Global Climate News

Robeco, a Dutch asset manager, has expanded its engagement in climate and nature, focusing on natural resource management, deforestation (expanding from palm oil to soy, beef, leather, paper and pulp), biodiversity, and human capital management. They are also initiating new themes on transition minerals (supply chains in electric vehicle batteries) and protecting shareholder rights from weakening regulations.

The European Energy Exchange (EEX) has introduced new \"Mon-Sun Peak Power Futures\" contracts for the Spanish market and short-term futures for the Greek power market, starting February 24, 2025. These aim to facilitate renewables integration by addressing the impact of solar power on electricity spot prices. EEX also extended expiries to ten calendar years for French and Dutch power markets to support renewables integration and provide PPA hedging opportunities.

Global leader in floating energy infrastructure, Höegh Evi, saw a 50% indirect ownership stake sale from funds managed by Morgan Stanley Infrastructure Partners to funds managed by Igneo Infrastructure Partners. Aequitas Limited retained its 50% shareholding.

Finland-based Nordea Bank has been elected to the Executive Committee of the Green Bond Principles (GBP) and Social Bond Principles (SBP). Since 2014, Nordea has helped issue more than 280 sustainable bonds totaling over USD 17 billion. The bank is also a founding member of the UNEP FI Principles for Responsible Banking and participated in the European Commission’s Technical Expert Group on Sustainable Finance.

Danish startup EIVEE, providing carbon accounting solutions, attended Nordea’s investor speed dating. They help companies reduce their carbon footprint by calculating scope 1, 2, and 3 greenhouse gas emissions. EIVEE had eight meetings with investors and received positive feedback.

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 article discusses the growth of ESG data services and ratings in financial markets, driven by the European Commission’s Action Plan on Sustainable Finance. It highlights the increasing investment in ESG data services, the need for harmonization of concepts and methodologies, and the importance of improving data availability and quality. The article also points out inherent biases in ESG ratings and suggests best practices for corporations in working with ESG ratings and data.

Swedish LKAB, Boliden, and Vattenfall were mentioned in the context of discussions around corporate governance, sustainability, and long-term investments. The article highlights how these companies approach sustainability and emission reduction goals, particularly in mining and energy sectors. No specific actions or targets are announced.

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.

Dr Christine Chow, PhD, CEO of Tracker Group, has 25+ years of experience in investment management, research & consulting, focusing on technology, governance, and sustainability. She's a board member of the ICGN, an honorary advisor to the AFRC Hong Kong, and holds various academic positions. Her work significantly contributes to sustainable finance and responsible investment.

The Tracker Group, home to Carbon Tracker and Planet Tracker, appointed Christine Chow as its inaugural CEO. Chow has 27 years of finance experience and a focus on sustainable and impact investing. The appointment aims to accelerate the group's work in transforming global financial activities to achieve a net-zero and nature-positive future.

The International Capital Market Association (ICMA), Climate Bonds Initiative, and the EU have provided guidance on transition finance to achieve climate goals set in the Paris Agreement. The guidance includes handbooks and reports on transition finance pathways, use of proceeds instruments, and aligning with Sustainability-Linked Bond Principles. The EU report clarifies how companies can disclose compliance with the EU Green Bond Standard. The Climate Bonds Initiative offers a labelling framework for credible transitions.

The year 2024 was the warmest year on record, with global temperatures surpassing 1.55°C above pre-industrial levels. This led to a re-evaluation of global climate strategies, although current commitments are still insufficient. Citi and Bank of America left the Net-Zero Banking Alliance, and BlackRock left the Net-Zero Asset Managers alliance. The Mediterranean region experienced severe climate extremes, including record-breaking heatwaves and devastating floods.

The UK’s Department for Business and Trade’s (DBT) has added a new category, Low Carbon Energy, to its Made in the UK, Sold to the World Awards for SMEs. Two winners from last year’s awards, Intralink and SimVenture, reported revenue growth and market expansion.

Nordea, the largest financial services group in the Nordic region, launched a SEK/NOK 4.1 billion sustainability-linked bond. The bond finances sustainability-linked loans aligned with the Sustainability-linked Bond Principles, contributing to climate change mitigation through reduced greenhouse gas emissions or energy consumption. The bond's performance is reviewed annually by ISS ESG and a Nordea committee. Several Nordic investors, including Storebrand Asset Management and AMF, participated in the bond issuance.

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.

Nordea's Sustainable Finance Advisory lead in Norway, Catrine Birkevold Liem, discusses the integration of sustainability into banking, the challenges of the sustainable transition, and the increasing awareness and standardization in sustainability reporting. She highlights the importance of aligning high-level commitments with realistic company actions and the need for a holistic view of sustainability beyond climate.