Finance

‘Don’t fail us’ – Climate Weekly

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Who should pay for loss and damage? Spoiler: not China

While there is a case for South Korea, UAE and Israel to join the donor pool, whichever way you measure it the US should pay more

Scientists warn data gaps must not block loss and damage

A shortage of weather stations across Africa shouldn’t stop climate victims accessing critical funds, scientists say

Greenwash alert as Cop27 draft allows double claiming of carbon credits

Companies and countries could take credit for the same tonne of CO2 cut under rules being negotiated in Sharm el-Sheikh

Cop27 tees up speed dating for climate investment deals

Sharm el-Sheikh talks are expected to approve a series of matchmaking events between investors, governments and project developers

Republican gains quash hopes of US delivering on climate finance

The results of the US midterm elections make it harder for president Joe Biden to meet his promise to developing countries

EU opens the door to a loss and damage facility – if China pays

Frans Timmermans gave the strongest signal yet the EU is willing to consider a fund for climate victims – but no decision this year

German, US cash aims to cut Egypt’s gas use and boost exports

Egypt has agreed to consider a net zero target and speed up renewable deployment with the multimillion dollar package

Latin America closes ranks at Cop27 around climate finance

Debt and climate shocks, combined with political shifts, have united historically left- and rightwing countries behind common asks

Vulnerable nations publish climate spending wish-lists

Over 30 countries are putting together “prosperity plans” – but their priorities are not always the same as funders’

Finance

Green Climate Fund

Rich nations deflect GCF climate finance burden to private sector

The US wants to open the door for philanthropists and businesses to contribute to the Green Climate Fund, despite fund staff’s doubts

South African bank held to net zero standard for GCF accreditation

Developing country board members objected that it was unfair to hold institutions in rich and poor countries to the same green standards

After US fails to pay its debt, UN’s flagship climate fund warns of austerity

Without more money coming in, the Green Climate Fund’s head warned that the pipeline of carbon-cutting projects in developing countries would have to be cut

Dispute grips Green Climate Fund over net zero condition for accessing finance

Board members from developing countries insisted that making a 2050 net zero goal a condition for accreditation to the fund breaches equity principles

GCF considers renewed partnership with UNDP, amid corruption investigations

The Green Climate Fund board has been advised to re-accredit the UN development agency, despite unresolved corruption claims against projects in Samoa and Armenia

Row erupts at Green Climate Fund over who defines climate adaptation

Two adaptation projects didn’t make it pass the UN’s flagship fund’s technical panel, while board members decide to partner with a fossil fuel backing Japanese bank

Joe Biden’s $1.2bn budget for Green Climate Fund falls short of campaigner demands

The proposed US contribution to the UN’s flagship climate fund this year is not enough to catch up with other donors

Green Climate Fund whistleblowers urge US to take its money elsewhere – until ‘toxic’ workplace is fixed

As John Kerry promises to “make good” on a $2 billion pledge to the GCF, the UN’s flagship fund faces critically low confidence in its senior management

Green Climate Fund

Carbon markets

Cop27 bulletin: Could polluter taxes fund loss and damage?

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John Kerry’s offsets plan sets early test for UN net zero standards

The US special envoy wants to use carbon credits to speed up the clean energy transition – but experts are sceptical the scheme can meet best practice.

World Bank backs carbon credit blockchain registry to attract crypto investors

The World Bank wants to direct the NFT craze towards projects that cut emissions and improve the transparency of carbon offset markets

Chinese companies seek global carbon market for green hydrogen

A project that supplied green hydrogen for buses at the Winter Olympics could be the first of its kind to sell carbon credits through the Clean Development Mechanism

Make polluters pay for climate adaptation, voluntary carbon market body proposes

An adaptation levy on carbon credits could raise up to $2.5bn a year by 2030, providing more predictable support for climate vulnerable countries

Data exclusive: The ‘junk’ carbon offsets revived by the Glasgow Pact

Analysis for Climate Home identifies hundreds of problematic projects that could be used to greenwash national and corporate climate plans

Australian carbon traders defend troubled offset market against whistleblower claims

Policy upheaval and stark criticism of the quality of carbon offsets from a former official have thrown Australia’s ability to deliver on carbon targets into doubt

Carney, Kyte oversee carbon offset rules to address greenwashing concerns

Two initiatives will release standards for the voluntary carbon market this year, while campaigners denounce offsetting as a “scam” that delays real climate action

Carbon markets

Carbon bubble

Oil tanker investments at risk from climate action, report says

Strong action on climate change would shrink demand for vessels by a third, impacting investment decisions being made now, analysts say

Asset managers worth $15 trillion make climate risk promise to Macron

The French president gathered the world’s biggest investors this week to push them to back climate-friendly projects

Gas companies face Californian wipe-out, say S&P, Moody’s

Ratings agencies say the state’s bid to go 100% renewable poses a ‘significant threat’ to gas generators’ credit stability

