Announcing Carbon Forward Middle East – more details below.

Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here

COP16 (FREE TO READ)

All our nature and biodiversity articles remain free to read (no subscription required). However, as of Oct. 24 we will require that all readers have a Carbon Pulse login to access this content in full. To get a login, sign up for a free trial of our news. If you’ve already had a trial, then you already have a login.

ANALYSIS – Cali talks hang in balance as nations struggle to advance toughest issues

Negotiators at the UN biodiversity summit in Cali scored some minor victories during the first half of the talks, but all the major issues remain deadlocked and will likely need ministers to put real money on the table next week to be resolved, according to experts.

Biodiversity credit standard launches with focus on forest production landscapes

A Swedish consortium on Saturday announced a global biodiversity credit standard focused on production landscapes, with plans to establish an independent, non-profit standard-setting organisation within six months.

INTERVIEW – South Pole launches habitat bank for Colombian biodiversity compliance market

Carbon project developer and biodiversity crediting entrant South Pole on Friday announced the launch of a restoration-focused ‘habitat bank’ in partnership with Colombian non-profit Salvamontes at COP16 in Cali.

BRIEFING – UN biodiversity talks fuel optimism for ocean track

UN negotiations in Colombia have led to “excellent progress” towards creating a new process for identifying key marine biodiversity areas, in a move that observers consider essential for achieving some of the most critical global ocean targets.

African organisation, German nature tech outfit to market $35 mln of nature units

Africa’s largest conservation organisation and a Germany-based nature tech company are set to issue 14,000 nature units, for a total value of approximately $35 million, generated through conservation projects across four African countries, Carbon Pulse has learned.

INTERVIEW – Bioenergy flies under the radar at biodiversity negotiations

Contentious government support for bioenergy could qualify as a subsidy harmful to biodiversity under the Kunming-Montreal Global Biodiversity Framework (GBF), but the topic could be sidelined entirely at COP16 by the focus on other agenda items, an NGO policy expert has told Carbon Pulse.

TNFD hits target of 500 adopters

A further 86 organisations have committed to report on their biodiversity impacts and dependencies under the Taskforce on Nature-related Financial Disclosures (TNFD), bringing the total to 502 adopters with $6.5 trillion in market capitalisation.

TNFD building beta nature data public facility

The Taskforce on Nature-related Financial Disclosures (TNFD) is set to release a beta version of a nature data public facility in 2025 to enable pilot testing with companies, in a bid to catalyse data funding, it announced on Saturday.

INTERVIEW – Biodiversity credits should be rethought as contributions to national strategies

A France-based organisation has published a market framework to align biodiversity credit projects with national strategies, enabling companies to claim their contribution to governments’ targets on nature, the co-founders told Carbon Pulse.

Global standard for biodiversity uplifts certifies first three projects

A global standard for biodiversity uplift has registered a first three restoration projects under its methodology.

CSO letter with over 140 signatories calls for greater finance, protection for water and wetlands

A joint letter signed by over 140 civil society organisations (CSOs) and experts has laid out priority areas for promoting the health of water and wetlands, highlighting COP16 themes of finance and the nature-climate nexus.

Cali outcomes to mark watershed for UN plastic treaty, UNEP exec says

The ongoing Cali biodiversity talks could lay the groundwork for the success of the final round of the upcoming negotiations on the long-awaited UN treaty to address plastic pollution, the UN Environment Programme’s (UNEP) executive director told Carbon Pulse Sunday.

EMEA

Final talks on EU’s Green Claims Directive to be delayed until next year

A final agreement on the EU’s proposed Green Claims Directive is likely to be pushed back to next year, according to several European Parliament sources, a decision which voluntary carbon market participants say could extend current uncertainty in the market.

UK climate advisors urge 81% emissions cut by 2035, no use of international credits to meet NDC

The UK should commit to cutting its greenhouse gas emissions by 81% from 1990 levels by 2035, the country’s Climate Change Committee (CCC) has recommended, as part of the country’s updated contribution to the Paris Agreement ahead of the COP29 climate summit in Azerbaijan next month.

UK cuts 2025 scheduled auction volume by 19% from 2024

The main futures exchange that handles UK Allowances trade announced its auction programme for 2025 late on Friday, revealing a 19% drop in auction supply next year.

BRIEFING: How to derisk the European CCUS value chain

The Net Zero Industry Act (NZIA) and EU ETS combo could unlock European CCUS projects — if public authorities step up to help derisk the value chain, for example through government guarantees.

