Carbon-intensive Sectors Research Articles

Investigating the Key Drivers in the Transition to Sustainable Hydrogen Transportation Fuel

Introduction. Hydrogen is a promising energy carrier that can achieve net-zero carbon emissions and decrease fossil fuel dependency. However, the importance of the driving forces in hydrogen adaptation and acceptance during the transition to this technology should be emphasised. When assessing hydrogen as a sustainable transportation fuel, defining the success criteria is vital to comprehend the benefits of hydrogen in the transition process. The transport sector is a priority area for the transition to zero emissions, which requires an understanding of the links between the key drivers of hydrogen adoption in transportation. Aim and tasks. This study aims to identify the key drivers of the hydrogen transition and explore the relationship between the transition drivers to hydrogen as a sustainable transport fuel based on a comprehensive literature review and an interpretative structural modelling approach to determine the relationship between the above-mentioned key drivers. Results. This study identified key drivers for the transition to hydrogen as a sustainable transport fuel using the Interpretive Structural Modelling (ISM) approach. This study examines the potential of hydrogen transition, analyses the driving forces, and examines their interrelationships in terms of driving force and dependent force. The role of technological development and transition awareness in achieving the SDGs is revealed. Robust regulatory agendas and supportive strategies, Workforce development and training based on hydrogen deployment, and Industry partnerships and collaboration are the most fundamental drivers for achieving the transition to hydrogen as a sustainable transport fuel. In addition, the advancement of hydrogen technologies in production, storage, and transportation, as well as hydrogen production and use, aligns with environmental aims, which are key factors that depend mainly on the actions of other driving forces. However, the limitations of this study include subjectivity and potential differences in the driving forces across countries and sectors. Conclusions. The deployment of green hydrogen transition for a clean energy source is critical in carbon-intensive sectors of the economy, which are characterised by key drivers and their interlinkages, such as regulatory strategies, workforce development, and industry partnerships. This has increased the flexibility of energy systems with the collaboration of the stakeholders for developing hydrogen technologies and infrastructure, considering the environmental safety, economic efficiency, and social acceptability of hydrogen.

Different effects of carbon pricing and border adjustment in Germany and Spain

This study examines the effects of carbon pricing in Germany, Spain, and the broader European context using the dynamic, three-region environmental multisector general equilibrium model, EMuSe. Our findings indicate that unilateral carbon pricing in Germany or Spain leads to a sustained negative output. The marginal increase in production costs outweighs modest reductions in emissions. However, when Europe collectively adopts carbon pricing, the long-term output effects become positive, although there are more significant transition costs due to close trade relations within Europe. We find evidence of carbon leakage, which is marginally mitigated by a border adjustment mechanism. However, this mechanism mainly protects domestic carbon-intensive sectors and produces inconsistent country outcomes; Germany gains, while Spain loses. Notably, Spain’s energy sector emerges as a long-term beneficiary due to its relatively lower emission intensity. The findings highlight the strategic importance for Europe to engage global partners in carbon pricing as it reduces the economic downturn phase and increases long-term gains.

Assessment of bank risk exposure considering climate transition risks

This study utilizes the Merton model to assess how the climate transition risk exposure of banks may be affected by transition risk shocks across a 30-year horizon, considering three representative climate scenarios outlined by the Central Banks and Supervisors Network for Greening the Financial System (NGFS). The calculation results show that the rise in carbon prices will increase corporate costs and reduce operating profits, thereby increasing the probability of corporate default and ultimately raising the overall level of banks' credit risk exposure, with utilities and energy sectors being the most affected. Variations in loan distributions result in different transition risk impacts across bank types, with large state-owned banks having higher exposure due to loans in carbon-intensive sectors.

Carbon Disclosure and Common Ownership

The crossholding of multiple firms by major shareholders in the same industry is known as common ownership. In this article, we examine how common ownership affects the carbon-related disclosure practices of cross-held firms. We report that common ownership decreases a firm’s propensity to disclose carbon information as well as the quality of such disclosures. A one standard deviation increase in measures of common ownership decreases the likelihood of participating in the Carbon Disclosure Project (CDP) survey by as much as 19.4%. Our results are robust to exogenous events, such as changes in common ownership and robustness tests, including Heckman two-stage regression and the exclusion of the financial sector. Further analyses demonstrate that the negative impact of common ownership on carbon disclosures is stronger in carbon-intensive sectors than in other sectors and for hard than for soft disclosures.

