Consumer green energy default choice is sticky

“Non-monetary incentives that encourage pro-environmental behaviour can contribute to combating climate change. Here, we investigated the effect of green energy defaults in the household and business sectors. In two large-scale field studies in Switzerland of over 200,000 households and 8,000 enterprises, we found that presenting renewable energy to existing customers as the standard option led to around 80% of the household and business sector customers staying with the green default, and the effects were largely stable over a time span of at least four years. Electricity consumption had only a weak effect on default acceptance. Our data do not indicate moral licensing: accepting the green default did not lead to a disproportionate increase in electricity consumption. Compared with men, women in both the household and business sectors were slightly more likely to accept the green default. Overall, non-monetary incentives can be highly effective in both the household and business sectors.” in nature human behvaiour.

NetZero framework, HSBC engagement

Progress in sustainable investing was quite notable this week. Pretend sustainability - greenwashing - comes about because bad faith actors realise there is a genuine force, demand / trend and want to benefit from it. 



So in some ways it’s a good thing if you support sustainability ideas because it means there’s real substance somewhere.  Let me note two items of substantive progress this week.



First, the IIGCC lead collaboration that has led to a net zero Paris Aligned investment framework. Many asset owners and investors support the framework and it’s a very significant step in harmonising efforts on what netzero for companies might mean. Still much work to do, but worth noting this step. You can view the framework here (my linkedin).



Second, a collaborative investor engagement has led to HSBC aligning its financing commitments to a low carbon world. You can view their letter here (my linkedin).

Mark Carney argues that low carbon growth is possible

Mark Carney, Governor Bank Of England, argued that low carbon economic growth is possible. In further testimony he stresses the importance of transition, policy, transparency and risk management while commenting that intangible growth is still important growth.

De-Growth advocates argue decoupling carbon from economic growth is impossible (or extremely hard). Thus degrowth policies may be needed.

(I tend to not be in the de-growth camp, but do think some consumption eg food waste - is wasteful)

The arguments continue to be intense. There is some agreement that brown—>green transition is important regardless of growth stance. Central scenarios point to 3c warming in 2100. Stronger policy + innovation amplified by markets, corporate and consumer behaviour could bring those scenarios down. Complex tipping points, policy failures could swing other way.