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.

\"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.\"

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.

India and the USA, represented by the Ministry of Agriculture and Farmers Welfare and NASDA, respectively, held discussions to strengthen collaboration in key areas of agriculture, including Climate-Smart Agriculture, Voluntary Carbon Credit Initiatives, and Precision Agriculture using AI. The meeting also covered Cold Chain Management, Crop Insurance, and Capacity Building.

The EU Parliament published the amended final text of the European Green Bond Standard (EuGBS). The standard is voluntary; issuers must use it to label green bonds as “European Green Bonds” or “EuGBs.” A five-year evaluation period will assess the standard’s impact and feasibility. The EU Taxonomy’s technical screening criteria changes may require issuers to reconsider underlying investments in outstanding EuGBs. The European Securities and Markets Authority highlighted the importance of 100% allocation with high certainty for green bonds.

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.

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.

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.

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’.

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.

\"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.\"

Brazilian farmers are increasingly adopting sustainable agricultural practices, including biostimulants, biofertilizers, and biocontrols, to enhance soil health and boost productivity. More than 60 percent of surveyed farmers utilize these biological products, exceeding adoption rates in Europe and the US. They are also prioritizing regenerative agriculture techniques like no-till farming and cover cropping to reduce emissions and lower costs. However, challenges remain in monetizing carbon credits due to difficulties in proving additionality and permanence.

Swedish Landshypotek Bank refinanced its SEK 6 billion green covered bond, which finances sustainable forestry and absorbs CO2 emissions. The bond drew SEK 14.2 billion in investor interest, setting a new greenium record for AAA-issuers at 12 basis points. The underlying forests represent 513,000 hectares and are certified or have green management plans. Investors like Öhman Fonder participated in the bond and a forest visit.

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.

Chile has received $5.1 million from the World Bank’s Forest Carbon Partnership Facility (FCPF) for reducing 1.03 million tons of carbon emissions from deforestation and forest degradation. This is the first payment under Chile’s Emission Reductions Payment Agreement (ERPA) with FCPF, which provides up to $26 million for reducing 5.2 million tons of emissions. The program spans six regions and helps restore ecosystems while supporting communities to build climate resilience. The program also benefits from over $60 million from the Green Climate Fund.

Brazil-based InPlanet and Isometric announced the world’s first delivery of verified Enhanced Rock Weathering (ERW) carbon removal credits. The credits, corresponding to InPlanet’s Serra da Mantiqueira project in São Paulo, were verified by Isometric and delivered to Adyen, facilitated by ClimeFi. This milestone introduces a new, high-quality, permanent carbon removal credit format to the voluntary carbon market.

The 8th Annual Sustainable Investment Forum Europe will take place in Paris on April 29, 2025. Hosted by Climate Action in partnership with UNEP FI, the forum will bring together over 400 senior leaders to discuss topics such as a just transition, global carbon markets, and building resilience to physical climate risks. Attendees will gain insights and tools to navigate pivotal topics reshaping Europe’s financial landscape for a just, net-zero, and nature-positive economy.

\"A proposal for a single Global Cap-and-Trade Scheme to reduce global CO2 emissions has been put forward. The scheme would regulate upstream fossil fuel entities, aiming for steadily decreasing global emission limits and a global carbon-neutral economy. It proposes a fully auctioning upstream-type regulatory scheme with a single market of international allowance, generating potentially a trillion-dollar auctioning proceeds stream for financing SDGs.\"