COP28 & the era of sustainable finance in practice
International Sustainable Finance Centre (ISFC)
Apolitical, expertise-led think tank with an advisory practice focused on #sustainablefinance in finance and business
COP 28, held in the UAE, Dubai from 30 November to 12 December with the message ?bringing the world together“ brought significant developments that signal the start of greater change.
Final COP28 text agreed
A call to transition energy systems away from fossil fuels – the first time oil and gas had been included in a COP agreement – won over those demanding strong action - oil producers and developing countries were reassured by assertions that countries are free to follow their own paths to net zero.
Taken together with a call to triple renewables deployment, action on methane emissions and get a loss and damage fund going, Dubai may well be the most significant COP since the Paris Agreement in 2015.
More news & ongoing coverage from The Guardian : COP28 live
Focus on Emerging Markets and Developing Economies (EMDEs)
Global Capacity Building Coalition
On the Saturday December 2 2023, Global Capacity Building Coalition a new global collaboration to increase the availability and effectiveness of climate finance technical assistance programs for financial institutions in emerging markets and developing economies (EMDEs) was introduced.
It is assumed that EMDEs will require $2.4 trillion in annual climate finance by 2030 to build resilient, sustainable economies and enable the global transition to net zero. The main elements on which the Global Capacity Building Coalition will focus include the financial aspect of transitioning to a low-carbon, climate-resilient economy in emerging markets and developing economies, philanthropic funding as well as mobilizing climate finance was mentioned.
To read more visit Bloomberg Philanthropies or Daily News Egypt.
Capacity-building Alliance of Sustainable Investment (CASI)
CASI a platform which will be used to deliver high-quality and higher-impact sustainable finance capacity building services to Emerging Markets and Developing Economies (EMDEs) was launched at the COP28 on the Tuesday December 5 2023. Platform will play an important role in adapting the key elements of a green financial system in the developing countries.
The platform consists of 42 Chinese and global institutions (as a financial firms, financial associations, NGOs, service providers and universities) and will be providing learning opportunities through several learning programs that include face to face training as well as offering e-learning materials. CASI is expected to kick off the learning programs in 2024.
You can read more here .
Loss and Damage Fund
Another significant announcement at COP28 relates to newly established?fund, which should pay for and help reduce the impact of climate-driven storms and drought. Immediate announcements about contributions have been made, with a total amount of $700M.? Members that have contributed to the fund include European Union, United Kingdom, United States of America, UAE, Germany, Italy, France Japan and others.
At the same time, there were held discussions across the experts on the adequate and necessary amounts of contributions to the funds. For example regarding the promised amount of ￡60M from the United Kingdom, Chiara Liguor (Senior Climate Justice Policy Advisor) said that: “It is encouraging to see that the UK Government is committed to making the Loss and Damage Fund a reality, but this pledge is simply not enough and crucially, it's not new money,”.
“The initial pledges of $700m pale in comparison to the colossal need for funding, estimated in the hundreds of billions annually. The over 30-year delay in establishing this fund, coupled with the meagre contributions from affluent nations, particularly the US, the biggest historical polluter, signals a persistent indifference to the plight of the developing world.” said Harjeet Singh (the head of global political strategy at Climate Action Network International).
To read more about the fund visit BBC or The Guardian.
SFDR
New SFDR Regulatory Technical Standards (RTS)
The European Supervisory Authorities (ESAs) proposed new SFDR Regulatory Technical Standards (RTS) to the European Commission (EC). Key elements that are mentioned in a new draft of RTS include:
See the full Final Report on draft Regulatory Technical Standards here.
Net-Zero Data Public Utility (NZDPU)
Proof of concept Net-Zero Public Utility (NZDPU) that represents worldwide centralized datastore/library filled with information about companies climate targets, wchich is a key step towards freely available data in one place, as well as increased transparency on the climate change transition, was introduced by French President Emanuel Macron and UN Secretary-General’s Special Envoy on Climate Ambition and Solutions Michael Bloomberg.
Michael Bloomberg (Special Envoy of the UN Secretary-General for Climate Ambition and Solutions) has spoken out in favor of the introduction of this concept: “This new data portal will allow investors and regulators to see which companies are making progress on their commitments, while also empowering the public to hold companies accountable for backing up words with action. I want to thank President Macron, the Climate Data Steering Committee, UN Climate Change, and all our partners who helped to bring the project to life.”
Read more on Bloomberg Philanthropies.
News
EBRD launched its approach to nature at COP28. The approach outlines how the Bank will scale up nature action across three pillars: protect, invest and disclose. The approach is guided by the goals and targets of the Kunming-Montreal Global Biodiversity Framework and the joint MDB statement on nature, people and planet from COP26.
European Parliament advanced landmark ESG ratings regulation.
ESG Today - Monetary Authority of Singapore launched a voluntary code of conduct for ESG data and ratings providers (from ESG Today )
Responsible Investor article - France becomes first EU member state to transpose Corporate Sustainability Reporting Directive (CSRD) into law (from Responsible Investor )
Briefing/ article - New California anti-greenwashing law effective from 2024 takes aim at companies making green claims
领英推荐
Recommended readings
Green Finance Institute published publication directing its attention to the HGV sector: Delivering Net Zero, Unlocking Public and Private Capital for Zero Emissions Trucks . Where it touches on the topic of decarbonisation of the UK HGV sector in the context of investments, time management as well as other barriers and presents a financial solution.
