Business

The analysis comes ahead of next month’s COP27 climate change summit in Sharm el-Sheikh, Egypt.
The shadow of 2015’s Paris Agreement will loom large over the talks in Egypt.
“We are still nowhere near the scale and pace of emission reductions required to put us on track toward a 1.5 degrees Celsius world,” Simon Stiell, executive secretary of U.N. Climate Change, says.

A boat photographed in Turkey. This year’s COP27 climate change summit will look to build on the work undertaken at COP26 in Glasgow.
Temizyurek | E+ | Getty Images

Countries are not doing enough to limit the planet’s temperature rise to 1.5 degrees Celsius by the end of this century, according to a new report from U.N. Climate Change.
In an assessment published Wednesday, the U.N. said that “the combined climate pledges of 193 Parties under the Paris Agreement could put the world on track for around 2.5 degrees Celsius of warming by the end of the century.”  

The analysis comes ahead of next month’s COP27 climate change summit in Sharm el-Sheikh, Egypt, where the shadow of 2015’s Paris Agreement will loom large. 
A key aim of the Paris accord is restricting global warming “to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.” 
The challenge is huge, and the U.N. has noted that 1.5 degrees Celsius is viewed as being “the upper limit” when it comes to avoiding the worst consequences of the climate emergency.

More from CNBC Climate:

U.N. Climate Change said its new report also showed that countries’ pledges, as they stand now, would see emissions jump by 10.6% by the year 2030, compared to levels in 2010.
“Last year’s analysis showed projected emissions would continue to increase beyond 2030,” it said.

“However, this year’s analysis shows that while emissions are no longer increasing after 2030, they are still not demonstrating the rapid downward trend science says is necessary this decade.”
In a statement Wednesday, Simon Stiell, executive secretary of U.N. Climate Change, pulled no punches about the current position the world finds itself in.
“We are still nowhere near the scale and pace of emission reductions required to put us on track toward a 1.5 degrees Celsius world,” he said.
“To keep this goal alive, national governments need to strengthen their climate action plans now and implement them in the next eight years,” he added.  
COP27 will look to continue the work undertaken at last year’s COP26 summit in Glasgow, Scotland, which resulted in the Glasgow Climate Pact.
On Wednesday Alok Sharma, the COP26 president said it was “critical that we do everything within our means to keep 1.5C in reach.” More

Sustainable Energy

Sustainable Energy
TV Shows

The hydrogen will be injected by Centrica Business Solutions into a gas-peaking plant in Lincolnshire, east England.
The last few years have seen big companies like Centrica make moves in the hydrogen sector.
Last month, European Commission President Ursula von der Leyen expressed support for hydrogen during her State of the Union address.

An Iberdrola facility photographed in Spain. Europe is looking to develop a number of hydrogen projects over the coming years.
Angel Garcia | Bloomberg | Getty Images

Hydrogen will be injected into a gas-fired, grid-connected power station during a trial project set to last 12 months, in the latest example of how major companies are looking to integrate the energy carrier into their operations and existing infrastructure.
In a statement earlier this week, London-listed Centrica said the hydrogen would be injected by Centrica Business Solutions into a gas-peaking plant in Lincolnshire, east England.

Centrica said the 49-megawatt facility had been “designed to meet demand during peak times or when generation from renewables is low, typically operating for less than three hours a day.”
“Mixing hydrogen in with natural gas reduces the overall carbon intensity,” it added.

Loading chart…

Some of the funding for the project is coming from the Net Zero Technology Centre, which was established in 2017 with backing from the U.K. and Scottish governments.
The trial will also involve a firm called HiiROC, which specializes in the conversion of hydrocarbons into hydrogen and what it calls a “solid carbon byproduct.”
The latter substance can be used in inks, car tires and plastics, among other things. On Monday, Centrica said it had upped its stake in HiiROC to around 5%.

“It’s anticipated that during the trial, getting underway in Q3 2023, no more than three per cent of the gas mix could be hydrogen, increasing to 20% incrementally after the project,” Centrica said.
“Longer term, the vision is to move towards 100% hydrogen and to deploy similar technology across all gas-fired peaking plant[s].”

