Search Climate Insights Directory

The ASEAN sustainable debt market experienced rapid growth in 2021, with GSS debt issuance reaching USD 24 billion and sustainability-linked instruments reaching USD 27.5 billion. Singapore remains the regional leader, while the green theme continues to be the most popular. The report highlights the emergence of the ASEAN Taxonomy for Sustainable Finance and the growth of local currency issuances, particularly in Singapore and Thailand.

The ASEAN+3 sustainable debt market reached USD 449 billion by Q3 2021, driven largely by the People's Republic of China, Japan, and Hong Kong, China. While green bonds remain dominant, the COVID-19 pandemic accelerated the issuance of social and sustainability-labeled instruments. Local currency (LCY) issuance represents 64% of the region's total sustainable debt, though this is unevenly distributed; Thailand has the highest LCY share at 98.5%, while Viet Nam and Indonesia rely heavily on foreign currencies. The report identifies barriers such as lack of market awareness, high transaction costs for small deals, and a shortage of bankable green projects. It recommends increasing sovereign GSS bond issuance, expanding the investor base through ETFs and indices, and establishing centralized sustainable finance platforms to improve project visibility.

The briefing reports that 2030 climate target updates have stalled since COP26, leaving the world on track for 2.4°C of warming based on current targets and 2.7°C based on current policies. Despite the Glasgow Climate Pact's request for governments to strengthen their Nationally Determined Contributions (NDCs) by the end of 2022, no major emitter has updated its target. The report highlights a significant emissions gap, noting that global emissions in 2030 would be twice as high as the 1.5°C limit allows without increased action. It suggests four pathways for governments to update targets: full NDC updates, expanding NDC coverage (specifically for China regarding non-CO2 gases), participating in new sectoral initiatives, or implementing policies to overachieve existing targets.

The paper analyzes how regional trade agreements (RTAs) act as 'incubators' for promoting trade in environmental goods and services (EGS) in the absence of significant multilateral progress at the WTO. It examines various RTA approaches to defining EGS, implementing market access commitments, coordinating regulations, and providing support measures for developing countries. The authors highlight that RTAs often go beyond WTO rules, utilizing tools like specific EGS lists, 'ex-outs' for precise product classification, and sectoral chapters to address non-tariff barriers. These regional experiences are presented as potential models for the WTO's Trade and Environmental Sustainability Structured Discussion (TESSD) and the Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (IDP).

The document outlines a draft WTO agreement intended to limit subsidies that contribute to illegal, unreported, and unregulated (IUU) fishing, the fishing of overfished stocks, and overcapacity. It highlights the convergence among members on these three substantive areas and notes the goal of reaching a consensus at the Twelfth Ministerial Conference (MC12) to protect food security and livelihoods dependent on healthy fish stocks.

China's green bond market experienced record growth in 2021, driven by the nation's '30·60' climate targets and the 14th Five-Year Plan. Annual issuance aligned with Climate Bonds definitions reached USD 68.2 billion, making China the second largest green bond market globally. The market saw a significant shift as non-financial corporates became the primary source of supply, overtaking financial corporates. Over 60% of the use-of-proceeds was directed toward renewable energy. The report also highlights the emergence of carbon neutrality bonds and transition finance as key tools for decarbonizing high-emitting sectors.

The Indian GSS debt market experienced significant growth in 2021, reaching a cumulative volume of USD 19.5 billion, with green bonds dominating the landscape. While the market is primarily driven by non-financial corporates and focused on utility-scale renewable energy, there is emerging activity in sustainability-linked bonds and potential for expansion into electric vehicles, waste management, and climate-smart agriculture. The Indian government is supporting this growth through the Ministry of Finance's Sustainable Finance Task Force and the planned issuance of a domestic sovereign green bond in 2022.

The report assesses the 50-year legacy of the 1972 Stockholm Conference, concluding that while scientific knowledge and goals have increased, an 'action gap' persists, with only about one-tenth of global environmental targets achieved. It argues that the world faces entwined planetary and human crises, where the richest 10% of the population emitted more than half of total carbon emissions from 1990-2015, while the poorest suffer the most. To unlock a better future, the authors propose three systemic shifts: redefining the human-nature relationship from extraction to care, rethinking prosperity beyond GDP to ensure it lasts for all, and redirecting financial flows toward sustainable innovation. The report emphasizes the need to move from 'technology transfer' to 'technology co-development' and to implement 'Rights of Nature' and biophilic urban design. It also calls for improving conditions for change by tackling policy incoherence, renewing multilateralism to manage chronic risks, and establishing a culture of accountable promises for both state and non-state actors.

The document analyzes the trajectory of sustainable urban development, noting that while urban populations are projected to reach 68% by 2050, cities contribute significantly to global carbon emissions and biodiversity loss. It highlights a divide between the Global North's focus on infrastructure transformation and the Global South's need to 'jump start' sustainable development. The paper identifies key trends such as nature-based solutions, multimodal transportation, and a growing emphasis on equity and inclusive planning to address environmental racism and green gentrification.

The India E-Mobility Financing Program, submitted by Macquarie Alternative Assets Management Limited (MAAML), proposes a financing platform to decarbonize India's road transport sector. Requesting USD 200 million in equity from the Green Climate Fund (GCF) as first-loss capital, the program aims to mobilize a total of USD 2.1 billion, including USD 205 million from commercial investors and approximately USD 1.1 billion from debt markets. The platform will provide innovative financial solutions, such as operating and finance leases, targeting e-buses, shared four-wheeler fleets, and charging infrastructure to reduce high upfront costs and residual value risks. The program targets a lifetime reduction of 9.5 MtCO2e and the deployment of 115,000 new EVs and 10,500 charging stations. It includes comprehensive environmental, social, and gender action plans to ensure inclusive growth and safety in the transport sector.

