ESG International Weekly News 10/15-10/21

1.🇪🇺 EU Eases Compliance and Delays Rollout of Deforestation Regulation

The European Commission has announced an adjusted rollout plan for the EU Deforestation Regulation (EUDR) to ensure IT infrastructure can handle expected submission volumes.

 

• Large & medium firms: Effective Dec 30, 2025, with a 6-month grace period.
• Micro & small enterprises: Effective Dec 30, 2026.
• Downstream actors (retailers, manufacturers): Relieved from filing duties—importers or first-market entrants will handle due-diligence submissions.
• Low-risk small producers: Only one-time declarations required, possibly waived if covered by national data systems.

The EU emphasizes this is a procedural recalibration, not a policy retreat — the goal of keeping deforestation-linked goods out of the EU market remains firm.

🔍Key Takeaways

1. Upstream accountability: Compliance burden now centers on importers and origin producers.
2. System readiness: IT capacity becomes a compliance risk; firms should use the transition to strengthen internal systems.
3. Investment shift: Capital is expected to flow upstream toward traceability tech, origin data, and producer upgrades.

 

💬Expert Insight

“This is not a rollback but a pragmatic adjustment,”

— World Resources Institute noted, commending the EU for maintaining the regulation’s core structure while improving rollout feasibility.

🌍Global Implications

Covering commodities like cocoa, coffee, beef, palm oil, rubber, and wood, the EUDR remains a landmark regulation linking trade, climate, and forest protection.

While exporters may view it as a delay, it’s better seen as an implementation buffer that keeps ambition intact.

The EU is not stepping back — it’s making the transition workable. Now, the global supply chain must catch up.
 

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2.🇬🇧 UK Clean Energy Jobs Plan to Create 400,000 New Roles by 2030

 

⚡Britain’s Workforce Expansion Toward a “Clean Energy Superpower”

The UK government has unveiled its Clean Energy Jobs Plan, projecting 400,000 new roles by 2030 and nearly doubling the clean-energy workforce to 860,000.

Backed by £50 billion in private investment since 2024, the strategy defines 31 priority occupations — from electricians and welders to engineers and project managers — and establishes five new Technical Excellence Colleges to train the next generation of workers.

 

🧰Training for the Transition

Over £100 million will go into engineering programs and £1.2 billion annually for youth training, reaching 1.3 million learners and 65,000 new entrants each year by 2029.

A £20 million retraining fund will support oil-and-gas workers in Scotland and the North Sea, expanding the Energy Skills Passport across renewable, nuclear, and grid sectors.

 

🏗️Regional Investment Hotspots

Labour demand will be highest in Scotland, the East of England, and the North West, each supporting 50,000–60,000 jobs.

Major projects include:

• Sizewell C Nuclear Plant (£14.2B): 10,000 jobs at peak construction.
• Acorn and Viking CCS Projects: 35,000 combined jobs

 

🤝Labour Standards and Fair Work

New laws will extend wage and safety protections for offshore renewable workers.

The Fair Work Charter, jointly developed with unions, ties public funding to fair pay and collective bargaining.

Union leaders hailed it as “the first serious plan in decades to rebuild Britain’s industrial heartlands.”

 

“Clean energy is the answer to bringing good, secure work to every region of the country.”

— Ed Miliband, Energy Secretary

 

🌍Inclusive Growth and Economic Renewal

The plan includes initiatives for veterans, young people, and ex-offenders, helping them access higher-paying, stable careers.

Entry-level clean-energy jobs pay 23% more than equivalents in other sectors.

With a cross-government Office for Clean Energy Jobs aligning skills and policy, the UK aims to close its green-jobs gap with Germany and Scandinavia — making clean energy not only an environmental goal but an engine of equitable prosperity.

 

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3.🇫🇷 France Reaffirms Support for World Bank Climate Finance Goals Despite U.S. Pressure

 

🌍France Stands Firm on 45% Climate Finance Target Amid U.S. Pushback

France’s new Development Minister Éléonore Caroit reaffirmed that Paris will continue supporting the World Bank’s 45% climate finance target, even as the Trump administration urges the lender to resume fossil fuel funding.

“We will not give up on the 45% goal,” she said. “Development and jobs make sense only on a livable planet.”

Her statement underscores France’s determination to keep global development aligned with the Paris Agreement, despite widening geopolitical divides over climate ambition.

 

⚖️Clash Over the Bank’s Climate Mandate

World Bank President Ajay Banga’s 2023 vision — “a world free of poverty on a livable planet” — embedded climate into the Bank’s mission.

But U.S. Treasury Secretary Scott Bessent dismissed it as “vapid, buzzword-centric marketing” and pushed for a return to coal, oil, gas, and nuclear financing.

Caroit said she discussed the issue directly with Bessent in Washington, emphasizing the need for “frank conversations” despite differing policy views.

 

🔋Common Ground: Nuclear and Adaptation

France and the U.S. maintain pragmatic alignment on nuclear power, which supplies over 70% of France’s electricity.