Read more about energy from CNBC Pro

Described by the International Energy Agency as a “versatile energy carrier,” hydrogen has a diverse range of applications and can be deployed in a wide range of industries.
It can be produced in a number of ways. One method includes electrolysis, with an electric current splitting water into oxygen and hydrogen.
If the electricity used in this process comes from a renewable source such as wind or solar then some call it “green” or “renewable” hydrogen.
Today, the vast majority of hydrogen generation is based on fossil fuels. HiiROC says it uses a process called Thermal Plasma Electrolysis to produce hydrogen.

More from CNBC Climate:

The last few years have seen big companies like Centrica make moves in the hydrogen sector.
Just this month, Madrid-headquartered energy firm Cepsa said it would work with the Port of Rotterdam to develop “the first green hydrogen corridor between southern and northern Europe.”
In an announcement, Cepsa said the project would establish “a green hydrogen supply chain” between the Port of Algeciras in southern Spain and Rotterdam, the Dutch city that’s home to Europe’s largest port.
In September, the European Commission approved up to 5.2 billion euros (roughly $5.13 billion) in public funding for hydrogen projects, a move it said could unlock a further 7 billion euros of investments from the private sector.
The EU’s executive branch has said it wants 40 GW of renewable hydrogen electrolyzers to be installed in the EU by 2030.
Last month, European Commission President Ursula von der Leyen expressed support for hydrogen during her State of the Union address.
In remarks translated on the commission’s website, von der Leyen said “hydrogen can be a game changer for Europe. We need to move our hydrogen economy from niche to scale.”
In her speech, von der Leyen also referred to a “2030 target to produce ten million tons of renewable hydrogen in the EU, each year.” More

South Korean officials are working closely with the U.S. government to adjust restrictive regulations on electric vehicles under the recently passed Inflation Reduction Act.
Cho Tae-yong, ambassador of the Republic of Korea to the U.S., said officials are discussing “several possible options” to correct what the country believes to be unfair policies.
Under the IRA, plug-in electric vehicles much be produced in North America to qualify for the tax incentives.

Hyundai executives and government officials break ground on the automaker’s new “Metaplant America” in Bryan County, Georgia, on Tues., Oct. 25, 2022.
CNBC | Michael Wayland

SAVANNAH, Ga. – South Korean officials are working closely with the U.S. government to adjust restrictive regulations on electric vehicles under the recently passed Inflation Reduction Act, according to the county’s ambassador.
Cho Tae-yong, ambassador of the Republic of Korea to the U.S., said Tuesday officials are discussing “several possible options” to correct what the country believes to be unfair policies that eliminated up to $7,500 of tax credits for EVs produced outside North America.

“We are in very intense conversation at the moment,” Cho said Tuesday following the groundbreaking of a $5.5 billion electric vehicle plant by Hyundai Motor Group near Savannah, Georgia. “There is a great wealth of goodwill and determination to find a solution on both sides.”
Cho declined to discuss potential solutions, but said they are “racking our brains to come up with all possible avenues for solutions, big and small.” He said some solutions may require approval by the Biden administration, while others would have to involve Congress.
Under the IRA, plug-in electric vehicles much be produced in North America to qualify for the tax incentives. Previously, all plug-in EVs were eligible.
Hyundai, including Kia, is the second-best seller of all-electric vehicles in the U.S. behind Tesla. The company has contended the Inflation Reduction Act is unfair, as South Korea — where it currently produces its electric vehicles — has a free trade agreement with the U.S.

Read more about electric vehicles from CNBC Pro

Jose Munoz, Hyundai global president and chief operating officer, on Tuesday told media that the company is “much involved” in discussions with officials from both the U.S. and South Korea regarding the Inflation Reduction Act.

