ANZ Sustainable Finance Insights, Q4 2024

Sustainable finance market update  |  Notable transactions and sustainable finance updates  |  Key global updates  |  Australia  |  New Zealand  |  Asia  |  Europe  |  North Amercia  |  Carbon market updates  |  ANZ news and updates

Sustainable finance market update

Notable transactions and sustainable finance updates

ANZ supported transactions

• Hyundai Motor Group secured a US$1.35 billion Green Labelled K-Sure covered Term Loan Facility to support the development of its first electric vehicle (EV) manufacturing plant in the United States. This funding is part of Hyundai's broader strategy to become a global leader in EV manufacturing. ANZ acted as Green Loan Coordinator, Mandated Lead Arranger and Bookrunner.
  
  
• The Hong Kong Mortgage Corporation Limited issued its third social bond, totalling ~HK$23.8 billion (US$3 billion) and is the largest social bond in the Asia Pacific region. The bonds were issued in four tranches: HK$7 billion for 2 years, HK$8 billion for 5 years, CNH2 billion for 7 years, and US$850 million for 3 years. The proceeds will be used to finance or refinance loans under the HK Special 100% Loan Guarantee of the SME Financing Guarantee Scheme. ANZ acted as Joint Book Runner and Joint Lead Manager.
  
  
• The New Zealand Local Government Funding Agency announced the issuance of NZ$800 million in sustainable financing bonds maturing in May 2032. The net proceeds are to be notionally allocated to LGFA’s Sustainable Loan Asset Pool consisting of Green, Social and Sustainability and/or Climate Action Loans in accordance with LFGA’s Sustainable Financing Bond Framework. ANZ acted as Joint Lead Manager.
  
  
• Precinct Properties New Zealand Limited issued a new NZ$75 million five-year wholesale green bond. These fixed rated secured green bonds have a fixed interest rate of 5.42% per annum and were used to refinance Precinct’s USPP maturing in January 2025. ANZ acted as Sole Lead Manager.
  
  
• Kiwi Property Group Limited issued 5.5-year fixed-rate senior secured green bonds to institutional and New Zealand retail investors. The proceeds from this offer were used to refinance Kiwi Property’s existing NZ$125 million green bonds, which matured in December 2024. ANZ acted as Sole Arranger, Sole Green Bond Coordinator and Joint Lead Manager.
  
  
• Invenergy secured green project financing for two major renewable energy projects. The first is a US$946 million facility for the Hashknife project, a 275MW solar and 275MW battery storage facility in Navajo County, Arizona. This project is expected to power more than 150,000 homes annually, equivalent to the emissions reduction of planting 280 million trees. The second project is the 265MW Lazbuddie wind project in Texas which will be acquired by the Public Service Company of Oklahoma post-construction as part of its Fuel-Free Power Plan, aimed at meeting regional energy needs and protecting customers from volatile power costs. ANZ act as Joint Green Loan Coordinator, Coordinating Lead Arranger, Swap Provider and LC Issuer.
  
  
• Iberdrola launched its first green bond issue in Australia, raising A$750 million (€460 million). The bonds, issued in two tranches with coupons of 5.38% and 5.87%, were oversubscribed by 2.8 times, attracting A$2.1 billion in demand. The funds will support Iberdrola's renewable energy projects in Australia, aligned with its Green Finance Framework. ANZ acted as Lead Arranger.
  
  
• The International Finance Corporation (IFC) issued a green Kangaroo bond worth A$700 million with the stated objective to bridge the biodiversity finance gap and advance economic growth in emerging markets. The proceeds will be allocated to finance projects that conserve, restore and protect biodiversity, aligning with IFC’s expanded Green Bond Framework. ANZ acted as Joint Lead Manager.
  
  
• Charter Hall Group executed a A$3.35 billion Green Loan facility for its flagship office fund, Charter Hall Prime Office Fund (CPOF), making it one of the largest issuances in the Australian real estate sector. This transaction grows Charter Hall’s platform-wide sustainable finance to more than A$9 billion, 100% of which is in the Office sector. ANZ acted as Joint Sustainability Coordinator and Joint Mandated Lead Arrangers, Underwriters and Bookrunners.
  
