Oil and gas producing countries are facing a £9.3 trillion black hole in their finances as the world moves over to green energy, and the UK’s first homes powered by hydrogen are to be built by April. Meanwhile, fashion retailer H&M has issued a green bond linked to it achieving its sustainability targets, Facebook is to start labelling misinformation about the climate crisis in a new UK trial, and Ford is the latest car maker to commit to selling only all-electric vehicles by 2030. It’s the Good With Money weekly newsbrief.
Shift to green energy could cost oil states $13 trillion, reveals new report
Oil and gas producing countries face losing $13 trillion (£9.3 trillion) in government revenue over the next 20 years as the world moves over to green energy, according to a new report.
The study by think-tank Carbon Tracker says some countries are set to lose as much as 40 per cent of their government income as fossil fuel prices and demand plummet to new lows.
Carbon Tracker says the findings are a wake-up call to international policymakers to do more to support the most vulnerable fossil fuel-dependant countries to develop new, greener industries.
First UK homes powered by hydrogen to be built by April
The UK’s first homes to be fitted with boilers and hobs that run on hydrogen rather than fossil fuel gas are to be built by April.
The semi-detached houses in Gateshead will use 100 per cent hydrogen for heating and cooking appliances including boilers, hobs, cookers and fires under a new government scheme aimed at giving the public a glimpse into “the potential home of the future”.
The government hopes to create entire “hydrogen neighbourhoods” and even a “hydrogen town” by the end of the decade as part of its plan to cut the carbon emissions from UK homes and become a net-zero carbon nation by 2050.
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H&M issues green bond linked to sustainability targets
H&M has issued a €500 million (£432 million) bond linked to it achieving several of its sustainability targets.
The fashion retailer aims to ramp up the use of recycled materials and drive down greenhouse gas emissions across its business and supply chain by 2025. It says the new sustainability-linked bond has “generated great interest” and was 7.6 times oversubscribed, with a coupon rate (the rate of interest it pays annually) of 0.25 per cent over 8.5 years.
H&M says the bond offers investors the chance to help support its green efforts. The move comes amid increasing interest in green finance facilities from big businesses to help support their sustainability efforts. Last month Tesco became one of the first major UK firms to issue a bond linked to its green performance.
AB InBev, the world’s largest brewer, has also just announced what it claims is the world’s largest corporate sustainability-linked loan to date, priced at $10.1 billion (£7.2 billion).
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Facebook trial to tackle climate misinformation
Facebook is to start labelling misinformation about the climate crisis in a new UK trial.
Labels will be attached to certain posts directing users to Facebook’s Climate Science Information Center, which contains only fact-checked claims about the environment.
The process will be similar to that used in the US election when the social media giant attempted to automatically find posts that shared common myths or misconceptions, and added a link taking users to a “voting information centre”.
The Climate Science Information Center, launching alongside the labelling trial, debunks common myths such as the false claim that polar bear populations are not suffering due to global heating, or the widespread belief that excess carbon emissions help plant life.
Ford commits to sell only electric cars by 2030
Carmaker Ford has said it will sell only all-electric vehicles in Europe by 2030.
It follows a similar commitment earlier this week from Jaguar Land Rover to make Jaguar all-electric by 2025, followed by its entire line-up by 2030. Ford says that by mid-2026, all its cars will be available as electric or hybrid models.
It joins a growing list of car brands, including Bentley, GM and Volvo, in cutting its petrol and diesel production to move over to electric vehicles. European regulators are clamping down on emissions, with countries including the UK announcing bans on the sale of new petrol and diesel motors from 2030.
Ford said it would spend $1 billion (£720 million) updating its factory in Cologne, with the aim of producing a mass-market electric vehicle by 2023.