Without changes to the regulations, Munoz said the company’s vehicles would likely not be eligible for U.S. EV credits until early 2026 when its joint venture battery plant is expected to come online.
The current regulations would phase in stricter sourcing requirements regarding parts and raw materials for the batteries. They are designed to loosen the auto industry’s dependency on such materials from China.
Munoz last week described the loss of the credits as a huge blow to the automaker’s bottom line. Hyundai and others are lobbying for some of those requirements to be reversed. Hyundai and Kia operate their businesses separately in the U.S. but are owned by Hyundai Motor Group.
U.S. Deputy Secretary of Commerce Don Graves during the event on Tuesday called South Korea a strong trade partner, but did not comment on the Inflation Reduction Act. Last week, U.S. Trade Representative Katherine Tai spoke with Korea’s minister for trade, Ahn Dukgeun, about the IRA.
The new “Metaplant America,” located west of Savannah in Bryan County, is expected to open during the first half of 2025, with an annual production capacity of 300,000 vehicles.
Hyundai expects to produce a wide range of full-electric vehicles for U.S. customers at the new plant as well as batteries for the vehicles.
“This is going to be a massive operation with a scale that’s hard to comprehend,” Munoz said Tuesday.
Correction: Cho Tae-yong is ambassador of the Republic of Korea to the U.S. An earlier version of this story misstated his title.

WATCH LIVEWATCH IN THE APP More

Patients with mild Covid, defined as those not hospitalized, were 2.7 times more likely to develop blood clots, according to the study published in the British Medical Journal on Monday.
Patients hospitalized with Covid were 27 times more likely to develop blood clots, 21 times more likely to suffer heart failure and 17 times more likely to have a stroke, according to the study.
The risk of cardiovascular disease for mild and severe cases was highest in the first 30 days after infection.

A patient receives a coronavirus disease (COVID-19) test at Sparrow Laboratories Drive-Thru Services in Lansing, Michigan, December 27, 2021.
Emily Elconin | Reuters

People who caught mild cases of Covid-19 during the first year of the pandemic had a higher risk of developing blood clots than those who were not infected, according to a large study published by British scientists this week.
Patients with mild Covid, defined as those not hospitalized, were 2.7 times more likely to develop blood clots, according to the study published in the British Medical Journal’s Heart on Monday. They were also 10 times more likely to die than people who did not have Covid.

Scientists affiliated with Queen Mary University of London followed 18,000 people who caught Covid during the first year of the pandemic and compared their health outcomes with nearly 34,000 people who didn’t contract the virus.
Participants were tracked until they developed cardiovascular disease, died or until the study ended in March 2021. Most of the study was conducted before the vaccines rolled out in the Britain in December 2020.
While people with mild Covid had an increased risk of blood clots, patients hospitalized with the virus had a significantly higher risk of cardiovascular disease in general. The risk of cardiovascular disease for mild and severe cases was highest in the first 30 days after infection but continued later.

In addition, patients hospitalized with Covid were 28 times more likely to develop blood clots, 22 times more likely to suffer heart failure and17 times more likely to have a stroke, according to the study. Overall, they were over 100 times more likely to die than people who didn’t have Covid.
The scientists said their findings highlight the importance of monitoring even people who had mild Covid for cardiovascular disease over the long term.
“Our findings highlight the increased cardiovascular risk of individuals with past infection, which are likely to be greater in countries with limited access to vaccination and thus greater population exposure to COVID-19,” the authors of the study wrote.

CNBC Health & Science

Read CNBC’s latest global health coverage:

WATCH LIVEWATCH IN THE APP More

Fanatics’ Mitchell & Ness brand is getting some fresh investment from big name athletes and entertainers such as LeBron James and Kevin Hart.
Mitchell & Ness, which already boasts Jay-Z as an investor, was valued at $250 million in February.
The new investors plan to make Mitchell & Ness more diverse and culturally relevant.

Fanatics bought Mitchell & Ness in February of 2022.
Source: Fanatics

Some of the biggest names in sports and entertainment are investing in Fanatics’ lifestyle clothing brand, Mitchell & Ness.
Fanatics CEO Michael Rubin said the new ownership group will include LeBron James, Kevin Durant, Chris Paul, CJ McCollum, Devin Booker, James Harden, Joel Embiid, Odell Beckham Jr., Kevin Hart, Rich Paul, Rich Kleiman, Scooter Braun and Steve Stoute.

