【ESG News】Global Trends Biweekly Newsletter Issue 11 (2024.7.1-2024.7.12)

Hong Kong China ESG trends

Beijing’s top man for Hong Kong says environment bureau work ‘recognised’

Beijing’s point man on Hong Kong affairs has “recognised” the work of the city’s environment bureau as he met its chief in the capital, reminding him that many of his tasks were “matters of concern to the people”. The Hong Kong and Macau Affairs Office released a photo of the Thursday afternoon meeting between Director Xia Baolong and Secretary for Environment and Ecology Tse Chin-wan.

Source: SCMP (https://www.scmp.com/news/hong-kong/politics/article/3270137/beijings-top-man-hong-kong-says-environment-bureau-work-recognised)

International ESG trends

ESMA Calls on Companies to Get Data Systems in Place to Meet New CSRD Sustainability Reporting Requirements

EU markets regulator the European Securities and Markets Authority (ESMA) announced the issuance of a Public Statement on the first application of the European Sustainability Reporting Standards (ESRS), aimed at helping companies prepare for new sustainability reporting and supervisory requirements under the EU’s Corporate Sustainability Reporting Directive (CSRD), with the first reports set to begin next year.

Source:  ESG Today (https://www.esgtoday.com/esma-calls-on-companies-to-get-data-systems-in-place-to-meet-new-csrd-sustainability-reporting-requirements/)

Delay Proposed for California Climate Laws

Governor Gavin Newsom proposed amendments to California climate laws SB 253 and 261 that would postpone implementation by two years and give the California Air Resources Board (CARB) more flexibility in creating the rules. These policies, signed into law last October, are the US’s most far-reaching climate disclosure mandates. They require both public and private companies that ‘do business’ in California to report on their Scope 1, 2, and 3 emissions and climate risks.

Source:  ESG News (https://esgnews.com/tim-mohin-delay-proposed-for-california-climate-laws/)

Public Consultation Now Open for New Agriculture Production (Crop and Livestock) Criteria Under the Climate Bonds Standard

The Climate Bonds Initiative is excited to announce the commencement of the public consultation for the new Agriculture Production (Crop and Livestock) Criteria under the Climate Bonds Standard. This development marks a significant step in our ongoing efforts to address the climate impacts of agriculture and promote sustainable practices within the sector.

Source:  Climate Bond Initiative (https://www.climatebonds.net/2024/07/public-consultation-now-open-new-agriculture-production-crop-and-livestock-criteria-under)

Mainland China ESG trends

China’s New Carbon Market Rules Aim to Reduce Oversupply

China has published new rules for its national carbon market, aimed at reducing an oversupply of permits to compel large polluters to accelerate their green transitions. Participants in the market will no longer be able to borrow allowances from future years and will have stricter limits on carrying over unused permits from previous years, the Ministry of Ecology and Environment said in draft rules released Tuesday for consultation until July 10. The moves are intended to leave the market with a “slight shortage” of allowances, the ministry said in a statement.

Source: Bloomberg (https://www.bloomberg.com/news/articles/2024-07-02/china-s-new-carbon-market-rules-aim-to-reduce-oversupply)

China issues tougher draft investment rules for solar PV manufacturing

China's industry ministry issued draft rules on Tuesday tightening investment regulations for solar photovoltaic (PV) manufacturing projects as it looks to pare back overcapacity. Projects will need to have a minimum capital ratio of 30% under the new rules. Previously, that minimum applied to polysilicon manufacturing projects while the minimum for other PV projects was 20%. The ministry did not provide a definition of the ratio, which typically refers to the percentage of total investment shareholders invest with their own assets.

Source：Reuters (https://www.reuters.com/sustainability/climate-energy/china-plans-raise-minimum-capital-ratio-solar-pv-manufacturing-30-2024-07-09/#:~:text=BEIJING%2C%20July%209%20(Reuters),30%25%20under%20the%20new%20rules.)

China plans trading platform for green hydrogen-derived fuels to decarbonise shipping

China will set up a platform to support the trading of net-zero hydrogen and its derivatives in a bid to catalyse the country’s ambition to lead the global hydrogen sector and decarbonise the heavy-emitting shipping industry. The platform will focus on the certification and trading of green hydrogen, green methanol and green ammonia in China, and eventually aims to expand its service globally. The Shanghai Environment and Energy Exchange (SEEE), Shanghai International Port Group, China Energy Investment Group, and Shanghai Lingang Economic Development Group signed an agreement at a shipping industry conference in Shanghai on Monday to jointly establish the platform.

Source：SCMP (https://www.scmp.com/business/article/3269746/china-plans-trading-platform-green-hydrogen-derived-fuels-decarbonise-shipping)

Sustainable Finance Certification Public and Completed by Lianhe Green