Editor’s note: Biden, bonds and bearish solar market 

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It has been a crazily busy year and there seems to be little sign of any let-up. Yesterday, US President Joe Biden tried to head off the rollback on climate action that seems certain to happen when Donald Trump takes over by announcing the US’s nationally determined contribution.

The plan would see the US cutting its greenhouse gas emissions by between 61 per cent and 65 per cent by 2035, from 2005 levels.

Some campaigners criticised the deal for not being aligned with attempts to keep warming below 1.5C above pre-industrial levels and for falling short of the US’s fair share of emissions reduction, given its historic role as the world’s biggest polluter, writes Elizabeth.

However, Debbie Weyl, US acting director at the World Resources Institute, says the target “is close to the upper bound of what is realistic if nearly every available policy lever were pulled”. 

While the target is not legally binding and so could easily be dialled back by the incoming administration, Biden’s team said it should be a “north star” for states, businesses and other organisations during Trump’s second term. “American climate leadership is determined by so much more than whoever sits in the Oval Office,” says US climate envoy John Podesta.

Green bond growth forecast

Xem thêm : Bond Sentiment ‘Could Scarcely Be Worse’ Heading Into 2025: Rosenberg

Marie, meanwhile, reports on the European Green Bond Standard and the implications of issuers, from tomorrow, being able to choose to use the new “European green bond” label when marketing a euro-denominated green bond to investors

To be eligible for the voluntary standard a bond must meet requirements set out in the EU Green Bonds Regulation adopted last year. Key elements include that a bond must allocate at least 85 per cent of its proceeds to EU taxonomy for sustainable activities-aligned purposes, all of its proceeds must comply with the taxonomy regulation’s “do no significant harm” criteria, and it must be certified by a designated EU green bond reviewer.

Despite the taxonomy-alignment criteria representing a high benchmark for eligibility, market participants have predicted EUGBs could become a material part of the market. Research by think-tank the Institute for Energy Economics and Financial Analysis finds in 2023 alone EU companies invested €249bn in EU taxonomy-aligned activities.

Solar slowdown

Elsewhere, Claudia has dived into data showing the EU solar sector grew by only 4 per cent in 2024, a significant drop from the 53 per cent increase recorded in 2023. Figures from industry association SolarPower Europe’s annual market outlook reveals 65.5 gigawatts of new solar power was added in 2024, a slim increase compared with the 2023 record of 62.8GW.

“Slowing solar deployment means slowing the continent’s goals on energy security, competitiveness and climate,” says SolarPower Europe chief executive Walburga Hemetsberger. “Europe needs to be installing around 70GW annually to hit its 2030 targets — we need to consider corrective action now, before it’s too late.”

You can read all the rest of the latest sustainability news and views in this week’s round-up, and don’t forget to tune into the last podcast of the year.

The Sustainable Views editorial team is taking some well-earned rest to recharge our batteries and come back ready to inform and empower our readers in 2025. The next newsletter will be in your inbox on December 30.

Xem thêm : Is PPSAX a Strong Bond Fund Right Now?

In the meantime, happy holidays!

Philippa

Philippa Nuttall is the editor of Sustainable Views 

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