  
• QIC Real Estate converted A$3.75 billion of bank debt into SLL for its two largest real estate funds, the QIC Property Fund and the QIC Town Centre Fund. This combined deal represents one of the largest REIT SLLs in Australia in recent years. The interest rates on the loans are linked to the Funds’ carbon emissions across all scopes and it is one of the first deals to use the Green Building Council Australia’s new Green Star Performance Tool. ANZ acted as Joint Sustainability Coordinator.
  
  
• Indi Sydney, the first Build to Rent residence by Investa, secured a refinancing of a A$160 million green loan. This loan, which upsizes and refinances an existing green construction loan, was issued under the Indi Sydney Green Debt Framework. ANZ acted as Joint Sustainability Coordinator.
  
  
• Levande executed a A$1.5 billion SLL, making it the largest SLL in Australia's retirement living sector to date. This loan ties Levande's financing terms to social and environmental Key Performance Indicators (KPIs) including a reduction in greenhouse gas emissions, sustainable design integration and resident wellbeing. ANZ acted as Joint Sustainability Coordinator and Mandated Lead Arranger. 

Global transactions and developments

• International Bank for Reconstruction and Development (IBRD), the World Bank’s lending body, issued US$5 billion Sustainability Development Bond. This bond raised US$5 billion from global investors to support the World Bank's work for sustainable solutions that reduce poverty and build shared prosperity in developing countries.
  
  
• Carrefour SA announced a €4.2 billion Sustainability-Linked loan in December 2024. The company renewed and extended two of its previous revolving credit lines, totalling €3.9 billion, into a single facility. This new facility includes two KPIs focused on decarbonisation and reducing food waste.
  
  
• According to Environmental Finance, the total volume of transition bonds raised during 2024 was over ~US$ 20 billion, more than four times the previous record set in 2021. Majority of these bonds were issued by Japanese issuers, led by the Japanese Government, which raised more than US$19 billion. Other issuers in Japan during 2024 included Japan Airlines, Hokkaido Electric Power, and Mazda Motor Corporation.
  
  
• LATAM Airlines Group became the first airline in South America to secure a Sustainability-Linked Loan worth US$300 million supporting the company’s goal of net-zero emissions by 2050. The pricing of the SLL is tied to its performance in reducing carbon emissions intensity from its operations based on CO₂ emitted per revenue tonne kilometre (RTK). According to Environmental Finance Data, LATAM joins global airlines, British Airways, easyJet, Lufthansa, Air France-KLM, Japan Airlines, Pegasus, and Etihad Airways in securing SLLs.
  
  
• The Thai Government issued Asia’s first sovereign Sustainability-Linked Bond of THB30 billion (~US$870 million). This bond, supported by the Global Green Growth Institute (GGGI), is tied to Thailand's progress in meeting specific climate targets, such as reducing greenhouse gas emissions by 30% by 2030 and increasing the annual registration of zero-emission vehicles to 440,000.
  
  
• Barbados closed a Sustainability-Linked Loan backed by guarantees from IADB and EIB. The sustainability targets relate to the volume and quality of reclaimed water generated by an upgraded sewage treatment plant. It is the world’s first Debt-for-Climate-Resilience Operation to finance water and sewage projects resilient to climate change.

Key global updates

• Loan Market Association (LMA) published draft provisions for Green Loans in November 2024, which comprises a set of template provisions for inclusion in LMA-based facility agreements to turn it into a green loan. The drafting aligns with, and articulates, the requirements of the current versions of the Green Loan Principles and accompanying guidance, published in February 2023.
  
  
• International Capital Market Association (ICMA) published a new paper on the role of commercial paper (CP) in the sustainable finance market. The paper explains how sustainable CP can act as a crucial short-term funding tool to advance long-term ESG goals and addresses key challenges, such as reporting transparency and the integration of sustainable CP into issuers' broader sustainable financing frameworks.
  
  
• ICMA also updated its Guidance Handbook in November 2024. This edition introduces new questions and clarifications related to Sustainability-Linked Bonds (SLBs), specifically addressing their treatment in sustainable finance disclosure and labelling regimes, and their alignment with updated corporate-level sustainability strategy targets and disclosures. Additionally, it provides guidance on selecting KPIs to ensure alignment with the Sustainability-Linked Bond Principles (SLBP). The handbook aims to support the development and integrity of the Green, Social, Sustainability, and Sustainability-Linked (GSSS) bond market.
  
