ESG International Weekly News 9/11-9/17

Resource: ESG TODAY,The Guardian

1. Amazon’s 1st Big Investment in CDR Credits 
亞馬遜首次大規模投資於碳移除信用

Amazon, the retail behemoth, is venturing into carbon removal credits as a strategy to neutralize emissions from its expansive fleet. Situated in Seattle, the company aims for net zero emissions by 2040, largely by transitioning to electric vehicles and tapping into renewable energy sources, especially solar. Apart from these, Amazon has funded nature-centered initiatives, like reforestation, across the globe. Although the company witnessed a slight 0.4% dip in its carbon footprint in 2022, it was coupled with a 9% surge in net sales.

Amazon’s Climate Pledge Fund is also endorsing CarbonCapture Technologies, a firm specializing in developing Direct Air Capture (DAC) materials for cement manufacturing. The contract with Oxy, spanning 10 years, is Amazon’s inaugural large-scale venture into a technological solution like DAC. Under this agreement, Amazon will receive CDR credits from 1PointFive’s DAC plant named STRATOS, which boasts the capacity to capture up to 500,000 metric tons of carbon annually. This would rank it as the globe’s largest DAC facility.

The carbon captured for Amazon will be stored in saline aquifers, areas devoid of any extraction activities by Oxy. Additionally, 1PointFive is exploring the injection of CO2 into existing oil wells to generate emissions-free crude oil.

Amazon’s commitment to DAC, as noted by 1PointFive’s President Michael Avery, underlines the pivotal role DAC plays in business decarbonization. Following closely on the heels of this announcement, Microsoft publicized a $200 million carbon removal deal with another DAC startup, Heirloom. Microsoft is currently leading in the purchase of carbon removal credits. Data suggests a significant 437% hike in CDR credit purchases in the first half of 2023 compared to the entirety of 2022.

However, despite the financial thrust, the carbon removal industry still manages to extract only a few thousand tons of CO2 from the atmosphere each year. As per climate experts, billions of tons of CO2 need to be removed annually by 2050 to align with the 1.5°C target of the Paris Agreement. Encouragingly, projections indicate that by the end of 2023, CDR purchases might escalate to 6 million tonnes—a tenfold rise from the preceding year.

In conclusion, Amazon’s significant investment in 1PointFive’s DAC technology underscores the escalating emphasis on carbon removal solutions in the battle against climate change. This sentiment is echoed by other corporate giants, highlighting the collective push towards adopting and advancing these crucial technologies.

零售巨頭亞馬遜正嘗試投資於碳移除信用作為中和其龐大車隊排放的策略。位於西雅圖的該公司旨在到2040年達到淨零排放，主要是通過過渡到電動車和利用可再生能源，尤其是太陽能。除此之外，亞馬遜還在全球資助了以自然為中心的項目，例如重新植樹。雖然該公司在2022年的碳足跡略微下降了0.4%，但其淨銷售額增長了9%。

亞馬遜的氣候承諾基金也正在支持CarbonCapture Technologies，這是一家專門為水泥製造開發直接空氣捕獲(DAC)材料的公司。與Oxy的合同為期10年，是亞馬遜首次大規模進入像DAC這樣的技術解決方案。根據這一協議，亞馬遜將從1PointFive的名為STRATOS的DAC工廠獲得碳移除信用，該工廠每年最多可捕獲500,000公噸碳，這將使其成為全球最大的DAC設施。

為亞馬遜捕獲的碳將被儲存於鹽水含水層，這些區域不進行Oxy的任何提取活動。此外，1PointFive還正在探索將CO2注入現有油井以產生無排放原油。

正如1PointFive的總裁Michael Avery所說，亞馬遜對DAC的承諾突顯了DAC在業務脫碳中的關鍵作用。緊隨其後，微軟宣布了與另一家DAC新創公司Heirloom的2億美元碳移除協議。目前，微軟在購買碳移除信用方面位於領先地位。數據顯示，與2022年整年相比，2023年上半年CDR信用購買增長了437%。

然而，儘管有金融支持，碳移除行業每年仍然只能從大氣中提取幾千噸CO2。根據氣候專家，到2050年每年需要移除數十億噸CO2，以符合巴黎協議的1.5°C目標。令人鼓舞的是，預計到2023年底，CDR購買可能會增加到600萬噸，比前一年增加了十倍。

