European Lobbying Stalls Africa's Green Leap Forward

This week in the world of Environmental, Social, and Governance (ESG) policy, we saw a blend of innovation, investment, and intrigue. From ground-breaking environmental monitoring technology to strategic climate agendas and financial market scrutiny, the week was a rollercoaster of developments that promise to shape the future of sustainability.

• Eye in the Sky: A Game-Changer in Pollution Monitoring: Ball Aerospace's TEMPO instrument has begun its mission to revolutionize air quality monitoring across North America. The high-resolution data promises to be an invaluable resource for public health officials and researchers.

• Elevating Water: COP28's New Climate Focus: The UAE Presidency of COP28 has announced a comprehensive Water Agenda, marking a paradigm shift in climate action. The initiative aims to create a more holistic framework for climate action, elevating water on the global climate agenda.

• Biden-Harris Fuels Domestic Supply Chain: The Biden-Harris Administration has announced a $30 million investment to bolster the onshore production of critical minerals. This multi-pronged strategy aims at job creation, national security, and environmental sustainability.

• ESMA Flags Greenwashing Perils: The European Securities and Markets Authority (ESMA) has issued a report spotlighting the risk of "greenwashing" in the EU's financial sector. The report serves as a wake-up call for transparent and stringent regulations to counteract misleading sustainability claims.

• EU Lobbying Undermines Africa's Green Transition: A report by InfluenceMap reveals that lobbying by European energy giants is stalling Africa's green transition. The lobbying activities raise questions about the ethical responsibilities of corporations in the face of climate change.

This week's developments underscore the complex interplay between technology, policy, and corporate influence in shaping the ESG landscape. While advancements like TEMPO and COP28's Water Agenda offer hope, the challenges posed by greenwashing and corporate lobbying are stark reminders of the hurdles that still need to be overcome. As we move forward, the need for transparent governance and ethical corporate behavior has never been more critical.

Eye in the Sky: Ball Aerospace's TEMPO Instrument Begins Pollution Watch

Ball Aerospace's Tropospheric Emissions: Monitoring of Pollution (TEMPO) instrument has released its inaugural images of Earth, marking a significant leap in air quality monitoring across North America.

• Launched on April 7, 2023, as part of NASA’s Earth Venture Instrument program, TEMPO has successfully completed its initial tests and is performing as expected.

• The instrument uses a geostationary ultraviolet/visible spectrometer to capture hourly measurements of major air pollutants like ozone and nitrogen dioxide over the United States, Mexico, and Canada.

• The high resolution and frequency of TEMPO's images will offer unprecedented data on the origin, concentration, and movement of pollution, surpassing current ground-based systems.

The activation of TEMPO is a game-changer in environmental monitoring. It promises to revolutionize the way we understand and manage air quality, providing invaluable data for public health officials and atmospheric researchers. As the instrument undergoes further validation, its near real-time data will soon become an indispensable resource for both the public and the scientific community.

Elevating Water: COP28's New Climate Focus

In a ground-breaking move, the UAE Presidency of COP28 has announced a comprehensive Water Agenda, aiming to prioritize water-related issues within the broader climate discourse. The announcement was made during World Water Week in Stockholm, setting the stage for a more integrated approach to climate action.

• COP28 identifies three core areas: conserving and restoring freshwater ecosystems, enhancing urban water resilience, and fortifying water-resilient food systems.

• The UAE Presidency has formed a strategic partnership with the co-hosts of the UN 2023 Water Conference, the Netherlands, and Tajikistan, who will serve as COP28 Water Champions.

• The two-week thematic program of COP28 will include a special day dedicated to exploring climate action across food, agriculture, and water, marking the first UNFCCC high-level dialogue on water-resilient food systems.