The report analyzes the vulnerability of ASEAN economies to climate transition risks, highlighting a significant reliance on fossil fuels for electricity generation. It finds that carbon-intensive sectors represent approximately 25% of corporate bond issuance in the region, with a substantial portion of loans and bonds facing refinancing risks by 2030. The authors argue that current industrial classification systems are inadequate for identifying these risks and recommend that ASEAN central banks develop comprehensive 'green' and 'brown' taxonomies to enhance climate risk disclosures and manage potential asset stranding.

The testimony asserts that while electrification is critical, approximately 60% of U.S. energy-related CO2 emissions come from sectors like heavy industry and long-haul transport that are difficult to electrify. Hydrogen is presented as a versatile, carbon-free energy carrier capable of addressing these gaps. The author highlights specific opportunities in long-haul trucking, aviation, marine shipping, and ironmaking, while noting that the U.S. may require between 8 and 18 quads of hydrogen per year by 2050 for full decarbonization. To achieve this, the document advocates for federal R&D, the development of Regional Clean Hydrogen Hubs under the Infrastructure Investment and Jobs Act, and the implementation of production tax incentives to reduce costs through scaling.

The report examines the rise of green taxonomies as classification systems to identify sustainable economic activities and reduce greenwashing. It identifies three primary development approaches: whitelist-based, technical screening criteria (TSC) based, and principle-based. A central focus is the alignment between the EU and China taxonomies via the International Platform on Sustainable Finance (IPSF) and the Common Ground Taxonomy (CGT), which aims to facilitate cross-border green capital flows. The document details how these taxonomies are implemented by regulators for mandatory disclosure and by financial intermediaries for product development and risk management.

The document assesses Indonesia's progress toward its 23% renewable energy target by 2025, identifying a significant investment gap of approximately USD 29 billion. It analyzes roadblocks such as non-cost-reflective pricing, fragmented regulations, and the dominance of state-owned enterprises (SOEs) in the electricity sector. The brief evaluates existing support mechanisms, including Green Sukuk, tax incentives, and the roles of Public Financial Institutions (PFIs) like PT SMI and the Indonesia Investment Authority (INA). It recommends reforming fossil-fuel subsidies, implementing renewable energy auctions, and mandating SOEs like PT PLN and PT Pertamina to prioritize clean energy to mobilize the private capital necessary for a fossil-free recovery.

The report highlights the critical link between sustainable cooling and the achievement of SDG3 (good health and well-being), emphasizing that vaccine efficacy and patient care depend on reliable cold chains and temperature-controlled environments. It identifies significant gaps in cold chain equipment and electricity access in low- and middle-income countries, particularly in Sub-Saharan Africa and Gavi-eligible nations. The document advocates for a combination of passive design, nature-based solutions, and energy-efficient appliances, such as super-efficient refrigerators and solar direct drive technology, to ensure health service resilience in a warming world.

The We Mean Business Coalition asserts that the global energy system is vulnerable due to fossil fuel subsidies and unpredictable weather, as evidenced by Storm Arwen and European supply issues. It advocates for the immediate end of public coal financing, the removal of fossil fuel subsidies by 2025, and increased public investment in green infrastructure. The text highlights the role of corporate initiatives like RE100 and the First Movers Coalition in driving demand for renewables, while noting that countries such as China, Japan, and South Korea remain difficult geographies for sourcing renewable energy.

The project achieved a 'Satisfactory' overall rating, successfully exceeding several output targets despite an ambitious design and challenges posed by the COVID-19 pandemic. Key achievements include the development of the Soy, Beef, and Palm Oil Toolkits, the expansion of the Trase transparency platform, and the launch of RSPO-labeled cooking oil in Indonesia. While the project was highly efficient in leveraging co-financing—reaching US$ 130,308,741 against an initial target of US$ 42,334,902—it faced difficulties in gender mainstreaming and encountered socio-political resistance in Brazil. The evaluation recommends deeper local context analysis during design and the formalization of exit strategies to ensure the sustainability of established platforms and tools.

The report examines 'whole-of-government' approaches to climate change, emphasizing the need for central leadership, clear mandates, and transparency to overcome ministerial silos. Through case studies of the UK, US, and British Columbia, it highlights that while such approaches can foster collaboration, they are often fragile and dependent on the political will of the head of government. The author recommends that Canada establish a dedicated Cabinet committee and a central coordination secretariat to integrate climate considerations across all public policies.

The document advocates for a 'whole-of-government' approach to climate change in Canada, defined as the use of governance structures (like cabinet committees) and processes (like mandate letters) to coordinate action across departmental silos. Through case studies of the UK, US, and British Columbia, it identifies that success depends on sustained executive leadership, adequate resources, and empowered personnel. It warns that such structures are fragile and can be easily dismantled by changes in government. For Canada, the brief recommends establishing a Prime Minister-chaired Cabinet Committee on Climate Change and Net Zero, supported by a high-level coordinating Secretariat in the Privy Council or Prime Minister's Office.

The Climate Action Tracker identifies a 'credibility gap' where current policies lead to 2.7°C of warming, while even the fulfillment of all 2030 targets would result in 2.4°C. Despite 90% of global emissions being covered by net zero targets, only 6% are rated as 'acceptable', and no analyzed country has sufficient short-term policies to reach its net zero goal. The report highlights the continued expansion of coal and natural gas as primary drivers of this failure.