As part of their “Jet Zero” strategy to achieve net-zero emissions in aviation by 2050, the UK government has mandated that 2% of jet fuel must come from sustainable aviation fuel by 2025. With the new mandate, the government hopes to significantly reduce greenhouse gas emissions and support economic growth.

The European Commission has launched the Climate City Capital Hub to provide financial support and advice to cities aiming for climate neutrality. With a €650 billion investment target, this initiative will leverage public and private capital, supported by the European Investment Bank (EIB). A group of 112 cities committed to eliminating their net greenhouse gas emissions by 2030 will require a combined €650 billion in investments to fulfill this pledge, according to a European Union initiative.

Australia is implementing strict ESG labeling requirements to combat greenwashing and promote transparency in sustainable investments. The regulations also include climate disclosure guidelines for large businesses and financial institutions. By 2027, Australia aims to create a robust ESG framework that aligns with global standards and fosters responsible capital flow. These measures reflect Australia’s commitment to authentic ESG practices and investor protection, positioning the country as a responsible financial hub in the APAC region.

The recent European Union (EU) parliamentary elections have caused ripples in the sustainable investing world. With a notable shift towards right-wing and nationalist parties, the future of the EU’s ambitious sustainable agenda is now uncertain. The 2019 EU elections were dubbed a “green wave,” but this time, the Greens suffered losses, reflecting voter disenchantment with the perceived costs of the green transition. Populist parties are skeptical of the EU’s climate agenda, potentially affecting policies like the 2035 ban on new petrol and diesel cars. The fate of the EU’s Green Deal hangs in the balance, as right-wing parties gain influence in the European Parliament.

China’s Ministry of Finance is taking significant steps toward unifying corporate sustainability disclosures. They’ve released a draft guideline with the vision of establishing a nationwide standard by 2030. This move responds to the global focus on Environmental, Social, and Governance (ESG) issues, making enhanced corporate sustainability reporting essential. The guidelines aim to improve companies’ engagement in global trade, enhance international competitiveness, and support China’s institutional opening-up.

The European Council has approved the Corporate Sustainability Due Diligence Directive (CSDDD), overcoming earlier setbacks and revisions to mandate large companies to address their adverse impacts on human rights and the environment within their supply chains. Proposed by the European Commission in 2022, the directive aims to tackle issues like child labor, pollution, and deforestation while aligning businesses with the Paris Agreement's climate goals. Despite initial concerns from member states like Germany and Italy, the revised CSDDD, approved in March, reduces the number of affected companies by raising thresholds and implements a phased approach for compliance, starting with larger corporations in 2027 and extending to others by 2029. Though some provisions, such as financial incentives for climate transition plans, were removed, the directive stands as a significant measure in promoting corporate responsibility and sustainability within the EU.

Achieving net-zero emissions by 2050 is still feasible but will require an additional $34 trillion investment in clean energy, representing a 19% increase over current projections, according to BloombergNEF. The report highlights the urgent need for enhanced support in sectors like electric vehicles, renewable energy, power grids, and carbon capture, amidst political resistance and economic challenges. Significant investments, particularly $1 trillion annually by the 2040s for infrastructure, are crucial to prevent severe economic damages from climate change, which could cost up to $59 trillion annually by 2050.

Research indicates that clearer and stricter domestic green policies could redirect up to £100 billion in global investments to the UK. However, recent government actions, including weakening key net zero commitments, have led many investors to consider moving their funds to more supportive markets like the US, EU, and China. While 83% of financial service organizations still see the UK as a top market, two-thirds are contemplating or have already shifted investments elsewhere. UKSIF calls for mandatory climate risk disclosures and other regulatory enhancements to reestablish the UK's leadership in sustainable finance and attract the necessary private capital for achieving net zero goals.

The European Parliament's recent approval of the Corporate Sustainability Due Diligence Directive (CSDDD) signifies a significant step towards formal adoption by the European Union, aiming to establish a legal framework for corporate responsibility in supply chains. The directive, also known as CS3D, mandates due diligence obligations on companies operating within the EU or with significant business ties there, encompassing environmental and human rights concerns. Despite its initial proposal undergoing substantial dilution during intense negotiations, the final version reflects compromises to accommodate varying interests. Notably, the directive's scope extends beyond direct corporate actions to encompass subsidiaries and supply chain partners, potentially holding both EU-based and non-EU companies liable for sustainability breaches.

Europe's finance industry remains steadfast in its commitment to environmental and socially responsible investments (ESG), despite political pressures leading some U.S. counterparts to backtrack. European investors prioritize sustainable funds, supported by robust regulations like the EU's Taxonomy. Though facing challenges, including regulatory adjustments and slight dips in investor demand, European financial firms maintain focus on ESG implementation, underscoring a continued dedication to advancing ESG principles in finance.

