Feisty February
Zero-point Partners
An advisory and project management firm focused on enabling the transition to a sustainable economy.
Welcome to the eleventh edition of The Green Guild, Zero-Point Partners’ newsletter, where you get a quick rundown of how the earth is doing.
February Round-up: What's new?
The Local Edit
Heavy showers submerge much of Pakistan’s largest province. Chaos ensued in Balochistan as heavy rains battered its coastal town of Gwadar. The downpour submerged multiple neighborhoods, caused power systems to collapse, severely damaged residential properties, and resulted in at least 29 deaths. Images of this recent deluge resemble those of the 2022 floods which yielded damage worth billions of dollars for the country.
Rains and snowfall arrive unusually late in Pakistan. This year, Pakistan is witnessing its regular snowfall and rain spells a couple of months late, post an unusual dry spell across the nation. The absence of snow sparked fears of water shortages, economic losses due to low tourism revenue as well as reduced agricultural production. In addition, a number of diseases across Punjab including influenza were attributed to the dry weather. The chief meteorologist of Pakistan, Muhammad Aslam, has cited the cause of these delays to be “high air pressure” and extremely high levels of smog and fog.?
GCF grants USD 500 million to Pakistan for improvement in the climate change arena. During the Senate Standing Committee on Climate Change that took place on 22 February 2024 to address climate-related concerns, it was disclosed that the country has been awarded USD 500 million by the Green Climate Fund (GCF), the world’s largest climate fund, to accelerate climate action within the country.
Lahore High Court makes environmental education compulsory for schools. Schools across the Punjab province are now mandated by law to integrate environmental education within their curriculum. As per the order of the Lahore High Court (LHC), educational institutions in the province are required to allocate one class period each week to teach students about the significance of environmental protection and preservation of plant life. This initiative aims to cultivate a generation of environmentally conscious citizens equipped with the knowledge and understanding to address pressing ecological challenges.
Local think tank proposes debt-for-nature swaps as a solution to mitigate the national debt burden. Tabadlab, an Islamabad-based think tank, published a report highlighting an extremely grim economic outlook for Pakistan, and forecasting inevitable default. The country’s domestic debt has reached unsustainable levels, surging sixfold since 2011 in nominal terms. The report labeled this sovereign debt situation as “a raging fire”. The study also provided possible solutions to this crisis, including debt-for-nature swaps. Debt-for-nature swaps are financial arrangements whereby a debtor nation agrees to protect or restore its natural resources in return for debt relief.
The Global Edit
World’s top polluter introduces mandatory ESG regulations. In a welcome move, China, which ranks among the top polluting nations of the world, has introduced mandatory sustainability reporting guidelines for listed companies. Reporting will begin in 2026 for the 2025 reporting period. Three of the country’s major stock markets announced the adoption of these guidelines which aim to maintain alignment with the ESG requirements rolled out by the European Union (EU). Reporting requirements for companies will encompass four “core content” topics, including governance, strategy, impact, risk and opportunity management, and indicators and goals which are broadly aligned with the International Sustainability Standards Board (ISSB) standards.
World Bank publishes research that shows changing global trade dynamics in the face of climate mitigation policies. A World Bank report highlighted how global policies to tackle the climate crisis are affecting the flow of trade across the world. It stated that these policies are risking fragmentation, inequality and reduced trade volumes within low and middle income countries. The study highlighted the need for policies to enhance coordination, support small and medium enterprises to adopt sustainable practices, and incentivize decarbonization efforts.
World exceeds 1.5°C mark over a 12 month period for the first time in history. The European Union’s Copernicus Climate Change Service (C3S) has recorded the highest global temperature in history over a 12 month period at 1.52°C. This breach of the 1.5°C mark, although not yet permanent, has been labeled by scientists as a warning to humanity as the world inches closer to permanently catastrophic temperatures. In addition, last month C3S also recorded the world’s hottest ever January. These warnings have highlighted the urgency to mitigate emissions at an unmatched pace or risk pushing the planet to the point of no return.
World awaits a Kodak moment for Exxon as firm fails to embrace the inevitable energy transition. Three months ago, an aggressive shareholder campaign was launched over Exxon’s unpreparedness for the energy transition. The firm is heavily dependent on revenue from fossil fuels as well as their chemicals or by-products. However, McKinsey projections have shown energy-related investments to rise beyond USD 60 trillion by 2040. By the same year, earnings from green technologies are expected to quadruple, while the earnings outlook for oil and gas is the opposite. With Exxon’s CEO last year confessing to the Financial Times of a lack of existence of fossil fuel alternatives within Exxon, concerns for the firm’s viability and transition efforts have only grown deeper.
JP Morgan resigns from Climate Action100+, highlighting the growing gap between EU and US on climate change. Climate Action100+ is an international coalition that ensures necessary climate action is being taken by global corporate GHG emitters. This investor-led initiative has been crucial in pushing public companies to enhance their climate-related disclosure practices. The group has recently introduced a requirement for provision of verified disclosures in an attempt to accelerate emissions reduction efforts. This move, however, has prompted the withdrawal of significant members, including JP Morgan, Pimco and State Street. The issue only serves to highlight the widening gap between the US and EU on climate change and associated regulations.
World’s first Green Guarantee Company launched for climate finance mobilization. COP28 witnessed calls from developing nations to bridge climate financing gaps. In this respect, the potential of guarantees as a tool to establish and scale up public private partnerships for climate-related initiatives was also discussed. This month the world celebrated the launch of its first ever Green Guarantee Company (GGC), established by the Development Guarantee Group. This institution is expected to provide guarantees worth up to USD 1 billion for institutional investors purchasing green bonds on the London Stock Exchange as well as green loans from private credit markets. Borrowers from developing nations will be assisted by the GGC in achieving improved credit ratings and accessing global capital markets.?
Events to Enhance the Environment – EEE
领英推荐
Local Calendar
Global Calendar
Our Efforts
Our team members participated in the following events in February:
Green your socials!
We recommend following these local environmental experts this month:
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International Development Banker | Non-Executive Director | Advisory Board Member| Digital Transformation | Corporate Governance | Sustainability
1 年Thanks for sharing. Is there any mechanism to track the proper and effective use of the 500 million $ funding by GCF?