The COP28 Water Agenda represents a paradigm shift, acknowledging the intrinsic link between water and climate change. By aligning with the Netherlands and Tajikistan, the UAE Presidency aims to build on the momentum from the UN 2023 Water Conference, thereby creating a more holistic framework for climate action. This initiative not only elevates water on the global climate agenda but also sets a precedent for future COP meetings to adopt a more integrated approach to solving the world's most pressing environmental challenges.

 

Biden-Harris Administration Fuels Domestic Supply Chain with $30 Million Investment

In a strategic move to fortify America's domestic supply chain, the Biden-Harris Administration has announced a $30 million investment. The U.S. Department of Energy (DOE) will allocate the funds to bolster the onshore production of rare earths and other critical minerals, reducing the nation's dependence on offshore supplies.

• The funding comes from the Bipartisan Infrastructure Law and aims to meet the surging demand for critical minerals essential for clean energy technologies like solar panels and electric vehicles.

• The initiative also aligns with the Biden-Harris Administration's Justice40 Initiative, promising good-paying jobs in communities historically dependent on fossil fuels.

• According to the U.S. Geological Survey, the United States imports over 80% of its rare earth demand, making this investment a crucial step toward building a resilient domestic supply chain.

This investment is not just a financial allocation; it's a multi-pronged strategy aimed at job creation, national security, and environmental sustainability. By focusing on domestic production, the Biden-Harris Administration is taking a holistic approach to tackle supply chain vulnerabilities while also advancing its climate and social equity agendas. The move exemplifies how economic growth and environmental responsibility can mutually reinforce goals.

ESMA Flags Greenwashing Perils in EU Financial Markets

The European Securities and Markets Authority (ESMA) has issued a comprehensive report spotlighting the escalating risk of "greenwashing" in the European Union's financial sector. The report comes at a critical juncture as demand for ESG-related financial products soars across the bloc.

• ESMA's report emphasizes the need for a robust regulatory framework to combat misleading sustainability claims, often termed greenwashing, which can mislead investors.

• The report identifies three key roles market participants can play in greenwashing: initiators, propagators, or recipients of deceptive sustainability claims.

• ESMA has already initiated supervisory actions and designated "ESG disclosures" as a Union Strategic Supervisory Priority, aiming for consistent implementation of sustainable finance frameworks.

The ESMA report serves as a timely wake-up call for the EU financial markets, underlining the urgency for transparent and stringent regulations to counteract greenwashing. As the EU grapples with the rapid expansion of ESG-focused financial products, the report sets the stage for a final assessment due in May 2024. It's a clarion call for market participants to tread carefully, ensuring that the burgeoning ESG sector remains both credible and effective.

EU Lobbying Undermines Africa's Green Transition

A new report by think tank InfluenceMap reveals how lobbying by European energy giants is stalling Africa's transition to a greener future. The report scrutinizes the lobbying activities of 15 European energy companies, including BP, E.ON, and Shell, and their impact on climate and energy investment policies in Africa and the EU.

• InfluenceMap's report highlights that these companies have collectively invested over $80 billion in new and under-construction LNG infrastructure in African countries like Mozambique, Tanzania, and Nigeria.

• The lobbying efforts are not only focused on Africa but extend to the EU, where these companies are investing at least $13 billion in LNG import infrastructure. Germany, influenced by such lobbying, has approved 12 new LNG projects.

• The report calls for greater transparency, noting that there is "limited transparency" of policy engagement activities by European energy companies in Africa.

• The lobbying is in stark contrast to Africa's financial needs for a green transition, which requires around $250 billion a year, according to research by the Climate Policy Initiative.

The report serves as a wake-up call for investors and policymakers alike. While European companies are pouring billions into fossil fuel projects, Africa remains underfunded in its quest for a sustainable future. The lobbying activities are not only counterproductive to global climate goals but also raise questions about the ethical responsibilities of corporations in the face of climate change. Investors are urged to demand increased transparency and to challenge companies on their climate-related lobbying, which is currently undermining ambitious climate policies in Africa and beyond.