France's Climate Commitment Takes Flight with €300M Yearly Investment to Propel Green Aviation

In a week marked by significant strides in sustainable finance and climate action, the European Union (EU) and global corporations have taken bold steps to bolster their commitment to environmental, social, and governance (ESG) principles.

• TotalEnergies Takes Flight with Green Fuels: TotalEnergies, a global energy leader, has announced a massive investment to boost its sustainable aviation fuel (SAF) production to 1.5 million tons per year by 2030. This move aligns with the EU's blending mandate and sets a strong precedent for other energy companies to follow in the race towards net-zero emissions.

• France Fuels Decarbonization Drive: French President Emmanuel Macron has committed to investing €300 million annually until 2030 in technologies and low-carbon fuels to decarbonize the aviation sector. This initiative underscores France's dedication to mitigating climate change and sets a significant precedent for other nations in their pursuit of a greener aviation sector.

• BBVA's Dual Commitment to Sustainability and Decarbonization: BBVA, in partnership with the International Finance Corporation (IFC), has launched Colombia's first blue bond, marking a significant stride in sustainable finance. Concurrently, BBVA's Chair, Carlos Torres Vila, announced a €600 million commitment to drive decarbonization and foster innovative entrepreneurship.

• EU Parliament Advocates for Climate Crisis Victims: The European Parliament has called for the establishment of an annual 'EU Day for the Victims of the Global Climate Crises'. This initiative, if supported by the Council and the Commission, could serve as a powerful reminder of the urgent need for climate action.

• EU Debates on Valuing Natural Ecosystems: The European Parliament's ENVI committee is deliberating on the potential of assigning monetary value to natural ecosystems. This discussion is part of the broader update to the existing regulation on environmental economic accounting, which could provide country-specific data on biodiversity protection and climate mitigation and adaptation.

These developments highlight the growing momentum in the global ESG landscape, with governments and corporations alike recognizing the urgency of climate action and the importance of sustainable finance in achieving their sustainability goals. As we move forward, the continued commitment to these principles will be crucial in shaping a sustainable future for all.

TotalEnergies' Green Flight: Massive Investment to Boost Sustainable Aviation Fuel Production

TotalEnergies, a leading energy corporation, has announced ambitious targets to ramp up its sustainable aviation fuel (SAF) production. The company plans to reach a production capacity of 500,000 tons per year by 2028, with an ultimate goal of 1.5 million tons per year by 2030.

• TotalEnergies' new targets are in response to increasing demand from aviation customers for SAF, a key tool in reducing the aviation sector's carbon footprint. The company is set to invest heavily to achieve these goals.

• The demand for SAF is expected to surge in the coming years. SAF, typically produced from sustainable resources like waste oils and agricultural residues, can potentially reduce lifecycle greenhouse gas emissions by up to 85% compared to conventional fuels.

• TotalEnergies' production goals align with the EU's blending mandate, which requires increased use of SAF at EU airports, starting at 2% in 2025 and escalating to 70% by 2050. The company's 2030 goal would represent 10% of the global SAF market.

• The company has outlined several SAF projects, including a €400 million investment to convert its Grandpuits refinery into a zero-oil platform capable of producing 210,000 tons of SAF per year by 2025, and 285,000 tons per year by 2027.

TotalEnergies' commitment to scaling up SAF production marks a significant stride towards reducing the carbon footprint of the aviation industry. The company's ambitious targets, backed by substantial investment, underscore its dedication to achieving net-zero emissions by 2050. This initiative sets a strong precedent for other energy companies to follow, potentially accelerating the global transition to sustainable aviation fuels.

France's Decarbonization Drive: €300M Annual Investment for Greener Aviation

French President Emmanuel Macron has announced a commitment to invest €300 million annually until 2030 in technologies and low-carbon fuels to decarbonize the aviation sector. This announcement was made during Macron's visit to a Safran Aircraft Engines factory in Villaroche.

• The €300 million investment will fund research by the Civil Aeronautics Research Council (CORAC) into technologies aimed at reducing carbon emissions in the aviation sector, including the development of low-emission aircraft and engines.

• France has secured the capacity to produce 500,000 tons per year of sustainable aviation fuel (SAF), a significant step towards reducing the aviation industry's carbon footprint.

• France also plans to invest €200 million each in the development of electric and hydrogen-powered aircraft and in accelerating the development of SAF capacity.

