Daily Digest for

The Mining Remediation Authority has published a study demonstrating the technical feasibility and cost-effectiveness of drilling into abandoned coal mines for mine water heat schemes in the UK.

• The study analyzed 564 boreholes across Great Britain, finding an 87% success rate for boreholes meeting their intended purpose and over 75% success in reaching targeted mine voids, with deeper boreholes (>300m) achieving 97% success.
• This research supports the scaling of mine water heat networks as a reliable, low-carbon energy source, complementing efforts by UK Geoenergy Observatories to enhance geological understanding.

This evidence base reduces perceived risks and encourages investment in mine water heat, advancing the UK’s clean energy transition and sustainable development in former coalfield communities.

The Bank for International Settlements has published a working paper analyzing the impact of climate-related risks on sovereign bond yields globally.

• The study covers 52 countries from 2000 to 2023, examining transition risks (carbon emissions per capita) and physical risks (temperature changes, weather disasters).
• Key findings include higher sovereign yields linked to transition risks, especially in developing and high-emission countries post-Paris Agreement, no significant pricing of temperature changes, and increased borrowing costs after weather disasters, notably for poorer and highly indebted countries.
  This research highlights the importance of fiscal solvency considerations for countries vulnerable to climate-induced natural disasters as these risks intensify.

The UK Government has allocated the largest ever budget of over £189 million to the Environment Agency for water pollution regulation in the 2024/25 financial year.

• Funding increase of 64% since 2023/24, fully sourced from charges on water companies, not taxpayers, ensuring polluters pay for enforcement.
• Introduction of the Water (Special Measures) Act enabling new levies to recover enforcement costs, alongside plans for 10,000+ inspections and 6,000 farm inspections annually by 2029 to reduce pollution.
  This funding boost strengthens enforcement capabilities and supports modernization efforts to clean UK waterways, with further legislation planned based on Independent Water Commission recommendations.