Weekly News | 1st to 15th July 2023

Codo Advisory keeps an eye for you on the latest events and trends in climate finance and corporate sustainability, in the world and in Japan. Here’s what caught our attention last week. 

World | G7 Ministers in Japan commit to greening cities and energy-efficient buildings for decarbonization  

• G7 Ministers commit to greening cities and energy-efficient buildings for decarbonization 
• The joint declaration highlights support for Ukraine’s reconstruction efforts 
• The importance of green spaces and the creation of a green economy was emphasized during the meeting
• Especially, the meeting established new Kagawa-Takamatsu Principles emphasizing the importance of cooperation between central governments and local governments in addressing climate change issues while highlighting the significance of sharing climate change knowledge with developing nations.

Read more about this story: Japan News, NHK World  

Codo’s comment: Green space in urban areas is incredibly important. The areas provide numerous sustainability benefits ranging from reducing urban heat affect (very important as cities break heat records every day), to reducing flash flooding, to providing habitats, sustenance and rest spaces for local animals and beneficial insects like bees, to carbon sequestration among many others. The G7 minister’s commitment to increasing these spaces is admirable but lacks concrete action plans for achieving it. Unfortunately, often these commitments fail to be realized as the momentum wanes following the summit. 

World | Janet Yellen calls on China to increase financial support for addressing the climate crisis 

• US Treasury Secretary Janet Yellen urges China to support international climate institutions during her visit. 
• Chinese officials affirm their commitment to climate change efforts and address the pressing global challenge. 
• The possibility of reconsidering large-scale coal-fired power investments in China is raised by the IEA executive director. 
• China’s Ministry of Ecology and Environment announces progress in the establishment of voluntary greenhouse gas reduction trading systems, while also emphasizing the need for reliable power supplies and the increased utilization of solar energy in the country. 

Read more about this story: Carbon Brief, The Guardian 

Codo’s comment:  China has long pledged to cease its investments in new coal-fired power plants, however those pledges have yet to be realized as the Chinese government seeks to meet increasing domestic energy demand from their growing middle class. China’s continued dissonance between their stated climate goals and their realized actions make it even more difficult to productive conversations on the changes required. China is by far the greatest emitter of greenhouse gases around the world. While all actions to curb the effects of climate change through individual actions and actions of comparatively lower emissions countries are important, to realistically stay within the global carbon budget China must substantially reduce its emissions. 

Asia Pacific | Devastating monsoon rains claim 22 lives in northern India, while Delhi experiences its wettest July day in decades 

• Heavy rainfall triggers landslides and flash floods in northern India, resulting in the deaths of at least 22 people. 
• Himachal Pradesh witnesses a month’s worth of rainfall in a single day, causing flash floods and road blockages. 
• Rescue operations employ helicopters and rafts to evacuate stranded individuals from roads, bridges, and homes. 
• The Indian Meteorological Department reports a surge in monsoon rainfall, with northwest India experiencing a 59% excess rainfall, raising concerns about climate change impacts on the monsoon. 

Read more about this story: Carbon Brief, The Guardian 

Codo’s comment: Around the world, cities and countries have faced record heat and record rainfall. In addition to the deaths in India, in Kyushu 2 people have also passed away due to historically torrential rains. Unfortunately, these climactic changes are entirely expected. Scientists have long warned that human activity driven climate change will cause increasingly intense summer heat, heavy rains, and longer droughts. All of which compound upon the other to create more flooding and landslides while decreasing the availability of potable water. This is only going to get worse as our greenhouse gas emissions not only continue, but continue to increase. 

Europe | Official advisers recommend that the UK withdraws from an energy treaty deemed detrimental to climate goals. 

• UK government advisers call for the country to quit the controversial energy charter treaty (ECT) to prevent delays in climate action and taxpayer payouts to fossil fuel companies. 
• The ECT enables companies to sue governments over policies that may impact their future profits, including phasing out coal-fired power stations and banning fracking. 
• France, Germany, Spain, and other countries have already committed to leaving the ECT, while the EU plans to withdraw collectively. 
• The UK’s Climate Change Committee argues that the proposed reforms of the ECT are insufficient, and continued membership poses risks to climate transition and taxpayers. 

Read more about this story: The Guardian, Reuters 

Codo’s comment: Japan is still a signatory of the ECT, along with many smaller Eastern European and Western Asian countries. The US, China, and other major economies are either not signatories or have set dates upon which they will be revoking their signature. Japan needs to realistically assess its ability to meet Net Zero and NDC GHG reduction goals. Japan’s long-standing energy dependency makes it even more vulnerable to pressures from fossil fuel companies, which are more easily applied due to Japan’s participation in the ECT. 

World | Australia joins Scholz climate club amid rising global temperatures 

• Australia joins German Chancellor Olaf Scholz’s climate club to tackle global warming. 
• Australian Prime Minister Anthony Albanese announces the country’s participation, emphasizing the high ambition of the initiative. 
• The climate club aims to reduce emissions, coordinate efforts, and achieve climate neutrality. 
• Australia becomes the 15th member, joining countries such as Japan, France, Indonesia, the UK, and the US. 

Read more about this story: Bloomberg Green, Canberra Times