Australian bank sued over failure to disclose climate risks

Shareholders are taking the Commonwealth Bank to court, alleging that it is misleading investors about its financial position

Planned gas investments will blow 1.5C climate target, say analysts

Report by Climate Action Tracker warns that overly bullish gas demand forecasts will lead to stranded assets or an unsafe future climate

Exxon shareholders win ‘historic’ climate vote against board’s advice

Shareholders in world’s largest private oil company won a victory that signals deep unease about climate change amongst major investors

Exxon shareholder rebellion gains momentum ahead of climate vote

Major investors BlackRock and Vanguard could tip the balance and force oil firm to publicly divulge risk clean technology and regulations pose to its business

UK is in no position to lecture Saudis on oil dependence

PM Theresa May has offered to help wean Saudi Arabia off oil, but her government’s subsidies to North Sea producers are a poor model for the Middle East petrostate

Carbon bubble

Climate finance

As Cop27 kicks off, where are the coal to clean deals at?

Rich countries have been discussing “just energy transition partnerships” with South Africa, Indonesia, Vietnam, India and Senegal

South Africa pitches $84bn plan to shift from coal to clean energy

President Cyril Ramaphosa set out a 200-page investment plan ahead of Cop27 climate talks, urging partners to finance his vision

John Kerry: Carbon offsets can help wean developing countries off coal

The US special envoy wants the voluntary carbon market to finance energy transitions in emerging economies – but partner countries aren’t keen

Climate finance isn’t reaching African communities – Cop27 must fix this injustice

Indigenous peoples and local communities receive less than 1% of all climate funding despite scoring wins for people and nature

Climate fund approves plan to speed up coal retirement in Indonesia

The Climate Investment Funds aims to mobilise $4 billion from public and private sources to start decarbonising Indonesia’s power sector

Breakdown: Who is contributing what to South Africa’s clean energy shift

A leaked summary shows Germany and France are providing cheap loans while the UK is making the biggest contribution to mobilise private finance

South Africa approves $8.5bn energy transition investment plan

Insiders say less than 3% of the money rich countries promised is earmarked as grants, raising concerns about fairness and South Africa’s debt burden

Financial system shake-up – Climate Weekly

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Climate finance

Divestment

Climate fund considers India, South Africa to pilot $2bn coal transition scheme

Climate Investment Funds CEO Mafalda Duarte has been tasked with mobilising private capital to help wean developing countries off coal and create cleaner jobs

Malaysian bank to phase out coal finance, in a victory for campaigners

CIMB has been hailed as the first major bank in an emerging market to publish a coal exit strategy, after investing $2.6 billion in the sector last decade

Coronavirus: investors and policymakers must shift to increase resilience

Incentives for long-term sustainability, an end to fossil fuel subsidies, more telework are all needed to make the global economy resilient to shocks like Covid-19

South Korea urged to exit coal by 2029 to stick to Paris climate agreement

Climate Analytics research group calls on Seoul to phase out existing coal-fired power plants, stop new construction and halt funds for coal projects in other Asian nations

‘Trundling over to Africa’ – Climate Weekly

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Trump criticises ‘prophets of doom’ in Davos and touts fossil fuels

Trump, Thunberg set out radically different visions for the economy and climate in the 21st century

Finally saying the F-words at UN climate talks 

International negotiations have always focused on carbon emissions, not the coal, oil and gas that create them. That’s changing

European Central Bank should ‘gradually eliminate’ carbon assets: Lagarde

Nominee to lead the bank told MEPs it could adopt new measures to prefer green investments if she is confirmed

Divestment

Green bonds

Exclusive: Japan uses ‘environmental’ fund to finance Vietnamese coal plant

The Japan Bank for International Cooperation approved a loan to the controversial Vung Ang 2 coal project from a facility intended for “environmental preservation”

Ex-UN climate chief calls for green bonds to hit $1 trillion by 2020

Christiana Figueres is urging public authorities and corporates to scale up climate-friendly infrastructure investment by 2020, under the “green bond pledge”

India raises $400m green bond to fund renewables drive

Money raised by the Power Finance Corporation will support solar and wind projects, contributing to national renewables target of 175GW capacity by 2022

Fiji announces $50m ‘climate bond’ ahead of COP23 presidency

Prime minister Frank Bainimarama says money raised with help from the World Bank sets an example for innovative green finance to protect the vulnerable

China is taking the green bond market by storm

Beijing’s sustainable finance push is bearing fruit, with a world-leading $36.9bn worth of green bonds issued last year

Risky business: G20 panel to order climate stress tests

Donald Trump’s US election win may damage the Paris climate deal, but climate risk reporting rules for businesses could radically change the investment landscape

Poland green bond issue will not fund coal, says official

Investors are sceptical about Warsaw bid to finance renewables, given its coal-heavy energy policy

UK pitches China for climate-friendly finance trillions

London’s expertise places it in pole position to channel private finance to China, as superpower seeks to invest around $4 trillion a year in infratsructure

Green bonds