  
• The Climate Bonds Initiative (CBI) launched the new Agriculture Criteria to enable credible investment in sustainable agriculture. These criteria cover crop and livestock production, focusing on reducing greenhouse gas emissions, developing transition pathways, deforestation prevention, and biodiversity and water use. The Agriculture Production criteria provide a framework for certifying bonds and loans linked to sustainable agricultural projects, helping investors address climate risks and drive meaningful emissions reductions.
  
  
• The Science Based Target Initiative (SBTi) released the SBTi Buildings Criteria  which outlines the necessary criteria for buildings sector companies to have their near- and long-term targets validated by the SBTi. It includes recommendations for transparency and best practices.
  
  
• International Financial Reporting Standard (IFRS) published a progress report on corporate Climate-Related Financial Disclosures, which describes companies continuing to make progress on their climate-related disclosures and preparing to make the transition from disclosures prepared using the TCFD recommendations to disclosures prepared using ISSB Standards .The IFRS Foundation has also published a guide to help companies identify sustainability-related risks and opportunities and material information to provide.
  
  
• Carbon Disclosure Project (CDP) and Global Reporting Initiative (GRI) have signed a Memorandum of Understanding to enhance their collaboration on environmental reporting. This agreement, made during the COP29 Climate Change Conference in Baku, aims to streamline and improve the efficiency of environmental disclosures. 
  
  
• General standard requirements for sustainability assurance engagements were set out by the International Standard on Sustainability Assurance 5000 (ISSA 5000). This standard aims to enhance trust and confidence in sustainability information reported by organisations. It applies to sustainability information across various topics and frameworks and is designed to be used by professional accountants and non-accountant assurance practitioners and emphasises the importance of external assurance in improving the reliability and transparency of both financial and non-financial reporting.
  
  
• The Taskforce on Net Zero Policy published its inaugural report, Net Zero Policy Matters, at COP29, highlighting significant progress on net zero policies globally. The report found that policy formation is more widespread than expected, with all G20 countries having policies supporting non-state actors' transition to net zero. However, the overall policy landscape remains insufficiently aligned with the 1.5°C goal of the Paris Agreement, indicating a persistent policy gap. Sustainable finance measures, such as taxonomies and transition plans, are progressing, with the EU leading the way.
  
  
• The Finance for Nature Positive Discussion Paper by UNEP FI and the Finance for Biodiversity Foundation outlines a proposed working model for integrating the "Nature Positive" concept into the financial sector. The paper aims to halt and reverse biodiversity loss by 2030 and achieve nature recovery by 2050. It emphasises practical strategies for sustainable use, conservation, and restoration of nature, and highlights the need for improved measurement, data practices, and reducing barriers to nature conservation finance.
  
  
• The Nature Action 100 Company Benchmark Key Findings 2024 report highlights the initial assessments of corporate action on nature. It reveals that most companies are still in the early stages of addressing nature and biodiversity loss, with significant room for improvement. The benchmark evaluates corporate progress towards key investor expectations, emphasising the need for greater ambition and action. These findings underscore the urgency of accelerating corporate efforts to address biodiversity and nature loss.

COP Updates

• The 16^th meeting of the Conference of the Parties to the Convention on Biological Diversity (COP 16) was held from 20 October to 2 November 2024, in Cali, Colombia. This was the first meeting of COP since the adoption of the Kunming-Montreal Global Biodiversity Framework (KMGBF) in 2022. Summary outcomes from the COP16 can be noted as follows:
  
  
  • Cali Fund: The innovative fund aims to share benefits from digital sequence information (DSI) on genetic resources more equitably.  It targets large companies, like those in pharmaceuticals and biotechnology, requiring them to contribute a percentage of their profits or revenues. The fund will primarily benefit developing countries and Indigenous Peoples.
    
  • Indigenous Peoples' Role: Strengthened with a new Programme of Work and a permanent advisory body.
    
