The once-reliable river of emission-credits cash Tesla
TSLA
has used to boost its bottom line is in danger of drying up completely, with Europe’s legacy automakers building their own bridges over it.

A report in Europe today showed the Renault had grown its electric car (EV) sales beyond the point of self-sufficiency, and now had its own EV emissions credits for sale.

That could be a cruel blow to Tesla, which expected $1 billion in emission-credit revenues this year, and more to come.

Without the emission-credit revenues, Tesla would never have been able to claim four consecutive quarters of GAAP profitability this year.

Tesla soaked up $594 million in credit revenues in 2019 and $419 million in 2018, and emissions credits made up around seven percent of its total revenues in Q2 this year.

The world’s third-biggest auto-making alliance, Renault counts Nissan and Mitsubishi among the brands under its control and was the world’s biggest EV maker until the arrival of the Tesla Model 3.

It is pooling its emissions credits with both brands, which gives them huge EV volumes from the Renault Zoe and the Nissan Leaf. So far this year, 11 percent of Renault’s passenger car sales in Europe have been EVs.

According to a report by the European Electric Car Report, Renault now has so much confidence in its ability to meet its EU7 emissions targets that it has thrown open invitations to join its CO2 emissions pool to other auto makers.

In a document published by the European Commission, Renault has given a

The business district in Brussels, Belgium. 

Photographer: Jasper Juinen/Bloomberg

The European Union wants to at least double the pace of renovation of homes and offices over the coming decade in a bid to save more energy and meet stricter climate goals under a sweeping green overhaul.

The Renovation Wave strategy, to be unveiled by the European Commission on Wednesday, will outline steps needed to accelerate upgrades of more than 200 million existing buildings — including insulation and change of heating equipment — at a cost of nearly 300 billion euros ($355 billion) per year, according to draft EU documents seen by Bloomberg News.

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Buildings account for more than a third of EU greenhouse-gas emissions, and improving their energy efficiency is a prerequisite for Europe to meet its Green Deal goal of becoming the world’s first climate-neutral continent by the middle of this century. The EU regulatory arm in Brussels has a policy of not commenting on documents before they are made public.

“Building renovation represents an enormous opportunity not only for emissions reductions, but also economic growth and improved health and well-being,” said the Buildings Performance Institute Europe think-tank in Brussels.

The commission wants to increase the average rate of energy renovation to 2% per year by 2030 from the current 1%, according to the EU documents. That would mean upgrades of 35 million buildings over the next 10 years, a move that would not only benefit the environment but also create as many as 160,000 green jobs.

The initiative will be financed through the EU economic recovery program and various support instruments, including incentives for private investment. The commission wants to focus on cutting emissions from heating and cooling, tackling the most leaky buildings and

(Bloomberg) — HSBC Holdings Plc will aim to reach a net-zero carbon client portfolio by 2050 in a step to align its business activities to the goals of the Paris climate agreement.

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The London-based bank, which has previously come under fire for financing harmful environmental activity, also pledged to provide as much as $1 trillion over the next decade to assist customers in reducing their carbon emissions. It’s also committed to achieving net-zero emissions in its own operations and supply chain by 2030.

“As we enter a pivotal decade of change, we have a landmark opportunity to accelerate our efforts to build a healthier, more resilient and more sustainable future,” HSBC Chief Executive Officer Noel Quinn said in a statement. “Our net-zero ambition represents a material step up in our support for customers as we collectively work towards building a thriving low carbon economy.”

HSBC follows JP Morgan Chase & Co.’s announcement on Tuesday that the U.S. bank is setting climate targets for its financing portfolio and planning a net-zero carbon footprint for its own operations.  Morgan Stanley said in September that it plans to eliminate net emissions from its financing activities by 2050.

HSBC also plans to work towards a “globally consistent, future-proofed” standards for measuring financed emissions and the carbon offset market. Other measures announced by the bank include regular disclosures on its progress and an assurance it will encourage its clients to do the same.  Earlier this year, HSBC launched a $1 billion asset management arm with Pollination Group, a climate change advisory company, to support investment in natural assets such as water, soil and air.

HSBC has come under sustained pressure from environmental groups after providing loans worth billions of pounds for companies involved in deforestation. It ranks as Europe’s second-largest financier of fossil-fuel

By Lawrence White, Sinead Cruise and Simon Jessop



logo: FILE PHOTO: HSBC logo is seen on a branch bank in the financial district in New York, U.S.


© Reuters/BRENDAN MCDERMID
FILE PHOTO: HSBC logo is seen on a branch bank in the financial district in New York, U.S.


LONDON (Reuters) – HSBC will target net zero carbon emissions across its entire customer base by 2050 at the latest, and provide between $750 billion and $1 trillion in financing to help clients make the transition, its Chief Executive Noel Quinn told Reuters.

In the strongest statement by Europe’s biggest bank on climate change to date, its CEO outlined HSBC’s ambitions to align its activities with the Paris Agreement.

“COVID has been a wake-up call to us all, including me personally, we have seen how fragile the global economy is to a major event, in this case a health event, and it brings home the reality of what a major climate event could do,” Quinn told Reuters in a video interview.

HSBC aims to achieve net zero in its own operations by 2030, he added.

While other UK banks such as NatWest have already set similar net-zero goals, HSBC’s aim to achieve it across its huge Asia-focused client base is one of the most significant pledges made by a global lender to date.

However, the bank will be closely watched for how quickly and fully it pursues its new goals, which are mainly stated as ‘aims’ rather than hard commitments.

It will also face scrutiny on whether it has allowed itself leeway to continue financing some fossil fuel-linked clients, especially in developing markets.

HSBC has come under increasing pressure from activists, shareholders and politicians who say it is contributing to climate change by financing fossil fuel and other environmentally harmful projects.

Quinn said the bank is focused on expanding its capital markets-focused carbon transition policies, to a broader one encompassing all

By Simon Jessop

LONDON (Reuters) – Dutch lender ING <INGA.AS> has sharply cut the carbon emissions linked to its lending to the power industry over the past year after reducing funding to coal-fired power plants and boosting financing for renewable energy, it said on Thursday.

ING said it had reduced its direct exposure to coal-fired power plants by 22% and increased renewable power generation financing by 1.9 billion euros in 2019.

ING is part of a small group of banks seeking to lead the way in aligning a combined 2.4 trillion euros in lending with the 2015 Paris climate agreement, aiming to keep global warming well below 2 degrees Celsius above pre-industrial norms by 2050.

Along with BBVA, BNP Paribas, Standard Chartered and Societe Generale and non-profit think tank the 2° Investing Initiative, ING has begun developing science-based methods and tools to help them measure their impact and guide lending decisions.

A key aim of the group is to be open about their efforts, in the hope other banks will follow their lead. After an inaugural report last year, the report on Wednesday is the first time that ING has been able to evidence its year-on-year progress.

For each of nine high-emitting sectors, ING has defined a multi-year pathway over which the emissions-intensity of its lending – the level of emissions per unit of economic activity – must change in order to meet the climate goals.

The biggest improvement was in the impact of the bank’s lending to the power generation sector, where carbon intensity – measured by kilograms of CO2 per megawatt hour – was now 14.9% below the target pathway and ahead of schedule.

Steel and cement sector-linked emissions intensity were 0.6% and 0.9% below their pathways, respectively, although both form a relatively smaller part of the bank’s