ESG Insider: COP29 concludes with climate finance pledge and carbon market agreement
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After two weeks of COP29 negotiations that went into overtime, the UN climate conference held in Baku, Azerbaijan, developed countries agreed to provide US$300 billion in public finance annually to developing countries by 2035.
This New Collective Quantified Goal on Climate Finance (NCQG) would increase the flow of finance for renewables and climate adaptation measures — from the large economies that historically produced the most global greenhouse gas emissions to the developing countries that are less responsible for climate change yet face more climate risk. The goal also includes a broader investment target of US$1.3 trillion a year by 2035 from both public and private sources.
Countries also finalized key rules and guidelines for international carbon trading under Article 6 of the Paris Agreement. In addition to a deal on the rules governing global carbon markets under Article 6.4 of the Paris Agreement, countries also agreed to enhanced guidance and clarity around authorization and transfer of carbon credits between individual countries under Article 6.2.
This week's newsletter looks at what is driving what could be a record-setting amount of new utility-scale solar capacity additions in the US in 2024. We explore a report by S&P Global Ratings on how the financial risks of catastrophic events are relevant to the creditworthiness of issuers and debt instruments outside of the insurance sector. And we look at how the EU's newly imposed countervailing duties on battery electric passenger cars imported from China may affect sales of those vehicles in the region.
In this week's podcast, we talk with Mastercard Chief Sustainability Officer Ellen Jackowski about the UN’s COP16 biodiversity conference and COP29 climate conference and the outlook for climate action following recent US election results.
Chart of the Week
COP29: Climate summit delivers finance deal, rules for global carbon market
After two weeks of difficult negotiations at the UN Climate Change Conference, negotiators agreed to triple annual climate finance for vulnerable nations and to adopt critical rules for a first-ever global carbon trading market, S&P Global Commodity Insights reports.
US solar additions set to have record-breaking year with over 32 GW added in 2024
US utility-scale solar-powered generation capacity additions are expected to set a record again in 2024 as developers rush to install imported modules, according to a new report by the American Clean Power Association that was produced in collaboration with S&P Global Commodity Insights.
Insurers' response to catastrophic events could affect issuer and instrument creditworthiness
The ability of insurance to offset financial risks from catastrophic events, including climate-related events, is relevant to the creditworthiness of issuers and debt instruments outside of the insurance sector, S&P Global Ratings writes.
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Fuel for Thought: How EU Tariffs Will Impact the Battery Electric Vehicle Market
Following in the footsteps of the US, Canada and other markets, the EU recently imposed countervailing duties on battery electric passenger cars imported from China. S&P Global Mobility still expects sales volumes of imported Chinese passenger cars to continue to grow in this region over the next few years, but at a slower pace.
Podcast
ESG Insider Podcast
Mastercard Chief Sustainability Officer talks COP, climate and the road ahead In this episode of the ESG Insider podcast, we’re talking to Mastercard Chief Sustainability Officer Ellen Jackowski, who was just named to the TIME100 Climate list of the 100 most influential climate leaders in business for 2024. Ellen discusses how Mastercard is working toward its net-zero goal, how it manages emissions in its supply chain and how it balances growth and sustainability. >>Listen on Spotify, Apple Podcasts or YouTube Music
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