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MEE declares full steam ahead on China’s environmental initiatives, including an NGDF, private sector finance, Yangtze River conservation, and the social credit system.

By Paul A. Davies and Zoe Liu

Xu Bijiu, director general of the general office of China’s Ministry of Ecology and Environment (MEE), has given the clearest signal to date that China’s environmental ambitions will not be impeded by the projected slowdown of the Chinese economy.

Dismissing suggestions that increased environmental protection had led to downward pressures on the economy in recent years, Xu stated that China has, in fact, benefitted from a “harmonious, win-win relationship” between economic development and increased environmental protection. Xu confirmed that the pollution targets MEE set last year for the end of 2020 would not be altered, despite the fact that some areas of the country (such as Hunan in south-central China) missed their PM 2.5 air quality targets in 2019.

The formal adoption reflects the EU’s acknowledgement that a robust system of sustainable finance will be essential to the proposed capital markets union.

By Paul A. Davies and Michael D. Green

On 8 November 2019, the Council of the EU published a press release announcing the adoption of legislative reforms that aim to enhance the proposed capital markets union. Notably, two of the reforms are related to sustainable finance: the Low Carbon Benchmark Regulation (LCBR), and the Disclosure Regulation, the…

The launch of the International Platform on Sustainable Finance indicates an increased focus on a globalized approach to coordinating sustainable finance.

By Paul Davies and Michael D. Green

On October 18, 2019, the EU, China, India, and five other countries combined to launch the International Platform on Sustainable Finance (IPSF). Acknowledging the role that private capital has to play in scaling up sustainable investment worldwide, the IPSF seeks to provide a platform to increase private-sector funding in this area. This blog post will consider in more detail the IPSF’s aims, as well as the ways in which the IPSF intends to achieve them.

Technical Expert Group recommends minimum requirements for two new benchmarks.

By Paul A. Davies and Michael D. Green

On 30 September 2019, the EU Technical Expert Group on Sustainable Finance (TEG) published its final report on climate benchmarks and environmental, social, and governance (ESG) disclosures (the Report), as well as a summary of the Report. The Report makes recommendations regarding the minimum technical requirements for the methodology that pertains to two new climate benchmarks. The Report also makes recommendations for suggested ESG disclosures on a wide range of benchmarks. This post will examine the TEG recommendations and their implications for the future of these climate benchmarks.

Green Finance Strategy builds on the Green Finance Taskforce report, highlighting the City of London’s role in delivering a green economy.

By Paul A. Davies and Michael D. Green

On July 2, 2019, the UK government published its Green Finance Strategy (Strategy), subtitled “Transforming Finance for a Greener Future.” The document outlines how the finance sector, and better climate disclosure from corporate actors, can drive progress in relation to climate change and help the UK achieve its net-zero emissions target.

The Strategy aims to: position climate and environmental factors as financial and strategic imperatives; establish a shared understanding of “greening”; clarify UK governmental and private sector roles and responsibilities; transition to a long-term approach; and build robust, transparent, and consistent green financial market frameworks.

This blog will explore the background to the Strategy, as well as the Strategy’s main themes and aims.

Banks to disclose climate alignment of shipping portfolios with IMO’s strategy of 50% emissions reduction by 2050.

By Paul A. Davies and Michael D. Green

On June 18, 2019, a group of 11 banks — including Citi, Societe Generale, DNB, Citigroup, ABN Amro, and ING — announced the adoption of the Poseidon Principles (PPs). The PPs are accompanied by a framework for integrating climate considerations into shipping investment decisions and for assessing how well a portfolio aligns with the International Maritime Organization’s (IMO’s) Initial Greenhouse Gas Reduction Strategy, which aims to reduce total greenhouse gas (GHG) emissions by at least 50% by 2050 based on 2008 levels. This blog post will explore the four key principles established in the PPs, covering climate alignment, accountability, enforcement, and transparency.

Poseidon Principles Association and Poseidon Principles

The PPs governing body, the Poseidon Principles Association (PPA), was formed on June 18, 2019. The PPA is responsible for the management, administration, and development of the PPs. The PPA is supported by the Rocky Mountain Institute (an independent non-profit organization aiming to accelerate the adoption of a shift to greater efficiency and more use of renewables), the University College London Energy Institute, and Lloyd’s Register. The PPA is committed to improving the role of maritime finance in addressing global environmental issues, spearheaded by the PPs.