Indonesia's contribution to global carbon flows: Which sectors are most responsible for the emissions embodied in trade?

Motivated by recent developments in global carbon policies, such as the carbon border adjustment mechanism (CBAM) in Europe and carbon pricing in Indonesia, this paper elaborates on CO2 emissions embodied in products entering and leaving Indonesia and identifies carbon-intensive sectors responsible for carbon leakage. This was performed by using global multi-regional input-output analysis and consumption-based accounting (CBA) - production-based accounting (PBA) ratio. In 2016, the annual CO2 emissions embodied in Indonesia's exports and imports were 114 and 95 Mt. CO2, respectively. Considering final demand only, these values reduce to 32 and 22 Mt. CO2 or 0.9 and 0.6 % of total CO2 emissions in global trade, respectively. The electrical and machinery sector makes up the most CO2 emissions in Indonesian exports. In terms of per USD, metal products and petroleum, chemical and non-metallic mineral products are among the most carbon-intensive sectors, thus likely to be affected by the CBAM policy. Furthermore, Indonesia's emissions under CBA were slightly lower than PBA, indicating that minor carbon leakage occurred in 2016, but this is subject to uncertainty. Assessing the relative CO2 emissions of various economic sectors is suitable for manufacturing goods whose processes are typically dominated by fossil combustion. However, this is not the case for the agriculture sector as its carbon footprint values are underestimated due to the exclusion of land use, land use change, and forestry emissions. Overall, our findings can serve as a baseline to further explore how a transition towards a low-carbon economy in Indonesia could improve global-trade carbon balances.

Nudging intensive care unit personnel towards sustainable behaviour.

The health care sector is among the most carbon-intensive sectors, contributing to societal problems like climate change. Previous research demonstrated that especially the use of personal protective equipment (e.g., aprons) in critical care contributes to this problem. To reduce personal protective equipment waste, new sustainable policies are needed. Policies are only effective if people comply. Our aim is to examine whether compliance with sustainable policies in critical care can be increased through behavioural influencing. Specifically, we examined the effectiveness of two sets of nudges (i.e., a Prime + Visual prompt nudge and a Social norm nudge) on decreasing apron usage in an intensive care unit (ICU). We conducted a field experiment with a pre- and post-intervention measurement. Upon the introduction of the new sustainable policy, apron usage data were collected for 9 days before (132 observations) and 9 days after (114 observations) the nudge interventions were implemented. Neither the Prime + Visual prompt nudge, nor the Social norm nudge decreased apron usage. While previous studies have found that primes, visual nudges and social norm nudges can increase sustainable behaviour, we did not find evidence for this in our ICU field experiment. Future research is needed to determine whether this null finding reflects reality, or whether it was due to methodological decisions and limitations of the presented experiment. The presented study highlights the importance of studying behavioural interventions that were previously proven successful in the lab and in other field contexts, in the complex setting of critical care. Results previously found in other contexts may not generalize directly to a critical care context. The unique characteristics of the critical care context also pose methodological challenges that may have affected the outcomes of this experiment.

Assessing Directions for Reducing Energy and Carbon Intensity of Manufacturing Large-Format Ceramic Stones

The article analyses the experience of enhancing energy efficiency and reducing greenhouse gas emissions in the ceramic production. Calculations and assessments are made using the example of the industrial site of Wienerberger Brick LLC, located in the Vladimir region, where large-format ceramic stones are produced. Authors emphasize that ceramic production is a branch of energy and carbon intensive industrial sectors, for which in various countries and regions, programmes and projects aimed at reducing energy consumption and emissions of greenhouse gases are developed and implemented. The article presents estimated global average data and data obtained as a result of carbon intensity benchmarking conducted within the course of reviewing of the Russian national Reference Document on Best Available Techniques “Ceramic manufacturing industry”) ITS 4-2023. Authors analyse the energy efficiency enhancement programme implemented by Wienerberger Brick LLC, and calculate energy-related emissions of greenhouse gases for 2015–2022. They demonstrate that the enterprise managed to achieve a significant reduction in energy and carbon intensity. It attained parameters that are significantly lower than the industry average, as well as the so-called indicative greenhouse gas emissions indicators established to encourage Russian enterprises to implement green projects. Authors conclude that experience described can be replicated by other companies, including those applying for government support measures for projects aimed at the implementation of Best Available Techniques, enhancement of energy efficiency and reduction of greenhouse gases emissions.