Denmark to reduce CO2 emissions tax for companies at risk of carbon leakage

Danish steelmakers and other heavy industries exposed to international competition will benefit from a lower CO2 emissions tax regime under government plans to mitigate the risk of carbon leakage that received the green light from EU regulators on Friday.

German cement plant receives €157 mln for CCUS upgrade

A consortium of two Mexican and European companies have received a €157 million ($170 mln) grant from the EU Innovation Fund to finance a carbon capture utilisation and storage (CCUS) project at a German cement plant, the companies announced Tuesday.

Euro Markets: EUAs record biggest weekly rise since May as gas-driven market consolidates gains

European carbon allowances posted the largest weekly increase in nearly six months, advancing 7.5% in five days as prices consolidated the gains made over the previous two sessions in line with gas prices reaching a two-month high, while traders speculated that the recent rally from the €60.00 level may have signalled the bottom of the market for the rest of the year.

AMERICAS

LCFS Market: Credit prices swoon amid scrutiny of retail gas price impacts

California Low Carbon Fuel Standard (LCFS) credit prices abruptly sold off nearly 13% last week from year-to-date (YtD) highs reached earlier this month, after backlash on the potential impact that proposed changes to the scheme may have on retail gasoline prices, which the regulator continues to challenge.

Global wind turbine supply chain linked to illegal Amazon deforestation -investigation

A global increased push for wind energy has led to a rise in the illegal logging of balsa wood in Ecuador and Peru, resulting in deforestation and violation of Indigenous rights, according to a report published this week by a London-based investigative non-profit.

US materials production results in $79 bln in climate costs to society -study

Researchers at the University of California found that US manufacturing of major materials – including cement, steel, and asphalt – produced $79 billion in externalised climate costs, with the authors recommending carbon pricing measures to better address emissions in a paper published Friday.

Study identifies industrial sectors best and least suited for CCS deployment

A new study published Friday identifies the specific US industrial processes that carbon capture and storage (CCS) deployment is best suited for, and those that are better left for other decarbonisation tools.

INTERVIEW: Startup pitches chromium replacement carbon solution for steel industry with potential to earn offsets

A California-based startup is offering the steel industry a new product that it claims can replace a common, but toxic, coating material while cutting manufacturing emissions.

CFTC: Traders roll to V25 CCAs, reducing V24 exposure

Traders continue to roll into V25 California Carbon Allowance (CCA) holdings, reducing V24 exposure over the last week, while producers increased RGGI Allowance (RGA) futures and options net length ahead of November compliance deadlines, according data released Friday from the US Commodity Futures Trading Commission (CFTC).

ASIA PACIFIC

Australia to develop voluntary GHG accounting standards for agriculture, fishery, forestry sectors

Australia has announced it will develop voluntary GHG accounting standards for the agriculture, fisheries, and forestry sectors, and has established a reference group to guide this work.

Australian regulator publishes Safeguard facilities’ emissions intensity data

The Clean Energy Regulator (CER) has published new emissions intensity data (EID) for facilities covered under the reformed Safeguard Mechanism in the lead up to the next compliance deadline in March, a move which experts said would help provide a guide on how many below baseline credits facilities are likely to generate.

CN Markets: CEAs touch fresh all-time high, liquidity remains stable

Prices in China’s national emissions market hit a fresh all-time high over the past week amid stable trading volumes, buoyed by growing compliance demand.

BRIEFING: With a year until full implementation, how Europe’s CBAM is driving ETS policy in Vietnam, China, and Taiwan

Nearly halfway through its transitional phase, Europe’s Carbon Border Adjustment Mechanism (CBAM) has become a major driver of carbon market policy across Asia, attendees at an industry conference in New Delhi heard this week.

Regulator approves 18 projects for J-Credit scheme

Japan has given the green light to the registration of 18 projects under the J-Credit scheme, which are capable of generating nearly 1.2 million carbon credits over their lifetimes.

INTERNATIONAL

Green Climate Fund approves over $1 billion in fresh funding

The board of the world’s largest dedicated climate fund, the Green Climate Fund, approved more than $1 billion in fresh funding at a meeting this week, it announced Friday.

