Global Climate News

The Bank for International Settlements (BIS) Committee on Payments and Market Infrastructures (CPMI) and IOSCO have hosted two virtual workshops focusing on climate risks for financial market infrastructures (FMIs). The workshops, attended by over 300 participants, addressed how different types of FMIs are exposed to climate risks, discussed risk management approaches, and explored how the PFMI can be used to identify, monitor and manage climate risks. The workshops highlighted the need for system-wide approaches to climate risk management and the importance of operational resilience for FMIs.

The UK Treasury has appointed Geoffrey Spence for a 12-month term starting January 2025 to provide external expertise on project finance. Spence, former Global Head of Infrastructure at HSBC and Lloyds Bank, brings extensive experience in financing major projects in utilities, energy and infrastructure sectors. The appointment aims to support the government's economic growth objectives through infrastructure and energy sector development.

The European Central Bank (ECB) has announced a 25 basis points reduction in key interest rates while acknowledging the impact of EU Emissions Trading System and climate risks on inflation projections. The ECB forecasts inflation to reach 2.1% in 2027 when the expanded EU ETS becomes operational. The bank has highlighted climate crisis and extreme weather events as potential upside risks to inflation through their effects on food prices and energy costs.

The Central Bank of Barbados has managed the Enhanced Credit Guarantee Fund (ECGF) with IDB funding support, which has approved 326 guarantees totaling over USD 65 million. One-third of the guaranteed amount during the second loan programme went to the renewable energy sector. The bank is now negotiating a third round of USD 50 million funding that will focus on climate adaptation, export readiness, and financial inclusion.

The European Union Council and Parliament have reached a provisional agreement to amend the Benchmark Regulation, focusing on ESG and climate-related benchmarks. The new rules will maintain oversight of critical benchmarks including EU Paris-aligned and Climate Transition benchmarks, while requiring ESG-focused benchmarks to provide specific disclosures. The regulation is set to take effect from January 1, 2026.

The French Financial Markets Authority (AMF) has published recommendations for 2024 financial statements, emphasizing the need for companies to properly disclose climate commitments and their accounting implications. The guidance includes new requirements for reporting climate risks and ensuring consistency between sustainability reports and financial statements.

S&P Dow Jones Indices has published a rebalance review of the S&P Global Clean Energy Index and the S&P Global Clean Energy Select Index, which had their semiannual rebalances on October 18, 2024. The weighted average exposure score for the S&P Global Clean Energy Index increased slightly from 0.92 to 0.93. Significant changes in market allocation included a 6.41% increase in the weight of the U.K. and a 2.13% increase for Brazil, alongside an 8.80% decrease for the U.S. The indices track clean energy technology firms and clean power generation companies; the S&P Global Clean Energy Index underperformed the S&P Global BMI YTD, down 19.93% in USD total return terms.

Charles Counsell OBE, former CEO of The Pensions Regulator (2019-2023), has been appointed as Interim Chair of the Gambling Commission. During his tenure at The Pensions Regulator, he implemented the organization's first Climate Change strategy, focusing on driving environmental changes across the Pensions Sector.

Hong Kong-based Cathay Pacific Airways has settled 50,000 tonnes of carbon credits through HKEX's Core Climate carbon marketplace. Core Climate, launched in 2022, is Hong Kong's only carbon marketplace offering HKD and RMB settlement for international voluntary carbon credits, with over 90 participants and more than 50 certified projects across Asia, South America and West Africa.