  • Climate and Biodiversity Integration: Emphasized the interconnectedness of these agendas.
    
  • Monitoring and Financial Mechanisms: Ongoing discussions for a new framework and fund.
    
  • Global Biodiversity Framework: Challenges in implementation, with only 22% of countries submitting new plans.
• COP29 was held from 11 November-22 November 2024 in Baku Azerbaijan. Dubbed as the first ever “Finance COP”, key outcomes are as follows:
  
  
  • Climate Finance:  Delegates agreed on a new climate finance goal of at least US$300 billion annually by 2035, replacing the previous goal of US$100 billion annually by 2020-2025. This aims to help developing countries reduce emissions and address climate impacts. However, the amount is still insufficient for their needs. The summit also highlighted ongoing challenges, such as the need for more ambitious climate finance and concrete plans to limit global temperature rise to 1.5°C.
    
  • Carbon Markets: COP29 made significant strides towards implementing Article 6, which sets out how carbon markets will operate under the Paris Agreement. The decision on Article 6.2 clarifies country-to-country trading of carbon credits, including the authorisation and the tracking of the trade of carbon credits, with all traded credits subject to upfront and transparent technical review. Agreement was also reached on standards for the Paris Agreement Crediting Mechanism (PACM), an international carbon crediting mechanism established under Article 6.4.
    
  • Nationally Determined Contributions (NDC): Several countries announced their new NDCs for 2035. The United Kingdom, Brazil and the United Arab Emirates have announced 2035 NDC targets that set a higher ambition. Additionally, a coalition of countries, including Canada, Chile, the EU, and Mexico, pledged to submit NDCs with economy-wide targets aimed at achieving net-zero emissions by 2050.
    
  • Loss and Damage: Countries reviewed the Warsaw International Mechanism for Loss and Damage (WIM) but could not agree on key issues like guidelines for incorporating loss and damage in NDCs or a "state of loss and damage" report, deferring these to Bonn. Notably, several countries and regions pledged an additional US$85 million to the Fund for Responding to Loss and Damage (FRLD), though this is still far below the estimated US$580 billion in yearly losses.
  • Cooperative Initiatives: 30 countries responsible for nearly 50% of methane emissions from organic waste signed a declaration to reduce these emissions. This initiative builds on the Global Methane Pledge from COP26.

Australia

• ASFI launched the second and final round of public consultation on the development of an Australian sustainable finance taxonomy in October 2024. ASFI expanded the environmental objectives of the Australian taxonomy to include climate change mitigation criteria for all six priority sectors: transport, manufacturing and industry, agriculture and land, buildings, minerals, mining and metals. The objectives have been selected and defined based on Australia’s environmental priorities and commitments and alignment with other taxonomies and provide valuable context for businesses to align and prioritise their goals. Consultation closed on December 2024, and the initial taxonomy for climate mitigation will be released by mid-2025 as outlined in the Government’s sustainable finance roadmap.
  
  
• ASFI also released a report assessing opportunities for Australian investment in climate and clean energy in South and Southeast Asia. The report finds that climate and clean energy are growth sectors in South and Southeast Asia, but Australian financial institutions have limited exposure due to various barriers and risk perceptions. While there is interest in these opportunities, significant capital allocation requires targeted government intervention and public-private collaboration to meet the US$300 billion COP29 climate finance target and regional transition goals.
  
  
• NABERS launched the Embodied Carbon rating tool, which measures and compares the upfront carbon emissions of new buildings and partial rebuilds. The tool provides a certified measure of carbon intensity, focusing on emissions from materials, transport, and construction activities1. It aims to help developers, owners, and investors make informed decisions to reduce carbon emissions and support Australia's journey to net zero.
  
  
• The Australian Prudential Regulation Authority (APRA) published a paper on the results of its second climate risk self-assessment survey providing insights into how regulated entities, including banks, insurers, and superannuation trustees, identify, manage, and disclose financial risks related to climate change. The findings show that while larger entities have generally improved their climate risk maturity since 2022, there is still significant variation, with some entities seeing a decline in their climate risk maturity scores.
  
