ESG Insider: Hopes fade for climate finance deal at COP29
S&P Global Sustainable1
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As world leaders gather this week at COP29, the UN Climate Change Conference in Baku, Azerbaijan, hopes for a deal on a new annual climate finance target have been dampened by the election of former US President Donald Trump, S&P Global Commodity Insights reports.
Trump has promised to pull out of the Paris Agreement on Climate Change and has also come under pressure to withdraw the US from the UN Framework Convention on Climate Change, which would cut off US diplomats from global climate talks entirely. Climate experts believe the US stepping back from global climate diplomacy would make more room for China to take a leadership role.
While the chances of setting a new climate finance target remain uncertain, countries did reach agreement on the first day of COP29 on the rules governing global carbon markets under Article 6.4 of the Paris Agreement. However, negotiations continue regarding the trade of carbon credits between individual nations under Article 6.2 of the Paris accord.
This week's newsletter also explores the roadmap the EU and Chile have agreed to regarding increased collaboration on critical minerals, and we feature a new S&P Global Sustainable1 research report focusing on the climate challenges that Asia-Pacific financial institutions face.
In this week's ESG Insider podcast, we explore the opportunities and challenges AI presents for sustainability.
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Chart of the Week
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COP29: Hopes dim for climate finance deal after Trump win
World leaders were aiming to set a new goal for climate financing at COP29, replacing the $100 billion/year fund established as part of the Paris Agreement in 2015. But with US president-elect Trump likely to exit the Paris Agreement for the second time, COP29’s summit goals have been thrown into doubt.
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COP29: Rules for UN-led carbon market under Article 6.4 approved in Baku
Negotiators from almost 200 governments on Nov. 11 endorsed a framework to create a new structure for a global carbon market led by the UN, opening up fresh demand for carbon credits, according to S&P Global Commodity Insights.
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How climate risks are shaping the landscape for Asia-Pacific financial institutions
A new report from S&P Global Sustainable1 and Bank of China (Hong Kong) explores the physical risks of climate change and how these will impact financial institutions in the Asia-Pacific region. The report also describes the growing risks posed by biodiversity loss and the dependencies that companies have on the ecosystem services that nature provides.?
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EU, Chile sign deal to boost critical mineral cooperation?
Chile and the EU have reached agreement on a roadmap of measures to increase collaboration on critical minerals, writes S&P Global Commodity Insights. Chile is the world's largest producer of copper and second-largest producer of lithium, two minerals playing a key role in the global transition to cleaner sources of energy.?
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Podcast
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ESG Insider Podcast
How AWS sees the AI landscape for sustainability evolving In this episode of the ESG Insider podcast, we explore the role artificial intelligence can play in advancing sustainability outcomes — and how the energy demands from generative AI programs could change over time. We talk with Hussein Shel, Chief Technologist and Head of Upstream Digital Transformation, Energy and Utility at Amazon Web Services (AWS). >>Listen on Spotify,?Apple Podcasts?or YouTube Music
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