Global Climate News

Kjetil Olsen, Nordea's chief economist, discussed current economic challenges, including high inflation and the need to curb economic growth through interest rate hikes. He also highlighted three key challenges shaping the world economy: the green transition requiring massive investments in renewable energy, the decline of globalization potentially impacting product pricing, and demographic shifts leading to potential labor shortages.

Global biodiversity loss is at an unprecedented rate, with up to one million species at risk of extinction. More than 50% of global GDP depends on natural resources. The World Economic Forum estimates business opportunities in sustainable resource use to be worth up to USD 10 trillion annually by 2030. Nordea launched a biodiversity fund investing in sustainable resource use and biodiversity restoration.

The Nordea Economic Outlook report discusses the impact of the green and digital transition on inflation, noting that it may lead to higher inflation due to new taxes and increased demand for certain minerals. The report also mentions the potential for AI to boost productivity in the long term, but highlights challenges like retraining the workforce. The report analyzes the resilience of Nordic economies to monetary tightening and the global economic downturn.

The EU's greenhouse gas emissions decreased by 7% in 2023 compared to 2022 and by 18% compared to 2013, totaling 3.4 billion tonnes of CO2 equivalents. Electricity, gas, steam, and air conditioning supply saw the most significant reduction (43%). Transportation and storage was the only sector with increased emissions (14%). Household emissions also decreased by 14%. The greenhouse gas emissions intensity decreased by 32% from 2013 to 2023.

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 UK government is exploring a smart data scheme for the energy sector, aiming to replicate the success of Open Banking. The scheme would allow customers to securely share their energy consumption data with authorized third parties to receive personalized services, potentially leading to cost savings and increased control over energy usage. The call for evidence will remain open until March 10, 2025.

Modo Energy released version 3.3 of its Battery Revenue forecast for Great Britain. The update includes new intraday price modeling, re-optimized battery dispatch in the intraday market, updated nuclear capacities, and commodity price updates. Gas prices for 2025 are 13% higher than previously forecast.

Taiwan's Ministry of Economic Affairs announced that there are currently no plans to raise water or electricity prices. The government will review water prices within 3 months, considering affordability and user fees. To stabilize prices for the Lunar New Year, gasoline prices will only decrease, and prices for natural gas and bottled gas will remain unchanged until the end of February. Additionally, the price of small packages of sugar and 3-liter bottles of cooking oil will remain stable until the end of February.

MIT researchers conducted an experiment in Amsterdam, resulting in households reducing energy expenses by half, and a 75% success rate in alleviating energy poverty. The experiment involved providing energy usage data and coaching, along with smart devices in one version. Electricity consumption decreased by 33% and gas by 42%, lowering bills by 53%. A follow-up experiment will examine the benefits of residential building retrofits to lower energy costs.

The EU's greenhouse gas emissions decreased by 7% in 2023 compared to 2022 and by 18% compared to 2013. Electricity, gas, steam, and air conditioning supply saw the most significant reduction (43%). Transportation and storage were the only sectors with increased emissions (14%). Household emissions also decreased by 14%. The greenhouse gas emissions intensity decreased by 32% from 2013 to 2023.

Aurora Energy Research has published the European Renewables Market Overview Report (RESMOR), providing insights into solar PV, onshore wind, and offshore wind markets across 28 European countries. The report includes a comprehensive Excel databook and a 90-minute workshop with Aurora’s experts.

South Africa's tourism sector, driven by natural resources, shows potential for inclusive growth. In 2023, 8.5 million international tourists spent over R95 billion. Strategies to boost tourism include visa improvements, streamlined licensing, infrastructure investment, and safety enhancements. Sustainable tourism and eco-friendly practices are also growing. The country aims to leverage the G20 summit to promote itself as a leading tourism destination.

Czech Statistical Office (ČSÚ) has published data on import and export prices in November 2024, showing significant increases in electricity prices. Export prices increased by 0.9% month-on-month and 4.5% year-on-year, while import prices rose by 0.8% and 2.4%, respectively. Electricity prices significantly contributed to the overall increase, rising by 24.0% month-on-month in exports and 18.2% in imports.

Taiwan's Taipower has refuted media reports of a 7% electricity price hike, stating that the current plan is to subsidize residential electricity prices. They absorbed over TWD 800 billion in costs from 2022-2024, and are requesting government budget support to continue this. Residential electricity prices remain below cost at an average of TWD 2.77 per kilowatt-hour.

The Asian Development Bank (ADB) has recommended policy solutions to address the impacts of megatrends, including climate change, on labor markets in Asia and the Pacific. These solutions focus on creating a jobs-centered approach to megatrends, strengthening capacity to anticipate changing labor demand, understanding the distributional impacts of megatrends on people and jobs, and adapting to an era of uncertainty.

The article discusses the impact of rising inflation and central banks' actions on interest rates. Henrik Unell, Nordea's chief strategist, expects significantly higher rates due to persistent inflation and factors like the war in Ukraine and efforts to reduce energy dependence. He highlights Nordea's corporate loans with interest rate caps as a risk management tool for companies.

The UK government announced a plan to unleash artificial intelligence across the UK, including initiatives to create AI Growth Zones, build a new supercomputer, and boost AI adoption in public and private sectors. The plan includes £14 billion investment from three tech companies (Vantage Data Centres, Nscale, and Kyndryl) and aims to create 13,250 jobs. A key focus is on sustainable energy for powering AI ambitions, with Culham, Oxfordshire, selected as the site for the first AI Growth Zone, leveraging the UK’s Atomic Energy Authority’s expertise in fusion energy.

India has set ambitious targets for renewable energy (500 GW by the end of this decade) and net-zero carbon emissions for the railway by 2030. The Prime Minister highlighted India's commitment to green energy, noting that India was the first country to meet the Paris Agreement commitments, nine years ahead of schedule. He also mentioned the target of 20% ethanol blending in petrol by 2030, which India is set to achieve well before the deadline.

Taiwan has adjusted its gasoline and diesel prices, raising them by NT$0.5 and NT$0.6 per liter, respectively, due to increased international oil prices. The increase was partially offset by government subsidies and a reduction in fuel taxes, with Taiwan Oil Corporation absorbing NT$1.6 and NT$1.7 per liter for gasoline and diesel, respectively.

The UK and Taiwan signed the U.K.-Taiwan Enhanced Trade Partnership (ETP) Arrangement, focusing on investment, energy and net-zero emissions, and digital trade. The UK's outgoing representative highlighted this as a key achievement, noting increased bilateral trade and collaboration on net-zero emissions, with over 100 British businesses contributing to Taiwan's offshore wind development.