Time Scales of the Low-Carbon Transition: A Data-Driven Dynamic Multi-Sector Growth Model

Abstract This paper employs a dynamic multi-sector growth model with changing technology to study the relevance of the price and quantity dimensions involved in the technical substitution of carbon-intensive technology, that is, the low-carbon transition. For the framing of the transition, the stylized market dynamics by Flaschel and Semmler (1987. “Classical and Neoclassical Competitive Adjustment Processes.” The Manchester School 55 (1): 13–37) are used, who propose a cross-dual out-of-equilibrium adjustment process. The major empirical challenge to identify the adjustment speed for quantities and prices is to empirically estimate sector-specific adjustment coefficients. The transition speed is estimated for seven carbon-intensive sectors in six high-income economies (Germany, France, Italy, Netherlands, Japan, and the US) using a mixed-effects varying-slopes model on EU KLEMS data. Directed technical change is enforced by a revenue-neutral, pro-active fiscal policy of a tax–subsidy form, which has the effect to greatly accelerate the phase-out of carbon-intensive technology and the phase-in of green technology. The speed of green substitution that allows decarbonization is then evaluated analytically and computationally along four policy and time dimensions: cost advantage, a percentage tax on carbon-intensive output, a green subsidy rate, and initial investment ratios. Though the tax itself has an impact on the speed of decarbonization, it is significantly improved by green subsidies and green investments. The cost advantage of the green over the carbon technology is shown to have a negligible impact on decarbonization speed by itself. Without ambitious fiscal policy, especially in the form of green investment support, this substitution process appears to be too slow to reach decarbonization in a timely manner.

Analysis of the evolution and drivers of carbon inequality based on a human well-being equity perspective

Regional development imbalances lead to the geographic separation of producers and consumers in interregional trade, thus resulting in an unequal distribution of carbon emissions (CE) and human well-being (HWB). Few studies have analyzed the long-term dynamic evolution and driving factors of interregional carbon inequality from the perspective of HWB equity. This study calculates the changes in embodied CE and HWB and their interregional flows and changes in carbon inequality in 2007, 2012, and 2017 using a multiregional input‒output (MRIO) model, and analyzes the drivers of interregional CE/HWB transfer, and then makes policy implications. The results indicate that carbon inequality in China shows a worsening trend because of the mismatch between the change in CE transfers in carbon-intensive sectors and the change in HWB transfers in economic and social capital. At the national level, CE intensity, HWB intensity, production structure, and per capita consumption have the most significant effects on embodied CE and embodied HWB. The direction of the factor drivers affecting interregional net carbon emissions (NCE) and net human well-being (NWB) transfer depends largely on the resource endowment and the extent of the effects of the different drivers and development status of two regions. This study provides a new perspective for analyzing the evolution of carbon inequality in China and provides important insights for reducing carbon inequality and realizing carbon equity.

Emission trading schemes and cross-border mergers and acquisitions

The Emission Trading Scheme (ETS) provides a market mechanism to mitigate carbon emissions and has been introduced in many countries. Its fundamental idea is to make carbon emissions costly. Consequently, firms undertaking cross-border expansions may have to consider this extra cost when entering markets with an ETS. They may avoid these countries or relocate their investment to countries without an ETS. Using a large sample of international firms between 2002 and 2019, we investigate this issue via a difference-in-difference approach. Our results show that ETS implementation leads to significantly less cross-border merger and acquisition (M&A) deals in the host countries, indicating an avoidance effect or potential carbon leakage. Further analysis reveals that ETS implementation decreases firms’ financial performance and increases market risks, both contributing to cross-border M&A decisions. We demonstrate strong evidence of cross-sectoral differences, where carbon-intensive sectors tend to bear higher costs. This study contributes to the environmental economics and finance literature and provides evidence with policy relevance.

