ARC ENERGY IDEAS

Jackie and Peter provide an update on ESG this week on the podcast. Has the anti-ESG movement started to change companies' reporting and actions? To answer this question, they reviewed some articles and research that point to the recent loss of momentum and profile for the ESG movement. There have also been examples of companies exiting sustainability-focused organizations. While sustainability may have peaked in these regards, it is not going away. Companies continue to report on their sustainability performance and set goals for improvement. Mitigating and monitoring the risk associated with ESG-related issues is also important. Content Referenced in this Podcast: Nat Bullard's website200-page annual slide deck2024 trends, part 2: ESG, carbon certifications, curtailment, and AI (February 2024)The Wall Street Journal: Diversity goals are disappearing from companies’ annual reports (April 2024)GreenBiz: Microsoft, P&G, Unilever, and Walmart among 239 companies to miss net-zero deadline (March 2024)Globe and Mail: Emissions standards group roiled by controversy after opening door to offsets (April 2024)Financial Times: Two pension funds quit Mark Carney’s green alliance (September 2022)Bank of America reneged on a commitment to stop financing new coal mines and coal power plants (February 2024) Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

The 2024 Canadian Federal Budget was released on April 16th. This year’s budget is focused on affordability, housing, and spending on social programs such as pharmaceutical care, daycare, and dentist care. Peter and Jackie discuss the budget, including the size of the deficit and the planned increase in capital gains taxes. They also cover energy-related updates from the budget, such as changes to investment tax credit programs (ITCs), adjustments to the green home subsidy, and the announcement of an Indigenous Loan Guarantee Program. They also mention that the Canada Growth Fund, which has pledged $7 billion to carbon markets, now aims to provide more off-the-shelf support for decarbonization projects while continuing to support bespoke opportunities. Environment and Climate Change Canada (ECCC) also plans to collaborate with provinces to improve carbon markets. The budget includes commitments to develop guidelines for investing in green and decarbonization projects (called a taxonomy); it also encourages Canadian pension funds to invest more in Canada, with a working group set up to explore this further. Content referenced in this episode: Canada Budget 2024RBC Report on if Canada's AAA credit rating is at riskTrevor Tombe: Why Raising Capital Gains Taxes Make Sense - Yes, Really (April 17, 2024, The Hub)Senior Business Leaders Support Proposal Asking Pension Funds to Invest More in Canada (March 6, 2024, Globe and Mail)Canada Energy Transition Taxonomy Roadmap (September 2022) by the Sustainable Finance Action Council (SFAC)Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

The threat of a wider Middle East war is increasing. Over the past weekend, Iran attacked Israel with missiles and drones in retaliation for Israel’s suspected strike on Iran's embassy in Syria. This week, our guest, Raoul LeBlanc, Vice President, Energy, S&P Global Commodity Insights, explains why oil prices have increased over the past few months, including the impact of the growing conflict in the Middle East, OPEC+, and US shale oil growth. Jackie and Peter also asked Raoul about recent research by Prof. Robert Howarth from Cornell University. The paper, which has not yet been peer-reviewed, concludes that US LNG could be comparable to, or even worse than, coal from a GHG emissions perspective when methane leaking is considered. A BNN article reported that Howarth’s paper influenced President Biden’s pause on LNG approvals. Finally, Raoul explains the drivers for US oil and gas producers' recent mergers and acquisitions (M&A) and if this trend could come to Canada. Content referenced in this podcast: How One Scientist Influenced Biden’s Pause on LNG Approvals (BNN Bloomberg, Feb 29, 2024)The Greenhouse Gas Footprint of Liquefied Natural Gas (LNG) Exported from the United States by Robert W. HowarthPlease review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

This week on the podcast, our guest is Rebecca Lindland, Senior Director of Industry Data and Insights at Cars Commerce. Cars Commerce has a platform to simplify the next generation of automotive retail, including Cars.com, AccuTrade, Dealer Inspire, and coming soon, Cars Commerce Media Network. Rebecca is a highly respected expert in the automotive industry. She shares her views on the rise of plug-in hybrids, the recent headwinds for pure electric cars, and new auto technology. Here are some of the questions Peter and Jackie asked Rebecca: How is the auto industry doing now, and is it generally profitable? Explain the difference between pure-electric, plug-in hybrid, and traditional hybrids. Why are sales of hybrid vehicles increasing in the US? Do the new US EPA auto rules for increasing electric technology include hybrids? Is the higher price of plug-in hybrids and pure electric vehicles a barrier to sales? Why are Tesla’s sales slowing? Explain BYD's success in 2023 and if they could come to North America. Do you think solid-state batteries, if they become available, will increase EV adoption rates? Are self-driving electric cars just delayed, or are they no longer likely? Other content referenced in this podcast: Hybrid Cars Enjoy a Renaissance and All Electric Sales Slow.”Lyn Hiner StudioPlease review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

