Florida’s governor aims to ban ESG Criteria in Florida Muni-Bond Sales

In this week roundup we see a contrast in the fight against climate change.

On one hand we have the Australian federal government blocking the opening of a new coal mine in order to advance the nations climate change goals. However, on the other, the Florida governor is looking to barre ESG from investment considerations using federal and local government funds.

Washington state’s commissioner of public lands looks to start selling carbon credits for local government and finally INEOS innovates in the creation of a new zero carbon footprint chemical plant.

This week, we highlight a focus on the ongoing battles to advance ESG. Read more in this week’s wrap.

Find out more on how Telesto can help you get ESG ready

DeSantis Proposes Barring ESG Criteria in Florida Muni-Bond Sales

Florida Governor Ron DeSantis said he will propose legislation that would bar the state and its local governments from using environmental, social, governance criteria when issuing municipal bonds, expanding his push against what he has called a “woke agenda.

•  DeSantis has previously said the state’s asset managers must stop using ESG investing strategies if they want to keep overseeing Florida’s money, including $220 billion of pension funds.

• His new proposal will see that no investment decisions at the state or local government with will consider ESG, and no use of ESG in procurement and contracting and no use of ESG when issuing local or state bonds.

• Last year, Florida said it’s pulling about $2 billion from BlackRock Inc. in the largest anti-ESG withdrawal announced by a US state and they’ve banned state pensions from investing in strategies that use ESG criteria.

A Bloomberg News review of public records shows that BlackRock didn’t put the bulk of Florida’s money into ESG investments in the first place.

This is the latest in the opposition of ESG. Although seemingly a political move by the republican governor, his views on ESG do pose a threat to the advancement of ESG in America with fund managers having to be more careful about their investment strategies to appease opposing views.

Australia blocks coal mine to protect Great Barrier Reef

For the first time in history, Australia has blocked the creation of a coal mine under environmental laws. The government on Thursday rejected a proposal for a new mine about 10km (6.2 miles) from the Great Barrier Reef.

•  Central Queensland Coal had proposed to build an open cut mine about 700km north-west of Brisbane, that would produce both thermal and coking coal and operate for about 20 years.

• After opening discussions to public consideration, Environment Minister Tanya Plibersek’s department received more than 9,000 submissions in 10 days - the majority calling for the project to be stopped.

• While state governments have rejected proposals before, it is the first time a federal Environment Minister has used their powers to do so.

The green political parties in Australia have been quoted in the past calling for federal government officials to block new mine exploration to put stop to “catastrophic climate change”. While the new government has significantly increased Australia's 2030 emissions reduction target, it has also said it will approve any new fossil fuel projects that make commercial sense.

Washington bill could allow Department of Natural Resources to sell carbon credits

“We can sell timber. We can sell wheat. We can sell apples. We can sell grapes. We can sell shellfish and geoducks. We can even sell marijuana. But we cannot sell carbon,” said Hilary Franz, Washington state commissioner of public lands, at a press conference Thursday in advance of a public hearing on S.B. 5688. Recent laws don’t allow the state agency to sell carbon credits, an act officials said would help slow climate change and generate millions of dollars for public schools, counties and fire departments.

• Hilary Franz s pushing legislation that would add the state agency she leads to the list of private businesses and non-profit organizations that can freely sell carbon credits and create carbon offset projects, which reduce or remove greenhouse gasses from the atmosphere.

• The department now leases state-owned lands for carbon sequestration projects through third-party commercial leases, which drastically reduces revenue for the department’s beneficiaries, such as schools, counties and the state, Franz said.

• Carbon offset projects could include reforestation or acquisition of additional state forest lands, growing kelp forests in aquatic lands, better soil management on agricultural lands, and planting trees in urban areas, according to the department’s newly released “Carbon Playbook,” which outlines opportunities and additional revenue streams for potential projects.

While combatting climate change, the newly proposed bill is highly contested by those in industries that rely on the land. Doug Cooper, VP of Hampton Lumber raised a concern that these projects could slow revenues for counties and ports that rely on “working forests” and affect the livelihood of many workers. The arguments for and against, highlight that there is still some work to be done before a bill is introduced. The Senate Environment, Energy and Technology is scheduled to hold an executive session with no public comment on the bill at 8 a.m., Feb. 17, in Olympia.

INEOS Secures €3.5 Billion for Zero Carbon Footprint Chemical Plant

INEOS Olefins Belgium has announced it has raised €3.5 billion to support the construction and operation of the most environmentally sustainable cracker in Europe.

• This is the largest investment in the European chemical sector for a generation.

• The plant will have the lowest carbon footprint in Europe, three times lower than the average European steam cracker, and less than half that of the 10% best performers in Europe.   

• The plant also has the capability of operating entirely with low carbon hydrogen as well as room for a carbon capture facility and future electric furnaces.

• Jason Meers, CFO of INEOS Project ONE says “Project ONE is a game changer for Europe. It will bring new opportunities to the chemical cluster in Antwerp as well as strengthen the resilience of the whole of the European chemical sector”.

The cracker will produce ethylene, which is a vital raw material for a wide range of products essential to our daily lives, from insulation to lightweight vehicles, plastics for medical, healthcare and food hygiene, as well as technology for renewable energy. Signaling forward the movement of technology in sustainability.