  
• Australian Securities and Investments Commission (ASIC) opens a public consultation on proposed guidance on the sustainability reporting regime. The draft guide outlines who must prepare a sustainability report, how it interacts with existing legal obligations and how ASIC will administer the requirements. This includes guidance on ASIC’s approach to granting relief and its use of its new directions power. It also addresses specific issues in relation to the contents of the sustainability report and sustainability-related financial disclosures outside the sustainability report.

New Zealand

• The Centre for Sustainable Finance (CSF), in partnership with the New Zealand Government, is working to create a sustainable finance taxonomy for Aotearoa New Zealand (NZ Taxonomy). The NZ Taxonomy will help capital flow to activities which support Aotearoa New Zealand’s climate transition, while safeguarding other environmental and social objectives, with an initial focus on agriculture and forestry. The CSF has established a Technical Experts Group (TEG) and a Technical Advisory Group (TAG), with ANZ representatives in both. The TEG focuses on the taxonomy's approach, usability and interoperability, while the TAG provides technical and sector expertise to ensure each sectoral taxonomy is fit for purpose in the Aotearoa New Zealand context.
  
  
• 2024 was the first year of mandatory climate-reporting for ~ 200 companies in New Zealand. The New Zealand Government passed legislation in 2023, issued by the External Reporting Board (XRB), an independent Crown entity responsible for developing and issuing reporting standards in New Zealand, making it amongst the very first countries to mandate climate-related financial disclosures. The Aotearoa New Zealand Climate Standards aim to support the allocation of capital towards activities that are consistent with a transition to a low-emissions, climate-resilient future. Based on a review conducted by the XRB in late 2023, there is a high degree of interoperability between New Zealand’s Climate Standard, the TCFD recommendations and the ISSB standards. ANZ NZ released its first mandatory climate-related disclosure in December 2024.

Asia

• The Hong Kong Government has introduced a roadmap for sustainability disclosure, requiring publicly accountable entities to adopt the ISSB Standards by 2028. Key measures include aligning Hong Kong Standards with ISSB, mandatory climate disclosures for large cap issuers by 2026, and comprehensive compliance for all listed publicly accountable entities (PAEs) and significant financial institutions by 2028. This initiative aims to bolster Hong Kong's position as a green finance hub. Additionally, Hong Kong Monetary Authority published its Sustainable Finance Action Agenda, outlining eight sustainable finance goals and presenting planned actions for banking for net-zero, investing in sustainability, financing net zero, and making sustainability more inclusive.
  
  
• China introduced a Basic Standards of its Corporate Sustainability Disclosure Standards, aiming to guide businesses in aligning their sustainability practices with global ESG expectations. This marks a significant step towards a unified national ESG reporting system, with full implementation expected by 2030.
  
  
• The Multi-Jurisdiction Common Ground Taxonomy (M-CGT) to improve the compatibility of sustainable finance taxonomies across the EU, China, and Singapore was introduced by the International Platform on Sustainable Finance (IPSF) at COP29. Developed by the People's Bank of China, the European Union Directorate-General for Financial Stability, Financial Services and Capital Markets Union, and the Monetary Authority of Singapore (MAS), the M-CGT builds on the existing EU-China Common Ground Taxonomy. This new framework aims to facilitate cross-border green capital flows and provide a reference for jurisdictions developing their own green taxonomies.
  
  
• MAS announced new green finance and capital markets initiatives to enhance financial cooperation with China. The China-Singapore Green Finance Taskforce (GFTF), established in 2023, aims to align green finance standards between the two countries by expanding the Common Ground Taxonomy (CGT) to include the Singapore-Asia Taxonomy.
  
  
• The Governments of Australia and Singapore Collaborate to Support Sustainable Infrastructure and Decarbonisation in Southeast Asia. The Australian Government approved a US$50 million investment into the Green Investments Partnership (GIP) under Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative. This investment will aid clean energy transition and sustainable infrastructure development across the region. FAST-P, launched by the MAS at COP28 in 2023, aims to support Asia’s decarbonisation and climate resilience.
  
  
• The ASEAN Capital Markets Forum released version two of the ASEAN Transition Finance Guidance which includes new guidance on reference pathways for companies and financial institutions. The document presents a framework for assessing the credibility of transition plans and is intended to help companies in the ASEAN region access financing which will support their decarbonisation efforts.

