Search Climate Insights Directory

The global GSS+ debt market reached a cumulative volume of USD3.7tn by the end of 2022, though new issuance fell 24% year-on-year to USD858.5bn due to rising interest rates and macroeconomic instability. Green bonds remained the dominant theme, accounting for 58% of 2022 volumes at USD487.1bn, while social bonds saw the steepest decline (41%) as COVID-19 recovery funding tapered. Transition bonds were the only segment to grow, increasing 5% to USD3.5bn, driven by policy support in China and Japan. The report also highlights the emergence of sovereign sustainability-linked bonds (SLBs) in Chile and Uruguay and the need for a dedicated Climate Resilience Taxonomy to scale adaptation and resilience (A&R) financing.

The document argues that the steel and cement sectors in India are 'hard-to-abate' and require coordinated government, industry, and financial action to avoid carbon lock-in. Because breakthrough technologies (TRL 5-9) are currently commercially unviable and increase production costs—by up to 45% for steel and 80% for cement—market forces alone cannot drive their adoption. The authors recommend a policy mix of carbon pricing, public funding for demonstration pilots, capex subsidies, green public procurement, and embodied-carbon standards. Additionally, the brief emphasizes the need for a supporting enabling environment, including CO2 and hydrogen infrastructure, streamlined permitting, and concessional finance from international sources.

In 2022, wind and solar reached a record 12% share of global electricity, driving carbon intensity to a record low of 436 gCO2/kWh. However, absolute power sector emissions reached an all-time high of 12,431 mtCO2 because clean power growth did not fully meet rising global demand, which grew by 2.5% (+694 TWh). While coal generation rose by 1.1% to a record 10,186 TWh, the report forecasts that 2023 could be the first year of structural decline in fossil generation and the peak for power sector emissions. The analysis highlights a significant gap between current growth and the IEA NZE pathway, which requires wind and solar to reach 41% of global generation by 2030.

The document argues that U.S. manufacturing is responsible for a quarter to a third of national greenhouse gas emissions and proposes a suite of policy interventions to transition to clean industry. Key recommendations include trade mechanisms like carbon border adjustments, green public procurement, direct financial support for early-stage technologies, and the implementation of emissions and energy efficiency standards. It emphasizes the need for a combination of R&D support, subsidies for clean production, and improved lending mechanisms to ensure U.S. industry remains competitive against international producers while achieving decarbonization.

The document argues that ArcelorMittal's current climate strategy is inadequate to limit global warming to 1.5°C, citing a lack of absolute emission targets, a reliance on unproven carbon capture technologies, and a 'two-speed' approach that continues coal-based expansion in the Global South while deploying cleaner tech in Europe.

The report argues that financial institutions are hindering Europe's energy transition by providing hundreds of billions of dollars in support to fossil gas power producers and developers. It highlights a significant gap between the need to phase out gas by 2035 to align with a 1.5°C trajectory and the current trend of developing over 60 GW of new gas capacity. The document identifies a lack of robust sectoral policies among top banks and investors, which allows for continued corporate-level financing of gas-intensive utilities and the development of new base load plants, often as replacements for coal.

The 24/7 Carbon-Free Energy (24/7 CFE) Compact, launched in September 2021 at the United Nations High-Level Dialogue on Energy, aims to eliminate reliance on fossil fuels by moving beyond annual renewable energy matching to hourly, real-time matching of demand and carbon-free supply. Coordinated by SEforALL with support from Google, the Compact has grown to over 120 signatories, including governments, private companies, and academic institutions. The initiative supports a technology-inclusive approach, prioritizing storage, demand-side management, and the development of Granular Certificates to drive investment. Current and future efforts include a global study on policy and regulatory reforms to empower consumers and a working group exploring the role of green hydrogen in achieving 24/7 CFE.

The document outlines a strategy for India to transition to a green steel economy, identifying five primary technical levers—green hydrogen, renewable electricity, CCUS, scrap usage, and energy efficiency—and six policy objectives to drive the transition through standards, procurement, R&D, and sustainable finance.

The report examines the challenges facing Nigeria's energy transition, noting that economic crises and security issues have marginalised climate action in political discourse. It suggests that the government can drive renewable energy adoption by reinstating VAT and import duty exemptions for solar components and by completing the Presidential Power Initiative to improve grid stability. The author argues for a realistic energy vision that avoids suboptimal pathways and leverages existing agricultural networks for climate-smart interventions.

The NewClimate Institute argues that Germany's planned LNG terminal expansion exceeds necessary reserve buffers and threatens the country's climate targets. The report suggests that current floating terminals are sufficient for energy security, while further onshore expansion risks creating stranded assets and fossil fuel lock-ins. It criticizes the Federal Ministry for Economic Affairs and Climate Action (BMWK) and the Energy Economics Institute (EWI) for underestimating technical capacities in their analyses and for assumptions that conflict with the legally binding Climate Action Act.

