRs). Here’s a summary of the thesis: 👉 SMRs are small reactors designed to be built in factories, delivered by truck or train, and then assembled on-site, saving time and money. Compared to traditional reactors, SMRs are safer, require less frequent refueling, and, in some cases, are more fuel-efficient. 👉 One of the biggest advantages of SMRs is their ability to be located close to where demand is, so they can directly provide clean electricity to facilities like data centers, which require a constant, 24/7 supply of power. 👉 Big Tech companies are turning to SMRs to meet the massive energy needs of their data centers while staying aligned with their climate goals. In the past two months, Oracle, Amazon, and Google have all announced big commitments to SMRs, which could encourage other firms to follow suit. 👉 There are only two publicly traded pure-play SMR companies: NuScale and Oklo. NuScale is further along in deploying its technology, but both stocks are still high-risk investments. 👉 A potentially safer way to play the SMR theme is through Centrus Energy, which produces the specialized uranium fuel needed to power most SMRs, positioning it to benefit regardless of which firm successfully commercializes its reactor. Centrus also owns a stable, cash-flow-positive business with high barriers to entry, selling enriched uranium to global utilities. 👉 Regardless of whether the next wave of nuclear power is driven mostly by SMRs or traditional reactors, one thing is certain: uranium demand is set to surge. But supply is tight right now, and the market is expected to face a shortfall in the next decade. 👉 That could continue to keep uranium prices hot, which won’t necessarily curb consumption since demand for the heavy metal is mostly oblivious to price changes. Nuclear plants must run continuously at full capacity, after all, and uranium is a relatively minor part of their overall operating costs. 👉 There are two main ways to invest in uranium: through the commodity itself or via mining firms. And a balanced approach that includes both could be the most sensible strategy. Read my in-depth Finimize report about how to invest in the future of nuclear energy here: https://lnkd.in/d4bSxZk5 #markets #finance #investing #invest #investment #nuclear #energy #uranium

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A great report on methane flaring in 2023. It is great in the visualisation and information content sense, but not so great in its results. Oil companies wastefully burnt more gas last year, which is disappointing, to say the least. Have a look if you want to know who the leaders were and which countries imported the largest volumes of "flared gas". #methaneemissions https://lnkd.in/epNxBQfU

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As mentioned before, innovation in the Climate Tech sector seems to be just in the frist innings. This week, thanks to a great conversation with Sebastian Heitmann, I learned about "Orange Hydrogen". The concept is simple but very suprising: It seems that one can produce (in theory) Hydrogen by injecting for instance CO2 and water into rock formations that contain traces of Iron, which creates a reaction that then releases Hydrogen. Another, potentially cheap source of Hydrogen could clearly help to decarbonize many industrial processes that are hard to tackle otherwise (Fertilizer, Steel, Chemicals). Of course, this is at a very early stage and it is hard to say how difficult (and expensive) it would be, but it supports the expectation that Climate Tech will come up with many innovative way to help us in keeping the planet habitable. One more reason to be optimistic for the future despite some potentially temporary setbacks. https://lnkd.in/dr4-ZZZE

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A very insightful post by Rich Gilmore Credit buffers are an analog of bank deposit reserves, set up to ensure customers can access sufficient funds, even in events of abnormally high withdrawals. The ratio of coverage makes REDD+ an extremely well protected asset class.

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Green Hydrogen- SuperSession- Multibagger Theme Welcome to our latest video on the exciting and rapidly growing sector of green hydrogen! In this episode, we dive deep into the investment opportunities available in this cutting-edge industry. 🌱💡 As the world moves towards sustainable energy solutions, green hydrogen stands out as a key player in the transition to a low-carbon future. We'll explore: 🔍 What is Green Hydrogen? Understanding the basics and the science behind green hydrogen production. 🌐 Market Overview: A comprehensive look at the current state of the green hydrogen market and its potential for growth. 📈 Investment Opportunities: Key companies leading the charge in green hydrogen technology. Promising startups and emerging players to watch. Government policies and incentives driving investment. 💼 Risks and Challenges: Understanding the potential risks and hurdles in the green hydrogen sector. 🌍 Global Impact: How green hydrogen can contribute to a sustainable and carbon-neutral future. Join us as we unpack the potential of green hydrogen, provide insights from industry experts, and offer tips on how you can start investing in this transformative sector. Whether you're a seasoned investor or just getting started, this video is packed with valuable information to help you make informed decisions. Don't forget to like, comment, and subscribe for more content on innovative investment opportunities and sustainable technologies. Hit the notification bell so you never miss an update! https://lnkd.in/dCsjuEJC #strategicalpha #greenenergy

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Beware of infrastructure investments by institutional investors relabeling them as #impactinvestments There are much more effective financing techniques for utilities and other essential taxpayer shared services in society than private equity. True #impactinvestments improve quality of life and add wealth to underserved communities and people. #sharedvalues

