World Bank debuts $225 million carbon removal bond
The World Bank has issued a $225 million outcome bond, the first to directly link investor returns to carbon removal initiatives, specifically through reforestation projects in Brazil’s Amazon rainforest.
The bond, which offers a fixed guaranteed return along with a variable return linked to carbon removal units (CRUs) generated by the reforestation projects, is the largest of its kind ever issued by the World Bank. It has attracted significant interest from private investors eager to link their financial returns with positive environmental outcomes.
Proceeds from the bond will support the World Bank’s global sustainable development initiatives, with a portion specifically allocated to finance the reforestation efforts led by Brazil-based company Mombak. Mombak focuses on large-scale reforestation of degraded lands in the Amazon, aiming to capture carbon, restore biodiversity, and create social benefits for local communities.
Whilst this is a great step toward integrating environmental impacts into large-scale financial instruments, reforestation is not a panacea for climate change and must be complemented by broader systemic changes- such as maintaining regenerative land use practices and decarbonising energy production in order to achieve long-term sustainability goals.
Disability inclusion has emerged as a must-have for DEI-focused investors
Disability inclusion is becoming an increasingly important theme for diversity, equity and inclusion (DEI)-focused investors, though it lags behind other diversity areas such as gender and ethnicity. With an estimated 1.3 billion people globally experiencing some form of disability—a number expected to rise due to ageing populations, climate change, and the long-term effects of COVID-19—there is growing recognition of the need to address this issue within investment strategies. Despite this, societal barriers and a lack of inclusive products and services continue to make it challenging for people with disabilities to find employment and fully participate in the economy.
Investors who overlook disability inclusion may be missing out on significant opportunities, as companies that prioritise this tend to outperform their peers. Recent research has shown that U.S. companies embracing disability inclusion achieve higher revenues, net income, and economic profit margins. Moreover, inclusive economies are more productive and enjoy higher growth. Mounting regulations across various jurisdictions are making disability inclusion a relevant consideration for companies and investors, as they seek to mitigate legal risks and enhance DEI strategies.
Guidance and tools are increasingly available to support investors in assessing and promoting disability inclusion within their portfolios. For example, initiatives like the Disability Equity Index help companies and investors measure progress and adopt best practices.
Though many investors still fail to incorporate disability inclusion into their strategies, the momentum is building, with more investors and companies recognising the value of disability inclusion for both social impact and financial performance.
Portugal: a forefront of clean energy production in Europe
Portugal has reduced its fossil fuel electricity production to just 10% in the first half of 2024, positioning it as the second-cleanest large power sector in Western Europe after France. Clean electricity generation rose by 32% from the same period in 2023, reaching a record 21.76 TWh, thanks to record-breaking output from solar and wind farms and the highest hydro-energy production since 2016.
Source: Ember
The deployment of Europe’s largest new hydro dams and solar parks have accelerated the cuts to fossil fuel use in Portugal’s generation mix. Solar power generated an average share of 13.3% of Portugal’s electricity this year, while wind farms accounted for 33.1%.
Total power sector emissions have dropped sharply, decreasing by 45% in 2023. Solar and wind assets have also seen their shares of the utility generation mix climb, with solar power generating an average share of 13.3% of Portugal’s electricity and wind farms averaging 33.1%.
Portugal’s progress in total clean electricity production proves that a multi-pronged approach to boosting clean generation can trigger rapid progress against energy transition targets. Moreover, Portugal’s government plans to increase the weight of renewables in power production, with renewables expected to generate 51% of the country’s final energy needs by 2030.
Coca-Cola champions wastewater-to-energy tech in decarbonisation efforts
Coca-Cola Europacific Partners (CCEP) Ventures has invested in a technology developed by Pipeline Organics, which utilises novel fuel cells that convert sugar-rich wastewater into low-carbon electricity. The technology aims to power food and drink manufacturing sites and wastewater treatment facilities.
Pipeline Organics’ technology uses brick-sized units to generate more power per hour than a 550 W solar panel; its small size makes it suitable for on-site retrofits. CCEP has given Pipeline Organics access to a range of manufacturing sites across the UK and hopes to launch its first commercial product by the end of 2025.
CCEP has invested in several technologies, including a project developing scalable methods of converting captured CO2 into a sugar replacement at the University of Berkley and research into how carbon captured from industrial plants can be reused to make new plastic packaging with the University of Swansea. Additionally, CCEP Ventures has launched a cleantech innovation programme, inviting water specialists and entrepreneurs to explore breakthrough technologies to tackle water scarcity.
CCEP aims to use 100% renewable electricity across all sites by 2030, making renewable energy a cornerstone of the organisation’s decarbonisation journey. This latest investment in Pipeline Organics reinforces CCEP’s strategic commitment to leveraging innovative technologies to achieve its sustainability targets.