. . . . Welcome back to Green Lights. Here’s our roundup of the best of Callaway Climate Insights. This week, David Callaway looks at the impact of the UK’s decision to step back from tough new disclosure rules, and considers what progress can be made at COP31 in Turkey next month. Plus, he says investors seem to be figuring out what EV drivers already know. Have a safe weekend and please subscribe to support our climate finance reporting.
. . . . At a time when big financial institutions are pulling out all the stops to improve their detection and measurement of climate risk, governments around the world are abandoning their responsibilities to small investors to regulate information about the rising costs of global warming, writes David Callaway. Despite the soaring insurance costs and loss of productivity caused by extreme heat, violent storms, flooding and wildfires this year, the push to mandate climate risk disclosure among public companies has lost its steam in the U.S. and now Europe. The latest regulator to step back from tough new disclosure rules is the UK’s Financial Conduct Authority, which instead opted this week for a “comply or explain” disclosure process among British public companies. These situations often result in bad outcomes for investors.
. . . . With luck the weather will be nice in Turkey next month as climate delegates from around the world arrive in Antalya for the United Nations’ annual climate summit, dubbed COP31. That’s about all they can hope for as the prospects for any meaningful progress in fighting global warming look dire before the conference even begins, David Callaway writes.
. . . . Constellation Energy shares haven’t had a great year, despite some high-profile deals, which is why this week’s 15% spike in the stock price attracted notice from energy and AI investors after an agreement to supply nuclear power to Google. The deal is Constellation’s third big nuclear distribution deal in four months. All three involve Constellation Energy investing in and expanding existing nuclear reactors in its fleet with existing connections to the nation’s electric grids.
. . . . Speaking of stock gains, regular readers of Callaway Climate Insights will know that despite the Trump administration’s attack on electric vehicle subsidies, astute car buyers have maintained interest in the sector as oil prices have soared. Now we’re starting to see those sales translate to new EVs. Both Tesla and Rivian reported higher sequential third-quarter deliveries, as overall the market for EVs in the U.S. crept higher, to above 8%.
. . . . The $67 billion takeover of Virginia’s Dominion Energy by NextEra Energy, announced earlier this year, is threatening to become a major election issue in Virginia as voters head to the polls next month. The real battle over whether the deal goes forward will take place after the midterms, but for the time being both energy companies will have to bear the brunt of some of the fiercest election politics in the nation.
More greenery . . . .
Don’t turn your back: How climate change is fueling coastal flooding (NBC Bay Area)
Get a job: Workforce training a top climate priority in Monterey, Calif. (Yale Climate Connections)
Unraveling tiny secrets: Atlantic Ocean is a treasure trove of information on marine biodiversity (European Commission)
Get rid of the garbage: Rotting food is supercharging the climate crisis (United Nations)