SUSTAINABLE DEVELOPMENT

UN: climate adaptation costs 5-10 times more than current funding plans

Climate resilience efforts in developing economies face a potentially disastrous funding gap, warns the annual 2021 Adaptation Gap Report from the UN Environment Programme (UNEP). The report concludes that the costs of adaptation for developing economies alone are likely to be towards the upper end of an estimated $140-300 billion a year range by 2030, rising to $280-500 billion per year by 2050. In contrast, climate finance flowing to developing countries for both mitigation and adaptation planning and implementation reached $79.6 billion in 2019 and is not expected to reach the previously agreed goal of $100 billion a year until 2023. The report said that overall estimated adaptation costs in developing countries are 5 to 10 times greater than current public adaptation finance flows, and the gap is widening. (Business Green)

TECHNOLOGY & INNOVATION

US-led First Movers Coalition to catalyse global clean technology markets

The US Climate Envoy has announced at COP26 the launch of the First Movers Coalition, a platform for multinational corporates that aims to create a global market for low carbon technologies. The Coalition asks members to make purchasing commitments that support the development of early-stage low carbon technologies in the steel, cement, aluminium, chemicals, shipping, aviation, trucking, and direct air capture sectors. Currently, the Coalition involves major brands like A.P. Møller-Mærsk, Amazon, Bank of America, Boeing, DHL, Trafigura Group, and Volvo. Some specific purchasing commitments have already made, including a pledge to use sustainable aviation fuels and zero-emission shipping technologies by 2030, with shipping cargo owners setting a target to transport at least 10% of goods via ships that use zero-emission fuels and reach 100% by 2040. (Business Green)

ENERGY 

Major nations join global product energy efficiency plan for corporates

Australia, Indonesia, Japan and Nigeria have joined a collaborative initiative steered by the UK Government and the International Energy Agency (IEA) aimed at drastically improving the energy efficiency of appliances such as lighting, refrigerators and air conditioners. The so-called Call to Action aims to double the energy efficiency of key appliances such as lighting and cooling by 2030 in order to drive further decarbonisation in reaching net zero. It forms part of the Super-efficient Appliances and Equipment Deployment (SEAD) Initiative. In total, 14 countries have now signed onto the initiative, which is the largest of its kind. It focuses on four key products – lighting, refrigerators, air conditioners and industrial motor systems – which together account for over 40% of global electricity demand and emit more than five billion tonnes of carbon each year. (edie)

CLIMATE CHANGE

ADB to buy & retire coal plants; Australia stays out of COP 26 coal pledge

The Asian Development Bank (ADB) has announced a fund that will buy coal power plants in order to shut them down early, replacing them with renewable energy alternatives. The ADB is launching the pilot fund of US$2.5 billion to US$3.5 billion that will focus on buying plants in Indonesia, the Philippines and Vietnam with the aim to retire half of their coal fleet over the next 10 to 15 years, much sooner than their average lifespan. In related news, the Australian government will not join the pledge made by more than 40 countries at the COP26 climate summit to phase out coal power. The Australian energy minister declared Australia was focused on developing low-emissions technology not “wiping out industries” through phasing out coal. (Eco-Business; The Guardian)

SUSTAINABLE INVESTMENT

Teva issues bond tied to climate and access to medicine goals

Multinational pharmaceutical company Teva has announced the completion of its $5 billion sustainability-linked bond, the largest offering of its kind from any sector and the first from a generic pharma company. Teva has tied the bond’s interest rate to three of the company’s 2025 sustainability targets, including a 25% reduction in Scope 1 and 2 GHG emissions and 150% increase in access to essential medicines for patients in low-and middle-income countries (LMICs). While green bonds are typically used by companies to finance specific environmental projects, Teva has drawn criticism for using the new bond to repay outstanding debt. Some investors have pushed back on the deal, saying there is little transparency into how the debt is used and only mild consequences if the company falls short of its sustainability objectives. (ESGToday; Financial Times*)

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