NGOs, private sector must abandon orthodoxy to scale nature-based CDR -panellists

Conservation non-profits, investors, and offtakers alike must step outside their traditional ideologies if nature-based carbon removals (CDR) are to scale, according to the architects of a major CDR deal speaking at COP16 in Cali, Colombia on Friday.

First Ghana Article 6 deal timeline shifts to early 2025

Ghana is on track to transact its first batch of Article 6 carbon credits before the end of Q1 2025, according to government officials.

VOLUNTARY

BRIEFING: Singapore, India, and others drive ‘big year’ for Asian voluntary carbon markets

Landmark policy announcements across markets including Singapore, India, and other countries have ensured a “big year” for Asian voluntary carbon markets, according to attendees at the IETA Asia Climate Summit, which took place this week in New Delhi.

Backlog of projects in Verra pipeline raises concern after standard body cuts staff

Falling credit issuance and a bulging backlog of projects in the pipeline for processing and certification in the Verra registry has raised concerns about the standard body’s promise to speed up its service after releasing around a quarter of its staff, market participants told Carbon Pulse.

Verra updates VCM methodology for IFM projects that seek to prevent logging

Carbon standards body Verra this week released an updated version of methodology for Improved Forest Management (IFM) projects that seek to earn carbon credits through preventing logging.

BRIEFING: Experts advocate for open carbon removal frameworks, too soon to call winners

The overarching frameworks for carbon removals should be as inclusive as possible, even if governments choose to prioritise methods suited to their national circumstances, while different funding streams are needed to match different technology readiness levels (TRL), said experts on a webinar Thursday.

Canadian financier receives over 1 mln Article 6 credits from Rwandan cookstove project

A Toronto-headquartered carbon project financier announced Friday that it has received a second tranche of more than 1 million Article 6 authorised credits from its Rwandan cookstove project.

US project developer receives 1.9 mln carbon credits for orphan well plugging

An Oklahoma-based project developer has been issued nearly 1.9 million carbon credits for an orphan oil and gas wells plugging project in the US state.

Clean cooking organisation updates cookstoves methodology

A Washington DC-headquartered clean cooking initiative has updated its cookstove methodology following a public comment period, the organisation announced on its website Wednesday.

BIODIVERSITY (FREE TO READ)

All our nature and biodiversity articles remain free to read (no subscription required). However, as of Oct. 24 we will require that all readers have a Carbon Pulse login to access this content in full. To get a login, sign up for a free trial of our news. If you’ve already had a trial, then you already have a login.

Non-profit targets raising up to $500 mln for sustainable materials fund

Canopy is planning to target raising between $300-500 million with a private equity fund tackling nature loss through investment in sustainable materials technologies, and seeks first close in the first quarter of 2025, Carbon Pulse has learned.

—————————————————

EVENTS

*NEW* Carbon Forward Middle East – Jan. 16-17, Abu Dhabi – Announcing Carbon Forward Middle East in Abu Dhabi, a great new event to explore carbon markets in the MENA region. We’ll be releasing more details about this conference soon. For now, put Jan. 16-17 in your calendar and email info@carbon-forward.com to express interest in attending, speaking, or sponsoring.

Supercritical Webinar – Defining Biochar Quality – Nov. 5, 0900 EST (1400 GMT) – Essential insights for an impact-driven carbon removal strategy. Join Supercritical and panelists from Puro.earth, Isometric, and Exomad Green for this expert-led webinar. In the rapidly evolving landscape of carbon removal, biochar stands out as a method with immense potential. But not all biochar is created equal, and the lack of standardisation makes understanding quality critical for companies committed to having real climate impact. In this webinar, you’ll learn from industry leaders about the characteristics that set superior biochar apart, the tools and methodologies for quality assessment, and emerging trends shaping the future of biochar. Register

Calyx Webinar – How to buy high-quality carbon credits – Nov. 6, 1100 EST (1600 GMT): Buying quality carbon credits in today’s carbon market can feel like an obstacle course full of hurdles and roadblocks, but despite challenges, many sustainability leaders have done this successfully. We gathered experienced carbon market participants from across industries to share their processes, advice and secrets to success. If you’re purchasing carbon credits in the next six months, this is a discussion you won’t want to miss. Register here. If you register but cannot attend live, you will receive an on-demand recording after the webinar.

