Breaking news of 2024
During all the last year, Carbon4 Finance selected the three or four main news per week in sustainable finance and submitted it with a poll on Linkedin. In order to make this summary, Carbon4 Finance selected the one news which has got the maximum of votes among the others per week and summarised it all per month in this document. This paper does not take into consideration the entire amount of news in the sustainable finance ecosystem and should not be considered as the only source of information. To read more about 2025 news, follow us on Linkedin.
January 2024
The European Central Bank (ECB) has added 'nature loss and degradation' to its focus for the next two years, aiming to analyze their connection to climate change and assess economic and financial implications, while also exploring the role of ecosystems.
The Greenfin Label just changed its exclusions criteria and now includes nuclear energy.
Another exception is gas, which benefits from a relaxation of this exclusion, particularly in the areas of transport, distribution, storage and supply services, provided that these activities do not represent more than 30% of the turnover of the companies financed
February 2024
ESG rating provider regulation
EU agreed on regulating ESG rating providers, requiring authorization and supervision by ESMA. A three-year review is planned to potentially include ESG data providers, aiming to enhance transparency and reliability, requiring disclosure of methodologies.
Investment groups urge EU to delay changes in SFDR. On the 4th of December, the EBAs published in a report their recommendations on updated PAIs in the SFDR.
In that regard, European investment groups advocate delaying changes to the SFDR, cautioning against risks to investor confidence and disclosure reliability, urging coordinated review and holistic reconsideration by the European Commission.
March 2024
The Nature Restoration law was adopted by the European Parliament. The new law sets the objective of restoring at least 20% of the EU's land and sea areas by 2030 and all the ecosystems that need it by 2050.
EU strict rule on greenwashing
Members of the Parliament agreed on stricter rules to back green claims and labels, and better governance processes for sustainability labels.
April 2024
The UK's Biodiversity Net Gain legislation, creating the world's first mandatory biodiversity credit market, now applies to small development sites, requiring a 10% net gain in biodiversity achieved through tradeable 'BNG' units.
SBTi announced revisions in its Corporate Net-Zero Standard in 2024, including guidance on scope 3 emissions and extending the use of environmental certificates for abatement for scope 3, though it won't validate carbon credits.
May 2024
The European Central Bank published a working paper on bank climate commitments, lending, and engagement. Among key findings, the paper finds out that climate-aligned banks, despite increased participation and improved ESG ratings, do not show evidence of divestment from high-emissions sectors compared to non-signers.
On May 6th, the Climate Policy Initiative published a report on Brazilian Sustainable Taxonomy: Inputs for Classifying Land Use Activities. The reports highlights the importance of developing a comprehensive, technically sound Brazilian Sustainable Taxonomy for driving investments aligned with environmental sustainability.
June 2024
The ESMA published its final report on Greenwashing, following the European Commission’s request for input on “greenwashing risks and the supervision of sustainable finance policies”. The reports contains recommendations for NCAs as well as for the European Commission and actions to be taken by ESMA in order to avoid further greenwashing.
July 2024
In a statement regarding European Sustainability Reporting Standards (ESRS), the European Securities and Markets Authority (ESMA) emphasized that large public-interest entities will start publishing sustainability statements in 2025 as required by the CSRD. To support this, the ESMA highlighted the importance of establishing strong governance and internal controls, conducting transparent double materiality assessments clearly communicating the use of transitional reliefs.
August 2024
European banks reported "very low" green asset ratios (GAR) in the first year of disclosures, with an average GAR of 2.3%, far below the EBA's 2021 estimate of 7.9%. Barclays highlighted significant data shortcomings impacting comparability, noting that many green assets are excluded from eligibility, skewing the GAR.
September 2024
According to the Transition Pathway Initiative (TPI) Centre, around 30% of the largest global greenhouse gas emitters have set long-term climate targets aligned with limiting warming to 1.5°C, but none have detailed plans to achieve these goals. While the share of companies with such targets has increased from 7% to 30% since 2020, most lack intermediate targets and actionable strategies.
October 2024
The UN-convened Net-Zero Asset Owners Alliance (NZAOA) has urged governments to adopt "systemic" reforms to limit global warming to 1.5°C, warning that current policies could lead to a 2.4°C–2.6°C temperature rise by century-end. NZAOA calls for reducing demand for oil and gas, increasing clean energy supply, and phasing out fossil fuel subsidies.
The European Central bank (BCE) emphasized that despite progress, the world is failing to meet the Paris Agreement’s goal of limiting warming to 2°C, with projections indicating a 2.9
°C rise if current trends continue. Frank Elderson underlined the need not only for transition investments but also for adaptation to the physical damages caused by climate change.
November 2024
The European Financial Reporting Advisory Group (EFRAG) released draft guidance to help companies prepare climate transition plans in line with EU regulations. The guidance advises companies on aligning targets with the Paris Agreement’s 1.5°C goal, detailing emissions reduction strategies, and linking plans to investment
The UK government has launched a consultation to assess the value of implementing a Green Taxonomy, aiming to combat greenwashing and support sustainable finance. This follows extensive work initiated in 2021, but questions remain about its prioritization amid the focus on transition finance initiatives.
December 2024
The ECB published a working paper, Going NUTS: The Regional Impact of Extreme Climate Events Over the Medium Term, analyzing the economic and demographic effects of extreme climate events across 1,160 EU regions. Heatwaves and droughts reduce medium-term output, while the impact of floods depends on regional income levels—high-income regions benefit from reconstruction, but less wealthy areas face lasting losses.
An European Banking Authority (EBA) staff paper evaluates how banks' financing aligns with the Paris Agreement’s target of limiting global warming to well below 2°C. Moving beyond traditional risk assessments, it focuses on banks' contributions to global warming through their corporate lending activities. The analysis finds that the implied temperature rise of non-SME corporate loan portfolios from selected EU banks averages between 3.7°C and 4.1°C — well above the Paris targets.
