Daily Digest for

The European Investment Bank (EIB) has granted PLN 2.25 billion (over €525 million) to Poland’s largest utility, PGE Polska Grupa Energetyczna, to support renewable energy production and infrastructure upgrades.

• Loan Amount: PLN 2.25 billion (~€525 million) to finance photovoltaic installations and upgrade a pumped-storage plant.
• Projects: Development of photovoltaic installations with a combined capacity of nearly 730 MW and modernization of a 540 MW pumped-storage power plant in southern Poland.
• Context: This is the seventh financing agreement between EIB and PGE, aligned with the REPowerEU strategy to support energy transition and climate action in Poland.
• Strategic Importance: The investments are aimed at reducing greenhouse gas emissions, enhancing energy security, and improving economic competitiveness in regions below the EU average GDP per capita.

This agreement strengthens Poland’s green energy capacity as part of the broader EU climate and energy goals.

The Singapore Sustainable Finance Association (SSFA) has launched its inaugural white paper titled ‘Financing Our Natural Capital: A practical guide for FIs getting started on nature financing’.

• The white paper was developed by SSFA’s Natural Capital and Biodiversity (NCB) Workstream and offers practical guidance for financial institutions in Southeast Asia to manage nature-related risks alongside leveraging climate action.
• Over 25 industry members contributed insights over six months; the paper highlights the economic-nature interdependence and includes case studies.
• It points out that over 60% of Asia Pacific’s GDP depends on nature, emphasizing risks from natural capital depletion and opportunities such as a potential US$4.3 trillion unlock in nature-positive investments by 2030.
• It targets sectors highly dependent on natural capital including agriculture, mining, manufacturing, and real estate, urging financial institutions to assess nature-related risks and dependencies.
• The white paper aims to connect financial institutions, policymakers, and economic players to translate global standards into practical strategies supporting Asia’s sustainable transition.

This initiative sets a foundation for integrating nature considerations alongside climate in financial decision-making, representing a significant step towards sustainable finance in Southeast Asia.

The European Banking Authority (EBA) has released a comprehensive ESG dashboard to monitor climate-related financial risks in the EU/EEA banking sector.

• The dashboard covers both transition and physical climate risks based on Pillar 3 ESG disclosures with data reference dates of 31 December 2023 and 30 June 2024.
• It highlights substantial exposure of over 70% of banks to corporates in sectors contributing heavily to climate change, pointing to significant transition risks.
• Physical risk exposure is generally under 30%, with variations due to differing geographical data granularity and assessment methods.
• The Green Asset Ratio (GAR) is low, just under 3%, signaling early stages of alignment with the EU Taxonomy; banking real estate lending also shows limited transition risk based on energy efficiency indicators.

This initiative advances the European Commission’s goal of systemic monitoring of climate-related financial risks and will be regularly updated alongside evolving disclosure templates and taxonomy regulations.

CSIR-IMMT, a premier minerals research institute under CSIR, has taken significant steps to advance critical mineral technologies through formal collaboration.

• Signed two Joint Declarations of Intent (JDIs) with Russian institutions: JSC Giredmet (Rosatom) and National University of Science and Technology MISIS.
• The signed declarations focus on strengthening cooperation in critical mineral processing and sustainable resource development.
• Leadership from CSIR-IMMT and the Russian institutions coordinated these developments, with involvement from Indian diplomatic representatives.
• Focus on research and development in process metallurgy and critical minerals vital for national initiatives like Atmanirbhar Bharat and Viksit Bharat.
  This collaboration is a confirmed move to bolster sustainable resource technologies and bilateral scientific cooperation between India and Russia.

The Philippines, through its Department of Finance, has called on international financial institutions such as the World Bank and IMF to increase their support for emerging markets and developing economies. The high-level meeting focused on enhancing global support amid complex challenges like economic shocks, climate change, and geopolitical tensions. The World Bank introduced the Project Preparation Facility to help countries prepare development projects, and the IMF discussed the importance of policy actions to buffer vulnerabilities. The G-24 communiqué emphasized promoting innovative financial instruments, climate action, and multilateral cooperation.