Global Climate News

US-based Digital Realty, a data center REIT, has expanded its portfolio to over 41 million square feet across 300+ data centers in 25+ countries. The company has secured a 500-acre land bank near Dulles Airport to support nearly 4 gigawatts of additional capacity and formed a $7 billion venture with Blackstone to build hyperscale projects. Digital Realty's current portfolio possesses 2.7 gigawatts of power capacity and is investing in renewable energy sources, including contracting for 1.4 gigawatts of renewable capacity.

Norway's economy is growing, driven by increased oil and gas investment due to Europe's efforts to reduce dependence on Russian energy. Higher oil investment will be a key driver of growth in both the Norwegian manufacturing industry and the economy in the coming years. The government's compensation scheme for high electricity prices will significantly dampen the effect of high electricity prices on inflation and households’ living costs.

Investcorp, a global alternative investment firm, launched its Investcorp Wealth mobile application, providing investors with real-time access to their accounts and investment opportunities. The app has already facilitated over \$350 million in investments. Investcorp also announced the acquisition of Epipoli, an alternative payments enabler, and continues its investments in fintech, such as its partnership with Awaed.

Taiwan's Ministry of the Interior announced that the budget for the New Taipei City's Xizhi Baipao Lake sports, leisure, and ecological park and social housing construction project has been deleted. The project, planned to provide thousands of social housing units, childcare, long-term care, social welfare facilities, and a sports center, has been halted due to the budget cut of NT$260 million.

Taiwan's Land Administration Agency refuted claims by the People's Party that budget cuts for land planning would harm social housing and rental subsidies. The agency stated that the NT$41.4 billion budget increase for 2024 is primarily for social housing and rental subsidies, not land planning.

The article discusses Sustainability-Linked Bonds (SLBs), a new financial instrument aimed at financing a company's sustainability transition. Several companies, including ENEL, Suzano, Novartis, and Chanel, have issued SLBs, demonstrating the growing interest in this market. The SLBs' success depends on the transparency and ability to meet KPI targets.

A new study by Milliman found that homebuyers in 25 US states can incur over \$55,000 in flood damages over 30 years if they buy a previously flooded home. The NRDC highlights the lack of strong flood disclosure laws in many states, leaving buyers unaware of flood risks. Climate change is expected to worsen flooding, increasing these costs. The study used data from the National Flood Insurance Program and KatRisk models.

Norway's oil and gas exports are expected to reach approximately NOK 2,000 billion in 2022 and NOK 2,100 billion in 2023, due to high energy prices. Petroleum revenues could reach NOK 1,400 billion in 2022 and NOK 1,500 billion in 2023, significantly exceeding government forecasts. Challenges in energy markets are expected to accelerate the development of Norway’s power supply and renewable energy.

The EU Commission has proposed a revision of the Energy Performance of Buildings Directive and adopted the EU Emissions Trading System to include building fossil heating. Nordea encourages homeowners to analyze energy efficiency and discuss financing energy renovations, highlighting lower heating costs, higher building value, and renovation subsidies as incentives.

The EU has finalized its taxonomy for sustainable finance, including updated technical screening criteria for various sectors like forestry, construction, and manufacturing. The taxonomy aims to redirect capital towards sustainable investments and combat greenwashing. Mandatory disclosure requirements now extend to all financial market participants and companies subject to the NFRD.

Australia’s CEFC has invested $100 million in a build-to-rent (BTR) strategy managed by AXA IM Alts and St George Community Housing, aiming to deliver 3,000 sustainable, affordable apartments across Australia’s major cities. At least half will be offered at discounted rents to means-tested tenants in key worker hubs. The first project, a 397-unit development in Sydney’s Westmead, is expected to be completed in late 2025.

Japan-based ESR Group and CloudHQ announced a joint venture to co-develop and operate a US\$2 billion, 130 MW Cosmosquare Data Centre campus in Osaka. The campus will deliver 130 megawatts of data centre capacity over three phases, with the first phase ready in June 2025. ESR aims for net-zero emissions for its Data Centres platform by 2040, with 75% renewable energy by 2030.

The Financial Stability Board (FSB) has published a report describing a framework and analytical toolkit to assess the build-up of climate-related vulnerabilities in the global financial system. The framework traces how physical and transition climate risks could be transmitted to and amplified by the global financial system. The toolkit includes metrics to monitor climate-related vulnerabilities, focusing on providing a forward-looking perspective. The FSB will continue to develop its framework and toolkit, prioritizing further analysis of metrics and conducting analytical deep dives.

The United Kingdom's climate technology sector, while promising, faces challenges in scaling. McKinsey's analysis reveals risk aversion among investors, limited late-stage capital, and fragmented ecosystems. The report highlights the need for increased ambition, securing capital for hyperscaling through captive demand and cost advantages, building talent, and fostering collaboration between startups, incumbents, and the public sector. Examples include investments in CCUS and EV battery technologies, with funding figures cited for various projects and companies.

US-based Extra Space Storage Inc. invested \$30 million in new solar projects in 2024 to achieve 90% utility consumption with solar, targeting a 12% ROI. Veris Residential, Inc. invested \$30 million in Liberty Towers refurbishment, aiming for high-teens IRR. Ventas, Inc. invested \$300 million in 215 senior housing projects, resulting in over 530 basis points occupancy growth. Simon Property Group invested over \$300 million redeveloping Phipps Plaza, expecting high single-digit stabilized returns.

South Korea's Ministry of Land, Infrastructure and Transport has selected 1,983 units of specialized public rental housing in 11 locations nationwide. This includes 254 units in Geumcheon-gu, Seoul for young working people, and other units for the elderly and families. The initiative aims to improve housing satisfaction and promote regional development.

The Ministry of Land, Infrastructure, and Transport (MOLIT) of South Korea announced its 2025 key policy tasks focusing on safety, affordable housing, regional development, convenient transportation, and innovation in the national land and transportation industry. Key initiatives include supplying 252,000 public houses and 110,000 newly built and purchased houses, accelerating the 4x4 high-speed railway network, and strengthening safety management in response to climate change.

Taiwan's Land Administration Agency clarified that building quality and the size of areas undergoing危老重建(renewal of dangerous and old buildings) are unrelated. The agency emphasized the importance of local governments' roles in enforcing construction safety regulations and supervision to prevent incidents like the recent collapse in New Taipei City. They will continue to improve construction safety management through training and review policies.

Many companies are prioritizing high-quality, sustainable office spaces with amenities, leading to increased demand and higher rents in top-tier buildings. Tenants value sustainability investments for cost savings and emission reduction. Renovations focusing on amenities, outdoor spaces, and energy-efficient systems are attracting tenants. The office market recovery is stronger in New York City and the Sun Belt than other regions. Cousins Properties recently acquired a lifestyle office property in Charlotte, North Carolina for $328.5 million.

Swedish real estate company Wallenstam, owning 66 wind turbines, is self-sufficient in renewable energy. They prioritize five UN Sustainable Development Goals, focusing on sustainable cities and communities. A stakeholder analysis showed surprisingly aligned priorities across groups, with social issues ranking highly. Individual electricity and water metering reduced consumption by 10-25%.