Today’s ESG Updates
- EU Carbon Border Tax Faces Weakening: The European Commission’s proposed Article 27a exemption clause for CBAM has alarmed industries, which fear it will undermine decarbonization investments.
- Dcycle Acquires ESG-X Amid European ESG Consolidation: Spanish sustainability software company Dcycle acquired German AI-powered ESG reporting startup ESG-X.
- BNP Paribas On Track to Exceed Sustainability Targets: The French bank has reached 82% of its low-carbon energy financing target (€38.3 billion) and has surpassed its €200 billion transition finance goal.
- U.S. Energy Secretary to Visit Venezuela: Chris Wright plans to discuss the management of Venezuela’s oil industry and encourage investment in the sector, despite concerns from U.S. producers.
Weakening EU carbon border tax could set back decarbonization
The European Union’s carbon border adjustment mechanism (CBAM) is facing controversy over a proposed exemption clause. The EU’s CBAM, a tax on carbon emissions during production for EU imports, was just launched at the beginning of 2026. Now, the European Commission wants to introduce a new article, Article 27a, which would give it the power to exempt certain goods from the tax. Experts from several heavy industries in Europe, including fertilizers, steel, aluminum, electricity, hydrogen, and cement, are worried about the vague wording of this article.
Many experts in these industries are concerned that a weakened CBAM could leave the law open to political intervention and would hinder investment in much-needed decarbonization projects. The “voice” of European electricity, Eurelectric, said in a statement, “If there is a perception that CBAM obligations can be lifted for political or undefined unforeseen reasons, this may weaken incentives to invest in local decarbonisation and low-carbon production both within the EU and beyond.”
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Further reading: European industry revolts over EU plan to weaken carbon border tax
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Sustainability software company Dcycle acquires ESG-X
Spanish software company Dcycle has acquired German startup ESG-X, as the European market aims to consolidate ESG software. Dcycle, founded in Madrid, Spain, aims to streamline sustainability management for companies. ESG-X is a software company that utilizes AI to support corporate sustainability reporting. The acquisition will elevate Dcycles’ platform by adding double materiality assessments aligned with CSRD requirements, local data residency capabilities, and image recognition for fuel and energy consumption. According to Juanjo Mestre, CEO and co-founder of Dcycle, the European ESG market has “entered a clear consolidation phase.” The acquisition highlights the continued importance of ESG reporting in the European market.
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Further reading: Dcycle acquires ESG-X to scale sustainability data management in Europe
Related Articles
Here is a list of articles selected by our Editorial Board that have gained significant interest from the public:
BNP Paribas credit exposure to low-carbon energies reaches €38.3 billion
French bank BNP Paribas is on track to exceed its target of 90% of its energy production credit exposure directed to low-carbon sources by 2030, having achieved 82% of its energy financing directed to low-carbon sources at the end of 2025. The bank reported credit exposure to low-carbon energies at €38.3 billion, which is up from €36.8 billion in 2024. The €38.2 billion included €35.6 billion to renewables and €2.6 billion to nuclear. Meanwhile, fossil fuel exposure dropped from €11.5 billion to €8.6 billion. BNP Paribas remains dedicated to reaching its sustainability goals while supporting its clients. The Paris-based bank also exceeded its €200 billion investment goal, allocating €252 billion to low-carbon transition financing between 2022 and 2025.
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Further reading: BNP Paribas Surpasses 80% of Energy Financing to Low-Carbon Energies
US Energy Secretary to visit Venezuela
The U.S. Energy Secretary Chris Wright plans to travel to Venezuela, intending to discuss the future of the country’s oil supply. However, Wright claims that the Trump administration is not interested in the oil reserves. In an interview with Politico, he stated, “This was a geopolitical problem of a country that was a threat to all of its neighbors, a threat to the Western hemisphere, and a massive exporter of guns, of drugs, of criminals. It may be a nice coincidence, but it is coincidental that Venezuela’s main product and giant resource is oil.”
During his visit, Wright aims to meet leaders in the oil and gas industry, with hopes of improving management of Petróleos de Venezuela (PdVSA), the state-run oil company. His goal is for investors to see changes and gain confidence to invest in Venezuelan oil. Many U.S. oil and gas producers, along with members of Congress, have expressed worry that reviving Venezuela’s oil industry would intensify competition.
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Further reading: Energy secretary plans visit to Venezuela — but says Trump isn’t focused on its oil riches
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Aerial view of a factory in Poznań, Poland. Cover Photo Credit: Marcin Jozwiak