Job creation in a low carbon transition to renewables and energy efficiency: a review of international evidence

AbstractIn this paper, we present findings from a systematic review on job creation, quality, and skills, focusing on decarbonisation in the energy sector. We compare a range of gross job employment factors which indicate that overall, investment in renewable energy and energy efficiency can deliver more jobs than gas or coal power generation. In addition, we review a subset of recent studies which estimate the net employment effects of decarbonisation in the energy sector at a national scale, across various international contexts. These national studies largely agree that the most likely outcome over the next few decades is a modest net positive creation of jobs and moderate economic growth. In certain regions within these countries, jobs in fossil fuel industries may be lost faster than the pace at which low carbon energy sectors can offer new employment. There may be mismatches between regions where displaced workers live and where new opportunities become available, which may be a barrier to accepting alternative employment even if former workers have the requisite skills. In these cases national government transition plans are recommended, coordinated with local governments, to manage the impacts of displacement from carbon-intensive sectors and respond to the need to build a new low carbon workforce including through skills development and training. We highlight a lack of metrics and data in the literature on job quality, skills, and the geographic distribution of employment impacts in decarbonising energy systems, and these should be priority areas for further research.

Green strategies in marketing product policy of manufactures: environmental and ethical aspects

The aim of the article. The problem of maintaining ecology at an appropriate level is one of the main ones in the world. For a long time, production used the resources of the planet without taking into account their limitations and the impossibility of rapid recovery. In addition, the desire to reduce the cost has influenced the spread of the use of polyethylene for packaging, plastic in production, pesticides in agriculture, and harmful emissions into the atmosphere. The industrial complex has the greatest impact on the environment. Thus, on the one hand is the economic efficiency of production with the aim of reducing the cost of goods and obtaining high profits, on the other - the future of man and the planet. The relevance of the problem of implementing green strategies in the economy of countries and production has influenced the growth of research by scientists in this direction in recent years. However, it is necessary to determine the influence of the "green" course on the formation of the marketing product policy of enterprises, and, in particular, to take into account the social and ethical direction. The aim of the article is the study of ecological, fair and ethical aspects in the implementation of green strategies in the marketing product policy of manufacturers. The results of the analyses. Ukraine announced its accession to the European Green Course in August 2020 and set the goal of achieving climate neutrality by 2060. This means, in part, the reduction of greenhouse gas emissions, the gradual abandonment of fossil fuels, the transition to renewable energy sources, the development of energy-efficient technologies, increasing organic agriculture. First, it requires changes in the field of electricity, as the most carbon-intensive sector of the economy. And also in industry, transport, agriculture. Modernization, use of modern technologies is needed. The "European Green Deal" is aimed not only at improving ecology, but also at taking into account the needs of business and economic sectors, their competitiveness and profitability, and the needs of society in ensuring fair welfare and development, prosperity. After all, these areas are interconnected, and achieving success in one of them is impossible without the development of others. Solving environmental problems should not affect the bankruptcy of business systems, industry, or increase unemployment. On the contrary, the problems should be solved comprehensively. Adoption of the "green course" of economic development requires appropriate transformations from business. It is impossible to completely avoid the impact on the environment, but it must be reduced at all stages of the "quality chain" (supplier organizations, transport organizations, product manufacturers, intermediaries, and even, in this case, the responsibility of consumers for ecological consumption and the necessary disposal of products). The environmental requirements of organizations in each link, as well as the needs of end consumers, must be determined. The use of the green strategy goes hand in hand with ensuring the competitiveness of goods and services. The business will have to look for the most effective solutions for the maximum satisfaction of consumer needs with ecologically oriented production. So that it does not become a compromise when the goals of each party are not fully achieved, marketing should be aimed at informing target audiences about the benefits that a product produced in an enterprise with a green development strategy brings to them. This can be created by one of the competitive advantages of the product. Conclusions and direction for further research. Choosing green production development strategies is already a necessity. First, it is a necessary contribution to the restoration of the ecosystem and the future of society. Secondly, it is a significant element of the competitiveness of products and enterprises. Business can play an important role in the development of society and the solution of today's problems, including environmental ones. As research in the global market shows, this is exactly what consumers expect from businesses. Implementation of the green course carries not only responsibilities, but also opportunities. This is the entry into new markets with ecological products, the development of organic agriculture, the introduction of the latest technologies, the improvement of the image of a socially responsible enterprise, the growth of its competitiveness and the competitiveness of products, brands that are produced according to the principle of green strategies.

Green corporate image: Assessing the effects of climate change management practices on corporate reputation

AbstractThe overarching aim of this study is to determine how distinct climate change management practices (CMPs), ranging from the establishment of carbon targets to the adoption of renewable energy and carbon assurance, resonate in the realm of corporate reputation (CR). The study sample comprises US S&P 500 companies (2016–2018). Reputation insights are obtained from the Global RepTrak® Pulse of the Reputation Institute, and data on the adoption of various CMPs are extracted from Carbon Disclosure Project reports. Logistic regression analysis shows that the findings underscore the pivotal role of absolute carbon and renewable energy use targets in enhancing CR. However, the effects of CMPs on CR vary with carbon trading regulations and intensive sector affiliation. The main findings hold after the Heckman selection model is used as an endogeneity technique. This research offers valuable insights to corporations that seek to strategically manage their reputation amidst the challenges of climate change.