總之，亞馬遜在1PointFive的DAC技術上的重大投資強調了在對抗氣候變化時碳移除解決方案的日益重要性。其他大公司也響應了這一情緒，突顯了集體推動採納和發展這些關鍵技術的趨勢。

2.US introduces new carbon trading scheme to boost investment in developing countries 
美國推出新的碳交易計劃以促進對發展中國家的投資

The US government, in collaboration with the Rockefeller Foundation and the Bezos Earth Fund, has launched a voluntary carbon trading scheme termed the “energy transition accelerator.” This initiative seeks to amplify private investments in clean energy ventures in developing nations. John Kerry, the US climate envoy, stated that the scheme, which is anticipated to commence next year, aims to generate the trillions needed to support less affluent countries in adopting renewable energy and mitigating adverse climate impacts. Countries such as Nigeria and Chile have expressed interest.

However, the International Energy Agency suggests that yearly investments in green energy need to surge to over $4tn by 2030 to counter hazardous global warming. John Kerry expressed frustration over the slow pace of change and emphasized the need for innovative strategies to raise funds.

While carbon markets have faced criticism for minimal emission reductions and for enhancing companies’ green reputations without substantive action, Kerry assures that only high-quality credits will be sanctioned in this new program. However, many environmentalists remain skeptical. Rachel Cleetus of the Union of Concerned Scientists and Rachel Rose Jackson from Corporate Accountability highlighted concerns about the efficacy of such programs in genuinely addressing climate change.

Historical carbon offsetting schemes, particularly in countries like Brazil, India, and Kenya, have faced criticism for being more of a “bookkeeping scam” and being linked to issues like land grabs and inflation of food prices.The US’s commitment to carbon markets was previously integrated into the core of the Paris agreement. Critics believe this weakened the pact. Many advocates for climate change emphasize the necessity for real emissions reductions, robust guidelines, and a comprehensive finance system rather than relying on the private sector. Furthermore, concerns about neocolonialism have been raised in relation to initiatives like the Africa carbon markets scheme.
 

美國政府與洛克菲勒基金會和Bezos Earth Fund合作，啟動了一項名為“能源轉型加速器”的自願性碳交易計劃。此項目旨在增加私人對發展中國家清潔能源項目的投資。美國氣候特使約翰·克里表示，該計劃預計於明年開始，旨在為較不富裕的國家生成數萬億美元，以支持其採用可再生能源並減少氣候不良影響。如尼日利亞和智利等國家已表示有興趣參與。

然而，國際能源署建議，到2030年，綠色能源的年度投資需要增加到超過4萬億美元，以對抗危險的全球變暖。約翰·克里對變革的緩慢步伐表示失望，並強調需要創新策略來籌集資金。

雖然碳市場因減少排放量最少以及增強公司的綠色聲譽而未採取實質行動而受到批評，但克里保證新計劃中只會批准高質量的信用。然而，許多環保人士仍持懷疑態度。擔心的科學家聯盟的Rachel Cleetus和企業問責的Rachel Rose Jackson都強調了這些計劃在真正解決氣候變化問題方面的有效性。

特別是在巴西、印度和肯尼亞等國家的歷史性碳抵消計劃，由於更多地被認為是“簿記騙局”並與土地搶奪和食品價格上漲等問題相關而受到批評。美國對碳市場的承諾之前已被整合到巴黎協議的核心中。批評者認為這削弱了該協議。許多氣候變化的擁護者強調實際減排、嚴格的指導方針和完整的金融系統的必要性，而不是依賴私營部門。此外，與非洲碳市場計劃等倡議相關的新殖民主義問題也引起了擔憂。


3.EU Commission Considers Requiring Sustainability-Related Disclosures for All Financial Products
歐盟委員會考慮要求所有金融產品進行與可持續性相關的披露
 

The EU Commission has begun consultations regarding its Sustainable Finance Disclosure Regulation (SFDR). This regulation determines how financial participants, such as asset managers, communicate sustainability information to investors. It categorizes investment funds based on sustainability, with each category having specific disclosure requirements. The current review examines if all financial products, even those not claiming sustainability, should adhere to a common disclosure standard. This can aid in preventing greenwashing and ensuring all investors have comprehensive knowledge of a product's sustainability attributes. Additionally, the consultation delves into potential requirements for all financial products, encompassing taxonomy, engagement strategies, and exclusion details. The Commission seeks feedback to refine and possibly expand the existing classification system for sustainable financial products.

