Episcopal Church votes to divest, Prince Charles divests, crucial UK fracking licence rejected, Renault may leave Formula 1 for Formula E, climate negotiations moving at “snails pace”: Week 26, 2015

List of more than 1,076 chemicals used during fracking process remains unknown. UCS says the recent EPA study was “a literature review.”
US solar and wind industries appeal for tax breaks to compete with gas. The current tax breaks expire in 2017, leading BNEF to forecast reduced investment.
Planned new coal plants mean > 500bn tonnes of CO2 by 2050: OECD. Secretary General Angel Gurria calls this, c half the 2C carbon budget, the “most urgent” threat to the planet.
Arch Coal bonds are selling for as little as 14 cents on the $. “It may be too late to save the coal industry from looming financial disaster”, says John Dizard.
Episcopal Church votes to divest from fossil fuels. The leadership of the major US Protestant denomination says “this is moral issue”, after voting in Salt Lake City.
Shell about to drill in the Arctic. $3bn to be spent on up to four wells in the Chukchi Sea this summer and next, using two giant rigs and 28 other vessels: $8.4bn cumulative spend.
Shale oil means US motorists are trading up to gas guzzlers. Given the low gasoline prices, old appetites are reviving. Ford factories are cranking up output.
Sunny weather sees Britain break solar power record. 16% of the UK’s electricity demand is solar this afternoon, the industry estimates.
Solar Impulse lands in Hawaii after longest non-stop solo flight in history. The five-day crossing of the Pacific Ocean was the riskiest leg of its round the world journey.
BP total settlement for Deepwater Horizon $54 bn. $18.7 bn for civil penalties & damages means final figure now known, spread over 15 to 18 years: “reasonably favourable” says FT
US regulators warn banks about extent of their loans to oil and gas producers. The move that could limit their ability to lend to companies battered by the slump in prices, the WSJ reports.
Loss exemption insurance expires for US shale drillers. They are about to become “zero hedged.” This way to postpone the “day or reckoning” will no longer be available.
EDF, a sponsor of the Paris climate summit, is still trading coal. So too is Total, but the CEO says he will get out of it.
Greenpeace, German utilities launch suit against UK nuclear plant. Nine German and Austrian utilities selling renewable energy target Hinkley Point in ECJ.
Prince Charles: rewire the global economy to stop climate change. In a speech, he backs divestment from fossil fuels, and the Guardian’s “Kepp It In The Ground” campaign.
Rouseff and Obama agree to cut Amazon deforestation and boost renewables. The Brazilan President pledges zero deforestation by 2030. Both pledge 20% renewable electricity by 2030.
Renault boss raises prospect of leaving Formula 1 for Formula E. “The only thing that is certain today is that we are going to be bigger in Formula E,” he says. “…..Everything is open.”
Statoil chief economist: carbon bubble is “largely a myth”. Eirik Waeness argues two degree target can be it with “massive investments” in renewables, efficiency, and oil and gas all.
Financial rating agencies risk potentially enormous legal liabilities: CIEL. Unless they stop understating the risks with oil, gas and, particularly, coal companies.
Church of England divests from Soco oil firm over Virunga plans. This is only the third time in five years that the church has divested from a company on ethical grounds.
Even with a nuclear deal, Iran will find it hard to lift production quickly. Goldman Sachs says they won’t be able to lift output 50% immediately as they wish.
China submits Paris treaty plan. It will cut its greenhouse gas emissions per unit of GDP by 60-65% from 2005 levels, and , & “work hard” to peak emissions before 2030.
China non-fossil energy to reach 20% by 2030. Installed capacity of wind power will reach 200GW, up from 95.81GW, and and solar power to around 100 GW, up from 28GW today.
Cost of drilling places small oil companies at advantage as majors scale back. $200bn of project cutbacks mean majors can’t make small fields pay. But small cos can.
Greece fails to make IMF payment. The nation heads, in default, for its referendum at the weekend with membership of the union under question and whole European project at risk.
Climate negotiations moving at “snails pace”, says UNSG. Ban Ki-Moon tells a high-level meeting in New York that “the negotiation pace is too slow, far too slow.”
Supreme Court overturns landmark EPA air pollution rule. The 5-4 decision is based on the failure to consider costs to utilities of regulating toxic air pollutants in 2011.
$100bn promise is not being delivered. Brazil, China, India and South Africa disappointed in failure to make good Copenhagen promise to mobilise $100bn a year by 2020.
Caudrilla fracking application rejected. Lancashire county council delivers huge blow to UK oil and gas industry’s hopes for shale.
“In the future, this may well be seen as the day the fracking dream died.” So writes Damian Carrington.
Peabody shares dive after Moody’s cut credit rating. The biggest US coal miner is in deep trouble, its shares down 70% this year.
Bringing forward O&G dividends to 2016 poses big risks. Likely done at the expense of higher decline rates and lower reserve replacement ratios in the future, says Kepler Cheuvreux.
Bill Gates to invest $2bn in “breakthrough” renewables, but not to divest. He says existing renewables can’t meet energy needs.
M&A boom surges on – for the time being.“2015 feels like the last days of Pompeii: everyone is wondering when will the volcano erupt,” says one banker.
Joseph Stiglitz: I would vote no in the Greek referendum. The Athens government will ask the people to see whether they want to accept or reject the EU/IMF/ECB austerity terms.