Established in 1904 in Philadelphia, Mitchell & Ness now makes and sells vintage jerseys and apparel collections for nearly every major sports league. In February, Fanatics purchased a 75% stake in the Mitchell & Ness with the remaining stake going to a celebrity cohort that included Jay-Z, LeBron James’ business partner, Maverick Carter, and rapper Meek Mill. The deal valued Mitchell & Ness at $250 million. The newest investors will be part of this cohort.
Mitchell & Ness is now a $350 million business, having grown 30% this year, Rubin told CNBC. He sees it one day turning into a multibillion-dollar brand.
“Adding owners like we did today is a great step towards doing that,” he added.
Rubin announced the news at The Wall Street Journal’s Tech Live on Tuesday evening. Financial terms of the deal were not disclosed.
“We’re really excited to get people that are making culture to be to owners and band together with us on this,” Rubin told CNBC later Tuesday.

Fanatics, which began as a sports merchandising company selling t-shirts and jerseys, has had a rapid ascent, growing into a $27 billion sports hub for millions of sports fans. In January, it acquired the trading card company Topps and in early 2023 it plans to launch sports betting.
The new owners say they plan to make Mitchell & Ness “the most diverse and culturally relevant consumer brand” through their influence and status as tastemakers.
Jay-Z initially became a fan of the brand because of its timeless appeal. “Fashion is cyclical, but classics are forever. Mitchell & Ness is a true classic,” he said in February. “I’m proud to play a small role in bringing it back, and in some cases, introducing the authenticity and quality of the Mitchell & Ness brand to a new generation,” he added.
Rubin said Jay-Z was instrumental in getting this team together and convincing Rubin to buy the brand in the first place. The group was enticed by the chance to further influence culture and the appeal of ownership.
“Athletes, celebrities and artists are sick of just getting checks, they want to make money from equity. They want to be partners in these businesses,” said Rubin.
For LeBron James, Mitchell & Ness holds a special place. When the then-budding basketball superstar was 16, he saw a man in the airport wearing a Houston Oilers jersey. The two struck up a conversation because of it and that’s how James met his longtime agent Rich Paul.
“LeBron James and Rich Paul came together by their love for Mitchell & Ness,” Rubin said.
Fanatics has utilized its customer database of over 94 million sports fans to attract new fans to grow Michell and Ness’s business. In June, Mitchell & Ness signed a rights deal to manufacture products for all 32 NHL teams.
Fanatics says men’s and women’s street fashion and nostalgic authentics are some of the fastest-growing areas within the Fanatics Commerce business.
Fanatics is a three-time CNBC Disruptor 50 company. Sign up for our weekly, original newsletter that goes beyond the annual Disruptor 50 list, offering a closer look at private companies like Fanatics that continue to innovate across every sector of the economy.

WATCH LIVEWATCH IN THE APP More

Chipotle Mexican Grill topped Wall Street’s estimates for its third-quarter earnings.
The burrito chain said same-store sales rose 7.6% compared to the year-earlier period.
Chipotle raised menu prices in August for the third time in 15 months.

Chipotle Mexican Grill on Tuesday reported quarterly earnings that topped analysts’ expectations on the strength of its latest round of menu price hikes.
CEO Brian Niccol said the company saw “minimal resistance” to higher menu prices during the quarter, although transactions declined 1%. Even with the price hikes, he noted the average price for a chicken burrito bowl, which accounts for about half of U.S. orders, is still under $9.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: $9.51 adjusted vs. $9.21 expected
Revenue: $2.22 billion vs. $2.23 billion expected

Net sales rose 13.7% to $2.22 billion from the year-earlier period, fueled by same-store sales growth of 7.6% and new store openings. Analysts surveyed by StreetAccount were projecting a same-store sales increase of 7.3%.
Like other restaurant companies, Chipotle has been raising menu prices as it pays more for ingredients. The chain has said that lower-income consumers have been visiting less frequently, but that most of its customer base is in a higher-income bracket. That trend accelerated this quarter, denting the company’s traffic.

