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illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: 2025 is shaping up as a pivotal year for sustainable business, with U.S. political changes creating uncertainty, a maturing global carbon market, and advancing European regulations
• President Trump’s pro-fossil fuel stance could reshape U.S. climate policies, while COP29's progress on carbon markets contrasts with stalled global treaties
• Europe's Corporate Sustainability Reporting Directive (CSRD) signals stronger accountability for emissions
🔭 The context: The U.S. Inflation Reduction Act faces potential rollbacks, though its benefits in Republican states may preserve some provisions
• At COP29, Article 6 negotiations finalized a framework for global carbon trading, while voluntary carbon markets struggle to regain trust
• The EU’s CSRD expands annual emissions disclosures, ensuring a broad corporate reach
🌍 Why it matters for the planet: Global climate efforts hinge on U.S. participation, yet Trump’s policies risk undermining the Paris Agreement
• Carbon markets, particularly those with Article 6 backing, could accelerate decarbonization
• Meanwhile, stricter EU regulations push companies to address supply chain deforestation and emissions
⏭️ What's next: COP30 in Brazil will reveal new five-year emissions targets, with mixed ambition across nations
• In carbon markets, voluntary efforts hope for renewed trust, while global frameworks await implementation
• Europe will enforce sustainability rules, with corporations adjusting to the CSRD and deforestation standards
💬 One quote: "Carbon markets are here to stay. They’re going to be part of this longer, durable piece of net-zero solutions," — Brennan Spellacy, CEO of Patch
📈 One stat: The number of unique buyers of carbon-removal credits dropped from 80 in Q4 2023 to 50 in Q3 2024
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