The European Commission has published a comprehensive set of FAQs to assist investors and companies in implementing the EU Taxonomy, the classification system for defining sustainable economic activities. The initiative aims to enhance usability and reduce the administrative burden associated with the EU’s sustainable finance framework. The EU Taxonomy is a cornerstone of the EU Action…

The European Financial Reporting Advisory Group (EFRAG) has published its Final Comment Letter regarding the International Accounting Standards Board’s (IASB) Exposure Draft IASB/ED/2024/6, titled Climate-related and Other Uncertainties in the Financial Statements – Proposed Illustrative Examples (the “ED”). Support for IASB’s Illustrative Examples EFRAG expressed strong support for the IASB’s proposed examples, highlighting their potential to enhance the…

The Global Sustainability Standards Board (GSSB) of the Global Reporting Initiative (GRI) and Japan’s Sustainability Standards Board (SSBJ) have formalized their collaboration with a Memorandum of Understanding (MoU). This partnership, established during a meeting in Tokyo, aims to advance sustainability reporting practices and enhance corporate transparency in Japan and globally. Key Objectives of the MoU: …

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),…