Today’s ESG Updates
- Regulators Drop Climate Risk Management Plans for Banks: U.S. regulators withdraw 2023 climate risk framework guiding major banks on managing climate-related financial risks
- U.S. and Singapore Urge UN to Postpone Vote: U.S., Singapore, Liberia, and Saudi Arabia urge IMO to halt shipping carbon tax amid global division
- China Approves More Biofuel Firms to Export Green Jet Fuel: China approves three biofuel firms to export SAF, boosting capacity and targeting Europe’s emerging green fuel market
- Daylight Secures $75 Million: Daylight Energy raises $75 million to expand its decentralized solar network empowering homeowners to share energy
Leading U.S. Banking Regulators Drop Climate Risk Management Plans for Banks
The leading U.S. banking regulators – the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) – have jointly announced the withdrawal of the Principles for Climate-Related Financial Risk Management for Large Financial Institutions.
The purpose of the Climate Risk Management Principles was to help major banks and financial institutions integrate climate-related risks into their governance and risk management practices.
Climate Risk Management Principles came to life in 2023, targeting financial institutions with assets exceeding $100 billion. It outlined how large banks can better address both the physical impacts of climate change and the financial risks associated with the global transition toward a low-carbon economy.
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Further reading: U.S. Federal Reserve, FDIC Scrap Climate Risk Management Framework for Banks
U.S. and Singapore Urge UN to Postpone Vote on Carbon Pricing for Shipping
The United States, Singapore, Liberia, and Saudi Arabia have collectively called on the U.N. International Maritime Organization (IMO) to suspend enforcement of a proposed carbon price on shipping after a period of talks in London concluded without agreement. Washington and Riyadh continue to strongly oppose a carbon price in the maritime sector, while the European Union continues to support the measure as part of its global decarbonization strategies.
U.S. President Donald Trump called on IMO member states on Thursday to vote no, stating on his Truth Social platform that Washington would “not stand for this global green new scam tax on shipping and will not adhere to it in any way, shape or form.” “This week’s IMO meeting in London … appears to be on the verge of collapse,” Jefferies analyst Omar Nokta wrote in an investor note on Friday.
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Further reading: US, Singapore call on UN to delay carbon shipping price vote amid splits
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China Approves More Biofuel Firms to Export Green Jet Fuel, sources say
According to sources and consultancy JLC, Beijing has granted three additional biofuel companies permission to export sustainable aviation fuel (SAF) which could lead to more shipments to European markets. Although Europe has not yet required low-emission jet fuels, Chinese producers are quickly building up capacity and are targeting the European continent as a potential export market. The approvals were granted to Shandong Haike Chemical, Shandong Sanju Bioenergy and EcoCeres, which is affiliated with Bain Capital. The companies report export quotas, the total footed between 788,000 and 828,000 metric tons on an annual basis. The development highlights China’s ambition to reinforce its role in clean energy supply chains. To stay informed on the latest industry updates amid shifting geopolitical landscapes, companies can turn to ESG solutions.
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Further reading: China allows more biofuel firms to export green aviation fuel, sources say
Daylight Secures $75 Million to Expand Residential Solar Power Network
Daylight Energy, a start up based in New York, has secured $75 million funding to develop its decentralized power network that allows homeowners to generate and share energy. Daylight was founded in 2022 and has since created an alternative to the traditional way by providing homeowners with solar panels and a battery system through a subscription model. The system allows homeowners to save money on their utility costs, have backup power during outages, while allowing them to provide excess energy back into the grid.
Daylight pools the energy capacity from all participating customers, allowing Daylight to sell energy during high demand. Daylight then gives a share of the profits back to the participating customers. The raised $75 million will enable Daylight to accelerate its vision of decentralizing power through homeowners as part of a more resilient and community-based energy grid. To keep up with more industry updates, businesses can rely on ESG solutions.
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Further reading: Daylight Raises $75 Million to Turn Homes into Solar Power Plants
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the photo: Wall Street With An American Flag Cover Photo Credit: Wiki Commons