This week our podcast guest is Rachel Walsh, Environmental Commodities Strategist at BMO Capital Markets. Here are some of the questions Peter and Jackie asked Rachel: Is the hefty Canadian emitter carbon tax starting to impact competitiveness? Is the carbon levy causing industrial emitters to invest in reducing their emissions? Canada and Alberta have introduced incentives to reduce the capital cost of carbon capture and storage (CCS) projects. Are these incentives enough to kick-start the industry? Are the contracts-for-difference that guarantee a carbon price for industrial emitters over a decade or more required for investment in large decarbonization projects? The Canada Growth Fund has set aside about $7 billion for contracts-for-difference; how much carbon do you think that will mitigate? The voluntary markets have struggled with credibility issues; do you expect this will improve and prices will increase? Could strong voluntary markets reduce the risk of investing in Canadian compliance markets since they offer an alternative way to monetize the carbon credits? Content referenced on this podcast: Clean Prosperity CanadaAlberta Emission OffsetAlberta Emission Performance CreditsPlease review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

Recently, Alberta announced significant changes to its power market: short-term changes to stop economic withholding and a long-term redesign of Alberta’s deregulated electricity market into a restructured energy market (REM). This week, our guest, Blake Shaffer, Associate Professor in the Department of Economics and School of Public Policy at the University of Calgary, helps us understand these changes. Here are some questions Jackie and Peter asked Blake: Why does Alberta need a market redesign? Was the near-brownout during a frigid weekend in January a sign that the current system is not working? What is “economic withholding” and how does it contribute to higher prices? The REM is expected to have a “day-ahead market,” how does that work? The REM could also have a wide pricing range, from negative prices to ones that exceed the current maximum of $999/MWh. What is the benefit of a wide price range? Do the proposed changes hurt renewable power projects? The REM is also considering changes to transmission; how significant could these changes be? Will the REM changes negatively impact entities that contracted power under the existing rules? What are your views on the Clean Electricity Regulations (CER) legislation, that aims to make Canada’s electricity sector net zero by 2035? Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

Peter is back from a one-week whirlwind trip to the UK where he was a guest on a government-hosted tour titled “Energy Commentators Mission.” During his visit, he met people working on the UK energy transition, including with offshore wind, hydrogen, carbon capture and storage (CCS), and refining. Tune in to this week’s podcast to hear about Peter’s trip and takeaways, including interviews with some of the people he met in his travels. We hear from: Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

This week, John Stackhouse, Senior Vice President, Office of the CEO at RBC joins the podcast. John is also the host of the Disruptors podcast. This episode is a joint podcast that is being made available on both the ARC Energy Ideas and Disruptors podcast channels. John, Jackie, and Peter discuss sustainable finance and Canada’s dearth of capital spending on energy transition and decarbonization. Questions covered during the podcast: Is the lack of a national taxonomy that defines what projects count as clean, green, and sustainable slowing investment? Should decarbonization projects, including reducing emissions from oil and gas, be included in the definition of sustainable finance? What are the barriers to increasing private spending on Canadian clean energy projects? Considering the situation, is Canada’s 2030 emissions reduction goal achievable? To what extent are upcoming elections in the United States, Canada, and Europe slowing down clean energy investing? Content referenced in this podcast: “Sustainable Finance Framework”“Climate Action 2024”DisruptorsPlease review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

Peter and Jackie discuss the latest energy headlines and policy announcements on this week's podcast. Listed below are the topics covered: Content referenced in this podcast: “Renewed path forward for renewable energy – February 28, 2024” Alberta Government’s Budget 2024Blake Shaffer Tweet on the flat road tax for electric vehiclesShell LNG Outlook 2024Robert McNally’s Wall Street Journal Op-ed on the IEA “Climate Politics Neuters Energy Watchdog”A New York Times article on the development of white paints to cool the planet by scientists at the University of PurduePlease review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

