Climate Agreement Costs 1400 Billion Euros to the Financial Energy Sector

This is what shows a study of French Euler Hermes, world leader in credit insurance. The credit insurer is interested in, among other things, the newly built coal-fired power plants that must be closed and the exploitation of recently discovered and blocked oil deposits.

"Every industry is used to obsolete investments over time. But in the energy sector, things are going very fast now, "says Johan Geeroms of Euler Hermes Netherlands." Coal-fired power plants cost 2 billion euros easily. To recover this investment, they must spend a lot of time. But this does not correspond to the current climate policy and the current energy transition. "

According to Geeroms, in addition to the direct loss of value, there are many associated risks, such as the fact that energy companies have to look for new revenue models." This transformation involves all kinds of risks related to the implementation of artwork. They also have to deal with new government regulations all the time. They also see subsidies decrease for their traditional technologies. "

Euler Hermes considers that, in the energy sector, it will be possible to lower the level of energy in the energy sector much more than one does not. In addition, the credit insurer critically examines energy-intensive and energy-emitting industries such as steel mills, automobile manufacturers and fertilizer producers.