cCarbon’s Canada Clean Fuels and Carbon Markets Summit 2024 – Nov. 7, Toronto: Canada’s clean fuels and carbon markets face significant uncertainty as policy, regulatory, and market dynamics evolve. To provide clarity, cCarbon is hosting modeling-driven Canada Clean Fuels and Carbon Markets Summit in Toronto for businesses and investors navigating this landscape. The event will begin with a plenary session focused on policy, followed by two specialized tracks exploring clean fuels and carbon markets in depth. With over 40 experts sharing insights and nearly 200 business leaders and regulators in attendance, this summit offers an exceptional networking and learning opportunity for anyone interested in Canadian energy and environmental markets! Find out more

—————————————————

Premium job listings

• Carbon NBS Specialist/Manager, NatureCo – Australia/Asia Pacific/Worldwide
• Business Development, Carbon Markets (Market Intelligence), RepuTex Energy – Melbourne
• AFOLU Project Development Specialist (f/m/d), KAYA Climate Solutions GmbH – Berlin/Luanda

See all listings or post a job

—————————————————

BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL

Funding fiasco – The UN’s main climate body, the UNFCCC, faces a significant budget shortfall of at least €57 mln ($61.5 mln) for 2024, nearly half of its required funding, which could hinder global climate negotiations, Reuters reports. While some countries, like Japan and Germany, have exceeded their financial obligations, major contributors like the US and China have fallen behind. This delay in contributions, the worst in UNFCCC history, has forced cost-cutting measures, such as cancelling regional climate events and reducing conference hours. The shortfall threatens the body’s ability to support international climate talks and implement agreements. The situation is particularly concerning ahead of the COP29 summit, as poorer countries are struggling to attend due to a €2.2 million shortfall in funds meant to cover travel costs. Despite appeals for urgent funding, the supplementary budget remains heavily underfunded, receiving only €41 mln of the €152.3 mln needed for 2024-25. UNFCCC officials have warned that these budgetary constraints undermine global climate action. Countries have consistently increased the body’s responsibilities without adequately raising funding, creating operational strains. As a result, diplomats from developing nations are at risk of reduced representation, potentially weakening climate dialogue. Despite efforts by countries like Azerbaijan to cover some costs, the budget issues pose a growing challenge to the UNFCCC’s ability to lead international climate efforts effectively.

EMEA

Biofuels deal – US fund KKR is buying a 25% stake in Italian utility Eni’s biofuels business Enilive, in a deal valuing the unit at €11.75 bln including debt, Reuters reports. KKR’s €2.94 bln purchase improves Eni’s financial position while ensuring it retains control of Enilive, the Italian company said. The deal is part of Eni’s strategy to bring in co-investors to growth businesses, aimed at raising funds to help Eni decarbonise its products. Enilive owns bio-refineries in Italy and abroad that produce biofuels using waste and vegetable oil partly from the group’s agri-business in African countries. Biofuels are expected to play a major role in decarbonising trucking, aviation, and shipping, though oil majors Shell and BP have scaled back their biofuel ventures in recent times.

Saudi solar – The Saudi Power Procurement Company (SPPC) has shortlisted companies including Masdar, EDF, and TotalEnergies, for the fifth round of solar projects under the National Renewable Energy Programme. These projects are expected to attract investments exceeding SAR 8 bln ($2.12 bln) and will operate under a Build, Own, and Operate (BOO) model. Shortlisted projects range from 300-2,000 MW in size, with the pricing ranging from $1.29/kWh – $1.78/kWh. The selected consortiums will enter 25-year power purchase agreements with SPCC to guarantee long-term renewable energy generation. The initiatives belong to Saudi Arabia’s Vision 2030, aiming to generate 50% of electricity from renewable sources and reduce reliance on liquid fuels in the power sector. (esgnews.com)

Timber targets – Finland must reduce tree felling by at least 25% if it is to meet an EU mandate for carbon neutrality by 2035, according to Syke, a research institute connected to the Finnish Environmental Ministry. It revealed that Finland’s land use and forestry industry is now a net source of emissions – with Finland rapidly expanding logging concessions to 67.8 mln cubic metres last year after the EU sanctioned Russian wood over the Ukraine war. Instead, Syke calculates that the sustainable amount of felling should be just 60-62 mln cubic metres of timber every year, leading to a revised net sink of 21 Mt of CO2 by 2035. Forest products make up 4% of Finland’s GDP, and it also imports huge volumes of wood from nearby Latvia (41%), Estonia (30%), and Sweden (17%).

