BNEF: Sales of electric cars to 3 million by 2021

According to Bloomberg New Energy Finance´s (BNEF)  new study the electric car markets will grow faster than earlier expected. The forecast shows EV sales worldwide growing steadily in the next few years, from the record 700,000 seen last year to 3 million by 2021. 

The general finding is that EVs will not just have lower lifetime costs, but will also be cheaper to buy than internal combustion engine cars in most countries by 2025-29. This is because of tumbling battery prises.

Electric vehicles will make up the majority of new car sales worldwide by 2040, and account for 33% of all the light-duty vehicles on the road, according to the study.

It also confirms the recent announcements from car manufacturers related to electric cars. For example Volvo released their commitment to electric cars a couple of weeks ago saying that they will focus on hybrid or totally electric cars from 2019 onwards. The first totally electric Volvo-cars will be build in China, but later on also in Europe and  the US.

robots Tesla

Picture: Robots in Tesla factory. The new Tesla Model 3 was ready from the production line in California on Monday this week.

By 2040, EVs will be displacing 8 million barrels of transport fuel per day and adding 5% to global electricity consumption.

According to the study, since 2010, lithium-ion battery prices have fallen 73% per kWh. Manufacturing improvements and more than a doubling in battery energy density are set to cause a further fall of more than 70% by 2030.

Business Tech

TaskForce: Four key areas related to climate change and financial disclosures

Financial Stability Board and its working group, the Task Force, has published its recommendations for companies related to climate change and financial disclosures. This working group was established in December 2015  to set a voluntary, consistent disclosure for companies.

The 32 industry members of the Task Force, who are drawn from a wide range of industries and countries from around the globe, finalised the recommendations after extensive public engagement and consultation, including public consultation on a draft of the recommendations in December 2016.

The TCFD developed four recommendations on climate-related financial disclosures that are applicable to organisations across sectors and jurisdictions. The recommendations are structured around four thematic areas:

  • Governance: The organisation’s governance around climate-related risks and opportunities
  • Strategy: The actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning
  • Risk Management: The processes used by the organisation to identify, assess and manage climate-related risks
  • Metrics and Targets: The metrics and targets used to assess and manage relevant climate-related risks and opportunities

In a joint statement, the TaskForce leaders say: “We encourage other business leaders to join us in this united effort to improve disclosure across sectors and regions. The Task Force’s recommendations will catalyze more consistent, comparable, and reliable disclosure of climate-related information that will facilitate more informed business and investment decision-making. These disclosures are an important step forward in enabling market forces to drive efficient allocation of capital and support a smooth transition to a low-carbon economy.” This private-sector TaskForce was chaired by Michael R. Bloomberg.

The signatories include for example companies like Aviva, Bank of America, Barclays, BNP Paribas, Borsa Italiana, London Stock Exchange, Calpers, Citigroup, Deloitte, EY, KPMG, PWC, ING Group, Moody´s, S&P and UBS Group.

The recommendations are backed by over 100 companies with market capitalisations of over 3,3 trillion US dollars and financial firms responsible for assets of more than 24 trillion US dollars.

The Financial Stability Board promotes international financial stability; it does so by coordinating national financial authorities and international standard-setting bodies as they work toward developing strong regulatory, supervisory and other financial sector policies.

Business Finance

BoE: Climate change and the systemic risk

IMG_0869The Bank of England (BoE) has published (16th June) its updated analysis of the climate change and systemic risk. According to the bank´s bulletin the central bank is focusing on the physical and transition risk sides of the climate change. This means for example that the central bank is entering more deeper co-operation with insurance companies and also reviewing climate-related risks in the UK banking sector.

The central bank is supporting the market transition to low-carbon economy with different co-operations in global and local markets. The bank is saying that a successful transition to a lower cardon future will require the engagement of wide range of actors, including central banks and financial regulatos.

According to the study, the next fifteen years will be critical while the global economy is undertaking a deep structural transformation. This would mean that around 90 trillion US dollars will be likely to be invested in infrastructure in the world´s urban, land use and energy systems until 2030. This estimate is based on Global Commission on the Economy and Climate organization.

But also the International Energy Agency (IEA) has estimated that 26 trillion US dollars of additional investments is needed in renewables and energy efficiency between 2015 and 2040 to achieve the 2* Celcius Paris climate agreeement target.

Green Finance barriers

Green Finance and Green Bonds are seen as new financial tools to help the transition to low carbon economy.  According to the Bank of England, there are still some barriers to be solved in order to scale up the green finance.

One obstacle is  the lack of integration of environmental impact in the investment process, which will lead to sub-optimal allocation of capital. The others include for example maturity mismatch between short-term and long-term needs, lack of clarity of green definitions, lack of relevant disclosure information of environmental issues and the level of understanding of the financial implications of environmental risks.

According to the BoE, G20 leaders and TaskForce will discuss Climate Change issues and this low-carbon transition in their meeting in Hamburg, July 7.-8. 2017.

Business Finance

Hyperloop One offering 9 potential routes in Europe

Hyperloop One is offering 9 potential routes in Europe for more efficient, greener and on-demand transportation. The company unveiled its plans in a conference in Amsterdam yesterday.

According to the company press release,  these nine potential European routes will connect over 75 million people in 44 cities, spanning 5000 kilometers and connecting the entire continent.

The proposed routes would greatly reduce passanger and cargo transport times across some of the continent´s most heavily trafficked regions. The routes include: Germany, Estonia-Finland, Spain-Morocco, Corsica-Sardinia, the Netherlands, Poland, UK Scotland-Wales, UK Northern Arc and UK North-South Connector.

