Shaken Not Burned

Highlighting changemakers and solutions

What we’ve been reading this week

• MSCI launches carbon credit ratings

As you can see in this week’s podcast, there is a lot of confusion about where and how to use carbon credits, as well as which credits are credible. MSCI has launched its MSCI Carbon Project Ratings, assessing over 4,000 projects in the global carbon credit market considering a project's impact on the climate, environment and society, as well as legal and ethical risks, including financial crime, fraud, and sanction. Carbon markets are considered critical to accelerating decarbonisation and meeting net zero goals, but only 5% of projects on the market are considered to be of very high integrity. As Guy Turner, head of MSCI Carbon Markets, says: “Lack of confidence in the quality and integrity of projects is causing some buyers, investors and developers to hesitate.” That’s a trend that needs to be reversed if the markets are to be effective in realigning capital and providing a crucial source of funding.

• California sues Exxon over plastics recycling ‘myth’

California, which has just banned single use plastic bags, has also launched a case against Exxon for misleading the public about the recycling of plastics. According to the BBC, “Bonta's office said the case marks the first time US officials have attempted to hold a gas or oil company accountable for deceptive claims about plastics recycling,” and it’s claimed that almost all of the plastics ‘recycled’ by Exxon became fuel rather than new plastic. Given that only 9% of all plastics have been recycled, and projections show plastics manufacturing tripling by 2050, the upcoming Global Plastics Treaty will be crucial in steering future action.

• Decarbonisation of heavy industry requires $700 billion to reach 2030 targets

If a critical mass of large-scale industrial decarbonisation projects reach their Final Investment Decision (FID) in the next 2-3 years, they could achieve 80% of the 2030 decarbonisation target and keep us in line with Paris targets. However, the existing global project pipeline will require around $700 billion of investment; to take these projects from the drawing board to construction and production, project developers need firm commitments from buyers to secure the necessary finance. The challenge is the lack of demand for green products providing a solid business case to attract investors. 

•  534 investors with $29 trillion call for urgent climate action

The 2024 Global Investor Statement to Governments on the Climate Crisis was published during the UN General Assembly, pressuring governments worldwide to take decisive action on the climate crisis. In a joint statement ahead of COP29, investors called for policies that will accelerate the transition to a net zero, climate-resilient economy, including demand sector-specific strategies, mandatory climate reporting, and solutions addressing nature and biodiversity crises. Despite progress made through initiatives such as the US Inflation Reduction Act and the EU’s Fit-for-55, which led to $1.8 trillion in global clean energy investment in 2023, this falls short of the $4.8 trillion needed annually to reach net zero by 2050. 

• Climate activism is on the rise

Governments and corporations need to be aware that growing numbers of citizens and consumers are demanding urgent action on the climate. Tens of thousands of protesters took to the streets between the UN General Assembly and this week’s Climate Week in New York. They demonstrated as part of a global call to end fossil fuel dependence and accelerate the transition to renewable energy. It’s worth nothing that such focus is spilling over to voters, especially amongst the young. A recent poll showed that climate change runs behind inflation and cost of living in terms of voter concern and, given the impact climate change is going to have on the global supply chain and food system, it is only going to increase in salience.