Luyue Tan

China will enhance its National Carbon Emission Trading System (ETS) by improving policy support and expanding sector coverage. This will involve gradually implementing a mix of free and paid carbon allowance allocations to better reflect emission reduction costs. Priority will be given to ecosystem carbon sequestration projects and the promotion of low-carbon technologies. The country plans to enhance data quality management using information technology and will engage in international climate governance and negotiations. As of the end of 2023, the National ETS recorded a trading volume of 442 million tonnes of carbon allowances, with a value of approximately 24.92 billion yuan (about 3.49 billion U.S. dollars). The national carbon market was officially launched in 2021 following pilot programs started in 2011. #AsiaRisk #Regulation #China Follow us for daily updates on risk and operations in Asia! https://lnkd.in/gkFYKGBG

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Discover the shifts in commodity trading with our latest CTRM report. As non-energy commodities evolve, new ecosystems and increased liquidity reshape the market. Download the report now. https://lnkd.in/eJwdUMC4 We caught up with Matt Stover, Senior Research Specialist at Chartis, to get an overview of the report. The report covers: - The emergence of large ecosystems, such as those around ferrous metals, and the increasing liquidity of certain commodities, which mark a pivotal moment in the development of non-energy commodities. - The convergence of commodity trading and risk management (CTRM) systems with enterprise resource planning (ERP) systems, which are becoming more sophisticated and formalized. - Despite convergence, the CTRM market is expected to remain fragmented to meet varied requirements, with CTRM and energy trading and risk management (ETRM) systems existing on the same continuum, differentiated mainly by definitions. - The report contains two quadrants—physical oil and gas, and metals—and analyzes applications in each category, while addressing market and vendor dynamics to assess long-term impacts on the technology stack. - Recommendations for a comprehensive market perspective include cross-referencing the 2024 ETRM and CTRM reports and consulting the energy pricing report, which outlines underlying pricing and analytics tools. For a detailed understanding of the trends shaping commodities and energy trading, download your copy of the report now. https://lnkd.in/eJwdUMC4 #CommodityTrading #RiskManagement #CTRM #ChartisResearch #MarketEvolution

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Higher quality nature-based credits are commanding greater price premiums across the voluntary carbon market 📈 Our new research reveals–for the first time–that higher ratings are resulting in credits commanding higher prices and greater demand. Using analysis from pricing data from Viridios AI's platform, representing 134 price estimates for nature-based carbon credits in December 2023 and March 2024, revealed that Nature-Based Solutions (NBS) projects, had an average 20% premium for each BeZero rating notch. This is one of the first significant pieces of research on the evolving sophistication of the market for nature-based carbon credits. Read the full report here: https://lnkd.in/eSWxa4CQ

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💥 A recent report from Framtiden i våre hender, lead member of #FairFinanceNorway, has found that in 2023, the Norwegian Oil Fund (Norges Bank Investment Management, NBIM) failed to support climate resolutions and actually supported climate-harmful strategies at some of the world's largest #oilandgas companies and banks financing #fossilfuels. 💰 The oil fund is one of the largest global investors with more than $1.3tn assets under management (AUM) and is amongst the biggest shareholders in most of the largest, highest-emitting global oil and gas companies. 📜 Although in its Climate Action Plan, the oil fund promises to use its considerable influence as a shareholder to encourage companies to set science-based emissions targets and disclose plans to achieve them, this report finds it is failing to act on this intention. 👎 The report examines the oil fund’s voting patterns in 2023 at 19 major company AGMs, and reveals that despite its own climate commitments, the fund continues to support key blocking industries (such as fossil fuels) and in fact more so that than its peers. Find out more ➡: https://lnkd.in/gT-f3pGk #sustainablefinance #responsibleinvesting #climatechange #peopleandplanet Lucy Brooks Ingrid Næss-Holm