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The Integrity Council for the Voluntary Carbon Market announces the first methodologies meeting its high-integrity Core Carbon Principles (CCPs). 🔍 **Key Highlights:** - Over 100 methodologies grouped into 29 categories for assessment. - Approved methodologies for destroying stockpiles of Ozone Depleting Substances (ODS), impacting 12 million carbon credits. - Approval for four methodologies for Landfill Gas (LFG) projects, covering 15 million carbon credits. 🎯 **ODS Methodologies:** - ACR’s Destruction of ODS from International Sources v1.0 - CAR’s Article 5 ODS Project Protocol v1-2 - CAR’s U.S. ODS Project Protocol v1-2 🎯 **LFG Methodologies:** - ACM0001 – Flaring or use of Landfill Gas v15-19 - AMS iii G – Landfill Methane Recovery v10 - ACR’s Landfill Gas Destruction and Beneficial Use Projects v1-2 - CAR’s US Landfill Protocol v6 🌱 **Conditions for ACM and AMS Methodologies:** - All LFG project types that do not generate electricity. - LFG-to-electricity projects with a capacity ≤ 10 MWe. CDM methodologies are under review, with the Integrity Council assessing various carbon-crediting programs. 📊 **Programs Approved as CCP-Eligible (98% market share):** - ACR - ART - CAR - Gold Standard - VCS (operated by Verra) Assessments are ongoing for Isometric, Puro.earth, and Social Carbon. 🔬 **Ongoing Assessments by MSWGs:** - MSWG 1: Improved Forest Management - MSWG 2: Sustainable Agriculture, Methane Avoidance, Nutrition/Nitrogen Management, Buffer Practices, ARR - MSWG 3: Renewable Energy - MSWG 4: REDD+ and JREDD methodologies - MSWG 5: Household Energy Demand - MSWG 6: Biochar, tech-based CCS, industrial biodigesters, and more Please get in touch if you have any needs with regards to the sale, purchasing or financing of carbon credits 🌏 #CarbonCredits #Sustainability #ClimateAction #IntegrityCouncil #VoluntaryCarbonMarket #CCP #Environment #GreenInitiatives #CarbonReduction

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One of the most demanded pieces of Greenwheel research this year: how can investors manage the environmental and social risks of mining critical materials given their key role in the energy transition? 💎 Luckily Jessica Wan was on the case - check out her responsible mining framework for investors at the link below. #criticalmaterials #responsibleinvesting

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The hydrogen hype can be exhausting but where are the most realistic, promising opportunities for hydrogen deployment in the context of energy transition? Check out Paul Drummond’s research at the link below to find out. #hydrogen #energytransition #transitioninvesting

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Excellent paper here and agree with the steps proposed and the extreme high quality thresholds proposed as well as the strategies for dealing with unplanned releases. If the final 10% of emissions in some critical industries have an abatement cost of more tha $1,000 per tonne but high quality removal and permanent storage can be delivered for $500 per tonne then the integration of CDR into compliance markets confers large benefits to society.

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European oil majors Shell and Eni, have led an early stage funding round for climate technology start-up Mantel, which aims to use molten salts to capture carbon dioxide emissions at refineries, factories and other industrial sites. https://lnkd.in/e9FubkP8 #investing #climatetech #technology

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THE BEST AI POWER DEMAND ARTICLE YET WRITTEN. No-one noticed, because only Michael Liebreich publishes something this brilliant on Christmas Eve. He has written THE article on AI and power demand. Like a good novel, there's gems of wit and insight on each page. Key points: - Michael estimates 45GW of data centre capacity may be built in the next 5 years - relatively few data centres will be built in the EU - data centers may add 4% to power demand, but they reduce it too by introducing efficiencies. However efficiency increases demand, so power demand will grow, not fall. - meeting data centre demand is challenging: intermittency, location and permitting impede most renewables. This is no gold rush. - yet renewables' cost advantage will ultimately drive data centers to rely on hybridised renewables over fossil or conventional nuclear or SMRs I've not done it justice. It's a longer, worthy read, built on data, analysis and holistic vision to provide a sober and insightful assessment.

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Have you ridden the #carbon credibility rollercoaster? Well, if your business is in any way related to #carbonmarkets – my guess is that you’re in the middle of a very long ride! Check out this article where I look at the SBTi’s evolving #NetZero Standard and how I think #timber can be built into a solution in the carbon credibility crisis. #naturebasedsolutions #climatefinance #VCM #forestinvestment #timberlandinvestment #sustainableforestmanagement

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📢 ICVCM confirms Verra and ART meet its high-integrity benchmark Only yesterday we posted our guide to key carbon action standards, and 'greater integration of the standards' was one of the key trends we flagged to watch out for. Each step like this is key in moving quickly to an integrated and coherent framework. Integration will allow buyers of credits to have confidence they are utilizing credits of the right quality that will serve their climate action objectives and will stand-up to scrutiny. The more we can simplify and clarify the regulation and standards around this industry, the better. There are many examples across other industries where corporates can take positive action and be confident that they are following clear and integrated rules. Continued progress on this track will be key to scaling. Full announcement below. https://lnkd.in/dpbV_PQ3 Check out our 'Climate Action Standards Decoded Guide' here: https://lnkd.in/d6SaD8-W #climateactionstandards #naturalcapital #ICVCM #carbonmarkets

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While the path is anything but clear, a carbon constrained world is on our doorstep. We have been interviewing leaders in the field for an upcoming research piece - my recent AFR article provides a brief teaser to the work.

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