THIS MATERIAL IS A MARKETING COMMUNICATION.
ESG Monthly (November 2022)
This month’s highlights:
The 27th Conference of Parties (COP27) wrapped up the 2 weeks climate conference in Egypt and concluded the outcomes of climate negotiations in the Sharm el-Sheikh Implementation Plan (United Nations, November 2022):
- COP27 was positioned as the “Implementation COP” whereby outcomes are primarily focused on work programmes to mitigate and adapt to climate change.
- COP27 made the landmark agreement to establish a loss and damage fund –a financing facility to finance developing countries most vulnerable to climate disasters.
- COP27 reaffirmed the global ambition to lower global warming to 1.5C and to phase down coal. The inclusion of “low emissions energy” text alongside renewables suggests openness towards natural gas or coal with carbon capture and storage.
- COP27 highlighted that a global transformation to a low-carbon economy is expected to require investments of at least USD4-6trillion per year.
Commentary on ESG News and Developments:
- The 27th Conference of Parties (COP27) wrapped up the 2 weeks climate conference in Egypt and concluded the outcomes of climate negotiations in the Sharm el-Sheikh Implementation Plan (United Nations, November 20222).
- In the European Union (EU), the European Supervisory Authorities announced a Call for Evidence on greenwashing, aimed at gathering information on greenwashing risks and practices across the banking, insurance and financial markets sectors (European Securities and Markets Authority, November 2022).
- In the United States (US), the Biden administration entered its first-ever deal, between the US federal government and an integrated energy company Entergy Arkansas, to source 100% carbon-free energy on a 24-hour-a-day 7-days-a-week (24/7) basis for all US federal facilities by 2030 (U.S. General Services Administration, November 2022).
- In the US, the government revealed a new voluntary carbon trading market scheme, called the Energy Transition Accelerator, to boost private investment in clean energy projects in developing countries (The Guardian, November 2022).
In Asian Pacific markets…
- China released a carbon neutrality roadmap for the non-ferrous metals sector, setting out plans such as the acceleration of research and developing and application of low carbon emissions technologies for the sector by 2025 (Fastmarkets, November 2022).
- India published its Long-Term Low Emissions and Development Strategies (LT-LEDS) at the COP27 summit in Egypt setting out steps it will take to reach net zero by 2070 (United Nations, November 2022).
- Indonesia received a USD20billion funding through a Just Energy Transition Partnership with the US, the UK and other G7 countries to support the phase-out of coal use (The Washington Post, November 2022).
- The New Zealand government issued its first-ever green bond of 2034 sovereign green bonds (NZD3billion / USD1.83billion) at a yield to maturity of 4.35% to fund efforts to meet its net-zero carbon target by 2050 (Reuters, November 2022).
December 02, 2022
Staying Ahead with Mirae Asset’s Latest Insights
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