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The convergence of fintech & climate finance is just beginning & is a positive disruption for markets, writes Aleksi Tukiainen in a feature article for Environmental Finance: "LLMs for sustainable finance are similar to what the search engine was to the fledgling Internet." "We are already observing with early users of the ClimateAligned platform that the focus of day-to-day data processing has shifted towards finding, comparing and sharing insights to gain a competitive edge, without adding new capacity to teams." "As AI's capability on our platform has increased, its usability has simplified. We can perform more complex interrogations much more easily. User testing with a diverse sample of market participants, which started with sustainability analysts but has spread into investment and capital markets teams has confirmed this seeming paradox." "A market accelerating to the 2030 annual investment figures needs sustainable and thematic bond issuance in the hundreds of thousands of securities each year. The world needs a positive disruption in financial markets to help close this time-critical climate investment gap." "Wholesale adoption of AI, including LLMs for thematic investment, is a driver of that positive disruption." "At ClimateAligned we see the AI-driven convergence of fintech & climate finance happening right now. By the next round of global emissions targets in 2025, more and more investors will be thinking 'How did we make decisions without it?" Read the full story: Sustainable Finance 2.0 is coming - and AI is the accelerant: Environmental Finance https://lnkd.in/gticvjBp #LLM #AI #fintech #climate #investment #transition #sustainability #greenbonds #greenfinance #climatealigned

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Annabell Siem Mathiesen shares how the climate transition is changing the global economy, presenting new risks and opportunities for portfolios. We assess current progress on the climate transition from an investor perspective in our State of Transition paper: https://bit.ly/4bKLk0h #sustainability #climate #investing

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📜 New European Central Bank paper proposes additional capital requirements to mitigate against climate risks. ♻️ As regulators are increasingly recognising the importance of capital risk buffers for resilience against systemic climate risks, the ECB study provides a detailed methodology for calibrating systemic risk buffers (SyRB) to address short-term transition-related climate risks in Europe. 🔍 The study uses granular loan-level data to assess the exposure of 104 significant institutions across 19 Euro-area countries between 2023 and 2025. They consider both baseline and adverse macroeconomic scenarios. 📊 To avoid double counting and isolate transition-related effects, they compare results from current policy and accelerated transition scenarios. 💡 The results show that aggregate losses from an abrupt transition can be substantial, particularly for financial institutions heavily exposed to carbon-intensive sectors. Transition losses under an unanticipated accelerated transition scenario are estimated at around €52bn; reaching €72bn under adverse macroeconomic conditions. Full article here https://buff.ly/3VOSOsk #ClimateRisk #Ecb #TransitionRisk #SystemicRiskBuffer #Bank #CentralBank #CapitalRequirement #Pillar2 #Basel #Prudential #Europe

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Ulf G. Erlandsson Erlandsson, founder and chief executive officer of the Anthropocene Fixed Income Institute, joins OMFIF to discuss the importance of fixed income markets for the climate transition. Sharing insights from AFII’s Sustainability-Linked Bond Handbook, Erlandsson explores the latest innovations in sustainable financial products, the nuances of SLBs and the potential for their continued development. #sustainablefinance #sustainability #sustainabilitylinkedbonds #SLBs #ESG

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The Bank of Japan (BoJ) and Financial Services Agency, Japan (JFSA, 金融庁) have announced they are planning a second climate scenario analysis of the country’s three top banks which will potentially incorporate the lenders’ “financed emissions” – those created by their loans and investments. The BoJ and JFSA said in a joint statement that the exercise would build on an initial climate scenario exercise carried out by the two institutions in 2021, which analysed the impact of climate-related physical and transition risks on Japan’s “mega-banks” – MUFG, Mizhuo and Sumitomo Mitsui Banking Corporation – SMBC Group – as well as three insurers. A BoJ spokesperson confirmed to Green Central Banking that the same three banks would be subject to the new analysis, which will be “based on common scenarios for climate related risks” in the 2024 financial year. GreenCB.co/3UZWpET #ScenarioAnalysis #FinancedEmissions

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🌍 Join our next virtual IBPN Roundtable this June 4th from 10:00 - 11:30 CET. This time, our partners at Nobon will explore the potential of carbon markets to create positive social and economic impacts, particularly in developing economies. Key topics will include: 💡 Understanding Carbon Markets and their role in climate action. 💡 The untapped potential of carbon projects in developing economies. 💡 Current inefficiencies in the carbon project development process. 💡 How Nobon's platform streamlines project development and financing. 💡 Increasing the share of carbon finance reaching local communities 💡 The potential for carbon markets to foster inclusive business practices and sustainable development. NOBON is a Swedish Climate Fintech that offers a climate finance platform for developing and financing high-quality carbon projects. How to join? The IBPN Roundtables are for partners-only. Join the network and the roundtable to get to know other professionals working in the inclusive business space. Discuss relevant challenges, find solutions together, and create valuable connections - to take each organization to the next level! 👉 Join the network here: https://lnkd.in/d7YxGd8g #InclusiveBusiness #globalnetwork #SDG2030 #SDG1 #SDG13 #zeropoverty #impactinvesting #carbonmarkets

