Latest News Recap: Week of August 3rd to 10th on Our Site
Headline: Global Governments Drive Sustainable Growth with Carbon Storage, Circularity, and Climate Transition Finance Initiatives
In a significant push towards a greener future, various global governments are implementing policies and regulations to boost carbon storage, promote circular economy finance, and enhance climate-related financial disclosures.
Carbon Storage (CCS):
The UK government, in collaboration with Ofgem, has issued a Call for Evidence on the economic regulation of CO2 storage. This move aims to guide policy and encourage growth in the Carbon Capture and Storage (CCS) sector, addressing issues like economic regulation, competition, and investment considerations. The US, on the other hand, is projecting a rise in carbon capture deployment, driven by tax credits under acts like the 2022 Inflation Reduction Act.
Globally, the Global CCS Institute reports a 60% annual increase in CCS projects across the value chain, with a focus on sectors such as power, cement, steel, fertilisers, chemicals, and hydrogen. CCS is seen as a versatile technology critical for meeting net-zero targets, including direct air capture with CCS (DACCS).
Circularity and Green Finance:
China has introduced a new Green Finance Endorsed Project Catalogue, effective from October 2025, expanding recognized green activities to include passenger rail and emphasizing low-carbon industries and green services. In Asia-Pacific, countries like Nepal and the Philippines are advancing sustainable finance frameworks by consulting on and planning to implement ISSB-aligned sustainability reporting standards.
Climate Transition Finance and ESG Standards:
The Science Based Targets initiative (SBTi) has published its final Financial Institutions Net-Zero Standard, setting clear science-based guidance to help financial institutions align lending, investing, and underwriting activities with net-zero goals by 2050. This standard addresses challenges such as fossil fuel financing and deforestation, requiring financial institutions to monitor and phase out support to these activities.
These developments collectively demonstrate a tightening and broadening of regulatory frameworks to support carbon capture deployment, enhance circular economy finance, and improve climate-related financial disclosures worldwide. Key trends include alignment with international standards (like ISSB), expansion of green taxonomies, use of economic regulation and incentives for CCS, and rigorous climate transition finance standards for the financial sector.
This summary reflects the latest evolving policy landscape as of August 2025. Other notable developments include Meta's shift towards sustainable data center construction, streamlined European sustainability reporting standards, climate reporting reviews of financial firms, and various initiatives by companies like Lenovo, IBM, Nestlé, Blackstone, Speeki, Sorgenia, Carbon Compared, ISS Sustainability Solutions, and J.P. Morgan Mansart, all focused on energy transition, sustainability, and circular IT.
- The UK government, in conjunction with Ofgem, is raising concerns about the economic regulation of CO2 storage through a Call for Evidence, with the aim of fostering growth in the Carbon Capture and Storage (CCS) sector.
- The US government anticipates a surge in carbon capture deployment due to tax credits provided by acts like the 2022 Inflation Reduction Act.
- According to reports from the Global CCS Institute, there has been a 60% annual increase in CCS projects, focusing on industries such as power, cement, steel, fertilisers, chemicals, and hydrogen.
- China has unveiled a new Green Finance Endorsed Project Catalogue, schedule to take effect from October 2025, which expands recognized green activities and prioritizes low-carbon industries and green services.
- Nepal and the Philippines are making progress in advancing sustainable finance frameworks by discussing and planning to implement ISSB-aligned sustainability reporting standards.
- The Science Based Targets initiative (SBTi) has established the final Financial Institutions Net-Zero Standard, offering clear science-based guidance to help financial institutions align their lending, investing, and underwriting activities with net-zero goals by 2050, addressing challenges such as fossil fuel financing and deforestation.
