Today’s ESG Updates:
- Net-Zero Banking Alliance Suspends Operations: A recent wave of bank departures puts the climate finance alliance on pause.
- UK Electricity Prices Threaten Net-Zero Goals: Rising electricity costs, driven by gas-linked pricing and additional levies for renewable energy, are limiting green investment.
- Rwanda to Sell Carbon Credits to Singapore: Singapore will utilize the credits to help meet its climate targets, while Rwanda seeks revenue for sustainable development.
- Delta Pays $78.75 Million to Settle Fuel Dump Lawsuit: Delta has settled a high-profile environmental lawsuit tied to its 2020 fuel dump in Los Angeles.
Net-Zero Banking Alliance halts operations as major banks exit
The UN-backed Net-Zero Banking Alliance (NZBA) has suspended its activities following a recent wave of exits from major banks, including JPMorgan, Citi, and UBS. The banks have attributed their decision to exit the alliance to political pressure from the Trump Administration. Founded in 2021, the NZBA once counted more than 120 members worldwide, but recent U.S. and European withdrawals underscore deepening resistance to climate-aligned finance due to political pressures. The alliance will vote next year on whether to continue as a membership group or pivot to a framework initiative. Investors and companies now face greater uncertainty in assessing banks’ net-zero strategies and long-term climate risk commitments. For companies navigating these shifts, ESG tools can manage supply chain ESG risks during political and market pressures.
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Further reading: Net-Zero Banking Alliance Suspends Activities Amid Wave of Departures
High power bills are threatening Britain’s clean energy shift
Britain currently has some of the highest electricity prices globally, a cost that is jeopardizing the country’s net-zero transition. Energy-intensive businesses, such as Bridgnorth Aluminium, are being incentivized to increase their electricity consumption solely to qualify for subsidies, thereby undermining their efforts to reduce overall emissions. Prices are driven by a pricing system that ties electricity costs to gas, even when renewables dominate output, and by renewable investment levies added directly to bills. Government reforms have been limited, and experts are warning that the pricing model is the primary barrier to innovations like heat pumps and electrified industrial processes, which are crucial to the UK’s 2050 climate goals.
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Further reading: Sky-high electricity costs hinder Britain’s net zero mission
Rwanda moves ahead with plan to sell carbon credits to Singapore
Rwanda is advancing plans to sell carbon credits to Singapore under the Paris Agreement’s Article 6.2 framework, which enables cross-border trading of emissions offsets. The partnership, involving Climate Bridge Group, will identify projects in Rwanda that qualify for carbon finance. Singapore, a mid-tier emitter, will utilize the credits to help meet its climate targets, while Rwanda seeks to generate revenue for sustainable development. For ESG-minded businesses, this development underscores the growing significance of international carbon markets in corporate climate strategies. However, international carbon credits carry risks, including questions about the accuracy of emissions reductions, potential double counting, and the challenge of ensuring that projects deliver real, long-term environmental benefits.
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Further reading: Rwanda Moves Ahead With Plan to Sell Carbon Credits to Singapore
Delta to pay $78.75 million to resolve fuel dump lawsuit
Delta Airlines will pay $78.75 million to resolve a lawsuit after one of its planes dumped jet fuel over Los Angeles schools in 2020, causing dozens of children and teachers to fall ill. The incident occurred when a Boeing 777 was forced to return to LAX and released fuel at low altitude over playgrounds and neighborhoods. The settlement includes civil penalties and compensation for cleanup and health impacts, marking one of the largest environmental payouts by an airline. The case highlights the rising accountability risks associated with aviation emissions and pollution, a sector under mounting pressure to decarbonize. Companies can ensure compliance with key regulations by utilizing ESG tools.
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Further reading: Delta to pay $78.75 million to resolve fuel dump lawsuit
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: HSBC and Citibank in London, UK Cover Photo Credit: Ben Tovee
