For Tuesday 16 June 2020 provided by Ecoprofit.com.au (#letsfindsolutions)

News for green investors and organisations, stock watch & grant opportunities

Here?s Our Chance, But Will We Take It?

In the last two Everlution Newsletters we discussed the carbon budget and the dire consequences of even limiting global warming to just 2?C. Essentially, the world needs to cut its annual carbon emissions from 36 gigatonnes down to 25 gigatonnes to achieve this target. On the current trajectory, global warming will reach 3.7?C by 2100. This would be catastrophic for life on earth.

Meanwhile, the failure of governments and central banks to set out a green recovery from the coronavirus crisis is threatening to derail vital UN climate talks aimed at limiting global warming.

Last week, the UK and the UN attempted to revive the stalled Cop26 climate talks, with a coalition of businesses committing to a Race for Zero, signing up to reduce their emissions to net zero by mid-century. Close to 1,000 businesses have joined the campaign, including household names such as Rolls-Royce and the food and drink majors Nestl? and?Diageo.

Mark Carney, former governor of the Bank of England and UN special envoy for climate and finance, said: ?The transition to net zero is creating the greatest commercial opportunity of our time. Net zero targets must be underpinned by transition plans so that investors can assess which companies will seize the opportunities in the transition and which will cease to exist.?

But rhetoric is not enough while central banks are still pouring money into propping up ?business as usual?, according to campaigners. ?It?s been great to hear the government?s warm words about the green recovery, but what really matters now are the policies and investments needed to make it a reality,? said Morten Thaysen, green recovery campaigner at?Greenpeace?UK.

?The UK has a chance to lead on the world stage next year with Cop26, and set an example of what building back better actually looks like. Committing to this ahead of the climate talks will show international leadership on what a truly green recovery looks like.?

The vast majority of the stimulus money so far announced by governments around the world is set to prop up the fossil fuel economy, according to analyst company Bloomberg New Energy Finance. More than half a trillion dollars worldwide ? $509bn (?395bn) ? is to be poured into high-carbon industries, with no conditions to ensure they reduce their carbon output.

Australia is no exception with a new wave of spending on energy projects to cut carbon emissions on the way under a contentious federal government plan that sidelines coal but highlights gas as a key fuel for the future. Further, the NSW government is pushing hard for approval (and getting closer) of the Narrabri fracking project.

Stimulus programs backing clean energy as a path out of recession would create nearly three times as many jobs for every dollar spent on fossil fuel developments, according to Ernst & Young (EY), saying a government focus on renewable energy and climate-friendly projects to drive the economic recovery from the Covid-19 pandemic could create more than 100,000 direct jobs across the country while cutting greenhouse gas emissions.

Commissioned by environment group the World Wide Fund for Nature, the EY report?suggests fast-tracking wind and solar farms that have already been approved, increasing electricity transmission capacity and backing new industries in battery manufacturing, electric buses, renewable hydrogen and manufacturing powered by renewable energy.

It estimates every $1m spent on renewable energy and exports creates 4.8 full-time jobs in renewable infrastructure or 4.95 jobs in energy efficiency. By comparison, $1m on fossil fuel projects has been found to create 1.7 full-time jobs.

That suggests that if 10% of what Australia?s federal and state governments had indicated they would spend in response to Covid-19 was directed towards clean projects it could create 160,000 jobs. ?It represents a fraction of the immediate government stimulus package while generating significant job numbers and reorienting the economy towards a more strategic, low-carbon trajectory,? the report says.

