【ESG News】Global Trends Biweekly Newsletter Issue 13 (2024.7.29-2024.8.9)

Hong Kong China ESG trends

HKEX to Introduce Gold Standard Carbon Credits on Core Climate

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce the inclusion of Gold Standard's Verified Emission Reductions (GS-VERs) on the Core Climate platform, HKEX's carbon marketplace, with effect on 1 August 2024. HKEX Co-Head of Markets Glenda So said: "We are delighted to add Gold Standard's Verified Emission Reductions to our carbon market ecosystem. The addition will allow a more diverse range of internationally certified climate projects to be available on the Core Climate platform and reflects our commitment to providing investors and corporates with more options to support climate projects as they progress in their net zero transition journeys."

Source: HKEX (https://www.hkex.com.hk/News/News-Release/2024/240801news?sc_lang=en)

International ESG trends

UK Sets Sights on Regulating ESG Ratings to Lead in Sustainable Finance

The UK government is set to propose a law in 2025 aimed at regulating providers of Environmental, Social, and Governance (ESG) ratings, a move that could reshape the landscape of sustainable finance. This initiative, led by Finance Minister Rachel Reeves, seeks to address the growing concerns over the transparency and reliability of ESG ratings, which play a crucial role in directing billions of dollars into sustainability-focused investments.

Source:  ESG News (https://esgnews.com/uk-sets-sights-on-regulating-esg-ratings-to-lead-in-sustainable-finance/)

U.S. SEC Defends its Authority for Climate Disclosure Rule in Court

The U.S. Securities and Exchange Commission (SEC) is staunchly defending its climate disclosure rule in court, asserting that the rule is vital for providing investors with critical information on climate-related risks. According to the SEC, these risks, and how companies respond to them, can significantly impact financial performance—a concern highlighted by substantial investor demand. Climate-related risks—and a public company’s response to those risks—can significantly affect a company’s financial performance and position, the SEC stated in its brief, underscoring the necessity of the rule.

Source:  ESG News (https://esgnews.com/u-s-sec-defends-its-authority-for-climate-disclosure-rule-in-court/)

Oxford researchers propose ‘Carbon Removal Budget’ to tackle climate change

New research from the University of Oxford, published in the journal Carbon Management, makes the case for a novel ‘Carbon Removal Budget’ to help tackle climate change. It would sit alongside the Carbon Budget that governs how much CO2 can safely be emitted globally.

Source:  University of Oxford (https://www.ox.ac.uk/news/2024-08-06-oxford-researchers-propose-carbon-removal-budget-tackle-climate-change)

Singapore Introduces Bill to Advance Energy Transition and Strengthen Power Sector Regulation

The Ministry of Trade and Industry (MTI) introduced the Energy Transition Measures and Other Amendments Bill to Parliament, aiming to amend the EMA Act, Electricity Act, and Gas Act. These changes will

introduce guardrails for the electricity market, strengthen the Energy Market Authority’s (EMA) regulatory capabilities, and establish the Future Energy Fund. Singapore’s power generation, primarily from natural gas, accounts for 40% of its carbon emissions. To reach the 2050 net-zero target, Singapore must decarbonize its power sector while maintaining energy security and cost competitiveness. This requires updating regulatory frameworks to support various decarbonization pathways.

Source:  ESG News (https://esgnews.com/singapore-introduces-bill-to-advance-energy-transition-and-strengthen-power-sector-regulation/)

Mainland China ESG trends

China launches ambitious green transition guidelines

China's central government has unveiled a new state-level guideline aimed at achieving a comprehensive green transition across the nation's economy and society over the next decade. The move is part of China's broader effort to address ecological and environmental challenges while promoting sustainable development. The guideline emphasizes the importance of transforming China into a greener, low-carbon nation, a crucial step toward ensuring the harmonious coexistence of humans and nature. The document outlines targets for significant progress in green production and lifestyles by 2030, with the ultimate goal of establishing a green and low-carbon circular economy by 2035.

Source: China Daily (https://www.chinadaily.com.cn/a/202408/11/WS66b8a567a3104e74fddb96ba.html)

China to strengthen control over carbon emissions

China will establish a new mechanism to control carbon emissions and emission intensity from its grip on energy consumption and consumption intensity for the country's carbon neutrality and green development, said a circular released by the General Office of the State Council on Aug 2. By 2025, the nation will further improve its statistical and accounting system for carbon emissions, formulate standards for emission calculation and carbon footprint for some industries and enterprises, and complete and regularly upgrade the national database of greenhouse gas emission factors. During the 15th Five-Year Plan (2026-2030) period, a dual control system for carbon emissions will be implemented, with a primary focus on emission intensity supplemented by the control over total emission amount.

Source：China State Council (https://english.www.gov.cn/policies/latestreleases/202408/02/content_WS66aca35fc6d0868f4e8e9b2f.html)

China to Issue 70 National Standards for Carbon Emission Calculations in 2024

China has released a comprehensive plan to standardize carbon emission calculations across key sectors to meet its carbon reduction targets. By the end of 2024, China will publish 70 national standards on carbon accounting, footprint, reduction, capture, utilization, and storage, covering all key sectors and companies, according to the National Development and Reform Commission, the State Administration for Market Regulation, and the Ministry of Emergency Management.

Source：ESG News (https://esgnews.com/china-to-issue-70-national-standards-for-carbon-emission-calculations-in-2024/)

Sustainable Finance Certification Public and Completed by Lianhe Green