A whole new world – Egypt’s Ministry of International Cooperation is in talks with the World Bank’s International Finance Corporation (IFC) to provide support enhancing private sector participation in several sectors, including carbon markets and seawater desalination, according to local media. The discussions come in the wake of a $700 mln initial disbursement by the World Bank’s International Bank for Reconstruction and Development (IBRD) this year – also in part to support carbon markets development in the North African country. Egypt formally launched its regulated voluntary carbon market in August of this year.

Saudi carbon credits – Saudi Arabia’s National Environmental Recycling Co. (Tadweeer) has struck a partnership that will allow it to issue carbon credits in line with the goals set in the Saudi Vision 2030 to achieve sustainability, protect and preserve the environment, and reach net zero emissions by 2060, it said in an announcement on the Saudi Exchange.

ASIA PACIFIC

Largest payer – Semiconductor giant TSMC will pay around NT$1 bln ($31.2 mln) in carbon fees per year starting in 2026 under Taiwan’s upcoming carbon levy scheme, based on the estimated NT$100 per tonne fee applied to the company, said Environment Minister Peng Chi-ming, according to United Daily News. That means the chipmaker will become the biggest carbon fee payer in Taiwan, accounting for one-sixth of all carbon fees collected by the government annually.

Almost ready – Japan has been in talks with India on forming a partnership for the implementation of the Joint Crediting Mechanism (JCM), and the signing of an agreement is around the corner, government officials told the Asia Climate Summit on Thursday. The two countries last year already agreed to initiate talks over signing a JCM deal. Even though Tokyo has been running the bilateral scheme for around a decade, the issuance remains largely limited. As of October, only around 740,000 units have been issued under the JCM programme, according to government data. To date, Japan has secured JCM partnerships with 29 countries around the world, including Vietnam and Ukraine.

Still thinking – A Philippines government official told IETA’s Carbon Forum Asia conference in New Delhi this week that the government might opt for an emissions trading scheme rather than a carbon tax, which has been pushed in some quarters for several years. This issue is proving a challenging one for the Southeast Asian nation, which has been weighing pros and cons of a cap-and-trade scheme since at least back in January.

AMERICAS

Stay denied – The US Court of Appeals for the District of Columbia Circuit issued a ruling Thursday that denied a request to put a temporary freeze on a rule limiting emissions from steel and iron manufacturing, reported E&E News. The court issued the ruling on a 2-1 basis, with Judge Justin Walker in dissent saying that the Environmental Protection Agency likely violated federal law, and the rule should be stopped to avoid imposing “unrecoverable” compliance costs to the industry.

Small business cash – The US Environmental Protection Agency (EPA) has awarded $2.8 mln to small businesses for developing environmental technologies, according to a Friday press release. Through its Small Business Innovation Research programme, the EPA said it will be supporting businesses that addressing environmental challenges, destroying PFAS, cleaning indoor air during wildfires, enhancing recycling systems, reducing food waste, and improving disaster response. For Phase I of the programme, the EPA awards contracts of up to $100,000 for six months for “proof of concept” of the proposed technology. Small businesses that have received a Phase I award can compete for a Phase II award of $400,000 to further develop and commercialise the technology. Seven projects across six states were given Phase II awards as part of Friday’s announcement.

Biofuels up – California Governor Gavin Newsom (D) sent a letter to regulator ARB on Friday directing it to accelerate action on review of implementing 15% ethanol blend gasoline (E15), up from the current 10% blend (E10). Newsom cited affordability as a primary driver, pointing to evidence that E15 could reduce the cost of gas. Such policy measures have rose in prominence beyond California at the federal level, particularly bolstered by the ethanol industry and lawmakers from the Midwest.

Busy ARB – California regulator ARB’s proposed amendments to the Advanced Clean Trucks Regulation and the Zero-Emission Powertrain Certification Test Procedure were unanimously approved by a board vote on Thursday, E&E News reported. The legislation phases out new diesel truck sales by 2036.

Trying again – North Dakota landowners appealed to the state Supreme Court on Thursday to assess their lawsuit against CO2 pipeline developer Summit Carbon Solutions, the North Dakota Monitor reported. The Northwest Landowners Association, the North Dakota Farm Bureau and others argued that state laws regulating the underground storage of CO2 are unconstitutional, but district judge Anthony Benson dismissed their lawsuit in August, citing mostly procedural issues. The landowners take issue with property rights and amalgamation, which could force non-consenting owners to participate in CO2 storage if at least 60% of the owners are participating. SCS’ pipeline remains contentious in the region, as Republican lawmakers have voiced support for landowners’ property rights campaigns in South Dakota, Iowa, and Minnesota.