Grants/Subsidies/Funding ? Tax claims to be careful with

The ATO has called out that it will be closely monitoring claims for work-related expenses this year. More specifically, they?ll be looking at:

  • Claims for work-related clothing, dry cleaning and laundry expenses
  • Deductions for home office use, including claiming for ?occupation? costs like rent, rates and mortgage interest, which are not allowable unless you?re actually running a business from home.
  • Overtime meal claims
  • Union fees and subscriptions
  • Mobile phone and internet costs, with a particular focus on people who are claiming the whole (or a substantial part) of the bill for their personal mobile as work-related
  • Motor vehicle claims where taxpayers take advantage of the 68 cent per kilometre flat rate available for journeys up to 5,000kms (the ATO is concerned that too many taxpayers are automatically claiming the 5,000km limit regardless of the actual amount of travel)
  • Incorrectly claiming deductions under the rule that allows taxpayers who have incurred work-related expenses of $300 or less in total to make a claim without receipts (the ATO believes that some taxpayers are claiming this ? or an amount just less than $300 ? without actually incurring the expenses at all)

The focus on home office, mobile phone and home internet costs is likely to be particularly pronounced with so many people working from home due to COVID-19. So before making any claim, be confident that you understand what you can and can?t claim and that you have the necessary proof (invoices, receipts, diaries, etc) that you actually incurred the expenditure and that it was work or business related.

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Eco-tip for the day ? Fluorescent lights

A fluorescent batten with two x 1200mm tubes draws about 80 watts. An LED batten equivalent which gives out the same amount of light draws about 30 watts. Therefore, if you have 20 fluorescent battens in your office on 10 hours per day, the electricity consumption (allowing for work-days only) will be 1,600kWh approximately per annum. The LED equivalent will use 600kWh approximately for the same period. Annualised that is a saving of 0.9tCO2-e.

LED battens last 4 times longer than fluoros, coming in at 40,000 hours life. Also, they don?t fade nearly as much as fluorescents and they don?t flicker. Some models of LED battens have variable settings for colour from yellow to bright white too and have a much higher colour rendering index (i.e. a better-quality light).

Share watch ? Redflow?Ltd (RFX:AUX)

Australian flow battery manufacturer Redflow has launched a new capital raising seeking up to $23 million to complete the development of its next generation battery, and to shore up cash flows that have suffered from the impacts of the coronavirus on its order book.

The Brisbane-based Redflow says it wants to use the down-time in sales and deliveries to focus on the development of its next generation zinc bromide flow battery, which it hopes will deliver a further 30 per cent reduction in costs, on top of the 40 per cent reduction it secured after moving its manufacturing base to Thailand and with the Gen 2.5 battery.

?The current economic environment and a growing focus on renewable energy provide a unique opportunity for Redflow to focus on this critical program, that has already made significant progress over the past six months,? it said in a statement.

The Gen3 battery will have a new electrode stack, a new electronics board and an updated tank design. The company seeks to make improvements in the supply chain, and in engineering and productivity. It hopes to complete the re-tooling of the Thailand facility for Gen3 in October and begin production and installations at the end of the year.

Over the last nine months, deliveries have increased significantly and revenue jumped 166 per cent to $1.7 million. But?Redflow says the pandemic has caused?key customers to delay investment plans, including for battery storage, and particularly one telco customer that was interested in more than 1,000 installations.

The graph shows the ten-year share price history.

Financial indicators

The VIX fear gauge has dropped in the right direction by 6.39 points since Friday EST to 34.40.

The Dow Jones Industrial Average up since last Friday EST by 634.99 points or 2.53% to 25,763.16, the STOXX 600 up 0.02 of a point or 0.01% to 353.09 and the Shanghai Composite index up 7.56 points or 0.26% to 2,897.59.

Gold down slightly to 1,731.90. US 10-year Treasury Bonds down to 0.730 and oil up to 37.07. Cryptos Bitcoin up 154.40 points since Friday or 1.65% to 9,489.56.

ASX 200 up 98.20 points or 1.68% since Friday to 5,942.30. The Aussie dollar up to 69.11 US cents.

Eco Market Spot Prices

LGC $35.50

STC $39.50

ESC $26.00

VEEC $29.90

Sources:?RenewEconomy, demandmanager,? Reuters, SMH, Market Watch, Forbes