The steel sector accounts for 11% of global CO2 emissions, primarily due to the blast furnace-basic oxygen furnace (BF-BOF) route which relies on metallurgical coal. While secondary steelmaking via electric arc furnaces (EAF) and green hydrogen-based Direct Reduction of Iron (DRI) offer cleaner alternatives, coal-based capacity continues to grow, with 80 million tons of annual capacity planned for relining. The document highlights that ArcelorMittal has weakened its 2030 emissions intensity reduction target from 25% to 10% and prioritizes shareholder returns over decarbonization. It calls on financial institutions to adopt corporate-level exclusion policies for metallurgical coal and stop financing the relining of blast furnaces.

Natural gas is the fastest growing source of CO2 emissions from fossil fuels, with methane leakage potentially making its climate impact equivalent to coal. To align with the 1.5°C goal, global gas production and consumption must decrease by 30% by 2030 and 65% by 2050, with developed countries phasing out gas power by 2035. The document rejects the use of gas as a bridge fuel or a solution to the 2022 energy crisis, noting that expanding infrastructure creates stranded asset risks, particularly for non-OECD countries. It further argues that converting gas infrastructure to hydrogen is technically unproven and economically inefficient, and highlights severe public health risks associated with gas extraction, flaring, and domestic use.

The report analyzes the path toward a zero-carbon power system in Qinghai province, China, by 2030. It identifies three primary challenges: the scale of renewables generation, consumption, and export; the flexibility requirements of a zero-carbon system; and operational challenges associated with high renewables penetration. To address these, the report evaluates the potential of battery energy storage systems, concentrated solar power, and green hydrogen for system flexibility, while proposing power market reforms including capacity pricing mechanisms and diversified ancillary services.

The report argues that the World Bank Group must shift from project-by-project 'greening' to a systemic transformation of its portfolio to support 1.5°C alignment. It proposes a strict taxonomy that excludes fossil gas and 'false solutions' like CCUS and nuclear power, while emphasizing a rights-based approach to ensure the energy transition does not burden marginalized communities or increase debt in low-income countries.

The report evaluates corporate climate alignment using the CCIF, finding that while mitigation efforts (such as GHG reporting and renewable energy procurement) are common, there is a critical lack of detailed climate adaptation planning. Analysis of 483 debt issuers reveals that no company performed well across all three CCIF objectives, and only 14% have an adaptation and resilience plan. Sector-level data shows utilities as the highest performers in reporting and transition, while healthcare and automotive sectors suffer from significant data gaps. Case studies of companies in China, India, South Korea, and Singapore highlight the use of internal carbon pricing and science-based targets, but emphasize the need for better Scope 3 emissions tracking and quantitative physical risk assessments.

The report examines the investment landscape for first-of-kind clean fuel projects in Canada, distinguishing between standard market risks and systemic market or policy failures. Through financial modelling of five project archetypes, the study finds that most are currently uneconomic and require targeted government intervention to become bankable. Key barriers include policy uncertainty, infrastructure deficits, skilled labour shortages, and the complexities of establishing equitable Indigenous partnerships.

The report details a surge in EU gas infrastructure projects, including 30 fast-tracked LNG terminals and extensive pipeline networks, driven by the 'gas panic' after Russia's invasion of Ukraine. It warns that the proposed 227.2 bcm/y of additional LNG capacity would increase the EU's maximum import capacity by 136%, potentially costing €53.5 billion and emitting up to 950 million tons of CO2 annually. The document argues that these uncoordinated efforts, led by countries like Germany, Greece, and Italy, conflict with the EU's 'Fit for 55' climate goals and the European Climate Law. Additionally, it critiques the 'European Hydrogen Backbone' initiative, stating that repurposing methane pipelines for hydrogen is technically risky and economically unjustified, further entrenching fossil fuel use.

Latin America possesses significant potential to lead in renewable energy, with over 319 GW of prospective utility-scale solar and wind capacity that could increase the region's current capacity by more than 460% by 2030. While Brazil, Chile, and Colombia are accelerating their buildouts and are on track to meet national targets, Mexico's progress has stalled due to policy shifts favoring state-owned fossil fuel entities. The report highlights the role of solar and wind in diversifying energy matrices to reduce reliance on drought-prone hydropower and the emerging economic opportunity of green hydrogen exports.

Global Witness contends that hydrogen heating is an inefficient and dangerous alternative to heat pumps, pushed by gas companies to avoid stranded assets. The briefing criticizes the UK Energy Bill for introducing a hydrogen levy on consumers and proposing forced participation in heating trials in locations like Redcar or Whitby, Ellesmere Port.

The Institute for Economic Justice (IEJ) and Climate Finance for Equitable Transitions (CLiFT) argue that the JET-IP's strategy of 'de-risking' private finance is insufficient to mobilise the required R1.5 trillion and exposes South Africa to significant fiscal, legal, and social risks. The authors contend that the plan fails to meet National Determined Contributions (NDCs) due to an over-reliance on private renewable energy and a lack of investment in public transport and energy efficiency. They recommend shifting to a 'rights-based' governance framework and an 'allocative credit policy' that prioritises public investment, local manufacturing, and comprehensive social protections for workers and communities.