As the fourth negotiating round of the global plastic treaty approaches, what should financial institutions be looking out for? There are five main considerations: are upstream petrochemical producers in scope; Will hazardous chemicals be called out; Will there be product restrictions? Who will finance the transition? Will the final treaty text be mandatory or voluntary? The implications for the financial markets could be significant.

The US Environmental Protection Agency (EPA) issued its Final Rule for Synthetic Organic Chemical Manufacturing Plants & Polymers & Resins. The aim of this rule is to reduce cancer and serious health effects from toxic air pollutants and smog-forming compounds. This is relevant to financial markets which are seeing externalities being converted into internal costs for corporates. Financial models may need reassessing.

Legislative time is running short before the European Parliamentary elections on 6-9 June 2024. Corporates and investors should watch this pre-election period with considerable interest. European legislators are working on a range of regulations to finalise their adoption at the final Parliament Plenary sessions this month. These range from nature restoration and anti-greenwashing requirements, to waste & packaging and supply chain due diligence controls.

An overview of the major nature-related events planned for 2024

The persistent delay in addressing the clear downward trend in biodiversity loss is both puzzling and disappointing. However, there are bright spots. The World Economic Forum (WEF) 19th Global Risks Report shows that environmental issues are on the risk radar of academics, businesses, governments, the international community and civil society. Although there is a belief that regulation, particularly global treaties and agreements, are the solution to both biodiversity loss/ecosystem collapse and halting a critical change to Earth systems, this year we will be able to observe whether this plays out. 2024 will see two UN COPs, one on biodiversity (COP16) an another on climate (COP29). Will they demonstrate that biodiversity loss & ecosystem collapse is a near term risk that urgently needs addressing?

Dubai hosted the 28th Conference of the Parties to the Framework Convention on Climate Change (UNFCCC COP28). In this blog, we share Planet Tracker’s insights and identify what financial institutions should take away from this latest climate summit.

Comparing three academic lifecycle assessment studies evaluating the ‘nodule-to-commodity’ climate impact of metals produced from polymetallic nodules and land ores reveals that deep sea nodules could have 28% higher or 76% lower climate impact than land ores. Planet Tracker believes that such a marked variation in results is not a good enough basis for making decisions about the future of deep sea mining.

A new investigation by Planet Tracker reveals that profits in the industrial Indonesian tuna sector will all but disappear due to climate change and unsustainable practices. Implementing a series of nine nature-positive measures that reduce bycatch and overexploitation while improving traceability and transparency will more than offset the negative impact of climate change on the industry’s profits.

A new investigation by Planet Tracker reveals that profits in the industrial Indonesian tuna sector will all but disappear due to climate change and unsustainable practices unless companies adopt nine nature-positive measures now. Sustainability is poor within the industrial fleets that catch tuna in Indonesia, the world’s largest producer. Climate change will make things worse: the industry will catch an estimated 25% to 31% less tuna by 2050.

At the end of 2021, following an international consensus to negotiate a legally binding Global Plastic Pollution Treaty by the end of 2024.

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