ESG: Enabling Sustainable Growth

The EU's Corporate Sustainability Due Diligence Directive (CSDDD) will pave the way for a new era of corporate due diligence obligations.

22 May 2024

As Australia transitions to a low-carbon economy, we see carbon markets play an increasing role to help achieve net zero ambitions. Staying on top of deadlines and developments is essential.

26 March 2024

The long-awaited renewal of the China Certified Emission Reductions (CCER) market is expected to drive trading activity, develop the market and spur innovation. This is a critical step towards China reaching its ‘30.60’ decarbonisation target: peak emissions by 2030 and carbon neutrality by 2060.

26 January 2024

In our country chapters, we look at initiatives to encourage the transition to a net zero economy – across emissions reduction targets, carbon markets, financing, transport, housing and buildings, and agriculture. Here is a brief snapshot. More detail and examples are in the country chapters.

24 November 2023

The reality of the ground we need to cover to reach global decarbonisation targets is driving policies, investment and innovation. To do this effectively and within desired timeframes it’s critical that we embrace collaboration by working together, sharing knowledge and simply connecting people.

24 November 2023

Among the largest economies in the world by GDP and a powerful member of the G20, the Republic of Korea has developed a strong industrial activity sector in recent decades.

24 November 2023

Indonesia is at a critical juncture in shaping its energy future. The archipelago nation faces the challenge of boosting energy supply by ensuring universal electricity access for its people by 2040, while cutting carbon emissions to reach its net zero target by 2060. This is happening against a backdrop of one of the fastest-growing economies globally. Indonesia has experienced rapid economic growth since the 1970s, reducing poverty levels across its population of almost 280 million. Now, climate change threatens its diverse ecosystem. Communities are vulnerable to flooding, rising sea levels and heatwaves.

24 November 2023

Vietnam is among the fastest growing markets in ASEAN. Strategically located in the centre of Southeast Asia, its GDP, foreign direct investment and middle-income population have all grown over the past decade. Vietnam’s share of annual global emissions is relatively small - approximately 0.88% in 2021 - for a population of almost 100 million, or roughly 1.2% of the world’s people. The country is severely affected by climate change. With 3,260 km long coastline, many low-lying cities and river delta regions, Vietnam ranks first in the world for exposure to flooding alongside Bangladesh. The World Bank estimates Vietnam lost around US$10 billion in 2020 due to climate impacts. Without appropriate adaption and mitigation measures, climate change could cost Vietnam around 12% to 14.5% of GDP annually by 2050 according to World Bank estimates.

24 November 2023

The Philippines is among the world’s most vulnerable countries to climate change. Increases in the frequency and intensity of typhoons, changes in rainfall patterns, rising sea levels and increasing temperatures all pose a serious threat to the archipelago nation’s ecosystems and its 100 million+ population. This makes poverty-reduction efforts even harder.

24 November 2023

Japan is the third-largest economy in the world and among the world’s highest emitters. Home to approximately 126.5 mn people, Japan consists of several thousand islands most of which are covered by mountains and surrounded by steep shorelines. The topography limits renewable energy development and Japan’s susceptibility to natural disasters such as typhoons and earthquakes has impacted nuclear generation following the 2011 Fukushima Daiichi Power Plant accident. Triggered by the Great East Japan Earthquake, this event tipped Japan’s economy into recession. A little over a decade on, Japan’s economy is showing signs of recovery – and investors are circling.

24 November 2023

The net zero transition presents significant opportunities for Singapore, with its export-oriented, innovation-hungry, open economy. Yet it also carries significant challenges. Singapore is managing water and food scarcity, and rising sea levels threaten the low-lying landmass.

23 November 2023

Nickel is set to become one of the most important critical minerals in the net zero transition, reaching a predicted global market of almost US$60bn within 5 years. Future industry growth will be driven by the dramatic increase in demand for lithium-ion EV batteries – of which nickel is a key component. Given the exponential growth in demand, there is still a high risk that supply will fall short in the coming decade.

12 October 2023

Carbon markets are an instrumental tool to assist countries in achieving GHG emissions reduction commitments. Emissions trading systems in smaller countries face the problem of insufficient market participants and investors which can result in volume and liquidity levels which are insufficient to determine market pricing effectively. To address this, some countries and regions have harmonised emissions trading systems, to create larger and more liquid carbon markets. In this insight, we consider potential opportunities for cooperation and harmonisation of carbon trading across Southeast Asia and the broader region.

18 August 2023

China’s efforts to encourage businesses to cut emissions and improve carbon data transparency are critical to achieving a sustainable future. From the national emissions trading system expanding and opening to foreign investment, to carbon cutting incentives for individuals, there is a rising tide of carbon-related initiatives across China.

01 August 2023

A new more rigorous and consequential age has begun for companies’ climate and sustainability considerations.

04 May 2023

In the latest insight from our Carbon Markets Series, we visit the regimes around the world that are driving change.

29 March 2023

When China’s national carbon market launched in 2021, it promised to act as a powerful tool in combatting climate change.

27 March 2023

Almost every year since 1995, nations (or ‘states’ as they’re officially known) that are signed up to the United Nations Framework Convention on Climate Change (UNFCCC) have met to check progress towards cutting greenhouse gas emissions (GHG) and negotiate any new developments. Carbon markets were a key feature of the most recent Conferences of the Parties (COP) – COP26 in Glasgow and COP27 in Egypt. Agreement on a carbon markets ‘rulebook’ – referred to as Article 6 by many, named for the section of the Paris Agreement containing the measures - was a critical step towards scaling carbon markets globally. That includes a central UN mechanism to govern carbon trading and on cooperation between nations. So what is Article 6, what was agreed, and what does it all mean?

