Etiqueta: T6

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Iberdrola Extends Sustainable Finance to Include Water Goals with New $2.5 Billion Credit Agreement

Link: https://www.esgtoday.com/iberdrola-extends-sustainable-finance-to-include-water-goals-with-new-2-5-billion-credit-agreement/

Date: July 14, 2022

Media: ESGtoday

What happened?

Last year, Iberdrola announced plans for its financing structure to have an increasingly higher percentage of green and sustainable products, estimated to account for nearly two-thirds of its debt by 2025. Iberdrola announced today that they have a new €2.5 billion credit line linked to the company’s water footprint. With that, more than 90% of the company’s credit lines are sustainable.

Who and where it affects?

In a statement announcing the new credit agreement, Iberdrola stated: Two billion people still lack access to safely managed drinking water, 25% of the world’s population lives in countries facing extremely high water stress, and only 54% of the world’s population uses safely managed water. Simultaneously, climate change is altering supply and demand patterns in ways that are difficult to predict. In actual fact, each degree of global warming is projected to decrease renewable water resources by at least 20% and an additional 7% of the world’s population.

What sort of public or private institutions are involved?

In this agreement, Iberdrola was signed with a consortium of 24 international banks that they specifically don’t mention. They are also focused on the UN Sustainable Development Goals (SDGs) objectives to reach by Iberdrola. Mainly center on Goals 6,  7 and 13.

Why is it important for Banking and Finance?

This means a higher investment on sustainable finance that in the long term will promote a sustainable and eco friendly development of the economy.

What do you think will be the consequences in the foreseeable future?

The consequences of this news will be that more and more large companies are betting on meeting the Sustainable Development Goals (SDGs), these actions will mean that sustainable finance will have a greater weight at the strategic and financial level of companies, in turn making great contributions to improve many existing problems to be addressed in the medium and long term, for example this investment of a company as large as Iberdrola, will mean that more companies are committed to SDG 6, which refers to clean water and sanitation.

Keywords: Iberdrola, water, sustainable finance, SDGs (Sustainable Development Goals)

SDGs: 6 (CLEAN WATER AND SANITATION),7 (AFFORDABLE AND CLEAN ENERGY) and 13 (CLIMATE ACTION)

Publicado el

Crypto could cause 2008-level meltdown, Bank of England official warns

Link: https://www.cnbc.com/2021/10/14/crypto-could-cause-2008-level-meltdown-bank-of-england-official-warns.html

Date: THU, OCT 14 2021

Media: CNBC

What happened?

The Bank of England’s deputy governor for financial stability, Jon Cunliffe, and the Bank of England’s Governor, Andrew Bailey, explain the risky nature of crypto investment. 

The current applications of crypto assets pose a financial stability concern since the majority «have no intrinsic value and are vulnerable to major price corrections». As this is happening in a large unregulated space, it could lead to a financial crisis similar to the one in 2008.

The scale of those risks will be determined by the speed of response by regulators and governments.

Whom and where it affects?

As the use of cryptocurrencies increases, the need for political regulations on this type of investment also increases.

This issue affects those that invest in cryptocurrencies and at the very end at the financial system, governments and population all over the world.

What sort of public or private institutions are involved?

The public institutions that are involved are the Bank of England and the U.K.’S Financial Conduct Authority.

Why is it important for Banking and Finance?

The crypto world is beginning to connect to the traditional financial system and we are seeing the emergence of leveraged players. In a largely unregulated space this situation could lead to investors losing all their money due to the assets’s lack of intrinsic value.

The risk to financial stability could grow rapidly if the market continues to expand at such a pace and this could ultimately take the economy to a global crisis such as the one back in 2008.

What do you think will be the consequences in the foreseeable future?

Given the volatility, the lack of regulations and the extensive growth of crypto currencies, we could expect a crisis derived from crypto assets in which investors will lose their money.

The current volume of cryptocurrency operations, $ 2.3 trillion, is comparable to the $1.2 trillion subprime mortgage market in 2008; so it would not be unreasonable to expect a similar crisis to happen again. However, institutions seem to have begun to analyze, warn and take action on the matter to avoid this risk. So, apparently, there is still hope to avoid a crisis derived from cryptocurrencies.

Keywords: Cryptocurrency, crisis, meltdown, regulations, investors, risks.