SustainaWeekly - Wind turbine costs threaten speed of transition
In this edition of the SustainaWeekly, we start by looking into the challenges of decarbonizing the shipping sector. Higher manufacturing costs impact the profitability of wind turbine manufacturers and also delay the growth of installed capacity for wind energy. Finally, we look at the new ESG bond issuance from Financial and Corporate issuers seen last week.
Strategy Theme
Costs related to the manufacturing of wind turbines have been following an upward trend for a while now, fuelled by higher metal prices and freight costs. This not only negatively impacts the margins of European manufacturers but also jeopardizes the pace in which wind capacity in Europe (and the world) grows.
Economics Theme
The drive to decarbonize the economy affects all sectors including shipping, but for the shipping industry it will be an enormous challenge. The International Maritime Organization (IMO) and the European Commission have set ambitions. The IMO aims to agree on a revised strategy with more ambitious targets in spring 2023.
ESG Bonds
Tennet issued last week the largest EUR corporate green bond ever. Berlin Hyp completed its ESG credentials by issuing an inaugural social bond, with proceeds being used to finance affordable houses that are also within the energetically best 70% of the national residential building stock. La Banque Postale SFH came out with a debut green covered bond and announced it is currently working to update its existing Framework in order to align with the EU Taxonomy.
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.