Carbon regulation and enterprise investment: Evidence from China

Enterprises' investment response to China's carbon regulation policy is essential to the country's high-quality development. Using a difference-in-differences model, we investigate the differential impacts of China's Low-carbon Pilot (LP) program on both state-owned enterprises (SOEs) and non-SOEs, in order to reveal the differences in response to government intervention. The results show that the LP program has a negative effect on the productive investments of non-SOEs, but SOEs show unclear effect from the LP program. This conclusion remains credible after robustness tests. The negative impact of the LP program on the productive investments of non-SOEs is particularly evident in carbon-intensive sectors and large enterprises; investment diminishes in correlation with increases in the carbon intensity reduction targets. China's LP program is found to cause a decrease in the available credit resources and an increase in financing costs, in addition to a loss of technical efficiency and a reduction in investment willingness for non-SOEs, resulting in reduced productive investments.

SEWGS integration in a direct reduction steelmaking process for CO2 mitigation

The iron and steel industry represents one of the most carbon intensive sectors accounting for roughly 25% of CO2 emissions generated by the industrial sectors and for 7% of total energy sector emissions. The aim of this work is to assess the techno-economic analysis of the integration of the SEWGS technology in the DRI-EAF process to reduce the carbon footprint of this steelmaking route. The study has been carried out using plant data taken from literature and investigating possibilities of GHG mitigation by introducing carbon-capture technologies such as MEA and MDEA scrubbing or the SEWGS technology. The latter solution shows environmental and economic advantages compared to the cases based on amine scrubbing. A reduction of CO2 emissions close to 90%, with respect to the BF-BOF route, can be achieved with the implementation of the SEWGS when a renewable electricity scenario is considered. Economic KPIs such as the Levelised Cost of Hot Rolled Coil and the Cost of CO2 avoided have been computed for all the plants. In addition, a sensitivity analysis on natural gas and electricity prices has been carried out. The integration of the SEWGS technology represents a promising solution for the reduction of the carbon footprint of the DRI-EAF process and, potentially, it could be commercially viable in the near future considering that the DRI and EAF processes are already globally commercialised.

Pathways to improve energy efficiency under carbon emission constraints in iron and steel industry: Using EBM, NCA and QCA approaches

Improving environmental performance of energy- and carbon-intensive sectors represented by the iron and steel (IS) industry is of utmost importance to address the challenges of resource depletion and climate change worldwide. This article adopts a global-super-Epsilon-Based Measure (EBM) model with undesirable output for IS energy efficiency estimation, identifies efficiency determinants based on Technology-Organization-Environment (TOE) framework, and analyzes various pathways for efficiency improvement by grouping Necessary Condition Analysis (NCA) and fuzzy-set Qualitative Comparative Analysis (fsQCA). Empirical testing using statistical data of the G20 economies during 2010–2020 demonstrates that: 1) energy efficiency in the IS industry in G20 countries has risen amidst fluctuations, with developed countries performing more efficiently than developing countries; 2) individual factors do not constitute a compulsory condition to achieve high energy efficiency in the IS industry; 3) three different paths to achieve high energy performance are found, that is, technology-structure driven, regulation-economy-technology driven, and regulation-technology-production driven. Heterogenous policy recommendations for efficiency gains in the IS sector of different countries with divergent features are proposed accordingly.

Impact of Glasgow Climate Pact and Updated Nationally Determined Contribution on Mercury Mitigation Abiding by the Minamata Convention in India.

