Daily Digest for

Indonesia has established a new sovereign wealth fund, Danantara, to manage several large state-owned enterprises (SOEs) including Pertamina, Perusahaan Listrik Negara (PLN), Mineral Industri Indonesia (MIND), and Telekomunikasi Indonesia (Telkom). The move is not expected to change the Issuer Default Ratings (IDRs) of these companies, which are driven by government support expectations. Danantara’s management approach could influence the Standalone Credit Profiles (SCPs) of these entities, particularly if it requires higher dividend payouts or if the SOEs engage in riskier projects. The strategy may also encourage banks to increase lending to sectors prioritized by the government, such as renewable energy and affordable housing.

Kenya’s KCB Bank Kenya has received a $100 million Tier 2 capital facility from British International Investment (BII), the UK’s development finance institution. This funding aims to enhance KCB’s lending capacity for climate-related projects and women-led SMEs. The investment supports the bank’s alignment with UN Sustainable Development Goals, particularly focusing on gender equality, economic growth, and climate action. BII’s commitment to climate finance is evident as it plans to allocate at least 30% of its new commitments to climate finance between 2022-2026.

Australia is grappling with a significant issue regarding soft plastic waste, generating more than 70 billion pieces each year. The NSW Government has awarded $1.25 million across three projects aimed at tackling plastic pollution as Greater Sydney’s landfill capacity is expected to exhaust by 2030. Many supermarkets are reinstating soft plastic drop offs, operating in over 120 stores in Sydney and Melbourne. They’ve partnered with over 1,700 businesses to ensure responsible recycling of soft plastics through established victorian processing facilities.

US-based Yale University has investigated enhanced rock weathering as a method to combat climate change. The research team utilized a unique natural laboratory to study how minerals like basalt can absorb CO2 from the atmosphere when they weather. This approach holds potential for reducing greenhouse gas concentrations. Their findings could contribute significantly to strategies on mitigating climate impacts.

Egypt has continued to enhance its partnership with Bahrain through the Egyptian-Bahraini Governmental Committee, focusing on trade and sustainable development. The Minister of Planning, Economic Development, and International Cooperation, H.E. Dr. Rania A. Al-Mashat, highlighted significant Bahraini investments in various sectors, and Egypt aims to increase the proportion of green public investments to 50% by 2025. This commitment aligns with Egypt’s National Sustainable Development Plan: Egypt Vision 2030, addressing environmental and economic stability.