歐盟委員會已開始有關其可持續金融揭露法規（SFDR）的諮詢。此規定確定金融參與者，如資產管理公司，如何向投資者傳達可持續性信息。它根據可持續性對投資基金進行分類，每一類都有特定的揭露要求。當前的審查正在考慮是否所有金融產品，即使那些未聲明可持續性的產品，也應該遵守共同的揭露標準。這可以幫助預防綠色洗錢並確保所有投資者都對產品的可持續性屬性有全面的了解。此外，諮詢還深入探討了所有金融產品的潜在要求，包括分類法、參與策略和排除詳情。委員會尋求反饋以完善並可能擴展現有的可持續金融產品分類系統。


4.California Lawmakers Pass Bill Requiring Companies to Disclose Full Value Chain Emissions
加州立法通過法案，要求公司披露完整價值鏈排放
 

A proposed California law has been passed by the state's Assembly, aiming to mandate most large U.S. companies to disclose their complete greenhouse gas (GHG) emissions. This bill is set to move to the Senate, where it had previously been approved in May, and finally to Governor Newsom's desk for finalization. This legislation will necessitate firms with over $1 billion in revenue operating in California to annually report their full-spectrum emissions, encompassing direct, indirect, and all other emissions associated with their entire business activities. Reporting will kick off in 2026 for direct emissions and electricity use, and 2027 for other indirect emissions. Moreover, it will align with the Greenhouse Gas Protocol standards and necessitate third-party assurance. This California legislation is more extensive than the initial proposal by the SEC and could compel broad emissions disclosure, especially for companies operating within California or Europe, given the EU’s Corporate Sustainability Reporting Directive (CSRD).

加州提議的一項法律已經獲得州議會通過，旨在要求大多數大型美國公司披露其完整的溫室氣體排放。此法案將前往參議院，該法案在五月已經獲得批准，最終由州長Newsom作出最後決定。該法案將要求在加利福尼亞營業且收入超過10億美元的公司每年報告其全範疇的排放，包括直接、間接和與其整個業務活動相關的所有其他排放。報告將於2026年開始對於直接排放和電力使用，而2027年開始對其他間接排放。此外，它將符合溫室氣體協議標準且需要第三方保證。這項加州法律比證券交易委員會的初步建議更為廣泛，並可能迫使公司進行廣泛的排放披露，尤其是在加利福尼亞或歐洲營業的公司，鑑於歐盟的公司可持續性報告指令（CSRD）。

5.Climate Tech Startup UBQ Raises $70 Million to Convert Waste into Fossil-Plastic Substitute
氣候科技初創公司UBQ籌集7千萬美元，將廢料轉化為替代化石塑料的材料
 

UBQ Materials, a climate tech startup based in Tel Aviv, announced a fundraising of $70 million to amplify the global expansion of its innovative materials derived from waste. Established in 2012, UBQ Materials has developed a sustainable alternative to fossil-based plastics named UBQ, which is made from household waste, including hard-to-recycle items. This material can be recycled extensively and aids in reducing waste and CO2 emissions. The new funds will be channeled towards scaling up commercial operations, sales, and marketing, including opening new facilities in Europe and North America. The company is also investing in research for new product lines across different sectors. This investment round saw participation from various firms, including Eden Global Partners, TPG Rise Climate, and Battery Ventures.

以色列特拉維夫的氣候技術新創公司UBQ Materials宣布已籌集7千萬美元，用於擴大其從廢料製造的先進材料的全球拓展。UBQ Materials於2012年成立，將家用廢料（包括有機物和難以回收的材料）轉換為UBQ，這是一種可替代化石塑料的可持續材料。新資金將用於擴大商業運營、銷售和營銷，包括在歐洲和北美開設新設施。該公司還正在投資於研究，開發新產品線，服務於各個不同的部門。此次投資輪包括來自Eden Global Partners、TPG Rise Climate和Battery Ventures等公司的參與。