Is 2021 the Year for Climate Finance?

Last week more than 40 announcements and new financial products for our climate were made. This was largely due to three main factors: 

1. President Biden's sweeping reforms on climate and finance.

2. The start of the fiscal year for lots of companies, and setting their annual targets such as @BlackRock.

3. The annual World Economic Forum was used as a platform to launch new climate initiatives such as Robert Downey Jr.

Therefore, instead of analysing each one of them, here is a list of the most interesting and inspiring ones. From the EU setting a new record in renewables, to a record year for climate bonds, the great news, is that finance for our climate has become a priority for the whole finance industry.

The more sobering news is that we are still not even close to the capital necessary to solve our climate crisis. Let's hope that lots of new announcements are made throughout the year to remediate this climate finance gap.

ARTICLES & ANNOUNCEMENTS

EU: Green Consumption Pledge https://ec.europa.eu/commission/presscorner/detail/en/ip_21_182

US: FEMA Plan Would Free Up to $10Billions for Preventing Climate Disasters, as climate finance for adapation https://www.nytimespost.com/fema-plan-would-free-up-billions-for-preventing-climate-disasters/

Climate Finance: Capital markets can definitely help us reach our climate goal. We just need to put into action. #climatefinance #climatefund #climatef via World Economic Forum https://www.weforum.org/agenda/2021/01/capital-markets-reach-climate-change-goals/

Climate Adaptation: John Kerry plans to significantly boost finance for climate adaptation. Great news to increase #climatefinance and leverage the #climatetrillions necessary to meet our climate goals. #climatefund #climatef https://www.climatechangenews.com/2021/01/25/john-kerry-promises-significantly-climate-finance-adaptation-summit/

Private Equity: CLIMATE 50: https://sifted.eu/articles/climate-tech-investors-europe/

EU: Climate bond team https://www.euractiv.com/section/energy-environment/news/european-central-bank-sets-up-climate-team-considers-green-bonds

RUSSIA: Starts its first Carbon Trading platform https://intellinews.com/russia-greenlights-first-carbon-trading-pilot-programme-in-sakhalin-201047/?source=russia

US: @federalreserve creates climate committee. This should stimulate American capital markets #climatefinance #climatefund #US #federalreserve https://www.eenews.net/stories/1063723523

UBS launches its 2021 trend report https://www.ubs.com/global/en/collections/sustainable-investing/latest/2021/trends-to-watch-for-2021.html

Accounting standards for our climate: https://www.ifrs.org/news-and-events/2021/02/trustees-announce-next-steps-in-response-to-broad-demand-for-global-sustainability-standards/

USA: Climate risks is shaping Wall Street https://qz.com/1962476/climate-risk-is-about-to-reshape-wall-street/

Net-Zero: McDonald's opens first net-zero restaurant https://www.csrwire.com/press_releases/718066-mcdonalds-opens-first-net-zero-restaurant-disney-world

USA: Green Finance surge in the USA https://www.washingtonpost.com/climate-solutions/2021/01/27/surge-green-financing-boosts-climate-businesses/

DIVESTMENT: Swedish consumer credit https://www.bloomberg.com/news/articles/2021-02-02/bank-clients-in-sweden-face-new-climate-hurdle-to-get-credit

DIVESTMENT: NYC divests https://patch.com/new-york/new-york-city/nyc-divests-4b-fossil-fuels-combat-climate-change

DIVESTMENT: BlackRock https://www.theguardian.com/business/2021/jan/26/asset-manager-blackrock-threatens-to-sell-shares-in-worst-climate-polluters

US - White House executive orders on our climate crisis https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad/

China: ANALYSIS of China Carbon Markets https://www.bloomberg.com/news/articles/2021-01-25/why-china-s-nascent-carbon-market-has-long-way-to-go-quicktake

ESG Funds Bubble? https://www.bloombergquint.com/business/dot-com-era-stock-valuations-bringing-bubble-fear-to-esg-funds

Peak Oil? https://www.ft.com/content/77a94c24-9002-4af0-b265-61d9656159d0

EU: Renewable energy sets world record in 2020 https://edition.cnn.com/2021/01/24/business/eu-renewable-energy-fossil-fuels/index.html

INNOVATION

Tesco launches first sustainability-linked bond of €750m #climatefinance #climatefund #climatef #greenbonds #climatebonds #sustainability https://www.tescoplc.com/news/2021/tesco-launches-first-sustainability-linked-bond-of-750m/

FIDELITY: @Fidelity Launches ESG Investing Solution for Advisors #ESG #climatefinance #climatefund #fidelity https://www.esgtoday.com/fidelity-launches-esg-investing-solution-for-advisors/

Fossil Free Funds chooser https://fossilfreefunds.org/

Climate finance guidelines https://www.climatepolicyinitiative.org/publication/guidelines-for-building-a-national-landscape-of-climate-finance/

FUNDS

Footprint Coalition Ventures - https://docsend.com/view/9kb8p56bydk8t792

Redwood Aspiration Fund launch - https://funds.aspiration.com/redwood/

Angels syndicating for our climate - https://angel.co/syndicates/browse

NORDEA launches new fund: https://www.investmentweek.co.uk/news/4026551/nordea-soft-closes-eur6bn-global-climate-environment-fund

RESOURCES 

REPORTS

World Economic Forum - Nature and Net-Zero  https://www.weforum.org/reports/consultation-nature-and-net-zero

UNEPFI - Target Setting 2025 - https://www.unepfi.org/wordpress/wp-content/uploads/2021/01/Alliance-Target-Setting-Protocol-2021.pdf

AON - Climate disaster annual report - https://www.aon.com/global-weather-catastrophe-natural-disasters-costs-climate-change-2020-annual-report/index.html

SBTi - Science based targets Progress Report - https://sciencebasedtargets.org/sbti-progress-report-2020

University of Chicago - Social Costs of Carbon - https://epic.uchicago.edu/research/updating-the-united-states-governments-social-cost-of-carbon/

The Taskforce on Scaling Voluntary Carbon Markets (TSVCM) https://www.iif.com/tsvcm/Main-Page/Publications/ID/4254/Taskforce-Establishes-Core-Carbon-Principles-Publishes-Roadmap-for-Scaling-Voluntary-Carbon-Markets

Refinitiv - Global Carbon markets - https://www.refinitiv.com/en/resources/special-report/global-carbon-market-report

Climate Bonds - Annual Report 2020 - https://www.climatebonds.net/2021/01/record-2695bn-green-issuance-2020-late-surge-sees-pandemic-year-pip-2019-total-3bn

VIDEOS & PODCASTS

Climate Papers - Getting to Net Zero - https://www.imperial.ac.uk/grantham/publications/podcasts/podcasts-climate-papers/

Candriam Academy ESG Talks - Integrating external ESG research: the pros, the cons... and the how https://www.youtube.com/watch?time_continue=2&v=KcUZxBDZFQ8&feature=emb_title

GRAPHICS

Great graphic of the rise of renewables and fall of fossil fuels - https://public.tableau.com/profile/vani.agarwal#!/vizhome/RisingRenewablesFallingFossils/Fossil