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Hong Kong Taxonomy for Sustainable Finance: Consolidating the green finance ecosystem The World Meteorological Organization has confirmed that 2023 is the warmest year on record, with annual average global temperature approaching 1.5°C above pre-industrial levels. Data also show that since the 1980s, each decade has been warmer than the previous one, and the past nine years have been the warmest on record. Extreme weather is clear evidence of accelerating climate change and reminds us of the urgent need for decarbonisation. In response to climate change, every global citizen has a responsibility and the financial industry should also play its part. Today, the Hong Kong Monetary Authority (HKMA) announced three measures to promote the development of green finance, including the publication of the Hong Kong Taxonomy for Sustainable Finance (Hong Kong Taxonomy), which provides the industry with an assessment tool for green finance; the upcoming launch of the beta version of a physical risk assessment platform (assessment platform) to improve data availability; and the announcement of details regarding the expansion of the scope of the Green and Sustainable Finance Grant Scheme to cover transition bonds and loans. While my primary focus here is to introduce the Hong Kong Taxonomy, I will also briefly mention the other two measures. #loan #HongKong #HKMA #sustainablefinance #tax

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Climate news

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New publication in Commodities MDPI📈 Navigating the Challenges of Commodity Traps and Platform Economies: An Assessment in the Context of the Northern Black Forest Region and Future Directions by Bernhard Koelmel Leon Fischer, Emilia Juraschek, Levi Peuker, Noah Stemmler, Anton Vielsack, Rebecca Bulander, Henning Hinderer, Katharina Kilian-Yasin, Tanja Brugger, Ansgar Kühn and Tanja Brysch Open Access Reading at: https://lnkd.in/dF9gEMWf #BatteryElectricVehicles #BEVs #AutomotiveIndustry #AutomotiveSuppliers #PlatformEconomy #CommodityTrap #NorthernBlackForest #MobilityInHarmony #MIHConsortium #Modularization #Standardization #StrategicPositioning #Innovation #VUCA #MarketDynamics

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📢 📊 The Network for Greening the Financial System (NGFS) released a note on improving the availability and usability of greenhouse gas emissions data. ⚙️ The note highlights how NGFS members utilize data on emissions, for example to classify bond issuers based on emissions intensity. ❗It also highlights real-life obstacles. For instance, differences in calculating emissions metrics making it difficult to compare the data. 💡Furthermore, the note suggests some strategies to address these difficulties such as uniform reporting or synchronized data collection. Full Note https://buff.ly/3SdhtWF #NGFS #GHGEmissions #ClimateRisk #ClimateData #SustainableFinance

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We’re back with the 17th edition of our #ImpactInsights - just in time for summer. Norselab’s Impact Analyst, Oda Standal, has compiled the most recent insights shaping the field. 🪙 OECD - OCDE figures show an unexpected 30% increase in climate finance for developing countries from 2021 to 2022. 🌳 The Council of the European Union has formally adopted a first-of-its-kind regulation on nature restoration to restore ecosystems by 2050. ⛩️ An analysis by Carbon Brief suggests that China’s CO2 emissions may have peaked in 2023. 🌐 Right-wing parties gained ground in the 2024 European Parliament elections, which could pose a challenge to climate policies. 🌿 Early mainstream private equity impact funds from TPG, Bain Capital, and KKR demonstrate robust performance amid evolving market dynamics. Read the full article below 👇 https://lnkd.in/dgRV97xk Oda Standal - Maria de Perlinghi - Inès van Tol - Christiaan Griffejoen #Norselab #Meaningfulness #MeaningfulInvesting

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Annabell Siem Mathiesen shares how the climate transition is changing the global economy, presenting new risks and opportunities for portfolios. We assess current progress on the climate transition from an investor perspective in our State of Transition paper: https://bit.ly/4eskETK #sustainability #climate #investing

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