The Biden-Harris Administration's plan, "Decarbonizing the U.S. Economy by 2050: A National Blueprint for the Buildings Sector," led by the DOE, aims to significantly cut greenhouse gas emissions from buildings. With targets of 65% reduction by 2035 and 90% by 2050, the plan aligns with Biden's climate strategy. It emphasizes affordability, equity, and resilience, foreseeing savings of over $100 billion annually for consumers and $17 billion in health-related costs. The plan focuses on energy efficiency, emissions reduction, grid integration, and sustainable materials. Coordinated federal actions include research funding and support for low-carbon solutions and building codes, with initiatives like the Affordable Home Energy Shot™ making upgrades more accessible.

The Science Based Targets initiative (SBTi) has removed the net-zero commitment status for 239 companies, including major players like Microsoft, Procter & Gamble, Unilever, and Walmart, due to challenges in meeting ambitious emission reduction targets. These companies collectively represent over $4 trillion in market capitalization and struggle particularly with reducing Scope 3 emissions. SBTi is reviewing its Corporate Net-Zero Standard to provide clearer guidelines by 2025. Despite the setback, companies are reaffirming their sustainability commitments and engaging with SBTi to validate their targets, emphasizing ongoing efforts to align with the Paris Agreement goals.

A recent study reveals that two anti-ESG laws passed in Texas in 2021 have caused a significant loss of jobs, decreased economic activity, and reduced tax revenues. Economist Jon Hockenyos emphasizes the unintended consequences of government interference in business decisions, stressing the importance of a free market. The research also shows increased borrowing costs for the state and higher fees for local governments issuing bonds due to reduced competition. Despite opposition, the legislation remains, reflecting a trend of prioritizing industry interests over environmental and social concerns.

Singapore has officially introduced mandatory climate-related reporting requirements for listed and large non-listed companies, aligning with IFRS ISSB standards by 2025. The phased approach, recommended by the Sustainability Reporting Advisory Committee, begins with listed companies in 2025 and extends to large non-listed firms by 2027. The reporting framework includes disclosing Scope 1 and 2 emissions initially, with the government aiming to enhance sustainability capabilities and provide companies with improved access to markets, customers, and financing opportunities.

The European Council approved legislation to slash greenhouse gases, aiming for a 500 million-tonne CO2-equivalent emissions reduction by 2050. Heralded as the world's most ambitious, the rules target a complete phase-out of hydrofluorocarbons (HFCs) by 2050 and a 95% reduction by 2030, restricting the use of F-gases in favor of climate-friendly alternatives.

The European Parliament passed an anti-greenwashing law (593-21) to combat deceptive environmental claims. Pending EU Council approval, the law focuses on clearer product labels, restricting generic environmental claims, and promoting sustainability. Member states have a two-year integration period. The EU Commission also proposed a "Directive on Green Claims" for additional consumer protection.

A new Report by the Oxford Sustainable Law Programme finds that both investors and policymakers may not be paying sufficient attention to the risks of legal risk of fossil fuel investments. Noting that the number of cases before courts worldwide is at 2500 and rising. The Oxford group says is a relatively new field and is mostly focused on physical risk to companies, and investors and regulators who do not account for the possibility of large payouts from climate litigation

First Solar has achieved a significant breakthrough in the solar industry by finalizing Tax Credit Transfer Agreements (TCTAs) with Fiserv, marking the first major credit transfer in solar manufacturing. The agreements involve the sale of $500 million and up to $200 million of 2023 Inflation Reduction Act tax credits. Executed eight days after the proposed rulemaking for Section 45X credits, Fiserv will pay $0.96 per $1 of tax credits in H1 2024. Aligned with the IRA's goal of incentivizing domestic manufacturing, the move is expected to have a financial impact of up to $28 million for 2023, potentially reducing diluted earnings by $0.26 per share. First Solar's strategic plans include substantial investments, expansion, and achieving 14 gigawatts of fully integrated US solar manufacturing capacity by 2026.

The article dives into the hurdles of implementing carbon pricing in the US, highlighting challenges such as upfront costs, political resistance, and the debate over effectiveness. Drawing from successful cases, it suggests tying policies to public concerns, fostering innovation, and emphasizing state-based approaches to avoid federal debates. Despite concerns about global competitiveness, successful US implementation could set a climate leadership example. While immediate political gains might be elusive, the strategy could leave a transformative legacy for future administrations. Overall, it explores strategies and challenges, proposing a state-based approach as the way forward.

As Cop28 is halfway done there has been massive discussion over urgent climate policies. A discussion over a loss and damages fund as well as a fossil fuel reduction plan that mirrors the Paris Agreement.