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 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.

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 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.

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.

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.

Taiwan's Executive Yuan held a technology advisory meeting in 2025, focusing on climate change adaptation and low-carbon energy. The meeting resulted in recommendations for achieving net-zero emissions and improving climate adaptation strategies, including strengthening science-based public communication, developing localized climate adaptation technologies, promoting diversified low-carbon energy sources, and considering national security in net-zero planning. The government aims to achieve a net-zero transition by 2050 and build Taiwan into an ‘artificial intelligence island’.

\"Nordea's report shows that EUR A and BBB bonds have tighter spreads compared to ordinary bonds, while SEK IG bonds show a wider spread. Green bonds have shown less volatility than ordinary bonds during the COVID-19 risk-off session. A \"greenium\" exists for EUR BBB corporates, but less so for EUR A bonds.\"

The global sustainable finance market experienced a return to growth in 2023 after a slowdown in 2022. The market has seen innovation and increased awareness of sustainability impacts. However, challenges remain, including transparency issues and greenwashing. New blended structures combining use-of-proceeds and sustainability-linked elements are emerging to address these concerns. Examples include sustainability-linked green bonds (SLGBs) issued by companies like Takamatsu, Verbund, GLP J-REIT, and Mann+Hummel, and Enel's updated SLB with targets for emissions reduction and EU Taxonomy-aligned investments.

Malaysia and Singapore have agreed to enhance collaboration in cross-border trading of renewable energy, including exploring pathways towards a credible framework for the mutual recognition of green attributes associated with cross-border electricity trade. They welcomed the inaugural pilot supply of green electricity from Malaysia to Singapore by Tenaga Nasional Berhad (TNB) to Sembcorp Power Pte. Ltd. via the Energy Exchange Malaysia (ENEGEM) auction platform, involving 50MW of electricity. A joint feasibility study by TNB and SP Group will explore expanding interconnector capacity and infrastructure.

The research reviewed the nascent economic literature on the governance of carbon dioxide removal (CDR) and discussed policy design and institutions. It assessed CDR's role in climate policy portfolios and highlighted cost-saving technological progress that could make CDR a game changer. The research also addressed challenges in CDR governance, such as non-permanence of carbon storage and default risks.