Time for revolution – Amid an ongoing water crisis in Bogota, Colombia, city councilman Jose Cuesta Novoa has advocated investing in carbon credits as part of a “revolution of air and water” instead of relying solely on water rationing. The official, a former M-19 guerrilla fighter and peacemaker, has suggested that the city purchase COP$100 bln ($23 mln) worth of carbon credits from reduced deforestation and ecological restoration of the Colombian Amazon, among other water-preserving initiatives. (Consejo de Bogota)

VOLUNTARY

Rethinking the transition – Morgan Stanley has revised its climate targets for reducing emissions in its corporate lending portfolio, citing the slow global transition to a greener economy, Jessica Alsford, the bank’s chief sustainability officer, told Reuters. Factors such as a slowdown in EV sales, limited biofuel use in aviation, and obstacles in the power sector are impeding progress. While some banks have reduced lending to high-emission sectors like oil and gas, Morgan Stanley is cautious about cutting funding too quickly. The bank has now shifted its goal to align with capping global warming between 1.5-1.7 degrees C, softening its previous aim of 1.5 C. This change reflects the challenges of current technologies and policies, while still adhering to the Paris Agreement’s goal to limit warming below 2 C by 2050. Morgan Stanley has set 2030 emissions reduction targets for six sectors – Energy, Power, Autos, Chemicals, Mining, and Aviation – and reset its baseline from 2019 to 2022 for better data accuracy. For the energy sector, operational emissions are targeted to fall by 12-20%, and end-use emissions by 10-19%. Power sector emissions are to drop by 45-60%, while emissions from autos should fall by 29-45%. In aviation, emissions are to be reduced by 13-24%, but sustainable aviation fuel adoption is lagging. Chemicals sector emissions are expected to decrease by 18-28%, with a focus on green hydrogen and emissions capture, while mining emissions are targeted to fall by 23-31% through increased renewable power use. Despite these targets, Morgan Stanley warns that achieving them will depend on improved technologies, stronger policy support, and overcoming challenges in meeting demand across various sectors.

Biochar buddies – BluSky Carbon has entered into a master services agreement with Scotia BioChar, a Nova Scotia-based company that produces biochar from waste wood biomass. The agreement allows Scotia to request manufacturing equipment or consulting services from BluSky for biochar production. The initial agreement lasts one year, during which Scotia will work exclusively with BluSky. Scotia aims to use BluSky’s pyrolysis technology for biochar production in various applications, including mine reclamation and agriculture.

Nasdaq notice – Vancouver-based project developer DevvStream halted trading of its stock on Cboe Canada as of market close on Friday, in anticipation of its upcoming listing on the Nasdaq stock exchange. The firm announced the $213 mln deal to go public in the US in Sep. 2023 via merger with special purpose acquisition company Focus Impact Acquisition Corp. DevvStream shares last traded at C$0.85 on the Cboe Exchange Friday.

AND FINALLY…

ESG RIP – In 2024, asset managers in Europe and the US have closed or merged hundreds of ESG funds due to increasing regulatory challenges, Bloomberg reports. According to a Morningstar analysis of the market published this week, in Europe some 349 funds were liquidated or merged by the end of the third quarter, nearing the total of 351 closures in 2023. In the US, 12 ESG funds were liquidated, including several managed by BlackRock. This trend is expected to continue as new anti-greenwashing regulations are implemented, such as the EU’s fund-naming rules. Although global ESG fund inflows rose to $10.4 billion in Q3, the flow picture varies by region. In Europe, the dominant market for ESG investing, inflows have slowed, with funds facing uncertainties around evolving regulations. The inflows into index-tracking ESG funds in Europe hit a record low of $10 billion, while actively managed ESG funds experienced positive net inflows for the first time in five quarters. In the US, redemptions slowed, while Japan and other parts of Asia saw more stable or increased investment in ESG funds. Despite the growth in ESG funds globally, they underperformed compared to the broader market, with an organic growth rate of 0.33% versus 0.77% for the wider market. Overall, the global ESG fund market now holds assets of approximately $3.3 trillion across 7,600 funds.

Got a tip?  How about some feedback?  Email us at news@carbon-pulse.com