The escalating energy requirements of data centers, driven by the rise of artificial intelligence and cloud computing, are pressuring global power systems, leading to increased reliance on fossil fuels like natural gas and coal. This trend complicates efforts to achieve climate goals, as discussed at COP29 in Baku, Azerbaijan. Key Issues: Data Centers and Fossil Fuel…

The European Supervisory Authorities (EBA, EIOPA, and ESMA – the ESAs), in collaboration with the European Central Bank (ECB), have published the results of the “Fit-For-55” climate scenario analysis. The assessment concludes that while transition risks alone are unlikely to destabilize the EU financial system, combining these risks with adverse macroeconomic shocks could amplify losses…

At the COP29 climate summit in Baku, Azerbaijan, President Mukhtar Babayev delivered a climactic speech on Sunday, securing a $300 billion global climate finance plan to aid developing nations over the next decade. Dubbed the "Baku Breakthrough," the agreement emerged from contentious negotiations and narrowly avoided collapse. Babayev, who prepared two speeches for different outcomes, hailed…

The European Commission has unveiled its NextGenerationEU (NGEU) Green Bonds Allocation and Impact Report 2024, detailing the allocation of proceeds from its green bond issuances and their anticipated environmental impacts. The report highlights that investments funded by the program are expected to reduce greenhouse gas (GHG) emissions by an estimated 55 million tons annually across…

 The latest edition of the Carrots & Sticks (C&S) report, published in November 2024, reveals a growing shift towards voluntary sustainability reporting frameworks, with such policies now accounting for 58% of global regulations. The report highlights a significant rise in references to the Global Reporting Initiative (GRI) Standards, which are cited in 18%…

The UK government has published draft legislation to regulate ESG (Environmental, Social, and Governance) ratings providers, aiming to improve transparency and trust in the sector. The proposed law, set to be introduced to Parliament in early 2025, will place providers under the oversight of the Financial Conduct Authority (FCA). The move follows a 2023 government…

The European Union is taking bold steps to combat climate change, aiming to cut emissions by 55% by 2030 and achieve net-zero by 2050 under its ambitious Fit-for-55 framework. But how will this reshape the financial world? To address this, leading European financial authorities—the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA),…

COP16 in Cali, Colombia, saw mixed reactions from the 3,000 delegates, but there were some notable victories. One key achievement was the establishment of a new subsidiary body that will give Indigenous peoples, who protect 80% of the world’s biodiversity, a voice in future biodiversity COPs. Another win was the creation of the Cali Fund, a…

The International Society of Automation (ISA), a leading global authority on automation, has published a new position paper, “Advancing Precision Agriculture Through Control System Technologies,” to emphasize the essential role of industrial control systems (ICS) in precision agriculture. Precision agriculture leverages technologies like GPS, sensors, data analytics, and automation to enhance productivity and sustainability. However, rapid…

A new IFRS Foundation report reveals that more than 1,000 companies have begun referencing International Sustainability Standards Board (ISSB) standards in their reports, with 30 jurisdictions moving towards incorporating these standards into regulatory frameworks. The report, presented to the Financial Stability Board (FSB), highlights significant progress in aligning with the Task Force on Climate-related Financial…

At COP29, CDP and EFRAG announced a significant advancement in their partnership to enhance efficiency in the environmental data ecosystem. This strengthened cooperation brings the CDP’s global disclosure system into closer alignment with the European Sustainability Reporting Standards (ESRS), marking a pivotal step toward unified environmental reporting for companies worldwide. The collaboration, which involved joint mapping…

Former President Donald Trump secured a second term this week, defeating Vice President Kamala Harris in a highly divisive election focused on issues such as abortion, foreign policy, and the economy. With Trump’s return to the White House, the GOP's control of the Senate, and a conservative-leaning Supreme Court, experts are sounding alarms on potential…