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The value of share offerings in fossil fuel producing and related companies dropped by $123 billion in the last decade underperforming a key world equities index by 52 percent, while levels of new shares issued in the sector fell sharply, a Carbon Tracker study published on Wednesday said.
This trend was in marked contrast to activity in clean energy initial public offerings (IPOs) which overtook carbon-heavy flotations worldwide for the first time last year, suggesting investors are shifting finance towards a low-carbon future as the coal, oil, and gas industries have struggled.
Fossil fuel issuance fell by 85 percent from $70 billion to $10 billion in the period analyzed from 2012 to 2020, while renewables raised a record $11 billion from public equity offerings in 2020 alone.
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Henrik Jeppesen, report author and US head of investor outreach, said: “Investors have woken up to the fact that fossil fuel companies are no longer the growth stories they once were. Climate risk is now very much a material one that cannot be ignored and clean energy stocks are rapidly replacing the old order as the choice investment for a transitioning world.”
A Tale of Two Share Issues: How fossil fuel equity offerings are losing investors billions found that over the decade investors have bought almost $640 billion of equity issued by fossil fuel producers, fossil fuel-dependent utilities, pipelines, and service companies.
But their investments have lost roughly 20 percent in value despite one of the longest and strongest equity bull markets on record.
The report analyzed the stock market fortunes of fossil fuel companies and compared them with electric utilities and renewables and cleantech companies as well as the general equity market (the MSCI All Country World Index, or ACWI, is used as a benchmark).
An investor who bought into all fossil fuel and related equity issuances from 2012-2020 would have seen their investment underperform the ACWI by 52 percent.
However, despite equity raised by clean energy companies have grown rapidly, it is still trivial in the context of what has to be generated to finance a global energy transition.
According to the IPCC special report on global warming of 1.5 degrees Celsius, investments into clean energy infrastructure need to be in the order of $3 trillion to $3.5 trillion annually.
Moreover, of the total equity raised by companies on world markets, 10 percent was accounted for by fossil fuel producer and electric utility companies but only one percent in renewables and cleantech in the period analyzed.
Nevertheless, investors in renewable energy have received a good return, according to the study, with the MSCI Global Alternative Energy index outperforming the market (ACWI) by 54 percent and with most of that return coming in 2020 — making it one of the best performing sectors of the decade.
Share issuances raised $56 billion over the period and investors have gained $77 billion in value.
Since 2016, there has been a decline in fossil fuel IPOs, where companies raise money through new share issues, and an increase in sales by existing long-term holders, for example, founders, owners, and governments, that could indicate declining confidence in the future prospects for the sector.
The proportion of equity issuances comprising secondary share sales surged from six percent in 2016 to 58 percent in 2020.
Mark Campanale, founder and executive director, said: “It’s astonishing that exchanges are still listing new fossil fuel companies intent on expanding production or developing new reserves in direct contravention of the Paris temperature goals. But what this shows is that confidence is really beginning to evaporate as incumbents struggle to access historically strong flows of finance.”
The report notes that while oil and gas producers were able to tap equity markets in the market collapse of 2011-14, this does not seem to have been the case in the 2020 price downturn.
From 2018-20 annual equity offerings have been less than half that of 2014-2016. (IANS/KB)
High drama was witnessed in Kanpur Dehat for over an hour when a man, upset over his wife's alleged affair with a local man, climbed the tower with his children and threatened to commit suicide. The incident took place on Monday near Gandhi Nagar in Akbarpur, when the man threatened to commit suicide after throwing his kids down from a height of nearly 40-feet. Chaos prevailed around the area and the locals informed the police that rushed to the spot.
After about half-an-hour of convincing, the police managed to bring him and his children down. The man told the police that his wife's affair was going on with his neighbor. He had complained to the police, but no action was taken. Police said that as per the man, his wife had developed an illicit relationship with a man, living nearby their house. "As per the man, in his absence, his neighbor visited his house often. He said that he had reprimanded his neighbor many times, but to no avail," said the police.
The man had complained to the police, but no action was taken. | Pixabay
The man had also lodged a complaint with the police but no action was taken. On the other hand, Akbarpur police said that on the basis of the complaint, action for breach of peace has been taken against the neighbor accused of luring his wife. Circle officer (CO) Akbarpur Arun Kumar said that the police are trying to sort out the issue. "Whatever action is appropriate will be taken," the official added. (IANS/SP)
(Keywords : Kanpur, Uttar Pradesh, man, wife, alleged, affair, children, India, police, neighbor, complaint, suicide, accuse, drama.)
The US forces continued their bombardment of buildings and institutions in Syria's northeastern Hasakah province, as part of their alleged manhunt of Islamic State (IS) fugitives, state news agency SANA reported. The US forces are shelling buildings and public institutions on Tuesday in the vicinity of the Sina'a prison in the Gweiran neighborhood in Hasakah "on the pretext of hunting down IS militants who fled the prison," said SANA.
The Syrian Foreign Ministry has slammed the US airstrikes as civilian casualties have been reported. | Wikimedia Commons
The shelling came in tandem with waves of raids by the Kurdish-led Syrian Democratic Forces (SDF) to homes in the surrounding areas, rounding up many civilians and taking them to unknown locations, the state news agency added. On January 20, IS inmates inside the Sina'a prison, which is controlled by the SDF, started a riot that was coordinated with IS militants from outside, who detonated the prison's gates with two booby-trapped vehicles, succeeding to free some prisoners.
