Webinar follow up and recording: Navigating the coal transition

Kicked off by David Russell, Chair of Transition Pathway Initiative (TPI) Ltd., this webinar first reviewed the new coal mining sector methodology and assessment results conducted by the Transition Pathway Initiative Centre (TPI Centre) at the London School of Economics and Political Science (LSE).

During the panel that followed a presentation by Ali Amin, Hayeon Cho and Nikolaus Hastreiter from the TPI Centre at LSE, Mathilde Mesnard, Deputy Director, Environment Directorate; OECD Co-ordinator for Climate and Green Finance, Organisation for Economic Co-operation and Development (OECD), and Jason Mortimer, Head of Sustainable Investment, Fixed Income, Nomura Asset Management, discussed a range of questions related to the decarbonisation challenges that coal mining companies face. Below are some key quotes from our speakers:

Commenting on the coal mining sector data, Jason highlighted three reasons the TPI data are useful: 1) Comparable Analysis: bottoms-up data across the sector enable investors to access risks, make informed investment decisions throughout the investment process, and engage with the sector productively, 2) Better Disclosures: transparency of disclosure is the first step to improving data availability, as corporate issuers are motivated to improve disclosures to raise their appeal with sustainable investors; and 3) Data Accessibility: open, free access to high-quality TPI data can promote the mainstreaming of transition risk pricing and better market efficiency, especially in Asia where investors may lack in-house specialists or face capacity constraints. Overall, he believes investors should consider transition risks holistically and invest in real-world decarbonisation rather than over relying on simple sector exclusion rules.

 

When asked about recommendations for government policymaking on the transition to net zero, Mathilde said: “Finance alone cannot solve the structural barriers for investing in clean energy and energy efficiency. Governments need to strengthen domestic policy and regulatory frameworks for unlocking private investment, including regarding transmission grid financing. Together with multilateral development banks (MDBs) and development finance institutions (DFIs), they need to increase the availability and effectiveness of blended finance, guarantees and other derisking instruments for clean energy, and ensure financial regulators and supervisors play a key role in strengthening domestic green financial markets for clean energy.”

 

Here are a few resources provided by the OECD related to this topic:

In addition, the speakers discussed, among other things:

We hope you find the presentation and the discussion insightful. Please take a few minutes to take this post-webinar survey and share your thoughts, so we can bring you more resources tailored to your needs. We would greatly appreciate your time.

We take this opportunity to thank the speakers. Lastly, for further information on our research and data, please explore our website.