2023 ESG International News Review and 2024 Trends Highlights

In 2023, the world experienced unprecedented climatic changes, with 2023 being the hottest year on record, possibly the warmest in 125,000 years. This brought about severe wildfires and weather anomalies, leading to record-breaking disasters in the U.S. COP28 marked a significant global shift, with agreements to transition from fossil fuels, reduce methane emissions, fund climate change impacts in developing countries, and more. Despite some disappointments, this represented a major stride in climate action.

Several important regulations and standards were introduced in 2023, contributing to a transformative year for global climate and ESG reporting. These include the ISSB's IFRS S1 & S2, the EU's Corporate Sustainability Reporting Directive (CSRD), European Sustainability Reporting Standards (ESRS), California's Climate Accountability Laws, the Corporate Sustainability Due Diligence Directive (CSDDD), Carbon Border Adjustment Mechanism (CBAM), the Inflation Reduction Act, and the Taskforce on Nature-Related Financial Disclosures (TNFD).

There was also a notable backlash against ESG, particularly in the U.S., where it was painted as promoting a "woke agenda." This led to 18 states prohibiting state funds from ESG-focused investments.

Looking ahead to 2024, key developments include the implementation of new climate policies, the finalization of the SEC’s Climate Rule, the potential Clean Competition Act in the U.S., CSRD implementation in the EU, reform of the Sustainable Finance Reporting Directive (SFDR), and the adoption of ISSB Standards. The year may also see intensified political debates over ESG, with potential impacts on sustainability progress in the EU.

2023年，世界經歷了前所未有的氣候變化，成為有記錄以來最熱的一年，可能是過去125,000年中最溫暖的一年。這導致了嚴重的野火和天氣異常，使美國遭受創紀錄的災害。COP28標誌著全球轉型的重要時刻，與會國家同意過渡脫離化石燃料、減少甲烷排放、為發展中國家資助氣候變化影響等。儘管有些失望，但這代表了氣候行動的重大進展。

2023年還引入了幾項重要的法規和標準，為全球氣候和ESG報告帶來了變革性的一年。這些包括ISSB的IFRS S1和S2、歐盟的企業可持續性報告指令（CSRD）、歐洲可持續性報告標準（ESRS）、加州的氣候問責法(CCAL)、企業可持續性盡職調查指令（CSDDD）、碳邊境調整機制（CBAM）、通脹減少法案(IRA)，以及自然相關財務披露工作組（TNFD）。

ESG在美國遭到顯著抵制，被描繪為推動“覺醒議程”。這導致18個州禁止國家資金投入以ESG為重點的投資。

展望2024年，關鍵的發展包括新氣候政策的實施、SEC的氣候規則的最終確定、美國可能的潔淨競爭法案(CCA)、歐盟CSRD的實施、可持續金融報告指令（SFDR）的改革，以及ISSB標準的採用。這一年還可能會看到ESG的政治辯論加劇，對歐盟的可持續性進展產生潛在影響。


Carbon Prices and Voluntary Carbon Markets Faced Major Declines in 2023, What’s Next for 2024?
2023年，碳價格和自願碳市場都面臨了重大下滑，2024年將會發生?

In 2023, the carbon credit market faced a significant crisis. Voluntary carbon markets (VCMs), which were once crucial in the fight against climate change, experienced rapid growth from 2019 to 2021. However, 2022 and 2023 saw a sharp decline in their growth due to factors like market complexity and the evolving role of carbon credits in sustainability strategies.

High-profile corporations like Shell, Nestlé, EasyJet, and Fortescue Metals Group withdrew from carbon offset schemes due to skepticism about project effectiveness and concerns about greenwashing. This withdrawal led to a 25% drop in demand for offsets.

The decline in demand resulted in an over 80% fall in carbon offset prices on the Xpansiv market CBL, reflecting doubts about the environmental impact of credits and project integrity. Nature-Based Global Emissions Offsets (NGEOs) also saw a significant price drop, influenced by macroeconomic challenges and uncertainty about carbon offsets' role in corporate net-zero plans.

Despite these challenges, there were global developments, such as the EU and UK implementing carbon pricing mechanisms and various African and Asian countries establishing carbon credit exchanges.

The carbon market reached an inflection point in December 2023 when the Xpansiv CBL spot exchange recorded a daily trading volume record, indicating continued corporate engagement. New transparency requirements globally drove this demand.

NASDAQ entered the carbon credit market with technology aimed at digitizing carbon credit issuance, settlement, and custody in collaboration with Climate Impact X (CIX). This partnership aims to improve the scalability, standardization, and liquidity of the voluntary carbon credit market.

Overall, the carbon market is evolving towards prioritizing quality and real impact over quantity.

2023年對多變的碳信用市場來說標誌著一個重要的時刻。曾經被譽為應對氣候變化的重要工具的自願碳市場（VCMs）在2019年至2021年間經歷了快速增長。然而，從2022年開始，VCM的增長急劇下降，原因包括市場複雜性和碳信用在可持續戰略中的不斷變化的角色。

諸如殼牌（Shell）、雀巢（Nestlé）、易捷（EasyJet）和Fortescue Metals Group等知名企業因對項目有效性的懷疑以及對漂綠的擔憂而退出碳抵消計劃。這一退出導致抵消需求下降了25%。需求下降導致了Xpansiv市場CBL碳抵消價格的超過80%的下跌，反映出對信用的環境影響和項目完整性的懷疑。基於自然的全球排放抵消（NGEOs）也出現了重大價格下跌，受到宏觀經濟挑戰和對碳抵消在企業實現淨零計劃中角色的不確定性的影響。

