Global Climate News

Finland has made significant investments in its green transition, including over €3 billion in wind power in 2023 and an additional €2 billion planned for 2024. A new nuclear power plant was also launched. The country aims to achieve self-sufficiency in electricity generation and is attracting foreign investment in green hydrogen production and industrial electrification. Green investments are projected at €2 billion in 2024 and €4 billion in 2025 (excluding onshore wind power), with a total of €140 billion in planned projects.

Denmark has issued green government bonds of around DKK 26bn (around 4.5% of the total Danish government bond market) to fund the green transition. The government plans to issue more green bonds in the future.

Greek company AKTOR S.A., involved in technical and energy projects, had 160,523,985 rights admitted to trading on the ATHEX exchange. The pre-emption right's trading period was set from January 10, 2025 to January 21, 2025, with a starting price of €0.0596. Forced sales of shares in ALPHA SERVICES AND HOLDINGS S.A. and ATHENS WATER SUPPLY & SEWAGE Co. also occurred.

Finland has experienced a decline in electricity prices, with the Nordic power futures indicating further decreases below 50 euros per megawatt-hour. The country is on track to become self-sufficient in electricity and achieve fossil-free power generation within the next couple of years due to new nuclear reactors and increased wind power capacity. Onshore wind power in Finland is noted as one of the cheapest methods for increasing zero-emission power in Europe, reducing reliance on Russian energy imports.

The article discusses the global economic challenges of 2021 and 2022, including high energy prices and inflation. Rising energy costs are partly due to reduced Russian natural gas supply to Europe. Central banks are responding by raising interest rates, although concerns exist about high public debt levels.

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.

India's Ministry of Youth Affairs and Sports organized the Viksit Bharat Young Leaders Dialogue from January 10-12, 2025. One of the ten identified themes was \"Steering India Towards a Sustainable Future.\" 3000 young leaders presented innovative solutions for a developed India to policymakers and the Prime Minister.

The article discusses several factors influencing energy markets in 2025, including tighter natural gas supply, OPEC+ decisions, shifting product demand (with increased NGLs and reduced demand for gasoline and diesel in China), the role of biofuels in the energy transition, and the increasing use of short-term energy options due to market uncertainty. The expected lifting of the temporary pause on new LNG export licenses in the US is anticipated to accelerate investments in the natural gas and LNG industry. S&P Global Commodity Insights believes that increases in OPEC+ output would put downward pressure on oil prices, potentially sending WTI futures to as low as $30 per barrel. New refined products supply from the Dangote refinery in Nigeria and the potential commissioning of the Olmeca refinery in Mexico will add pressure to existing refiners.

The Los Angeles-area wildfires caused an estimated $52-$57 billion in damage and economic loss. At least five people died, and tens of thousands evacuated. Around 170,000 Southern California Edison customers lost power.

Chile launched a training program on Circular Economy financing, co-funded by CTCN and supported by Go4SDGs. The program aims to promote circular economy financing in the business sector and strengthen financial institutions to expand their portfolios in circular economy initiatives contributing to the country’s decarbonization. The program, implemented by UNEP FI and Fundación suiza BASE, will involve 8 sessions (2 in-person, 6 virtual) and a practical methodology to develop a theoretical circular economy project.

The World Bank issued a NOK 5 billion sustainable development bond to raise awareness for biodiversity and ecosystem services. The bond, managed by Nordea, drew strong investor interest, highlighting growing investor focus on biodiversity. The World Bank also emphasized the need to integrate nature into economic models and decision-making, noting that over half of the world’s GDP depends on nature’s services. An estimated $700 billion in extra funding is needed annually to reverse biodiversity loss by 2030.

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.

Johan Trocmé and Viktor Sonebäck from Nordea Thematics discussed underinvestment in limiting global warming since 2016 and how ESG could be a solution. The Paris Agreement's commitment to investing in limiting global warming was also mentioned.

A survey revealed that concern about the climate crisis increases with age, with 23.4% of 18-24 year olds citing it as a main concern, rising to 37.8% for the 65-74 age group. Younger respondents prioritized concerns about food, fuel, electricity prices, and employment. The survey also showed a correlation between age and the importance placed on sustainability, with higher income individuals rating sustainability as more important.

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.

The European Central Bank (ECB) has lowered its key interest rates by 25 basis points, based on its assessment of the inflation outlook and monetary policy transmission. The Eurosystem staff macroeconomic projections expect headline inflation to average 2.4% in 2024, declining to 1.9% in 2026, and rising to 2.1% in 2027 due to the expanded EU Emissions Trading System. Energy inflation is expected to remain negative until the second half of 2025, except for an uptick in 2027 due to new climate change mitigation measures.

India's Prime Minister mentioned renewable energy, aviation ecosystem, electric mobility, metro network expansion, and bullet train projects as examples of the country's rapid progress. He also highlighted India's progress in renewable energy and its aim to become a developed nation by 2047, emphasizing the role of the Indian diaspora in this journey.

Great Britain's battery energy storage revenues reached a two-year high in December 2024, driven by high wholesale prices and record Balancing Mechanism dispatches. Revenues increased 65% from November to £84k/MW/year. The new Quick Reserve service, launched December 3rd, contributed to record-high reserve revenues, five times higher than the previous record. Wholesale price spreads increased to £96/MWh on average, with peaks of £260/MWh and £409/MWh on December 11th and 12th, respectively.

Taiwan's Central Bank encouraged the public to reuse existing banknotes instead of exchanging new ones for Lunar New Year, promoting sustainable practices and reducing resource consumption. The bank also promoted digital red envelopes as an environmentally friendly alternative.