Sumday’s views on the future of financed emissions
A challenge to the status quo, how we can unlock finance for climate
Want to know how Sumday thinks about the future of financed emissions?
Investors want to unlock sustainable investment and account for impact, without an accusation of greenwashing. However, the current approach to calculating financed emissions is grossly inadequate for banks and investors to make informed decisions. They cannot truly track their progress towards net zero or offer sustainability linked finance with confidence that targets have been met by customers and portfolio companies.
A Step Forward in COP28's Deal - Financing the Energy Transition 🔋
We ended 2023 with COP28 sounding the alarm for rapid action to transition away from fossil fuels and into renewable energy. In early 2024 we’re seeing some big deals coming through.
- Global energy and electricity provider, Iberdrola, has signed a €5.3 billion credit line with 33 banks, with conditions linked to the company’s performance towards its climate and social goals - covering carbon neutrality in power generation plants by 2030 and net zero across its full value chain by 2040 Source
- Macquarie Asset Management (MAM) acquires 50% stake in Greece-based renewable energy company Enel Green Power Hellas for €250 million. Eric Bjonerud, Managing Director at MAM Green Investments, said: “The Greek market is rapidly accelerating away from fossil fuels and now holds huge potential in helping to accelerate Europe’s decarbonisation efforts. We are excited to announce this new investment and partnership with Enel – supporting the delivery of an ambitious pipeline of renewable energy projects, embedding innovative green technologies in the grid, and supporting Greece’s energy transition.” Source
- British multinational bank, Barclays, launches a new Energy Transition Group, responsible for advising clients in exploring energy transition opportunities and supporting them on their net zero path. Barclays has set a goal to facilitate $1 trillion of sustainable and transition financing between 2023 by the end of 2030.(source)
- Swedish Battery manufacturer, Northvolt, signs a record $5 billion green loan, the largest evergreen loan in Europe, to scale its lithium-ion battery gigafactory and battery recycling facility. Northvolt’s goal is to develop the “world’s greenest battery,” targeting a minimal carbon footprint, sustainable sourcing of raw materials and recycling. The company has so far received $55 billion in orders from customers including BMW, Fluence, Scania, Volvo Cars and Volkswagen Group. (source)
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