21 March 2023

Green bonds have surged in use over the past two years, but the future growth and effectiveness of the market is threatened by difficulties confirming the credit quality of an issuer and ensuring proceeds are used to fund green projects.

21 March 2023

King & Wood Mallesons (Richard Mazzochi, Partner and Claire Potter, Registered Foreign Lawyer (England and Wales)) is delighted to have worked with the Global Financial Markets Association (GFMA) and other leading industry bodies in preparing the GFMA response to the public consultation published by the International Organization of Securities Commissions (IOSCO)[1] on recommendations for establishing sound Compliance Carbon Markets and on key considerations for enhancing the resilience and integrity of Voluntary Carbon Markets.

21 February 2023

We describe the development of carbon trading markets in Southeast Asia and anticipate the direction and prospects of further development of these markets in the foreseeable future.

16 February 2023

The role of carbon markets is expected to increase rapidly in the coming years as nations continue to focus on sustainable economic development and drive towards a net zero economy. Understanding how they work and the role they can play is critical.

13 February 2023

On 20 November 2022, the requirements relating to management and disclosure of climate-related risks by fund managers (with less than HKD8 billion AUM) under the updated SFC’s Fund Manager Code of Conduct started to apply. This KWM Brief Sheet sets out 10 points on climate-related compliance and risk disclosure for fund managers under the current SFC regime in Hong Kong.

24 November 2022

Greenwashing mentions in global financial press have more than doubled since January. Regulators are intensifying efforts as businesses transition to a net zero economy, fuelling a surge in interest.

09 November 2022

On 18 October 2022 trade ministers in Australia and Singapore signed the Green Economy Agreement (GEA).

20 October 2022

By leveraging strong economic and trade complementarities, Australian and Chinese businesses are well positioned to unlock new opportunities and deliver a greener future.

14 September 2022

In 2020, 85% of China’s primary energy needs were met with fossil fuels and 72% in Australia. This is the base from which China and Australia must transform their energy generation and use.

14 September 2022

Surging demand for exports of iron ore, coal and minerals over the last three decades, much due to China’s growth, has brought significant wealth to Australia.

14 September 2022

Transport is among the most emissions-heavy sectors. In 2019 the sector represented 23% of global energy-related emissions according to the 2022 Intergovernmental Panel on Climate Change (IPCC) Mitigation Report.

14 September 2022

The greening of our buildings and cities is critical in the pursuit of a net zero economy.

14 September 2022

According to the United Nations’ financing roadmap to net zero, the lion’s share of the USD32 trillion of funding needed for decarbonisation efforts in the next decade must come from the private sector.

14 September 2022

Agriculture is both affected by climate change, and a contributor to troubling emissions. Governments around the world will not meet their climate goals without major changes to food production and consumption.

14 September 2022

The issue of a global climate challenge and agreed emission targets by definition crosses borders. Confronting it requires international cooperation.

14 September 2022

In this report, we explore opportunities for Australia and China to work together and share knowledge to achieve net zero. We shine a light on examples to inspire and inform others.

14 September 2022

From plastic-free flights to biofuels, the traditionally heavy-polluting aviation industry is determined to cut carbon. What does it all mean for airlines, lessors, financiers and passengers?

05 September 2022

In this alert we explain what investors need to know about China’s National ETS – what it covers, how it operates and the opportunities that it presents. China is the world’s largest producer of wind and solar energy and its market-leading technology industries will drive clean energy transition.

24 August 2022

The ability to monetise carbon and trade carbon credits through carbon markets is a core component of the global transition to net zero, without which global efforts to meet critical carbon reduction targets will be severely impacted. China’s national emissions trading scheme (the National ETS) is set to become the world’s largest carbon market by both trading volume and value, and will play an important part in the global net zero transition. The National ETS began trading in July 2021 and currently operates in parallel with nine pilot schemes (each a Pilot Scheme). China’s ability to peak emissions by 2030 and be carbon neutral by 2060 (the 30/60 strategy) relies in part on its ability to demonstrate to the world that it has the necessary infrastructure in place to maintain the integrity of the system that it has created to realise its 30/60 strategy.

03 August 2022

The UN Secretary-General António Guterres delivered a stark warning on April 27: “We cannot afford slow movers, fake movers or any form of greenwashing.”

01 June 2022

In this alert, we look at some key themes relating to sustainability and the opportunities that they present for businesses across Asia.

17 March 2022

It is the island home of some of the world’s longest-living people and Wenchang chicken, a dish popular in mainland China and across south-east Asia.

17 December 2021

Whilst a unified National ETS is new to the Mainland, the concept and operation of a carbon market is not. The Mainland started to explore carbon emission trading a decade ago when the National Development and Regulatory Commission approved several regional pilot markets for trading carbon emissions allowances ("CEAs") in 2011. Those pilot schemes have been successful and continue to operate in parallel with the new National ETS. The long term goal is for the regional pilots to be consolidated into the National ETS which will be a cornerstone in the Mainland's policy for combatting climate change.

09 November 2021

China is poised to rollout a new national emissions trading scheme market demonstrating that China is committed to becoming a global leader in climate mitigation and renewable energy technologies. China's national strategy is to achieve peak levels by 2030 and carbon neutrality by 2060 (the "3060 Target"). This represents a myriad of opportunities for non-Chinese businesses to invest and trade in the renewable energy and green finance sectors.

03 June 2021

Written by Edwina Kwan, Amanda Lees, Patric McGonigal and Nick Horton

05 May 2021