India is one of the largest emitters of atmospheric anthropogenic mercury (Hg) and the third-largest emitter of greenhouse gases in the world. In the past decade, India has been committed to the Minamata Convention (2017) in addition to the Paris Climate Change Agreement (2015) and the Glasgow Pact (2021). More than 70% to 80% of India's mercury and carbon dioxide emissions occur because of anthropogenic activities from coal usage. This study explores nine policy scenarios, the nationally determined contribution (NDC) scenario, and two deep decarbonization pathways (DDP) with and without mercury control technologies in the energy and carbon-intensive sectors using a bottom-up, techno-economic model, AIM/Enduse India. It is estimated that NDC scenarios reduce mercury emissions by 4%-10% by 2070; while coal intensive (DDP-CCS) pathways and focus on renewables (DDP-R) reduce emissions by 10%-54% and 15%-59%, respectively. Increase in the renewables share (power sector) can result in a significant reduction in the costs of additional pollution-abating technologies in the DDP-R scenario when compared with the coal intensive DDP-CCS scenario. However, the industry sector, especially iron and steel and metal production, will require stringent policies to encourage installation of pollution-abating technologies to mitigate mercury emissions under all the scenarios.

Mandatory carbon reporting, voluntary carbon disclosure and ESG performance

PurposeThis study aims to examine the impact of mandatory adoption of The Act 2013 in UK on voluntary carbon disclosure. Mandatory adoption of The Act 2013 in UK is a compelling setting to examine this research question because it is an exogenous imposed event and is unlikely to be affected by disclosure choice.Design/methodology/approachThis study uses a difference-in-differences research design to examine the impact of mandatory adoption of The Act 2013 in UK on voluntary carbon disclosure. The treatment sample includes 451 UK firms subject to mandatory adoption of The Act 2013, and the control sample includes firms from 15 EU countries that did not mandate adoption during the sample period.FindingsThe authors document an increase in the quantity and quality of voluntary carbon disclosure following adoption of The Act 2013 in the treatment sample relative to the control sample. They also find that firms with better environmental, social and governance (ESG) performance experience a highly significant increase in voluntary carbon disclosure after adoption of The Act 2013. For firms from carbon-intensive vs less-carbon-intensive sectors, the results suggest that firms in carbon-intensive sectors experience a greater increase in the propensity of voluntary disclosure after adoption of The Act.Originality/valueThe authors examine the impact of mandatory adoption of The Act 2013 in UK on voluntary carbon disclosure and the impact of firms’ ESG activity on the relationship between voluntary and mandatory carbon disclosure. To the best of the authors’ knowledge, this insight has never been documented in the literature.

Towards sustainable resource management: The role of governance, natural resource rent and energy productivity

The present study investigates the role of sustainable resource management in empowering emerging seven (E−7) economies for a low-carbon future. It analyzes the interplay between institutional quality, energy productivity, natural resource rent, and their impact on consumption-based CO2 emissions employing the Method of Moment Quantile Regression (MMQR). The findings highlight the pivotal role of institutional quality in mitigating CO2 emissions across quantiles by combating corruption and upholding the rule of law. Sustainable management of natural resource rent allows diversification from carbon-intensive sectors and reduces carbon emissions. The results show that energy productivity has a significant negative influence on carbon emissions as E−7 economies improve energy efficiency and adopt cleaner technologies. The results for GDP show a positive relationship with emissions, while renewable energy consumption has a negative impact, stressing the importance of clean energy promotion. Policymakers in E−7 economies can further stride towards sustainable resource management by improving institutional quality, enhancing energy productivity, and utilizing natural resource rent to mitigate climate change and foster economic growth.

Pricing of climate transition risks across different financial markets

As the global economy transitions towards net zero, it is conjectured that efficient financial markets reflect the risks involved with this transition. This hypothesis is empirically tested in this paper and signals are found of climate transition risk pricing in options, equity and bond markets, based on greenhouse gas emission levels. The analysis of recent developments in the option market suggests that investors perceive the oil and gas sector to have an elevated risk profile. In the equity and bond market for, particularly, the energy sector, investors appear to demand higher returns to compensate for a higher transition risk. In addition, it is found that the average maturity of newly issued bonds in the carbon intensive coal sector decreased, while the average maturity increased strongly in the renewables sector with low carbon emissions. The reduction of investors' long-term exposure to the coal sector signals concerns about its long-term viability, while the opposite is the case for the renewables sector. Nonetheless, it is not possible to conclude that climate risk pricing is consistent, as the statistical evidence is not overwhelming and not fully aligned across different markets. Furthermore, as climate indicators and emission data still contain important flaws, climate pricing based on these indicators could also be inadequate. Therefore, this paper aligns with the literature arguing that climate risk pricing is inconsistent and inadequate and that this is important for investors and risk managers to acknowledge. In addition, policymakers are urged to ensure that transition information, like emission data, is correct, timely and comparable to ensure its information value and usability.