• The SAF funding will support the construction of BioTJet, a bio-refinery expected to produce 110,000 tons per year of biofuels, including 75,000 tons of SAF and 35,000 tons of bio-naphtha.

France's commitment to invest €300 million annually to decarbonize the aviation sector underscores the country's dedication to mitigating climate change. The focus on developing low-carbon technologies and increasing SAF production capacity is a significant step towards reducing the aviation industry's carbon emissions. The success of these initiatives could set a precedent for other nations in their pursuit of a greener aviation sector.

BBVA's Dual Commitment: Launches Colombia's First Blue Bond and Pledges €600 Million for Decarbonization

BBVA, in partnership with the International Finance Corporation (IFC), has launched Colombia's first blue bond, marking a significant stride in sustainable finance. Concurrently, BBVA's Chair, Carlos Torres Vila, announced a €600 million commitment to drive decarbonization and foster innovative entrepreneurship.

• The blue bond, amounting to $50 million, will finance projects aimed at protecting Colombia's water resources, including the construction of water and sewage treatment plants, ocean preservation, and the protection of lakes, moorlands, and mangroves.

• BBVA's €600 million commitment will be directed towards various venture capital funds, with a recent focus on decarbonization and the development of innovative entrepreneurship in BBVA's primary markets.

• The bank has already committed €100 million of the total funds to investments driving the energy transition, partnering with fund managers such as Fifth Wall, Hy24, Just Climate, Lowercarbon, and SUMA.

• BBVA has also committed to investing in 10 technology funds in Spain and Mexico, supporting promising companies in areas such as artificial intelligence, business software, virtual reality, and e-commerce.

BBVA's dual commitment to sustainable finance and decarbonization signifies a robust strategic approach towards environmental sustainability and innovative entrepreneurship. The launch of Colombia's first blue bond and the substantial financial commitment towards decarbonization underscore BBVA's role as a pioneer in sustainable finance. The impact of these initiatives will be closely watched by stakeholders in the ESG landscape.

EU Parliament Advocates for Annual Remembrance of Climate Crisis Victims

The European Parliament has made a significant call for the establishment of an annual 'EU Day for the Victims of the Global Climate Crises'. This day is intended to commemorate the human lives lost due to the escalating impacts of climate change.

• The resolution, adopted with 395 votes to 109 and 31 abstentions, proposes to hold this day annually, starting on 15 July 2023. The Parliament has invited the Council and the Commission to support this initiative.

• The Parliament believes that commemorating the victims of the climate crises will help raise awareness of the human lives lost and the humanitarian crisis caused by climate change.

• The resolution highlights that climate change is leading to more unpredictable weather phenomena, including more frequent and intense heatwaves, wildfires, and floods. It also points out the threats to food and water safety and security, and the emergence and spread of infectious diseases.

The European Parliament's call for an annual day of remembrance for victims of the global climate crises underscores the human toll of climate change. This initiative, if supported by the Council and the Commission, could serve as a powerful reminder of the urgent need for climate action, both in Europe and globally. The impact of this resolution will be closely watched by stakeholders in the climate change and ESG landscape.

 

EU Parliament Debates on Valuing Natural Ecosystems: A New Era in Environmental Economic Accounting

The European Parliament's ENVI committee is deliberating on the potential of assigning monetary value to natural ecosystems. This discussion is part of the broader update to the existing regulation on environmental economic accounting, which could provide country-specific data on biodiversity protection and climate mitigation and adaptation.

• The EU is considering the integration of sustainability data into national accounting systems, a move advocated by groups like the Taskforce on Nature Markets and the Impact-Weighted Accounts Initiative.

• The European Environmental Economic Accounts (EEEA) currently collects data on air emissions and environmentally related taxes. The European Commission aims to expand this data pool to align with the EU Green Deal and the Fit for 55 Package.

• ENVI has proposed amendments to Regulation (EU) No 691/2011, introducing ten new environmental economic account modules. These modules encompass areas such as water accounts, waste accounts, and climate mitigation and adaptation.

• ENVI also proposes that each environmental economic account module should include reporting on monetary values. A feasibility study on the monetary valuation of ecosystem services is expected a year after the amendment comes into force.

The EU's move to consider the monetary valuation of natural ecosystems marks a significant shift in environmental economic accounting. While the process is politically sensitive and challenging, it could pave the way for a more comprehensive understanding of the economic value of sustainability. The outcome of these debates will have far-reaching implications for the EU's approach to environmental policy and sustainable finance.