With Hyperloop One, passangers and cargo are loaded into a pod and accelerated gradually via electric propulsion through a low-pressure tube. With this magnetic levitation the pod glides at airline speed for long distances, curbing emissions and fuel consumption at the same time.

Business Tech

Siemens: Energy blockchain trading piloting in New York

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One of the largest engineering and manufacturing companies Siemens (SIE:GR)  is piloting a blockchain energy trading in Brooklyn, New York. According to company, this is a small scale pilot and the aim of this is to find how energy trading is working between communities.

– We are experimenting this new method of energy trading. We see that this will be one of the future trends in the energy sector and the way people can themselves trade energy as part of climate awareness, says Siemens Director of Smart Cities Julie Alexander to ComteamPUBplus.

In that project, neighbors with and without photovoltaic systems, are buying and selling solar power from each other on a blockchain platform that automatically documents each transaction. If Hurricane Sandy should hit again, this isolated network would operate self-sufficiently. This renewable energy project is a pioneer in the movement toward a distributed energy supply system. Siemens is partnering with a local start-up company called LO3 Energy in that project.

This kind of peer-to-peer business deal is very cost efficient and has great potential.  According to Coimarketcap, the total value of the assets being administered via blockchain all over the world is 1,6 billion dollars.

– The energy markets are evolving with new cap and trade -markets for example in Tokyo, Japan and Ontario, Canada. And energy companies are building Smart Grids and new kinds of energy storage and are entering the market with electric cars markets and renewable energy solutions for customers. The big players, which we share,  in the energy markets are  for example Microsoft (MSFT:US), SAP (SAP:GR) and IBM (IBM:US). We all are working with the data related to the energy sector, Julie says.

Customers can have different kind of financing possibilities for new energy efficiency investment, but according to Julie customers are not always aware of financial instruments such as Green Bonds.

According to latest statistics the Green Bonds Markets have increased by 17 percent in the first quarter of  2017 compared with year ago. The issuance was nearly 30 billion dollars and the expectance for this year is 120 billion dollars.

Siemens market value is 113 billion dollars and the company is investing in digitalisation of the manufacturing industries, healthcare and the infrastructure sectors. The company  is listed in Frankfurt, Xetra.

Business Tech

Apple building closed-loop supply chain

 

Apple (AAPL:US) is building a closed-loop supply chain in order to minimize the impact in environment. According to the company Environmental Report 2017 ” we’re going deeper to pioneer a closed-loop supply chain, where products are made using only renewable resources or recycled material to reduce the need to mine materials from the earth. ”

This statement also highlights the need to decrease the use of conflict minerals in the mobile phones & devices production. Apple´s total greenhouse gas emissions last year were 29,5 millions, 77 % was from manufacturing, and the carbon emission per product has decreased to 97 kg versus 137 kg in 2011.

Apple is investing in green data centers and the company can say that all iMessages, Facetime and Siri are run by renewable energy. And the same target is with the real estate investments & projects.

Accordign to the Report, Apple Park, the new corporate headquarter, is on track to be the largest LEED Platinum–certified building in North America. Over 80 percent of the new campus is open space with more than 9000 drought-tolerant trees and it is operated by renewable energy.

– We’re pushing our manufacturing partners to join us in the fight against climate change. Seven major suppliers have now pledged to power their Apple production entirely with renewable energy by the end of next year, the company reported.

Partners committed to 100 percent renewable energy for Apple production by 2018  are: Biel Crystal Manufactory Ltd. • Catcher Technology • Compal Electronics • Ibiden • Lens Technology • Solvay Specialty Polymers • Sunwoda Electronics

 

 

 

Business Tech

The US Smartwatch markets to get new devices

The smartwatch industry seems to be growing in the US. Two companies have launched new devices to consumers in recent weeks. And for example Apple ((AAPL:US) and Nike (NKE:US) have announced their new model called NikeLab, which sales will start next week in the Nike´s webstore.

The Chinese ZTE smartwatch Quartz is available from the third largest operator, T-Mobile in the US. The smartwatch is powered by Android Wear 2 & Qualcomm Wear 2100 platform. According to the company release, consumers can connect virtually when they like and where they like, while the smartwatch is operating all time in the T-Mobile network. This smartwatch is available from the T-Mobile stores from tomorrow on and the pricing is just under 200 dollars.

Verizon (VZ:US), the US telecom company, has launched an exclusive smartwatch called Wear 24. And it can be used apart from the smartphone like the ZTE´s rival. This smartwatch costs 299 dollars and 349,99 dollars without the contract. The Verizon Wear has different colors ranging from stainless steel to rose gold. This model also includes Android Pay.

Verizon released also its first quarter results today.  – Our first-quarter results again demonstrated that customers value a high-quality network experience,” said Chairman and CEO Lowell McAdam.

– To build on our loyal customer base and the third-party recognition we have received for network leadership, we extended our wireless and fiber network capabilities, began offering an unlimited pricing option and expanded our opportunities in new markets. We’re executing on strategies to capture future growth and create long-term shareholder value, he said in the statement.

In the financial markets analysts are expecting some kind of M&A deal with for example Comcast, Disney or CBS. Verizon has said it is open to talks with them according to Bloomberg News. If there would be some kind of a merger, it would change the landscape of media and telecom companies in the US totally. The market value of Verizon is about 197 billion dollars.

Business Tech