Today’s ESG Updates
- Climate Disasters Could Trigger Financial Crisis: Bloomberg Intelligence warns that extreme weather costs could reach $24 trillion by 2035.
- Trump Backs Coal Revival with $700M: The administration is funding two new coal plants and maintaining 12 existing ones.
- EU and EBRD Invest in Green and Digital Projects: The two are topping up the EFSD+ fund to support climate resilience and digital infrastructure.
- AirTrunk Plans $30B India Data Center Investment: The Australian firm will build 5 gigawatts of data center capacity in India by 2030.
Climate disasters could lead to a “major financial crisis”
A recent report by Bloomberg Intelligence found that the cost of climate disasters could end up costing around $24 trillion by 2035. Since 2020, extreme weather costs have surged beyond $20 trillion, with climate costs reaching $1.4 trillion last year alone. Andrew John Stevenson, a senior ESG analyst at Bloomberg, said climate costs are “now rivalling a major financial crisis and are forecast to double to $24 trillion over the next decade if historical trends persist.”
Consumers will be most affected by these skyrocketing climate costs, particularly as insurance premiums rise. After analyzing 275 companies, the report highlighted that companies committed to climate resilience and adaptation will be less affected by these rising costs. Companies that are exposed to climate risks are more vulnerable.
The report also explored how geopolitical instability and the AI boom have impacted rising energy costs worldwide. As a result, the demand for efficiency-focused energy solutions is growing across the grid, building, transport, industrial, and AI sectors.
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Further reading: Study: Global climate costs ‘now rivalling a major financial crisis’
Klimado – Navigating climate complexity just got easier. Klimado offers a user-friendly platform for tracking local and global environmental shifts, making it an essential tool for climate-aware individuals and organizations.
Trump pushes to reinvigorate the coal industry
On Thursday, U.S. President Donald Trump announced $700 million in federal funding directed toward the country’s coal industry. A portion of the funding will be allocated to building two new coal-fired power plants in the United States for the first time in more than 10 years. The money for Trump’s coal push will come from Congress funds initially allocated for carbon capture technology, aimed at reducing CO2 emissions from polluting industries.
In addition to constructing new coal plants in West Virginia and Alaska, $425 million will go towards maintaining 12 coal plants across the United States. In a statement, Trump said, “Today we’re taking historic action to bring down the price of energy and the cost of living for all Americans with the power of clean, beautiful coal.”
As part of Trump’s broader push to reinvigorate the coal industry, the Energy Department previously ordered five aging coal plants to remain open despite rising environmental and economic operating costs.
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Further reading: Trump Offers Funds for First New U.S. Coal Plants in 13 Years
Related Articles
Here is a list of articles selected by our Editorial Board that have gained significant interest from the public:
EU and EBRD allocate €150 million for digital and green investments
The European Union and the European Bank for Reconstruction and Development (EBRD) are looking to increase investment aimed at supporting the green transition in the Western Balkans. The two entities will top up the European Fund for Sustainable Development Plus (EFSD+) by €150 million, allocating €50 million to support climate resilience in the region. The remaining €100 million will go towards investments in digital infrastructure and services in the Western Balkans and across the southern Mediterranean, the South Caucasus, Eastern Europe, Türkiye, Central Asia, Mongolia, and Iraq.
Mark Bowman, Vice President, Policy and Partnerships at the EBRD, said, “Building a modern, reliable digital infrastructure and providing green finance are two of our top priorities at the Bank.” The investments aim to increase security across the Bank’s countries of operation by providing improved digital services. Climate resilience projects include agribusiness for the first time and will also focus on green components in sustainable logistics, municipal, building, and industrial sectors.
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Further reading: EBRD and EU step up support for digital and green investments
Australia’s AirTrunk announces $30 billion India investment
Australian data center specialist, AirTrunk, announced a $30 billion investment in India. Backed by the Canadian Pension Plan Investment Board (CPPIB) and Blackstone, the company first entered India in April with the purchase of data center platform Lumina CloudInfra. The Indian market is considered one of AirTrunk’s most significant long-term investment destinations, according to Chief Executive Robin Khuda. The new $30 billion investment will build out 5 gigawatts of data center capacity in the next four years.
India offers tax incentives for foreign companies operating from data centers within the country and is quickly becoming an AI hotspot. “There is a recognition that AI investment is a global race and that capital will flow to places that are prepared to compete for it,” said Khuda. “Every market has strengths and challenges. What investors consistently look for is certainty, coordination and speed.”
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Further reading: Australia’s AirTrunk to invest $30 billion in India by 2030
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Bingley Floods Boxing Day 2015 River Aire – Ireland Bridge. Cover Photo Credit: Chris Gallagher.
