Tug of war between oil and renewables as Europe braces for Russian ban – 24/7 Wall St.


By David Callaway, Callaway Climate Analytics

BlackRock’s Larry Finck predicts a boom in renewable energy investment following Putin’s war in Ukraine. Senator Joe Manchin (DW.Va.) argues that we should rename Canada’s Keystone Pipeline and finally open it to meet US oil demand following the Russian invasion.

The tug of war between the forces of oil and renewables couldn’t be better expressed than it was this week. The problem with both statements is that they use Ukraine and its impact on oil prices as a knee-jerk reaction for long-term strategic arguments. Either more wind and solar infrastructure, or more oil production.

In the near term, as we enter this weekend, European Union officials have begun drafting a Russian oil ban that may finally send a message to Putin by cutting off his main economic lifeline. But it also threatens to create an unprecedented energy crisis across the continent.

OPEC says it can’t — or won’t — make up for the disappearance of more than two million barrels a day to Europe from Russia, so oil prices are likely to rise much higher. above the $104 a barrel they are trading at today. The outline of the ban will be a key storyline over the weekend and next week.

As the war in Ukraine enters a dangerous new phase, the impact of even a short-term increase in oil and gas production on global warming becomes a dangerous counterweight even to long-term renewable futures. the brightest. A great trading opportunity right now perhaps, but who assumes we can wait until 2030 for relief.

More information below. . . .

Why climate adaptation stocks could be more profitable than climate solutions

. . . Investors in environmental, social and governance (ESG) strategies tend to focus on stocks of companies focused on climate solutions, such as wind and solar, writes Mark Hubert. But a more profitable portfolio might look at climate adaptation stocks, meaning companies that will benefit from helping us live with the impact of rising seas, hurricanes and wildfires. For many climate advocates, adaptation is a dirty word, indicating abandonment. Hulbert looks at the flip side and talks to an investment expert who also provides some interesting adaptation stock names. . . .

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Stars of Sustainability: Andrew Karsh and Bay Bridge Ventures seek to link ESG lens to blue-chip returns in venture capital

. . . . When Andrew Karsh worked at CalPERSthe Californian pension fund giant, he often spoke with Sustainability Star Anne-Simpson on finding the right investment firms to tie their sustainability goals to the kinds of returns expected by the world’s biggest investors, writes Marsha Vandeberg, in its new Sustainability Stars column. Now he’s on his own and launching Bay Bridge Ventures with senior investment executives Kim Kolt and Joe Blair to show that profit and purpose work in the Silicon Valley venture capital industry. With public companies facing more climate risk disclosure, the founders believe it’s time to start building this with the private markets of the venture capital universe before listing. . . .

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Thursday subscriber preview: Electric vehicles herald a new world as auto shows return from Covid

. . . Have you ever been to a car show? They are fathers and sons. Nerdy guys in anoraks. Muscle car types salivating over V8 engines. After a Covid hiatus, auto shows are back, starting with the one in New York, and the focus is on EVs. What will enthusiasts think? Learn more here. . . .

. . . . Many Republicans — and Joe Manchin — regularly speak out against sustainability efforts and continue to support fossil fuels. But despite making up just under 50% of a closely knit Congress, it appears many of their constituents don’t share their views according to a new poll, which shows Americans overwhelmingly back six of the president’s proposals. Biden to fight climate change. Which give? Learn more here. . . .

. . . . Oversized turbines and blades are increasingly important in wind energy industry. Why? And, good news for the United States, General Electric is in that part of the wind power world, along with the usual suspects from Denmark, Germany and China. Other good news: infrastructures to transport and serve them are already emerging on the American coast. Learn more here. . . .

. . . . Who do you think of when someone says “influencers”? Probably young women with too much makeup touting beauty products and fashion on TikTok and other social networks. For electric vehicles, however, the most important influencers are likely to be farmers. Will they adopt the Ford F-150 Lightning EV and its Chevy counterpart? And don’t forget the potential suburban farmers. Learn more here. . . .

Editor’s Pick: Floods Hit South Africa; malware threat to LNG plants

US warns malware could damage power plants

A malware-based system for energy facilities, most likely liquefied natural gas production plants, could cause explosions and disruptions, federal officials said Wednesday. According to a report in the Washington Post, “officials did not say which country they believe developed the system, who was found before it was used, and they have been silent about who found the software and how. But private security experts who worked alongside government agencies to analyze the system said it was likely Russian, its primary target was likely liquefied natural gas production facilities, and it would take months or years years to develop strong defenses against him.”

California’s plans to drive out gas-powered cars

California’s Air Resources Board has outlined plans to encourage more people to buy electric and zero-emission vehicles as the state phases out the sale of new gas-powered cars by 2035. The proposal would require that 35% of new passenger vehicle sales are powered by batteries. or hydrogen by 2026, and 100% net zero emissions sales by 2035. The proposal also calls for zero emissions sales to be 68% of total sales by 2030, CNBC reports. According to state officials, electric vehicle sales in California fell from 7.8% in 2020 to 12.4% last year.

Global nature race data with realistic high resolution carbon weather

The CO₂ Human Emissions project generated realistic, high-resolution 9 km global simulations of atmospheric carbon tracers, called nature’s races, to support carbon cycle research applications with current and planned satellite missions, as well as than the rise of in situ observations. The authors of Global nature race data with realistic high resolution carbon weather for the year of the Paris Agreement write that realistic atmospheric fields of CO2, CH4, and CO can provide a benchmark for evaluating the impact of proposed designs of new satellites and in-situ arrays and for studying the atmospheric variability of time-modulated tracers. Simulations covering 2015 are based on forecasts from the Copernicus Atmosphere Monitoring Service at the European Center for Medium-Range Weather Forecasts, with improvements in various model components and input data such as anthropogenic emissions, in preparation for a CO₂ monitoring and verification support system. This article was originally published on Nature.com. Authors: Agusti-Panareda, A., McNorton, J., Balsamo, G.. et al.

Words to live. . . .

“Climate change is sometimes misunderstood as changes over time. In reality, these are changes in our very way of life. —Paulus PolmanDutch businessman and former CEO of Unilever.

Callaway Climate Information Bulletin

Mary I. Bruner