The UK government is currently consulting on draft primary legislation establishing a UK Carbon Border Adjustment Mechanism (“CBAM”), which is set to come into force from 1 January 2027. The current consultation is limited to ensuring that the draft primary legislation implements the Government’s stated policy intent, rather than seeking further stakeholder comment on the policy design itself and is…
Iberdrola’s First EuGB-aligned Green Bond Draws its Largest Order Book in 4 Years
Global energy and electricity provider Iberdrola announced that it has raised €750 million in a new green bond offering, its first – and the first by any Spanish company – to be issued under the new European Green Bond (EuGB) standard. Iberdrola noted that the bond was also the first ever to comply with both the EuGB standard and the…
Microsoft Signs 3 Million Ton Nature-Based Carbon Removal Deal with Forest Investor EFM
Microsoft announced a new multi-year offtake agreement with forest investment and management firm EFM, providing access to up to 3 million nature-based carbon removal credits from EFM’s investment platform. Launched in 2004, Portland, Oregon-based EFM is a real estate asset manager focused on investing in natural climate solutions across the Americas. EFM’s approach includes using climate-smart management approaches to its…
ICE Launches Physical Climate Risk Assessment Solution for Corporate, Sovereign Asset Classes
Financial technology and data services provider and exchange operator Intercontinental Exchange (ICE) announced the launch of its new ICE Global Climate Risk Solution, aimed at providing investors with a view of physical climate risks of their portfolios, based on geospatial data. According to ICE, the new solution marks an expansion of its geospatial platform to introduce global physical risk for…
Google to Back Three New Advanced Nuclear Projects
Google announced today the launch of a new collaboration with South Carolina-based nuclear project developer Elementl Power, including an agreement to invest in three advanced nuclear energy projects. The agreement comes as Google and its tech giant peers increasingly turn to nuclear energy to help address the growing emissions impact of their rapidly expanding data center footprints. While Google has…
EU Commission Launches Call for Evidence to Simplify and Update SFDR Regulation
The European Commission announced the launch of a new call for evidence, seeking input on its initiative to revise its Sustainable Finance Disclosure Regulation (SFDR), which aims to improve the regulation’s usefulness and to reduce reporting and compliance burdens for investors. The Sustainable Finance Disclosure Regulation, in application since 2021, sets out how financial market participants, such as asset managers,…
India Releases Draft Climate Finance Taxonomy to Drive Capital to Net Zero Goals
India’s Ministry of Finance announced the release of a draft framework for its Climate Finance Taxonomy, its classification system for identifying sustainable economic activities aligned with its climate goals, aimed at enabling the facilitation of major capital flows required to support the net zero transition, while preventing greenwashing. India has set a series of climate goals, including a target to…
Two LGIM sustainable funds merged away following underperformance
Legal & General Investment Management has merged two sustainable funds with mandates with similar characteristics, after both funds failed to deliver “broad, long-term performance outcomes”. The Legal & General Future World Sustainable European Equity Focus fund has been merged into the Legal & General European Equity Income Fund because, according to LGIM’s most recent Value Assessment, the fund “underperformed for…
EAC urges UK government to reiterate its support for Biodiversity Net Gain
The cross-party Environmental Audit Committee (EAC) has warned that, without substantial private investment and clear commitments from ministers, the UK may not meet its pledge to protect 30% of land by 2030 and offer communities greater access to nature. In its report on the role of natural capital in the UK’s green economy, the committee urges ministers to set out…