汤森路透 published its report "The 2023 State of Corporate ESG: How companies are embracing ESG for resilience and growth". The report indicates that businesses are accelerating their proactive measures and are seeking to invest and integrate third-party solutions that, in part, help businesses stay abreast of international regulatory requirements and keep up to date with ESG global news. Mitigating supply chain risks and learning more about vendors’ and suppliers’ information have also been a critical highlight in the report in which data management and analysis play a key role.
Addressing whole life carbon? real estate portfolios: A step-by-step guide a document by IIGCC provides guidance for investors in the Net Zero Investment Framework. The main focus is on providing guidance, methodologies and recommendations in relation to WLC issues. As well as introducing the whole concept of WLC issues and increasing the overall relevance of WLC in investors' portfolios. The document also offers interesting statistics and summarises the carbon footprint of real estate.
The impact of the euro area economy and banks on biodiversity by Andrej Ceglar , Simone Boldrini , Chiara Lelli , Laura Parisi , Irene Heemskerk reports on the economic activities impacting nature and biodiversity. The paper explores impact of GHG emissions on biodiversity loss, overall risks of climate changes, transitions risks and strongly highlights the interconnectedness between the economy, the financial system and nature.
Why nature’s future underpins the future of business : a new report from FT Moral Money Forum touches on topics such as bee burglary, environmental profit-and-loss of sportswear brand Puma and draws and discusses the parallel between nature and business.
Reuters came up with an article regarding greenwashing and declaring “Nature positive” has hit the mainstream. This article highlights how environmental terms are gaining popularity and visibility across society. However also swiftly points out the inadequate use of these terms.
POLITICO published an article dedicated to Maro? ?ef?ovi? , where they provide key milestones of his political career and presents challenges he will be facing in his new EU role. ?
Online community insights
LinkedIn post : Rich Gilmore ? provided an update from COP28 regarding an end to the Carbon Integrity Wars.
LinkedIn post : Linda Romanovska summarized in her post key takeaways from the European Reporting Sustainability Standards side-event with link to the full discussion on youtube.
LinkedIn post : Ketan Joshi addressed in his post new Climate Trace tool with links, crucial findings and his own screenshots.
LinkedIn post : Sebastiaan Hooghiemstra reported an update about the proposed New SFDR Regulatory Technical Standards (RTS), with the link to the final report on the draft.
LinkedIn post : Simon Connell informed about COP28 and Transition, with the links and fundamental resources.
Tips for getting an understanding of the European Sustainability Reporting Standards - by Sofia Fredensborg Bager
Podcasts
Getting real about real assets and ESG - with Karen Azoulay , a BNP Paribas Asset Management podcast
Chinese Infrastructure Projects in Africa Don’t Meet ESG Standards - with Dr. Christoph NEDOPIL WANG & Cecilia Han Springer. Two years ago, China introduced a series of new so-called “green guidelines ” that it hoped would promote more sustainable development abroad. But in Africa, according to a new research report, it appears those higher environmental, social, and governance (ESG) have been difficult to meet.
The intersection between human rights, climate change and decarbonisation - Essential ESG: Episode 16
Events
Online: On 13 December will take place Sustainable Finance Outlook 2024 organised by Sustainable Fitch discussing key insights and trends to look out for in 2024. More information on the website .
Online: On LinkedIn on Wednesday, December 13 ?at 9am EST - 彭博资讯 will host a live conversation with Bloomberg Green’s Aaron Clark and Sharon Chen, along with International Methane Emissions Observatory Scientific Oversight Committee Chair Steve Hamburg , Carbon Mapper’s Mackenzie Huffman and the Oil and Gas Climate Initiative’s Vanessa Ryan .
Online: RICS will host a free webinar focused on the 2023 RICS Sustainability Report: Global challenges and opportunities for real estate & construction. Registration and information is available on the event website .
Online: EIOPA's 7th Sustainable Finance Conference that will take place on 14 December, will gather regulators, industry and stakeholders to critically assess efforts in delivering on sustainability goals.
Warsaw, Poland: On 8 February, Sustainable Investment Forum Poland (POLSIF) will host its launch event in cooperation with International Sustainable Finance Centre (ISFC) at the Warsaw Stock Exchange (GPW) . Event website is available here.
Luxembourg: The European Investment Bank (EIB) Group Forum 2024 will take place on 7-8 February in Luxembourg. The event brings together key voices from the public and private sector to discuss a range of issues, including social inequality, economic stability, digitalisation and the green transition. More information on the event website .
Prague, Czechia 2024: The CEE Sustainable Finance Summit will return to Prague from 27 until 29 May 2024. The agenda will include deep dives into ESG reporting, implementation of ESRS, CSRD, SFDR, CSDDD, and biodiversity indicators. Register for updates on the event website or email [email protected] for more information.