Customers order from a Chipotle restaurant at the King of Prussia Mall in King of Prussia, Pennsylvania.
Mark Makela | Reuters

“We are seeing transactions be pushed in that negative range and obviously will continue to keep an eye on it as we go forward,” Niccol told analysts on the company’s conference call on Tuesday.
He added, however, that diners aren’t opting out of paying extra for guacamole or trading down from steak to chicken.

Chipotle hiked prices in August for the third time in 15 months, bringing them up 13% from the third quarter of 2021. Earlier in October, it raised prices for a fourth time in about 700 locations, representing more than a fifth of its footprint. Executives said the latest round was due to pockets of wage inflation in certain markets.
For the period ended Sept. 30, in-restaurant sales climbed 22.1%, signaling that customers are returning to Chipotle locations to order their burritos and tacos.
That trend has continued to hurt digital sales, which accounted for just 37.2% of revenue. But Chipotle’s profit has benefited from the reduced number of delivery orders, for which the company pays fees to third parties.
The burrito chain reported third-quarter net income of $257.1 million, or $9.20 per share, up from $204.4 million, or $7.18 per share, a year earlier. The company reported paying more for dairy, tortillas, avocados, packaging and labor.
Excluding $3.5 million in separation costs tied to the departure of an employee, corporate restructuring and other items, Chipotle earned $9.51 per share.
Shares of Chipotle were off more than 2% in extended trading Tuesday.
The chain opened 43 new locations during the quarter and all but five included a “Chipotlane,” drive-thru lanes reserved for digital-order pickup.
Chipotle’s board approved an additional $200 million to buy back its shares in the period.
For the fourth quarter, Chipotle is predicting same-store sales growth in the mid- to high single digits. By the end of the year, it’s forecasting it will open between 235 to 250 new restaurants. For 2023, the company is projecting 255 to 285 openings.

WATCH LIVEWATCH IN THE APP More

Canopy Growth announced it’s consolidating its U.S. assets into new holding company called Canopy USA.
The new holding company will house Acreage Holdings, Wana Brands and Jetty.
Constellation Brands said it will convert its common stock holding in Canopy into new exchangeable shares.

Canopy Growth
Tom Franck | CNBC

Canadian cannabis company Canopy Growth said Tuesday it’s consolidating its U.S. assets into a new holding company to speed up its entry into the U.S. market.
The company said the creation of Canopy USA will help it reduce costs and tap into the U.S. market, which is projected to be more than $50 billion by 2026. Marijuana is not yet federally legal in the U.S.

“As the growth of the U.S. cannabis market continues rapidly at the state level, this strategy enables us to take control of our own destiny and capitalize on the once-in-a-generation opportunity in the largest cannabis market in the world,” said David Klein, CEO of Canopy Growth Corp.
Canopy said the move will allow it to complete its acquisition of New York-based Acreage Holdings, Colorado-based edibles specialist Wana Brands and California extracts maker Jetty. Those assets will be housed under Canopy USA.
Canopy’s shares closed up 27% Tuesday.

Spirits giant Constellation Brands, which acquired a stake in Canopy Growth in 2017 for $190 million, said it will convert its existing common shares in Canopy into new exchangeable shares, which it said will protect shareholder value while retaining its interest in Canopy through non-voting and non-participating shares.
Constellation said in a statement that the transition is aligned with its decision to focus on its core beer, wine and spirits businesses.
“We believe that the conversion of our ownership interest will maintain Constellation’s ability to realize the potential upside of our investment in Canopy,” said Constellation’s CEO and President Bill Newlands.

