Global Climate News

The Regional Greenhouse Gas Initiative (RGGI) has conducted 66 auctions, generating a total of $8,616,386,174.45 in proceeds. Auction 66, held on 2024-12-04, saw 15,943,608 allowances sold at a clearing price of $20.05, generating $319,669,340.40.

The Nordic sustainable bond market saw a record-breaking year in 2023, exceeding USD 60 billion in issuance, a 16% increase from 2022. This growth outpaced the global market, and three out of four quarters saw record issuance levels. The sustainable share of the total Nordic bond market reached 13% in 2023, up from 9% in 2021 and 11% in 2022. Denmark showed particularly strong growth, with sustainable bonds representing 21% of its yearly bond volume in 2023.

The International Capital Market Association (ICMA), Climate Bonds Initiative, and the EU have provided guidance on transition finance to achieve climate goals set in the Paris Agreement. The guidance includes handbooks and reports on transition finance pathways, use of proceeds instruments, and aligning with Sustainability-Linked Bond Principles. The EU report clarifies how companies can disclose compliance with the EU Green Bond Standard. The Climate Bonds Initiative offers a labelling framework for credible transitions.

Taiwan's Ministry of Environment (MOENV) unveiled an expanded carbon reduction reporting plan that includes various sectors consuming high levels of energy. Businesses emitting over 10,000 metric tons of CO2e annually or with single branches emitting over 5,000 MtCO2e must report greenhouse gas emissions starting in 2026. Carbon fees will be levied in 2026 on entities emitting more than 25,000 MtCO2e a year, affecting 281 enterprises.

dClimate's newsletter summarizes news on carbon markets, climate risk management, and climate data. MSCI reported $1.4B in retired carbon credits in 2024. Insurance is seen as key to restoring credibility in carbon markets. Arbol uses AI-driven parametric insurance to address climate-induced coverage gaps. California requires insurers to offer coverage in wildfire zones. A new high-resolution dataset for global grasslands has been released. The WMO operationalized WIS 2.0, a global information system for Earth data.

The European Union proposed a European Green Bond Standard (EuGBS) to increase the convergence of green bonds internationally. The ECB recommended that the EuGBS should become mandatory for newly issued green bonds within 3-5 years to enhance market functioning and strengthen the green credibility of the EU green bond market. The EuGBS requires supervision of external reviews by ESMA and taxonomy alignment of use of proceeds. The global supply of green bonds in 2021 nearly doubled compared to 2020.

\"International parties discussed marine carbon dioxide removal (mCDR) activities under the London Convention and Protocol. While some progress was made, no concrete action was taken. Differing opinions on commercial activity and governance were expressed among parties including Germany, the Netherlands, the UK, and the US. The parties agreed to continue work and evaluate options for appropriate action, including considering both potential risks and benefits of mCDR techniques.\"

China's energy and climate actions in 2025 will focus on balancing economic growth with decarbonization. Renewables will be scaled up, while coal power will undergo transformation. The national carbon market will expand to include more sectors. China's climate plan for the next 10 years will be released, and its ambition will be tested against geopolitical challenges.

The Nordic region reached a record year-to-quarter volume of approximately USD 46.5bn in sustainable bond issuance during the first nine months of 2023. Finland surpassed its previous full-year sustainable bond volume record, totaling approximately USD 6.7bn by the end of Q3 2023. However, Nordic Q3 sustainable loan volume decreased by 16% quarter-on-quarter and 21% year-on-year.

Denmark plans to introduce a phased agricultural CO2e tax from 2027 to reduce greenhouse gas emissions by 70% by 2030. This follows a similar tax for the industrial sector. The IMF highlights the need for a 25-50% reduction in greenhouse gas emissions by 2030 to meet climate goals, requiring massive increases in low-carbon investments.

The Nordic sustainable bond market demonstrated resilience from 2021 to 2023. Green bonds dominated (83% in H1 2023), with Sweden leading in issuance amount (EUR 83,166 million) and number of issuers (840). Corporates now dominate most Nordic markets except Norway (financial institutions). Market maturation shows increasing seasoned issuers.

\"India and the Middle East-based sentra.world, a sustainability integration company, has partnered with over 30 steel companies to help them decarbonize. They offer digital solutions for CO2 emissions measurement, reporting aligned with standards like CBAM and ISO, and net-zero target achievement. They also facilitate carbon credit monetization and ESG metric management.\"

The European Central Bank (ECB) analyzed the short-term effects of the EU Emissions Trading System (EU ETS) on European investment. The study found that while carbon price increases temporarily dampened domestic investment and shifted global FDI away from Europe, long-term benefits outweigh these short-term effects. High-carbon sectors, particularly construction, transportation, and manufacturing, were most affected. The analysis covered 2003-2019, excluding the pandemic.

Malaysia and Singapore signed an agreement to establish the Johor-Singapore Special Economic Zone (JS-SEZ), focusing on sectors like manufacturing, logistics, and digital industries. Six memoranda of understanding were also announced, including one related to carbon capture and storage and cooperation on emissions under Article 6(2) of the Paris Agreement.

The IEEFA report highlights financial risks of carbon capture and storage (CCS) in Canada, specifically the Pathways Project in Alberta. The project, aiming to capture CO2 from 13 oil sands facilities, faces cost challenges exceeding potential revenue, threatening financial sustainability and potentially requiring substantial government subsidies. The report indicates that operating costs are growing at twice the rate of CO2 captured volumes, and an oversupply of carbon emission performance credits (EPCs) risks reducing project revenues.

Ghana-based EfD Ghana organized a workshop on a 30-month project exploring voluntary carbon markets in developing countries. The project aims to improve carbon market initiatives, strengthen government assessment capacity, and facilitate future research calls. The initiative is also being implemented in Rwanda, Kenya, Côte d'Ivoire, Nigeria, and Morocco. Stakeholders from Ghana’s environment and climate sectors shared insights and expertise.

US-based six biggest banks (JP Morgan, Citigroup, Bank of America, Morgan Stanley, Wells Fargo and Goldman Sachs) have withdrawn from the UN-sponsored net zero banking alliance (NZBA) since December 2024, fearing political backlash under the upcoming Trump administration, which is expected to roll back climate regulations.

Responsible Investors (RI), a group of over 550 asset managers and financial institutions, managed over USD 130tn in loans and investment portfolios to fight climate change. They launched Climate Investing 2.0, a strategy targeting companies in the green economy's early transition phase. RI also launched Global Social Bond and Solutions Strategies, and a Global Sustainable Listed Real Assets Strategy focusing on greening energy, telecoms, and transportation sectors. In 2022, they engaged with the top 200 emitters and 15 oil and gas companies on methane emissions, representing EUR 2.1tn in AUM. They conducted 994 engagements, with over 10% resolved. RI received the European ESG Manager of the Year award.

The 2024 carbon dioxide removal (CDR) market grew 2.4 times larger than in 2023, with annual purchases increasing by 7.5 million tonnes of CO2. Biomass-based CDR dominated (82% of purchases), while Direct Air Capture declined to 11%. Two BECCS providers, Stockholm Exergi and Ørsted, captured over 70% of offtakes. Scandinavia and North America led in subsidizing CDR, with Sweden and Denmark committing $5 billion in public funding. Despite Biomass-CDR’s dominance in volume, DAC received the largest share of private investment.

Canadian companies Deep Sky and Low Carbon have announced a power purchase agreement, signifying a partnership between carbon removal and clean energy industries. This collaboration is expected to attract further investment and job creation in regions that support such initiatives. The Pembina Institute highlights the potential for growth in this sector.