Weekly Roundup May 6

Invert is focused on providing clients and subscribers up-to-date news on net-zero developments, carbon markets, and how many sectors are evolving to meet climate change goals and ESG requirements.

Special Announcement

BlackRock Expects 75% of Company and Government Assets to be Net Zero-Aligned by 2030

Blackrock, the world’s largest asset manager, announced that by 2030, it anticipates at least 75% of its corporate and sovereign assets under management (AUM) will be invested in issuers with science-based targets or equivalent, compared to 25% at present. The announcements form part of the firm's commitment to reaching Net Zero by 2050 and their commitments as part of the Net Zero Asset Managers Initiative, which requires signatories to set interim targets in line with 1.5°C pathways.

Invert Insights: As more of the signatories begin fulfilling their obligations as part of the initiative, corporations will be increasingly requested and required to disclose their Climate Action Plans to be eligible for investment by these firms, which to date, cover a collective $58 trillion in AUM.

Manchin Eyes Tax on Carbon-Intensive Imports in Energy Package

United States lawmakers, including a few Republic Senators, are investigating a carbon border adjustment tax that would place a levy on imports of carbon-intensive goods from countries with weaker climate policies, as part of a potential bipartisan energy and climate package. A similar tax was proposed in the Democrat infrastructure bill last year but was not included in the version that passed the house and there remains worry that the new proposal will not receive the necessary Republican support needed for passage.

Invert Insights: The implementation of a carbon border adjustment tax could provide a means for the US to utilize trade policy to encourage global decarbonization by promoting the usage of lower carbon-intensity goods produced domestically while a domestic climate and energy policy is finalized. 

U.S. to Grant $6.4 bln Funding for Projects to Reduce Carbon Emissions

The U.S. Transportation Department has announced $6.4 billion in funding over a five year period to help states reduce greenhouse gas emissions. The investments will be allocated towards funding projects that support the deployment of alternative fuel vehicles, public transportation, other projects aimed at reducing traffic congestion and transportation demand management, and trail facilities for pedestrians and cyclists.

Invert Insights: Transportation outcomes are the result of the physical infrastructure design and the behaviors they promote. By prioritizing investments in sustainable transportation alternatives and transit-oriented development projects, sustainable behaviors can be incentivized through improved usability and availability.

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