Today’s ESG Updates
- UN Climate Budget Increased by 10%: Nearly 200 countries agree to boost UNFCCC funding to €81.5M, with China and Bloomberg Philanthropies upping contributions.
- Germany Pushes for Fast-Track EU-U.S. Trade Deal: Chancellor Merz urges urgency as tariff relief nears expiry; WTO alternative also hinted.
- Gresham House CEO Sees Green Investment Shift to Europe: U.S. and Asian investors eye Europe’s low-carbon projects amid fading domestic support.
- Trump Admin Plans Gulf Oil, Gas Lease Sale with Lower Royalties: Proposed December auction covers 80M acres with reduced deepwater royalty rates to cut costs.
The UN climate budget is expected to increase by 10%
Nearly 200 countries have agreed to increase the UN climate body’s budget for the next two years. The core budget of €81.5M for the United Nations Framework Convention on Climate Change (UNFCCC) has increased by 10% from 2024, and it will be funded by government contributions. Considering China’s economic growth, the world’s second-biggest economy will now cover 20% of the new budget, 5% more than their previous coverage. The U.S., which is the world’s biggest economy, was allocated a bigger share of 22%, which will instead be covered by Bloomberg Philanthropies due to Trump’s exit from the UN Paris agreement and his discontinued climate funding. The UNFCCC has undergone severe budget shortfalls recently as major contributors including China and the U.S. did not pay on time, explaining the cancellation of some events. Companies can keep up with the latest regulations and industry updates through the use of ESG tools.
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Further reading: Countries agree 10% increase for UN climate budget
Germany’s Chancellor urges “quick and simple” trade deal between EU and the U.S.
Germany’s Chancellor Friedrich Merz recently stated that the EU should work towards a “quick and simple” trade deal with the U.S., especially with a tariff respite expiring soon on July 9. He warned that businesses were in danger, particularly for German industries which are already facing steep tariffs. Merz quoted the EU Commission President’s suggestion about Europeans building a new trade organisation that may gradually replace the World Trade Organisations (WTO), and while this idea was in its early stages, it could include mechanisms to resolve disputes. The Chancellor suggested that EU leaders were “basically united” regarding the desire to finalise a trade deal with Latin America’s bloc as quickly as possible, though French President Emmanuel Macron has stated otherwise to different sources.
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Further reading: Germany’s Merz urges ‘quick and simple’ EU-US trade deal
Gresham House CEO observes new wave of investors interested in European market
The CEO of Gresham House, Tony Dalwood, has observed that U.S. and Asian investors are now looking to Europe after the U.S. government withdrew support for domestic green projects that target a low-carbon economy. While there is growing pressure to slow down the transition to net-zero emissions in many countries, there are also many governments which remain committed to investing more and making it easier to invest in projects like hydrogen and solar power. Dalwood states that across the globe, there is a noticeable growing interest in green efforts within the European market, ranging from infrastructure to energy transition investments and natural capital. The UK government’s support and commitment to green energy will contribute greatly to the market, as they aim to cut green levies for business and increase investments in clean energy to more than £30B ($41.23B) a year by 2035. Companies can leverage ESG solutions to stay on top of the latest industry developments.
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Further reading: Gresham House CEO sees US clients looking to Europe for green investments
Trump administration proposes sale of oil and gas drilling rights in December
The Trump administration is proposing a sale of oil and gas drilling rights on 80M acres (32.4M hectares) in the Gulf of Mexico on December 10 with lower deepwater royalty rates. This sale will be the first of three which were outlined in a Biden-era five-year offshore drilling program which included the smallest ever number of oil and gas auctions. The administration intends to offer approximately 15,000 unleashed blocks located between 3-231 miles (5-372 km) offshore, and it proposes a royalty rate of 16.67%, which is the minimum required by law for both shallow and deepwater leases. Recent oil and gas auctions saw that drillers were required to pay 18.75% on the value of oil produced in deep water. According to the administration, the lower rate would boost industry participation and reduce production costs.
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Further reading: US proposes Gulf of Mexico oil and gas lease sale in December
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the cover photo: Rows of flags in front of a building, Jul. 27, 2024. Cover Photo Credit: Gavin Li