On February 16, 2024, Environment and Climate Change Canada (ECCC) announced some proposed changes to the draft Clean Electricity Regulations (CER). Initially released in August 2023, the draft legislation requires electricity production in Canada to be net zero by 2035. Peter and Jackie start the podcast by reviewing the recently proposed changes and discuss whether these changes are enough to win over the provinces that object to the proposed CER, including Alberta, Saskatchewan, and Ontario. Next, they introduce this week’s guest, the Honourable Todd Smith, Ontario’s Energy Minister and MLA for the Bay of Quinte in Ontario. Since the Conservatives came to power in 2018, Todd Smith has held various cabinet positions. Here are some of the questions that Peter and Jackie asked Minister Smith: When the Ontario Conservatives first came into power, renewable electricity projects that were agreed to under the Liberal government’s feed-in tariff (FIT) program were canceled, yet now Ontario is procuring new capacity for wind, hydro, biomass, and solar generation, why the change? Is Ontario having a nuclear renaissance? What are the plans to expand nuclear electricity? Where will Ontario source the enriched uranium for the new nuclear power plants? Is it realistic to see nuclear plants operating in other parts of Canada, such as Saskatchewan and Alberta? What is the role of natural gas for power generation and residential heating in Ontario? In November 2023, the Ontario IESO wrote a letter to the Federal Government on the proposed CER, saying, “The CER as drafted is unachievable by 2035 in Ontario…the policy would cause a resource shortfall”; what are your concerns and do the changes announced on February 16th improve the situation? Are you working with any other provinces that oppose the CER? Content referenced in this podcast: - ECCC’s Proposed Changes to the CER (February 16, 2024) - The Ontario IESO’s letter to the federal government on the proposed CER Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

This week, our guest is Ellis Ross, an MLA in the British Columbia Legislature since 2017, representing the Skeena riding for the BC United political party (formerly the Liberal Party). His region includes the communities of Kitimat and Terrace on the northern coast of British Columbia. Ellis also currently serves as the Shadow Minister for Energy and LNG. Before being elected to the British Columbia legislature, Ellis Ross was the Chief Councillor for the Haisla Nation, in that position, he signed an agreement with an LNG developer to build a plant on the Haisla Nation reserves. Here are some of the questions that Peter and Jackie asked Ellis: Why did you enter provincial politics and why have you decided to run in the next federal election for the Conservative Party? How has the LNG Canada project impacted people in your community? What is the status of LNG Canada? What is the status of Cedar LNG, a smaller project in collaboration with the Haisla Nation and Pembina Pipeline Corporation also located in Kitimat? Is BC’s requirement for net zero LNG by 2030 effectively a ban on new LNG development? What is the status of the transmission line and electricity supply, if LNG must be net zero by 2030? How do you think Canada should tackle the climate challenge and energy projects differently? What is the potential for blue ammonia shipments by rail and tanker from the Northern West Coast to Asia? Other content referenced in this podcast: Edison MotorsPlease review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

This week, our guest is Greg Lyle, Founder and President of Innovative Research Group. Innovative Research Group is a full-service market research firm with offices in Vancouver and Toronto. The firm has recently done some interesting polling on how Canadians are thinking about energy infrastructure and energy transition. Greg also talked politics, giving us some insight into how Canadians would vote (based on polling) if a federal election were held today. Here are some of the questions that Peter and Jackie asked Greg: How much do Canadians know about the energy transition? How do they feel it will impact them financially? How do they feel about energy projects in general and near where they live? How important is climate as an issue versus affordability? If a federal election were held now, what political party would win? Do the Conservatives need a credible climate plan for the next election? Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

This week, our guest is Carlos Pascual, Senior Vice President of Global Energy at S&P Global Commodity Insights. Carlos's past roles include establishing and directing the new Energy Resources Bureau at the US Department of State and serving as a senior advisor to the Secretary of State on energy issues. He has also previously been a United States Ambassador to Mexico and Ukraine. Here are some of the questions that Carlos tackled: How do you expect the US will react to the recent attack on an American base in the Middle East that killed three soldiers? What is Iran’s motivation in the escalating proxy war? Is it possible that Donald Trump will be elected president in 2024? How does the US election factor into the US strategy on the Middle East conflict? What are your thoughts on COP28 and the “transitioning away from fossil fuels” language that was adopted? Do you think a peace deal between Ukraine and Russia is possible? What is driving the growing divide between the Global North and Global South? Do you expect OPEC and Saudi Arabia will continue constraining oil production despite strong non-OPEC supply growth? Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

