The global economy could face a 50% loss in GDP between 2070 and 2090 unless immediate policy action on risks posed by the climate crisis is taken. This is the stark warning set out in ‘Planetary Solvency – finding our balance with nature’ by the Institute and Faculty of Actuaries (IFoA) in collaboration with climate scientists.
UK Chancellor Rachel Reeves will announce a transformative £86bn in the Spending Review to turbo-charge the country's fastest growing sectors, from tech and life sciences, to advanced manufacturing and defence, as part of the the UK Government’s plan to invest in Britain’s renewal through its Modern Industrial Strategy.
The UN body responsible for setting up a carbon market under the Paris Agreement has adopted important new standards to guide how emission-reducing projects measure their impact. Known as the Paris Agreement Crediting Mechanism (PACM), it enables countries and other actors to work together on reducing greenhouse gas emissions by generating high-integrity carbon credits that support global efforts to fight climate change.
The World Bank has approved a $200m concessional credit to support Uzbekistan in modernising its irrigation and drainage infrastructure and improving the quality of irrigation service delivery. The project aims to reduce water losses and increase the energy efficiency of irrigation systems across five regions of the country. The Government of Uzbekistan will provide $23.2m in co-financing.
Natural capital accounts containing information on the extent, condition and ecosystem services for woodlands in the UK have been published by the UK’s Office for National Statistics. They show that the UK land area covered by woodlands increased from 7% in 1965 to 13% in 2023. The asset value of UK woodlands was an estimated £382bn in 2021. While timber and wood fuel is often seen as the main woodland asset, it accounted for just 3.9% or £14.bn.
The World Bank Board of Executive Directors has approved a $350m grant from the International Development Association to support Malawi’s Mpatamanga Hydropower Storage Project (MHSP), a large infrastructure operation aiming to transform the country’s energy landscape and its economic development trajectory.
The UK and the EU have agreed a substantial cooperation agreement in relation to trade and free movement. Included in the package are two energy and emissions trading arrangements.
The Association of British Insurers (ABI) says that, between January and April this year, claims for weather-related damage to people’s homes and possessions in the UK topped £200m for the first time ever. Pay-outs surpassed the previous quarterly record from Q1 2022 by £67m.
The London Metal Exchange (LME) is exploring the potential for premium prices for sustainable metals. It says that by making a sustainability price differential public, the value attached to sustainable metals will be transparent and could support the development of the market for sustainable metals.
It is estimated that the private sector requires $1.2tr worth of annual investment in direct and nature-adjacent projects to halt and reverse nature loss, says the World Economic Forum. However, the majority of financial institutions still find that data availability and quality are barriers to allocating capital to nature.
The UK Government has launched plans to strengthen voluntary carbon and nature markets which can help leverage the finance needed to address climate action while diversifying revenue streams.