Europe

• The European Council adopted a new regulation on increasing transparency of ESG Rating Activities. The new rules aim at making rating activities in the EU more consistent, transparent and comparable, to improve investors’ confidence in sustainable financial products. The new rules aim to strengthen the reliability and comparability of ESG ratings by improving the transparency and integrity of the operations that ESG ratings providers carry out and by preventing potential conflicts of interest.
  
  
• The EU Commission committed €4.6 billion to support cleantech projects, focusing on decarbonization technology and clean hydrogen. The funding, sourced from the EU’s Innovation Funds through funds raised through the EU Emissions Trading System (ETS), includes €3.2 billion for net-zero technologies and €1.2 billion for renewable hydrogen. This investment aims to accelerate Europe's transition to a net-zero future.
  
  
• The UK government launched a consultation on the development of a UK Green Taxonomy as part of the UK’s wider sustainable finance framework. This initiative aims to support sustainable investment by providing a clear framework for classifying environmentally sustainable activities. The consultation seeks feedback on the value and design of the taxonomy, its potential to enhance market integrity, and its role in mitigating greenwashing.
  
  
• The EU Commission published answers to frequently asked questions on the EU taxonomy in a 75-page document aiming to make the taxonomy easier to use, based on questions submitted to the commission from market participants.
  
  
• Switzerland’s Federal Council initiated consultation on amending the Ordinance on Climate Disclosures. Under the proposal, certain companies would be required to disclose 2050-aligned, net-zero transition plans. The proposal also permits companies to satisfy their climate-reporting obligations where they are already reporting in compliance with an internationally recognised standard, such as the ISSB standards or the ESRS.

North America

• President Donald Trump signed an executive order on January 2025, directing the United States to withdraw from the Paris Climate Agreement for the second time. Trump cited concerns about economic impacts and unfair burdens on the U.S. economy as reasons for the withdrawal.
  
  
• The U.S. Climate Alliance, a coalition of Governors from 24 states and territories, released a statement reinforcing its commitment to climate action despite President Trump's decision to withdraw the U.S. from the Paris Agreement. The Alliance has pledged to reduce greenhouse gas emissions by 26% below 2005 levels by 2025 and has sent an open letter to the UN reaffirming their dedication to international climate goal.
  
  
• The U.S. Federal Reserve announced its withdrawal from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). The Fed cited that the group's broadened scope had fallen outside its statutory mandate. The NGFS, established in 2017, assists central banks in integrating climate risks into their monetary policy and financial supervision.
  
  
• Six major U.S. banks, JPMorgan, Citigroup, Bank of America, Morgan Stanley, Wells Fargo, and Goldman Sachs, have withdrawn from the Net Zero Banking Alliance (NZBA), a group of leading global banks committed to aligning their lending, investment, and capital markets activities with net-zero greenhouse gas emissions by 2050. Following the US Banks, major Canadian banks have exited the Net-Zero Banking Alliance (NZBA) including TD Bank, Bank of Montreal, National Bank of Canada and CIBC.
  
  
• BlackRock, the world's largest asset manager, has exited the Net Zero Asset Managers Initiative (NZAMi). BlackRock cited confusion regarding its practices and legal inquiries from public officials as reasons for its exit and stated it will continue to assess climate-related risks in its portfolio management. Northern Trust Asset Management has announced its departure from both the Climate Action 100+ (CA100+) and NZAMi, citing confidence in its ability to independently manage material risks and engage with portfolio companies to safeguard and grow clients' capital.
  
  
• NZAMi announced it is reviewing its operations to stay effective amid global changes. During this review, it will pause tracking and reporting activities, and temporarily remove related information from its website. NZAM remains committed to supporting investors through the energy transition.
  
  
• The Glasgow Financial Alliance for Net Zero (GFANZ) is restructuring to address barriers to mobilise capital for the net-zero transition. It aims to close gaps in data, action, and investment. The data gap is being addressed via ISSB’s climate reporting standard adapted by over 30 (55% of GDP), and the GFANZ’s voluntary transition plan framework, adopted by over 500 financial institutions and several major economies. The focus now is on unlocking over US$5 trillion annually for modernising energy systems, especially in emerging markets, through public-private partnerships and initiatives like the Industrial Transition Accelerator and voluntary carbon markets.
  