The incident triggered clashes between IS and the SDF as well as US airstrikes on the areas, where the IS fugitives could have sought shelter in, Xinhua news agency reported. The clashes and airstrikes are still ongoing as the SDF has so far failed to contain the situation and storm the prison. The Syrian Foreign Ministry has slammed the US airstrikes as civilian casualties have been reported. Hasakah province is largely controlled by the US-backed SDF, while certain areas, particularly in the city of Qamishli, are still under the control of the Syrian government. (IANS/ MBI)
(Keywords: US forces, shelling, bombarding, syria, islamic state, civilian casualties, qamishli, tandem, syrian democratic forces)
The circulating avian influenza outbreaks, including in India, do not seem to pose the 'high' risk but surveillance and biosecurity measures are necessary to reduce spillover risk between poultry and wild birds, a UN-backed scientific task force said. Throughout the past autumn and current winter in the northern hemisphere, multiple avian influenza outbreaks, caused predominantly by the H5N1 HPAI virus, plus other subtypes, including H5N8, have occurred in India, the UK, the Netherlands and Israel with the ever recorded mortality of the Svalbard barnacle geese in Solway Coast.
The Scientific Task Force on Avian Influenza and Wild Birds, co-convened by the Convention on the Conservation of Migratory Species of Wild Animals (CMS) and the UN's Food and Agriculture Organization (FAO), on Monday recommended that surveillance and biosecurity measures are reinforced to reduce spillover risk between poultry and wild birds. The Task Force has convened and produced recommendations and guidance for authorities and managers of countries affected or at risk. Wild birds, including globally threatened species, are victims of HPAI viruses causing avian influenza. Affected sites also include areas of international relevance for conservation such as protected wetlands.
More than 2,400 migratory water birds died in the Pong wetlands in Himachal last year because of avian influenza. | Unsplash
It is essential that authorities with responsibility for animal health apply the One Health approach for communicating and addressing avian influenza. That means recognising the health of humans, domestic and wild animals, plants, and the wider environment and acting with a coordinated and unified approach. The Task Force reminds authorities of their international obligations to ensure their response to the pathogenic virus does not include the culling of wild birds, nor actions that would cause damage to natural ecosystems, especially wetlands.
Ruth Cromie, who coordinated the work of the Task Force and the production of the statement, said: "Avian influenza represents a One Health issue threatening health across the board. The highly pathogenic viruses are still relatively new in wild birds and this winter's high levels of mortality remind us of their vulnerability and that working to promote healthy wildlife benefits us all." H5N1 is currently the avian influenza lineage most found in Africa and Eurasia in both poultry and wild birds. The wide range of wild birds affected include wildfowl, waders, gulls, cranes, grebes, herons, pelicans, gamebirds, corvids and raptors (diurnal and nocturnal), in addition to sporadic cases in mammals such as red fox (Vulpes vulpes), Eurasian otter (Lutra lutra) and harbor Phoca vitulina and grey seal Halichoerus grypus.
Consider occupational exposure, e.g. those working on poultry culling operations. | Unsplash
In terms of human health, the currently circulating H5N1 HPAI viruses do not seem to pose the same zoonotic risk as the 'original' Asian lineage H5N1 (clade 2.2 and their derivatives plus clade 126.96.36.199b H5N6 viruses currently in China). In general, the risk can be considered low, recognising that some agencies now consider occupational exposure, e.g. those working on poultry culling operations, as low or moderate. In India, several instances of bird flu were reported in 2021. More than 2,400 migratory water birds, and almost half of them being endangered bar-headed goose, died in the Pong wetlands in Himachal Pradesh last year and that avian influenza (H5N1) was the cause.
Besides the bar-headed goose, the other species that died were the shoveler, the river tern, the pochard and the common teal. An 11-year-old boy died at All India Institute of Medical Sciences in Delhi last year due to avian influenza, country's first fatality. India reported the first outbreak of avian influenza in 2006. RSPB Scotland is calling for an emergency local moratorium restricting shooting on the Solway for the rest of the wildfowling season. It calls for urgent action to reduce the devastating impacts of avian influenza. New statistics from the most recent counts show that the UK is this winter experiencing the worst outbreak of this deadly disease on record, with migratory geese which 'over winter' on the Solway being the hardest hit.
According to RSPB Scotland, the latest population counts of the Svalbard barnacle goose show a drop in numbers from 43,703 in November last year to 27,133 in this month's count. This represents a decline of 38 per cent in the Svalbard breeding population of this species from winter 2020-21. CMS Executive Secretary Amy Fraenkel said: "Through late 2021 and early 2022 there have been numerous outbreaks of highly pathogenic avian influenza H5N1, with severe impacts on migratory birds. "The CMS Secretariat responded by convening the Scientific Task Force on Avian Influenza and Wild Birds together with the FAO. We are pleased to share its advice and key recommendations for countries affected or at risk, and look forward to continuing our collaborative work to minimize risks to humans, poultry and wild populations of migratory birds." (IANS/SP)
(Keywords : avian, influenza, surveillance, United Nation, scientists, breeding, population, birds, affected, countries, poultry, migratory, health, issue, virus, responsibility, international, ecosystem.)