This week on the podcast, our guest is David Detomasi, an associate professor and distinguished faculty fellow in international business at the Smith School of Business at Queens University. He is also the author of “Profits and Power: Navigating the Politics and Geopolitics of Oil.” First, Jackie and Peter discuss the potential impact of the Canadian government’s proposed cap on oil and gas emissions on smaller oil and gas producers. A reminder that the deadline for providing feedback on the Federal Government’s “Regulatory Framework for an Oil and Gas Sector Greenhouse Gas Emissions Cap" is February 5th, 2024. Next, Jackie and Peter interview David about his perspectives on the politics and geopolitics of oil. Here are some of the questions they asked him: Why is the expanding conflict in the Middle East having little impact on oil prices? Do you expect additional sanctions on Iran? Will the United States continue to protect the Middle East and critical waterways despite having less dependency on the region’s oil versus the past? Describe the United States and Saudi Arabian relationship and how it has been changing. How would you describe Donald Trump’s energy policy from 2017 to 2021? How should we think about the geopolitics of oil from a Canadian perspective? How can Canada balance climate goals with producing gas and oil? Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

This week, our guest is Roger Dall’Antonia, President and CEO of FortisBC. FortisBC is a leading energy provider in British Columbia (BC), Canada. The utility serves about 1.1 million natural gas customers and 185,000 electricity customers. Roger explains the benefits of using natural gas to meet the peak winter heating demand and the challenges of using electricity to do the same. Because of the unique ability of gaseous fuels to flex up and meet demand, even on the coldest days, Roger sees a long-term future for gas. He explains how natural gas can become cleaner over time through a broad set of measures, such as increasing the amount of renewable natural gas (RNG) and clean hydrogen and efficiency measures that use less natural gas. Here are some of the questions that Peter and Jackie asked Roger: What is the outlook for the supply and demand of electricity in BC? How will Site C hydroelectric demand change the market? Is BC too reliant on hydro, considering concerns around drought? Why has BC recently decided to launch a call for renewable power from large-scale wind and solar farms? What is RNG and how much potential supply is there? How are you involving Indigenous partners in your projects? What are your thoughts on the Clean Electricity Regulations targeting net zero electricity by 2035? Considering Atlantic Canada’s exception from the retail carbon tax for heating oil, could this be the beginning of the end for the retail carbon tax in Canada? Other content referenced in this podcast: Other content referenced in this podcast: The Canadian Association of Petroleum Producers (CAPP)’s Data CentreFortisBC’s Clean Growth Pathway to 2050BC Renewable and Low-Carbon Gas Supply Potential StudyPathways for British Columbia to Achieve its GHG Reduction GoalsPlease review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

Peter and Jackie start the year by reviewing the extreme cold in Alberta that caused a spike in electricity demand, resulting in the Alberta Electricity System Operator (AESO) issuing four grid alerts between January 12th and 15th. The electricity supply-demand balance was the tightest on Saturday evening (January 13th), causing the Alberta Government to issue an emergency alert to people's mobile phones. About 200 MW of demand fell off the system within minutes of issuing the notice. Peter and Jackie also discuss other storms brewing on the horizon and introduce the 2024 energy themes to watch along with some predictions. Here are the energy-related topics they will be closely following: Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

On this week’s podcast, Jackie and Peter review the final takeaways from COP28. Next, they discuss the key energy themes that shaped the past year. The 2023 top themes include: 1) Artificial intelligence (AI) becomes mainstream 2) Investors now understand the clean energy interest rate nexus 3) 2023 will be the hottest year on record 4) Affordability issues slow the uptake of clean energy technologies 5) Policy-driven energy transition led by the US Inflation Reduction Act (IRA) 6) Oil and gas markets shrug off geopolitical risk 7) Big year for Canadian policy development – some opportunity and some frustration 8) Canada has two CCS wins in 2023 – Air Liquide Net Zero Hydrogen/Imperial Renewable Fuels and Dow Chemical’s Zero Emissions Ethylene Cracker 9) IEA appears to switch into climate advocacy mode Content referenced in this podcast: · December 13, 2023 UN COP28 Global Stocktake · December 6, 2023 CNN “2023 will officially be the hottest year on record, scientists report” · December 15, 2023 The Hill “NOAA: Almost 100 percent chance 2023 will be the hottest year recorded” Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