Caroit also pointed to joint opportunities in adaptation and resilience projects — flood control, wildfire prevention, and disaster risk reduction — which she called “climate finance by another name.”

 

“They can call it whatever they want, but the impact is the same.”

— Éléonore Caroit, Minister for Development

 

💶Broader Implications and Outlook

The dispute over the Bank’s climate targets reflects deeper divisions in global development finance.

France, preparing for its 2026 G7 presidency, aims to reinforce the World Bank’s climate alignment and sustain momentum toward Paris Agreement goals.

Caroit’s stance signals continuity in France’s climate diplomacy — reaffirming that sustainable development and job creation must coexist on a livable planet.

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4.☀️ Masdar, EWEC Break Ground on $6B Solar Storage Project to Deliver 1 GW of Continuous Clean Power

 

⚡World’s First Gigascale 24/7 Renewable Power Facility

In Abu Dhabi, Masdar and Emirates Water and Electricity Company (EWEC) have begun construction on the world’s first gigascale round-the-clock renewable energy project, integrating 5.2 GW of solar PV with 19 GWh of battery storage to deliver a steady 1 GW of clean baseload power.

The AED 22 billion (USD 6 billion) project is set to avoid 5.7 million tonnes of CO₂ annually upon its 2027 completion — redefining renewable energy as a continuous, dispatchable resource.

 

🔋Global Supply Chain and Technology Stack

Major global suppliers have been awarded contracts:

• CATL for battery energy storage systems (BESS)
• Jinko Solar and JA Solar for PV modules
• POWERCHINA and L&T for EPC services
  Masdar calls it its “largest and most ambitious” project, signaling a new industrial model for large-scale renewable integration.

 

🏗️Governance, Finance, and Industrial Strategy

Aligned with the UAE’s Net Zero 2050 and economic diversification goals, the project is backed by sovereign support and international finance.

It will likely combine equity and non-recourse project finance anchored by long-term PPAs, offering a replicable model for future large-scale renewable baseload projects.

 

 

🌍ESG and Investment Implications

The initiative directly addresses renewables’ intermittency challenge by delivering continuous power and introducing grid-forming, black-start, and AI-enhanced forecasting capabilities.

Expected to create 10,000+ jobs, it also sets benchmarks for energy resilience, cost competitiveness, and storage scaling.

 

“This is not just more solar — it’s solar that behaves like coal.”

— Masdar Statement

💡Global Significance

This project marks a paradigm shift in renewable energy — from supplementary to primary baseload supply.

For regions in Asia, Africa, and Latin America, it provides a blueprint for achieving 24/7 clean power while maintaining reliability, making it one of the defining milestones of the global energy transition.

 

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5.🌎 Google Backs First Carbon Capture Power Deal in Illinois to Advance Clean Energy

 

 

⚡Google Enters First Power Deal with Carbon Capture

Google has signed a long-term power purchase agreement with Broadwing Energy for electricity from a 400 MW gas plant with CCS in Decatur, Illinois.

The project will capture and permanently store around 90% of its CO₂ emissions at Archer Daniels Midland’s Class VI sequestration site. Developed by Low Carbon Infrastructure (LCI) and backed by I Squared Capital, the plant will begin operation by 2030, creating over 750 construction and permanent jobs.

 

🏗️Inside the Broadwing Project

Located on ADM’s existing industrial campus, the facility will inject captured CO₂ more than a mile underground for permanent storage.

By agreeing to purchase most of the plant’s output, Google becomes the first tech company to procure carbon-captured electricity, providing firm low-carbon power for its data centers and setting a new precedent for corporate climate action.

 

 

🌍CCS as a Bridge in the Energy Transition

Recognized by the IEA and IPCC as vital for hard-to-abate sectors, CCS remains a debated but indispensable technology.

Google and LCI’s partnership aims to advance capture efficiency, reliability, and cost performance, while introducing CCS-specific Energy Attribute Certificates (EACs) to verify and report emission reductions.

 

💼Governance and Investment Implications

 

The Decatur deal positions Google as an early corporate pioneer in CCS-backed energy procurement — traditionally an oil and gas domain.

Financially, it blends infrastructure and technology investment to de-risk next-generation CCS projects, ensuring reliable, low-carbon capacity as AI-driven demand surges.

 

“This isn’t just a power deal — it’s a proof point for scaling commercial CCS.”

— Google Energy Strategy Team

 

🌱AI and Climate Synergy

In 2024, Google estimated its AI tools helped users avoid 26 million metric tons of CO₂e, equivalent to the annual energy use of 3.5 million U.S. homes.

By aligning its digital growth with real-world carbon mitigation, Google demonstrates how technology firms can drive the next phase of clean energy commercialization.

 

🔎Outlook

Broadwing’s outcome will determine whether CCS can evolve from industrial pilot to mainstream decarbonization, and whether corporate power buyers can meaningfully accelerate that transition.

As energy reliability becomes a competitive edge in the digital era, Google’s Illinois CCS project could redefine how the tech economy powers its future growth.

 

 

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