Today’s ESG Updates
- Brazil Releases Fossil Fuel Transition Road Map Ahead of COP31: The plan aims to phase out fossil fuels and begins with countries assessing their dependence.
- El Niño Triggers Bolivian State of Emergency: One of the strongest El Niños on record is expected to deepen trade deficits and take countless lives, with droughts and floods already killing 75,000 cattle and affecting 78,000 families in Bolivia.
- AI Developers Turn to Retired Jet Engines for Data Center Power: Companies like xAI have converted old jet engines into generators for data centers, drawing criticism from environmentalists over the older, less efficient equipment.
- Bangladesh Garment Workers Continue Wage Protests: Workers are demanding a minimum wage of 30,000 taka (about $245), up from 12,500, as the cost of living increases.
Brazil releases fossil fuel phase-out plan
As COP31 is slated to begin next week, Brazil, which hosted the last UN climate event, laid out plans for a fossil fuel transition. The three-phase road map aims to boost economies while easing coal, oil, and gas use. Phase one will invite countries to assess their dependence on fossil fuels, both imported and exported, and will put the countries into various categories. This phase is expected to last for the next two years, just in time for COP33 in 2028.
The second phase of the road map asks countries to evaluate their climate progress and offer up ideas on further climate action. The third and final phase, which will last from 2031 to 2033, will focus on cutting fossil fuel supplies.
While the road map has great value, it isn’t a concrete fossil fuel phase-out. Joeri Rogelj, a professor of climate science and policy at Imperial College London, said, “The roadmaps are valuable but fall short of clearly indicating the pace of change needed by including no timeline or key benchmarks.”
With Brazil providing a push in the right direction, all eyes will be on Antalya next week to see where climate action goes from here.
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El Niño’s extreme weather events impact South America
El Niño weather patterns have caused both severe droughts and intense flooding across Bolivia. This weekend, Bolivian President Rodrigo Paz declared a state of emergency across the country in hopes of freeing up resources and ensuring “the cooperation of all institutions.” The government reported that 75,000 cattle have been lost due to the intense weather and that 78,000 families have been affected.
This year’s El Niño is expected to be one of the strongest on record, with scientists claiming that it could claim 450,000 lives. The extreme weather phenomenon is also expected to deepen trade deficits and increase inflation.
Banks with clients in affected areas are reviewing client loan terms. Spain’s BBVA branches are conducting reviews of loan books in Colombia, Peru, and Argentina. Danske Bank warns that countries outside of El Niño’s reach are also at risk of supply chain disruptions.
Related Articles
Here is a list of articles selected by our Editorial Board that have gained significant interest from the public:
AI developers look to retired planes for data center power
Data center developers are getting creative and turning to retired jet engines as a power source. With thousands of retired military planes sitting in desert “boneyards,” the federal Energy Information Administration claims that the engines on these planes could produce 40,000 megawatts of power.
Converting jet engines to generators is providing power fast to these growing data centers. Elon Musk’s xAI has already converted eight jet engines, which are now in operation at its Mississippi data center. With the state’s permission, these converted generators can legally emit twice the carbon monoxide of other turbines at the center.
Environmentalists are criticizing the move, noting that these jet engines are older and less efficient. An attorney with the Southern Environmental Law Center, Patrick Anderson, said that power generation for these data centers “should be getting cleaner over time, not dirtier.”
Bangladesh garment workers continue wage protests
Tuesday marked the fourth day of protests in Bangladesh as garment workers demand a higher minimum monthly wage. Currently, workers are paid a minimum of 12,500 taka each month (approximately $100) and are asking for the minimum wage to rise to 30,000 taka ($245) as the cost of living increases.
The protests have disrupted factory operations and caused clashes between demonstrators and police officers. Police have taken to using tear gas and sound grenades to disperse crowds in some areas. Some factories have been vandalized, and protesters have also attempted to block major highways.
This unrest is occurring right as Bangladesh, the second-largest apparel exporter, enters its peak production season. Brands such as H&M, Gap and Zara could face disruptions, as the country’s 4 million garment workers fight for better working conditions and better pay.
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Tulio Mattos.
