Publication

Sustainaweekly - Netherlands to accelerate energy transition

SustainabilityClimate economicsClimate policyEnergy transitionSocial impact

Nick Kounis

Head Financial Markets and Sustainability Research

Larissa de Barros Fritz

Senior Fixed Income Strategist (Credit)

Shanawaz Bhimji

Head of Corporate Bond Research

In our latest edition of the Sustainaweekly, we start by discussing the Dutch government’s plans to reduce the country’s dependence on Russian gas. There is a short term aspect related to the building up of gas inventories and LNG import capacity, but also a longer-term strategy centred on accelerating the transition. This follows proposals in this direction from the Commission, and a number of countries have also since announced plans to step up their renewable energy and efficiency goals. We go on to look at greeniums for Sustainability-Linked Bonds, recent ESG bond issuance and Europe’s new step forward in realising carbon border adjustment.

Sustainaweekly 28 Mar 2022 - ENGPDF(421KB)Download

Economics Theme

The Dutch government has announced that it will take measures to reduce its dependence on Russian gas. Over coming years this involves accelerating the transition. The total planned capacity for wind at sea will almost double by 2030. Hydrogen – both domestic and imports – and energy efficiency are also important components.

Strategy Theme

We estimate that greeniums for Sustainability-Linked Bonds in the primary market so far this year are only modest overall and rather inconsistent. However, greeniums are higher depending on the structure. For instance, those that include scope 3 emissions in their targets show a much higher premium.

ESG Bonds

We saw nearly EUR 7bn in ESG bonds being printed across a range of issuers and structures over recent days. We assess the issues from Vonovia, L’Oreal, Carrefour, and Telia, taking a closer look at pricing compared to peers as well as the structures.

Policy and Regulation

The European Council has reached agreement on the Carbon Border Adjustment Mechanism regulation, which is one of the key elements of the ‘Fit for 55’ package. The Council has made limited changes compared to the Commission proposal but still needs to make progress on related issues such as the phase-out of free allowances.

ESG in figures

In a regular section of our weekly, we present a chart book on some of the key indicators for ESG financing and the energy transition.