Climate & decarbonisation
Our articles on decarbonisation and EU climate policy
Green Finance: A Complete Guide to Sustainable Solutions
Green finance is rapidly growing, offering investment opportunities in projects that reduce CO₂ emissions and preserve natural resources. It allows for investing in socially responsible projects like green bonds and renewable energy while managing climate-related financial risks, offering both financial returns and positive environmental impact. Homaio provides a platform for investing in carbon emission reduction initiatives, such as EU carbon quotas, enabling investors to contribute to climate goals with transparent and impactful solutions.
September 30, 2024
Why do we need to put a price on carbon emissions?
To address climate change and its associated costs, governments must implement carbon pricing mechanisms like carbon taxes and emissions trading schemes to hold polluters accountable for their emissions and fund future climate solutions; this promotes responsible investing and incentivizes a transition to green finance and renewable energy. Without carbon pricing, society bears the burden of pollution's heavy price tag.
August 12, 2024
What is the social cost of carbon?
The social cost of carbon (SCC) estimates the monetary damages caused by CO2 emissions, influenced by human activity and political considerations. Diverse estimates exist, but current carbon prices may not reflect the high end of SCC estimates. Investing in sustainable development and responsible investing is therefore essential to mitigate environmental damage and promote ethical investments.
August 12, 2024
What is the Fit-for-55?
The EU’s Fit for 55 package translates the Green Deal into law, targeting a 55% reduction in emissions by 2030. Key points: Reform of EU ETS and creation of ETS2 for buildings & transport Introduction of CBAM to prevent carbon leakage Incentives for renewables, energy efficiency, and sustainable mobility Impacts on companies, households, and investors Investment opportunities in decarbonization technologies
August 12, 2024
What is the marginal abatement cost curve?
The Marginal Abatement Cost Curve (MACC) compares the cost-effectiveness of different carbon emission reduction strategies, ranking them by profitability to help prioritize climate actions and inform carbon market targets for investing in green technologies, though results depend on assumptions and technological advancements. It helps policymakers and businesses decide which measures to implement to achieve environmental goals efficiently and cost-effectively for investing in sustainable development.
August 12, 2024
Will climate change policies change after the EU 2024 election results?
Despite recent EU election results, significant changes to established European carbon market and climate policies are unlikely due to the robust legal framework and commitment to emissions reduction targets, making investing in the stock market through EU carbon allowances relatively stable. The EU aims for carbon neutrality by 2050 and continues to lead in green finance and sustainable investment initiatives.
July 17, 2024
What is the Science-Based Targets Initiative and why does it matter for carbon pricing?
The Science-Based Targets Initiative (SBTi) helps companies set CO₂ reduction targets aligned with climate science and the Paris Agreement. This article explains what SBTi is, its benefits for businesses, how to get validation in 5 steps, and its strategic link to the EU Emissions Trading System (EU ETS).
July 17, 2024
What is the EU policy on decarbonization?
Decarbonization, reducing CO2 emissions through strategies like renewable energy and carbon capture, is a European priority. The EU aims for carbon neutrality by 2050, utilizing policy tools like the EU Emissions Trading System to incentivize responsible investing and a transition to green finance and sustainable investment. These ethical investments promote a green portfolio for a sustainable future.
July 10, 2024
Does the net zero asset owner allowance promote regulated carbon markets?
Net zero assets are investments, including renewable energy and carbon allowances, aligned with achieving net zero emissions by 2050. The UN-convened Net-Zero Asset Owner Alliance, composed of institutional investors, promotes responsible investment and impact investing through carbon pricing and climate action strategies to reduce CO2 emissions. These strategies include investing in green bonds, socially responsible investments (SRI), and companies with low carbon footprints.
June 26, 2024