  
• The Government of Canada provided details regarding a Canadian taxonomy in October 2024, which will include both green and transition activities that enable decarbonisation. The development of the metrics-based Canadian taxonomy would first focus on the following sectors for the Canadian economy: electricity, transportation, buildings, agriculture and forestry, manufacturing, and extractives, including mineral extraction and processing, and natural gas.
  
  
• The Canadian Sustainability Standards Board published the Canadian Sustainability Disclosure Standards (CSDS) on December, 2024. While largely aligned with the ISSB standards, the CSDS extend certain transition reliefs giving companies extra time to prepare disclosures, such as those on Scope 3 greenhouse gas emissions. 

Carbon market updates

• The Climate Change Authority's 3^rd Annual Progress Report, released in November 2024, is an independent assessment of Australia’s progress on cutting emissions, supporting the preparation of the Annual Climate Change Statement to Parliament. The 2024 findings include analysis of preliminary Safeguard emissions for 2023-24, which recognises that over 70% of 215 Safeguard facilities, under Australia’s Safeguard Mechanism, reported emissions higher than their baselines. The deadline for facilities to surrender units to address emissions that exceed baselines is 31 March 2025. Safeguard facilities’ reliance on ACCUs to meet obligations is forecast to drive ACCU demand out to 2030.
  
  
• The Australian Federal Government released the Future Made in Australia (Guarantee of Origin) Bill 2024, establishing a legislative framework for certifying the carbon intensity of products and renewable electricity. Administered by the Clean Energy Regulator, the Bill introduces Product Guarantee of Origin and Renewable Electricity Guarantee of Origin certificates. It emphasises the need for strong protections against greenwashing and mandates that only 'green' hydrogen from renewable sources be certified.
  
  
• The UK Government has introduced the Principles for Voluntary Carbon and Nature Market Integrity to ensure responsible participation in these markets. These principles emphasise carbon credits with ambitious internal actions, maintaining high integrity standards, transparent disclosure in sustainability reports, accurate environmental claims, and fostering cooperation for market growth.
  
  
• Norway to join ADB’s first of its kind Article 6 Carbon Fund: Norway has announced its contribution to the Asian Development Bank’s (ADB) Climate Action Catalyst Fund (CACF), a unique carbon fund under Article 6 of the Paris Agreement. Norway's Ministry of Climate and Environment will provide up to $50 million to support mitigation projects in developing countries in Asia and the Pacific, generating tradable carbon credits

Additional reading

• The IEA Energy Efficiency 2024 report highlights the urgency of accelerating global energy efficiency improvements to meet climate goals. Despite a landmark COP28 agreement to double efficiency improvements by 2030, progress has been slow, with only a 1% improvement in 2024.
  
  
• The World Meteorological Organization (WMO) has confirmed that 2024 is the warmest year on record, with global average temperatures about 1.55°C above pre-industrial levels. This marks the first calendar year with a global mean temperature exceeding 1.5°C above the 1850-1900 average. 
  
  
• The State of the Climate 2024 report by CSIRO highlights significant changes in Australia's climate. Key findings include an increase in extreme heat events, more frequent and intense heatwaves, longer fire seasons, extended periods of high fire risk, more severe and frequent heavy rainfall events, and continued sea level rise affecting coastal areas.
  
  
• A report titled Building Transition: Financing Market Transformation launched by a global green building coalition including UK’s Building Research Establishment (BRE), the Green Building Council of Australia (GBCA), outlines scalable and accessible pathways for sustainable finance.
  
  
• Inside the Playbook: A report by Pollination and the Institute of International Finance highlights how financial institutions are using climate transition plans to support clients in shifting to a low-carbon economy. These plans help institutions understand and manage risks and opportunities, align strategies with net-zero goals, and emphasise transparency, accountability, and the integration of nature and social considerations.
  
  
• The "Nature. Data. Action” report by Pollination highlights the economic risks of nature damage, with over half of the world's GDP at risk due to dependence on nature. It addresses the challenge business leaders face in responding to nature-related issues due to a lack of data and provides a practical guide to overcoming this barrier. The guide offers steps to understand and integrate nature risks and opportunities into business operations, drawing on international best practices.