Peter and Jackie start this week's podcast by discussing the latest developments at COP28 in Dubai, including whether the wording “phase-out” or “phase-down” of fossil fuels will be included in the final text. Next, they talk about the Canadian energy policy announced by the Canadian federal government at COP28, including draft legislation to reduce methane from oil and gas by 75% from 2012 levels by 2030. The government also issued a document on the proposed cap on oil and gas emissions, with a deadline to submit feedback by February 5, 2024, draft legislation by 2024, and final regulations in 2025. Lastly, Kim Sturgess, CEO of WaterSMART Solutions, joins the podcast. WaterSMART Solutions is a leading consultancy for water management solutions. With funding and support from Alberta Innovates, ATCO, Capital Power, Hydrogen Naturally, Kiwetinohk Energy Corporation, and the Municipal District of Greenview, the consultancy published a study titled “Water Impacts from Hydrogen Development in Alberta in 2023.” Kim explains that water is consumed to make clean, blue, and green hydrogen and that the water source must be considered early in project planning. The report demonstrates that the full development of the hydrogen sector within Alberta is likely to both cause water supply challenges and be limited by water availability. Other content referenced in this podcast: - Draft legislation for the reduction of Canada’s oil and gas methane emissions by 75% by 2030 (versus a 2012 baseline) - Regulatory framework for an oil and gas sector greenhouse gas emissions cap (for feedback by February 5, 2024) - WaterSMART Study of Water Impacts of Hydrogen Development in Alberta, 2023 - WaterSMART Infographic: Water for Alberta’s Hydrogen Economy, 2023 Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

This week, our guest is Matt Jamieson, President and CEO of the Six Nations of Grand River Development Corporation (SNGRDC). SNGRDC’s mission is to achieve economic self-sufficiency for their community by 2030. The Six Nations of the Grand River is located near Toronto and is Canada's most populated First Nation, with just over 30,000 members. The Nation has established the Six Nations of Grand River Development Corporation, which has a separate governance and decision-making structure from the Nation’s political decision-making structure. The corporation has become an equity partner in a variety of renewable energy projects, including transmission, wind, solar, and battery storage. The corporation has ambitious goals for delivering economic benefits to the community, targeting $150 million annually by 2030 in direct economic impact to the Nation. Here are some of the questions Peter and Jackie asked Matt Jamieson: Why was a separate governance structure used for the corporation? What types of projects are you involved in? How did you finance your equity share in these projects with your partners? Tell us about the Niagara Reinforcement Line and the Oneida Energy Storage Project? How has consultation with Indigenous communities on these types of projects changed over the past decade? What are your thoughts on the Fall Economic Statement that the Liberal government could introduce a multibillion-dollar loan program to help Indigenous groups in Canada buy equity in resource projects? What is your advice to Indigenous communities and companies who want to work with them on how to get started? Other content referenced in this podcast: Six Nations of Grand River Development Corporation Website Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify

This week, Kelly Shue, Professor of Finance at Yale School of Management, joins the podcast. Earlier this year, Professor Shue and her co-author, Professor Samuel M. Hartzmark, published “Counterproductive Sustainable Investing: The Impact Elasticity of Brown and Green Firms.” Their research paper concludes that the sustainable investing practice of divesting high-emitting companies (referred to as “brown” firms) in favor of low-emitting companies (referred to as “green” firms) is counterproductive to reducing greenhouse gas emissions. Here are some of the questions that Peter and Jackie ask Professor Shue: Why did you conclude that the sustainable investing practice of divesting away from high-carbon companies towards low-carbon ones is counterproductive? What are some examples of “brown” and “green” companies? What are the shortcomings of measuring the percentage GHG emission reduction of a company, as opposed to absolute reductions? Were you surprised to learn that oil, gas, and energy-producing firms are key innovators in the United States’ green patent landscape? What are your thoughts on the anti-ESG movement, where some US states are asking their pension funds to divest ESG-orientated companies? Do you think institutional investors, who have made hard goals around reducing their financed emissions, should consider changing these goals? What are the shortcomings in using the company-level ESG ratings provided by firms such as Sustainalytics, MSCI, and Bloomberg to identify green companies? Other content referenced in this podcast: - Counterproductive Sustainable Investing: The Impact Elasticity of Brown and Green Firms (2023) - The ESG-Innovation Disconnect: Evidence from Green Patenting (2021) - Yale Insights: Green Investing Could Push Polluters to Emit More Greenhouse Gases (2023) Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ Check us out on social media: X (Twitter): @arcenergyinst LinkedIn: @ARC Energy Research Institute Subscribe to ARC Energy Ideas Podcast Apple Podcasts Google Podcasts Amazon Music Spotify