WATCH LIVEWATCH IN THE APP More

James Gunn and Peter Safran will be the next co-heads of Warner Bros. Discovery’s DC Comics film and TV unit, the company announced Tuesday.
Their appointments will be effective Nov. 1.
Both Gunn and Safran have experience with the superhero genre. Gunn directed the “Guardians of the Galaxy” movies, and Safran produced “Aquaman.”

Peter Safran, left, and James Gunn
Getty Images

James Gunn and Peter Safran will be the next co-heads of Warner Bros. Discovery’s DC Comics film and TV unit, the company announced Tuesday. Their appointments will be effective Nov. 1.
The news comes during a tumultuous time for the newly formed Warner Bros. Discovery. CEO David Zaslav has been attempting to remake WarnerMedia after merging it with Discovery in April, including through layoffs and content elimination from streaming service HBO Max. 

Zaslav has been looking for someone to steady the ship at the DC film division, home to superheroes such as Wonder Woman and Superman, as Warner Bros. Discovery aims to capture the kind of consistent success enjoyed by Disney’s Marvel Studios.
Both Gunn and Safran have experience with the superhero genre and have brought heroes from the Marvel Cinematic Universe and DC Universe to the big and small screens, including “Guardians of the Galaxy,” “The Suicide Squad” and “Peacemaker.”
“DC has among the most entertaining, powerful, and iconic characters in the world and I am thrilled to have the singular and complementary talents of James and Peter joining our world-class team and overseeing the creative direction of the storied DC Universe,” Zaslav said in a statement Tuesday.
The pair will be responsible for the creative direction of the franchise across film, television and animation.
“We’re honored to be the stewards of these DC characters we’ve loved since we were children,” Gunn and Safran said in a joint statement. “We look forward to collaborating with the most talented writers, directors, and actors in the world to create an integrated, multilayered universe that still allows for the individual expression of the artists involved.”

Warner Bros. Discovery has been searching for a new head of this studio for months, but had little luck getting an executive to take the post.
“The Lego Movie” producer Dan Lin was at one point considered for the job, but ultimately, contract discussions ran into complications because of Lin’s ownership of production company Rideback and how Warner Bros. Discovery would compensate him for that.
Another possible candidate was Emma Watts, a former top film executive at 20th Century Studios and Paramount, who was rumored to have been approached to take the mantle last April, but did not take the job.
Gunn and Safran take the helm at a time when the DCEU is on shaky ground. While the franchise has an ardent fan base, critical reception for films have been poor and the overall direction of its films and television shows have been called into question.
“Black Adam” currently holds at 39% rating on Rotten Tomatoes from 227 reviews, the lowest ratings of a DCEU film since 2017’s “Justice League,” which also stands at 39%.
Over the weekend, the film generated $67 million at the domestic box office, the highest debut for star Dwayne Johnson as a leading man. The opening is a solid start for the film, on par with other flicks featuring less known heroes set in the DC Extended Universe, but significantly lower than those from the rival Marvel Cinematic Universe. The last time a MCU film opened below $70 million was in 2015 with the release of “Ant-Man.”
Warner Bros. recently moved its “Aquaman” sequel, which was set for a March 2023 release, to December 2023. “The Flash,” also set for release next year, is under a cloud of controversy due to its star, Ezra Miller, facing several allegations, including child grooming. Zaslav pulled the nearly complete “Batgirl” from its HBO Max release slate, allowing the company to take a tax writeoff.
Zaslav has recently discussed his desire to build a “long-term, much stronger, sustainable growth business out of DC” that focuses on quality. The executive is eyeing a reset of the DC cinematic universe that would set up a 10-year plan for the franchise.
Zaslav tapped Hollywood producer Alan Horn in July to act in a consultant role to help the CEO navigate the film business. Horn, a well-respected executive and Disney veteran, was with the Walt Disney Company when it began shaping its Marvel Cinematic Universe and the relaunch of the Star Wars film franchise.
He also helped bring the “Hobbit” films to the big screen for Warner Bros., as well as the eight-film Harry Potter film franchise and Christopher Nolan’s Dark Knight trilogy.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal owns Rotten Tomatoes.

WATCH LIVEWATCH IN THE APP More