儘管面臨種種挑戰，全球範圍內的發展仍在進行中，如歐盟和英國實施碳定價機制，以及各個非洲和亞洲國家建立碳信用交易所。碳市場在2023年12月達到了一個轉折點，Xpansiv CBL現貨交易所記錄了每日交易量的新高，表明企業持續參與其中。全球范圍內的新透明度要求推動了這一需求。

納斯達克進入了碳信用市場，與氣候影響X（CIX）合作，旨在通過數位化碳信用的發行、結算和托管來改善自愿碳信用市場的可擴展性、標準化程度和流動性。總的來說，碳市場正在朝著優質和真正的影響力而不是數量優先的方向發展。


Banking on Green: Wall Street’s Race to Power a $1 Trillion Carbon Market
綠色金融業：華爾街爭相推動1兆美元碳市場
 

At COP28 in Dubai, major banks like Goldman Sachs, Citigroup, JPMorgan Chase, and Barclays are preparing for a surge in carbon offset deals. Their goal is to finance carbon sequestration projects, trade carbon credits, and assist companies in purchasing offsets.

This move aims to support smaller projects in emerging markets that lack financial support. Sonia Battikh from Citi emphasized the role banks can play in bridging the financing gap in carbon markets, as many developers struggle to secure funds.

The rush into this market reflects its potential to reach $1 trillion and assist companies in achieving net-zero goals without fully cutting emissions. However, controversies exist, with some credits facing criticism for not meeting environmental claims.

Wall Street's success in the evolving voluntary carbon market (VCM) will depend on finding a balance between speed and understanding market norms. In 2022, major banks committed over $5 trillion to climate initiatives.

The World Bank plans to establish a mechanism for certifying forest carbon credits to boost credibility and transparency in VCMs. Canada's RBC also supported a global carbon markets company with $8 million.

With growing demand, there may be an under-supply of high-quality credits, according to Carbon Growth Partners' CEO. Despite criticism, offsets play a crucial role in addressing residual emissions in challenging sectors.Bankers warn against allowing criticism to undermine confidence in carbon offsets' future and emphasize the need to avoid hampering funding for these projects.

Major banks like Goldman Sachs and JPMorgan are expanding their involvement in sustainable commodities, including carbon and renewables. However, concerns arise with global banks entering an underregulated market.

Voluntary carbon standard setters pledged to align best practices and enhance transparency at COP28. New safeguards around VCM are expected to be unveiled based on experts' drafted rules.

Despite historic low carbon prices and a decline in demand, factors like companies' reliance on offsets and potential national regulations set the stage for a substantial price rise by mid-century.

在杜拜舉行的COP28會議上，高盛、花旗銀行、摩根大通和巴克萊等銀行正準備迎接碳抵消交易的激增。他們的目標是為碳固定項目提供融資，交易碳信用，並幫助公司購買抵消。

這一舉措旨在支持新興市場中缺乏金融支持的小型項目。花旗銀行的Sonia Battikh強調了銀行在彌補碳市場融資差距方面可以發揮的作用，因為許多開發商在獲得資金方面存在困難。對這一市場的迅速闖入反映了其有望達到1萬億美元的潛力，幫助公司實現淨零目標而無需完全減少排放。然而，市場存在爭議，一些信用因未能達到環保要求而受到批評。

華爾街在不斷發展的自願碳市場（VCM）中的成功將取決於在速度和市場規範之間找到平衡。在2022年，包括花旗、摩根大通、巴克萊和匯豐在內的主要銀行承諾投入超過5兆美元用於應對氣候變化的項目。

世界銀行計劃在未來幾個月內建立一個認證森林碳信用的機制，以提高VCM的可信度和透明度。加拿大最大的銀行皇家銀行也向全球碳市場公司提供了800萬美元的支持。根據碳增長合作夥伴的首席執行官的說法，由於需求增長，高質量信用供應將不足。銀行家們警告說，不要讓批評損害對碳抵消未來的信心，強調需要避免阻礙這些項目的資金。高盛等主要銀行專注於擴大可持續商品（包括碳和可再生能源）的交易。然而，全球銀行進入監管不足的市場引發了一些擔憂。

自願碳標準制定者承諾在COP28上對齊最佳實踐並提高透明度，旨在為碳信用計劃建立強大的誠信框架。根據專家起草的規則，聯合國官員預計在杜拜公佈有關VCM的新保障措施。

儘管碳價格歷史低迷，需求下降了12%並預計在2023年將下降5%，但像公司依賴抵消以實現淨零目標和潛在的國家法規等因素為碳價格在本世紀中葉實現顯著上升鋪平了道路，根據BNEF的研究。

Ecosystem Marketplace的報告顯示，VCM信用的平均價格達到了15年來的最高水平。儘管自願碳信用的交易量下降了51%，但平均信用價格從2021年的每噸4.04美元大幅上升，達到了每噸7.37美元，這是自2008年以來沒有見過的水平。

花旗銀行的碳市場團隊包括四名倫敦的交易員和四名專注於自願碳市場的銷售人員。這家銀行旨在通過使用碳信用在2030年實現運營方面的淨零排放目標。它還承諾在2050年實現金融方面的淨零目標，並設定了以下部門的排放減少目標。巴克萊最近還聘請了一位行業專家來領導其碳交易業務。

碳抵消市場的未來存在不確定性，特別是涉及可能轉變碳去除努力的技術創新。但這種潛在的創新引入了一種類似于“風險投資風格的風險”，一位花旗銀行高管表示。他強調，碳信用最適合確立的價格和方法，但警告不要將它們用於新興技術。然而，他強調了花旗銀行一旦規模化，就有意積極參與去除工作。

銀行業在通過為可持續項目提供融資來幫助企業轉向低碳經濟方面具有出色的能力。如果銀行的資金被投入到減排工作中，將有助於更快地實現碳市場向淨零的規模擴展。