Carbon costs and stock market performance: New evidence from European firms

The increasing cost of emitting CO2 in the EU is affecting the stock performance of firms, with high emitters seeing a decline in stock prices when carbon prices increase, reinforcing the effectiveness of climate policy.

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Relevant topic timeline:

8/20/2023

Vinfast takes a wild ride, a robotaxi fallout brews and the IRA one year later

Main topic: The effect of the Inflation Reduction Act on the automotive industry and climate tech startups. Key points: 1. The IRA has accelerated the battery factory trend in the automotive industry. 2. Startups in the climate tech sector are starting to see more deal flow. 3. The White House's efforts to combat climate change have sparked a tech arms race with the EU. Hint on Elon Musk: Elon Musk is not mentioned in the provided text.

8/21/2023

European stocks higher; German inflation retreats, China cuts interest rate By Investing.com

European stock markets rise as German producer prices drop, China's rate cut disappoints, and the UK housing market slumps; oil prices rebound on tight supplies and expectations of lower output.

8/23/2023

Opinion

Bad carbon credits are edging out good ones in the carbon offset market, posing a significant challenge in the efforts to reduce greenhouse gas emissions and combat climate change.

9/1/2023

Carbon credit market confidence ebbs as big names retreat

The voluntary carbon markets have experienced a decline for the first time in at least seven years, with companies reducing their purchases and concerns arising about the effectiveness of forest protection projects in delivering emissions savings. This decline has negative implications for poorer nations reliant on funds from multinational companies for climate mitigation projects.

9/8/2023

European Stocks Edge Up on Data but Still Headed for Weekly Losses on Growth Worries

European stock markets edged higher as investors digested positive French industrial production data, although major cash indices are on track to register losses for the week, and the pan-European benchmark index has experienced seven consecutive days of losses. French industrial production rebounded more than expected in July, while figures for Spain showed a smaller-than-expected decline. However, German industrial production fell more than expected in July, and economic growth in the eurozone for the second quarter was just 0.1%. Concerns about the strength of the Chinese and Japanese economies have also risen. The tech sector is under pressure due to Apple's difficulties in China, and oil prices have retreated but are still on course for gains this week.

9/11/2023

Reducing Fossil Fuel Demand More Effective than Supply Cuts for Climate

Focusing on cutting demand for fossil fuels through measures such as carbon taxes and renewable energy subsidies is more effective than solely curbing supply, as it incentivizes investors and banks to stop funding the industry and leads to a reduction in production, according to climate change activists.

9/14/2023

Markets Await ECB Rate Hike Decision as Inflation Stays High; Carmakers Fall on EU-China Probe; Fed Pressure Grows

European markets were stagnant as investors awaited a decision from the European Central Bank on whether to raise interest rates for the tenth consecutive meeting, while carmaker shares dropped following an investigation into electric vehicle subsidies by the European Commission and concerns over Chinese retaliation. Additionally, the oil market is keeping a close eye on the possibility of crude prices reaching $100 a barrel as Saudi Arabia and Russia plan to extend production cuts until the end of 2023.

9/18/2023

Carbon Markets Offer New Model to Drive Sustainability Through Trading and Offsetting Emissions

Global carbon markets are an alternative model for addressing greenhouse gas emissions and combating climate change, providing an avenue for companies and individuals to offset their emissions and promote sustainable consumption patterns; Brazil, with its substantial natural capacity for carbon dioxide capture, has the potential to become a sustainability powerhouse in this field.

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Posted 8/17/2023, 11:03:31 PM