ANZ news and updates

As a global bank supporting sustainable finance market growth, ANZ is working with customers to help them transition to net zero emissions by 2050. ANZ’s sustainability highlights for the quarter include:

ANZ research and publications

• Carbon Market Chartbook: Carbon market outlook across Europe, Australia, China and New Zealand.
  
  
• A ride on China’s EV journey: Comparison between China’s investment in electric vehicles (EVs) and Japan’s own dominance of car production over the decade.
  
  
• Australian Emission Projections 2027-2030: Australia’s greenhouse gas emissions are projected to fall 42.6% between 2005 and 2030 under baseline scenario.
  
  
• India Food Inflation: It’s not just weather: High food inflation is a major concern in India, with the weather taking much of the blame. However, the multiyear food-price surge goes beyond just rainfall or heatwaves.
  
  
• Carbon Market: NZU auction Q4 2024: New Zealand carbon credit trading update.
  
  
• ANZ Food for Thought Summer 2023/24 report provides insights into the food, beverage, and agribusiness supply chains in Australia and globally.

ANZ sustainability news

• ANZ recognised as the Australian Sustainable Debt House of the Year by Kanga News. This is ANZ’s sixth consecutive Award in this category. Kanga Awards for Australia’s Syndicated Loan Deal of the Year was awarded to Charter Hall Wholesale Office Fund’s green Loan for which ANZ was Joint Sustainability Coordinator and Lead Arranger. New Zealand Sustainability Deal of the Year was awarded to New Zealand Local Government Funding Agency (LGFA)’s NZ$800m Sustainable Financing Bond, ANZ was Joint Lead Manager.
  
  
• ANZ released its Sustainable Development Goal (SDG) Impact Report for Financial Year 2024 to update investors on the use of proceeds and impact of ANZ’s SDG Bonds, aligned to its 2020 SDG Bond Framework. As at 30 September 2024, ANZ had on issue four SDG Bonds with an aggregate principle amount equivalent of ~A$5.61 billion. 100% of proceeds were allocated to eligible assets with ~44% allocated to the Industry, Innovation and Infrastructure SDG, ~24% allocated to Affordable and Clean energy SDG and ~13% to Good Health and Well-being SDG.
  
  
• ANZ released an updated SDG Bond Framework in November 2024. The 2024 framework aligns with the latest ICMA Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines assessed by the second party opinion from ISS-Corporate. The updated framework outlines ANZ's commitment to issuing bonds that support projects contributing to the United Nations' SDGs, focusing on environmental sustainability and social impact. It also details how ANZ will use the proceeds from these bonds to finance and refinance projects that advance the SDGs.
  
  
• ANZ Group released its 2024 ESG Supplement which outlines the bank’s commitment to environmental, social and governance (ESG) practices. ANZ integrates its ESG approach into its business strategy, focusing on financial wellbeing, environmental sustainability, and housing.
  
  
• ANZ New Zealand released its first mandatory Climate Statement in December 2024 which outlined several key initiatives and targets. ANZ NZ is targeting to fund and facilitate at least NZ$20 billion in social and environmental outcomes over the next six years which include initiatives on lowering carbon emissions, protecting nature and biodiversity and increase access to housing and promoting financial wellbeing.
  
  
• ANZ has announced an extension of its collaboration with the Clean Energy Finance Corporation (CEFC). As part of this initiative, ANZ will offer eligible business customers a 0.80% discount on clean energy finance loans. This move continues ANZ's commitment to sustainable finance, building on a history of financing over A$300 million in investments with the CEFC for the seventh consecutive year.
  
  
• Small business, Mount Zero Olives has been committed to Sustainability since 1993 and driven initiatives like solar panel installations and transitioning to electric vehicles. Supported by ANZ's clean energy finance loans, they also partner with sustainable farmers and suppliers to foster a greener supply chain.
  
  
• Why transition needs circularity discusses the opportunities presented by circular economy activities such as the sharing, maintenance, reuse, refurbishment and recycling of products, to help achieve climate transition.
  
  
• See more ANZ sustainability news at ANZ Insights