Newsletter March 2025
Japan has announced a new climate strategy aimed at cutting greenhouse gas emissions by 73% in the coming years, with a long-term goal of achieving carbon neutrality. As part of this plan, the country is also targeting a 60% reduction in emissions in the near future, reinforcing its commitment to sustainable development and a cleaner energy future. These targets align with global efforts to combat climate change and position Japan as a leader in green initiatives.
A key aspect of this strategy is increasing the share of renewable energy in the electricity mix to 40-50%, a significant rise from previous levels. This shift will be supported by advancements in solar, wind, and hydrogen energy, along with the development of next-generation power storage technologies. Additionally, nuclear energy is expected to play a role in ensuring energy security and stability, while maintaining stringent safety regulations. The government is also investing in carbon capture and storage technologies to further enhance emission reductions.
To achieve these goals, Japan is enhancing policy frameworks, promoting green investments, and fostering technological innovation. The country is also strengthening international partnerships to accelerate decarbonization efforts across industries. These initiatives demonstrate Japan’s commitment to a sustainable energy transition while ensuring economic growth and energy reliability.
Companies can support Japan’s climate goals by integrating sustainable practices, investing in clean energy, and enhancing energy efficiency in operations. They should adopt carbon reduction strategies, implement circular economy models, and collaborate on green innovations. Strengthening ESG commitments and leveraging digital solutions can drive meaningful progress toward a low-carbon and sustainable future.
The African Development Bank (AfDB) has approved over $31 million in funding through its Climate Action Window (CAW) to strengthen climate resilience in Sierra Leone, South Sudan, Djibouti, and Madagascar. This initiative aligns with the Bank’s broader commitment to mobilize $4 billion by 2025, ensuring rapid climate finance access for vulnerable and conflict-affected nations. The funding aims to bolster food security, infrastructure, water systems, and early warning mechanisms to mitigate climate-related risks.
Sierra Leone’s Freetown WASH and Aquatic Environment Revamping Project will receive $5 million to improve water, sanitation, and hygiene infrastructure, benefiting around 700,000 residents. The initiative includes hydrometeorological observation networks and an interactive flood map to mitigate disaster risks. Meanwhile, South Sudan’s Climate Resilient Agri-Food Systems Transformation Programme will receive $9.4 million to enhance climate-adaptive agricultural techniques, rehabilitate 1,200 hectares of land, and provide training to 8,000 individuals.
Further allocations include funding for Madagascar and Djibouti to improve coastal resilience, water resource management, and disaster preparedness. These investments underscore the African Development Bank’s dedication to empowering communities and fostering sustainable development amid escalating climate threats.
These initiatives will bolster national economies by enhancing agricultural productivity, reducing climate-induced disruptions, and improving infrastructure resilience. Strengthened food security and water systems will lower health risks and economic losses, while climate-adaptive projects attract investment, create jobs, and foster sustainable growth, ensuring long-term economic stability and environmental sustainability for these nations.
The European Commission has introduced the Clean Industrial Deal, a comprehensive strategy designed to accelerate decarbonization while enhancing the competitiveness of European industries. This initiative primarily targets energy-intensive sectors facing high energy costs, global competition, and complex regulations, aiming to transform these challenges into opportunities for sustainable growth. The strategy emphasizes reducing reliance on fossil fuels and scaling up clean energy technologies, ensuring that European industries remain resilient in the green transition.
A key component of the strategy is the Industrial Decarbonisation Accelerator Act, which seeks to boost demand for EU-made clean products by incorporating sustainability, resilience, and ‘made in Europe’ criteria into public and private procurement processes. Additionally, a voluntary carbon intensity labelling system for industrial products, starting with steel in 2025 and followed by cement, is planned to promote transparency and encourage the adoption of low-carbon technologies. This move is expected to incentivise companies to invest in greener manufacturing processes while providing consumers and businesses with reliable sustainability data
To support the financial aspects of this green transition, the Commission proposes establishing an Industrial Decarbonisation Bank with a funding target of €100 billion. This institution aims to facilitate investments in clean manufacturing and infrastructure projects essential for achieving climate objectives. Complementing this, the InvestEU program's risk-bearing capacity will be enhanced to attract private investments in the clean tech sector. Collectively, these measures underscore the EU's commitment to fostering a sustainable industrial landscape that aligns with its climate neutrality goals.
The Clean Industrial Deal enables energy-intensive businesses to capitalize on sustainability-driven demand, secure €100 billion in funding for clean technologies, and reduce compliance risks. Carbon labeling and green procurement boost market differentiation, while risk-sharing under InvestEU attracts private investment, making decarbonization a profitable strategy rather than a regulatory burden.
New Zealand has announced an enhanced climate target, committing to reduce greenhouse gas emissions by 51% to 55% by 2035, using 2005 levels as the baseline. This new goal, part of the country's second Nationally Determined Contribution (NDC) under the Paris Agreement, builds upon the previous target of a 50% reduction by 2030, reflecting a continued dedication to global climate action.
The updated target aligns with New Zealand's overarching objective of achieving net-zero emissions by 2050, as established in the Climate Change Response (Zero Carbon) Amendment Act 2019. This legislation provides a framework for developing and implementing climate policies that contribute to global efforts to limit temperature increases to 1.5 degrees Celsius above pre-industrial levels.
To achieve these ambitious goals, New Zealand plans to strengthen its Emissions Trading Scheme, support innovative technologies to reduce agricultural emissions, and accelerate the transition to a cleaner, electrified economy. These initiatives aim to ensure that climate targets are met while driving economic growth and fostering greater innovation in low-emission technologies.
Companies can leverage New Zealand’s ambitious climate targets by investing in carbon trading, innovating low-emission technologies, and aligning operations with net-zero policies. Sustainable finance, green infrastructure, and renewable energy projects will gain traction, offering businesses strategic opportunities to enhance ESG credentials, attract investors, and access emerging climate-driven incentives and markets.
Qatar has taken a significant step towards sustainability by issuing its first-ever $2.5 billion green bond, aimed at funding renewable energy, smart infrastructure, and low-carbon real estate projects. This investment aligns with the country's long-term vision for environmental responsibility and economic diversification, strengthening its position as a leader in sustainable finance.
A key focus of this initiative is the development of smart cities, such as Lusail City and Msheireb Downtown, which integrate cutting-edge technologies to enhance energy efficiency and sustainability. Msheireb Downtown, for instance, has implemented advanced lighting and water-saving systems, leading to a 30% reduction in energy consumption. These projects serve as models for future urban development, promoting innovation and environmental resilience.
With a commitment to advancing clean energy and eco-friendly infrastructure, Qatar’s green bond initiative reinforces its leadership in sustainable investment. This move is expected to drive economic growth while reducing the country’s carbon footprint, setting a benchmark for green finance in the region.
Qatar’s $2.5 billion green bond unlocks transformative value for businesses by enhancing investor confidence, de-risking sustainable projects, and fostering long-term resilience. By aligning capital flows with ESG mandates, it accelerates access to green financing, drives innovation in clean energy, and positions firms competitively in a rapidly evolving low-carbon global economy.
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