Resource firms and funders are increasingly transparent about carbon emissions
Shareholders, governments and, in fact, society at large are increasingly piling pressure on lenders to consider the climate crisis when funding new projects.
South Africa, along with 188 signatories, is a party to the Paris Agreement, which aims to foster a worldwide response to climate change through various measures, including making sure the flow of capital is consistent with climate resilience.
The Paris Agreement does make it more complicated and costly for the resources industry to operate.
“With the Paris Agreement, we all have to be responsible in the way we get the minerals and metals out of the ground,” says Shirley Webber, Coverage Head of Natural Resources Absa Group Limited. “It must be done responsibly.”
Cleaner energy is inevitable
Webber sees more transparency about carbon emissions in the financials of all the companies Absa deals with.
“Most oil and gas companies we deal with in Africa know they need to work towards a more renewable mix of energy,” says Webber.
“Clearly, companies will focus more on gas [than on oil], as it is a bit cleaner. Many oil and gas companies are looking at renewables such as wind and solar as well.”
Webber believes the gas finds in Mozambique is good news for the environment, as it’s cleaner than many of the fossil fuels still widely used in Africa for energy.
“There will be a mix of energy sources in Africa,” says Webber. “We can’t just do one type of funding. Because here in Africa there is water, there is coal, there’s wind and there’s solar. We’ll have to do it differently.”
For more detail, listen or watch the discussion below.
Watch the entire, unedited discussion below.
This article first appeared on CapeTalk : Resource firms and funders are increasingly transparent about carbon emissions
There’s an inevitability to it – these commodities (such as vanadium, if the tech improves) have a bright future ahead of them.Read More
There is just so much money-printing going on in the world right now, says Bevan Jones, CEO of African Source Markets.Read More
Many countries on the Continent are increasingly providing investors with the stability and regulatory certainty they seek.Read More
Supply/demand fundamentals are looking good, for now. Absa Corporate and Investment Banking provides a view on 2020 and beyond.Read More