News in the spotlight: EBA publishes launched a ESG Dashboard as part of broader ESG risk monitoring framework
The European Banking Authority (EBA) published a set of key indicators assessing climate-related risks within the EU/EEA banking sector.
Products and Services
Pioneer successfully closes its second sustainable infrastructure fund with €1.1bn
Pioneer Point Partners has successfully closed its second sustainable infrastructure fund, Pioneer Infrastructure Partners II, raising over €1.1 billion—surpassing its initial €800 million target. The fund achieved its final close in just over a year, reflecting strong investor demand despite challenging market conditions. Classified as an Article 9 fund under the EU Sustainable Finance Disclosure Regulation (SFDR), it focuses on investments that contribute to environmental objectives. The fund attracted commitments from a diverse group of institutional investors, including pension funds, insurance companies, asset managers, endowments, and foundations across Europe and North America. Notably, more than half of the capital came from existing investors, many of whom increased their allocations.
Pioneer Infrastructure Partners II targets the energy transition and environmental sectors in Western Europe, employing a value-add investment strategy. To date, the fund has invested in Yeager Energy, a Dutch geothermal platform developing projects for horticulture and residential heating, and OG Clean Fuels, a European network of clean fuel filling stations. A third investment is expected to be completed by the end of the second quarter of 2025.
This successful fundraising underscores the growing investor interest in sustainable infrastructure and the role of private capital in advancing the energy transition.
Mirova partners with FSC to push for global forest protection
The Forest Stewardship Council (FSC) and sustainable investment firm Mirova have entered a strategic partnership to mobilize finance for forest conservation and sustainable land use. Announced on April 29, 2025, the collaboration aims to address critical environmental and social issues, including deforestation, biodiversity loss, and climate change. The initiative focuses on channeling investments into FSC-certified projects that promote responsible forest management and reforestation, particularly in Central and South America, Sub-Saharan Africa, and Southeast Asia. By leveraging Mirova’s Sustainable Land Fund 2 (MSLF2), the partnership seeks to implement forestry projects that deliver measurable environmental and social benefits, with an emphasis on empowering women and Indigenous Peoples and Local Communities (IPLCs). This alliance underscores the potential of combining sustainable finance with certified forest stewardship to foster climate resilience, biodiversity preservation, and inclusive economic development.
British International Investment (BII) and Boston Consulting Group (BCG) published a toolkit for Blended Finance Fund design
British International Investment (BII), in collaboration with Boston Consulting Group (BCG), has released a report outlining a toolkit aimed at enhancing investment in development and climate finance through blended finance mechanisms. Blended finance involves the strategic use of concessional capital to attract private investment into projects that contribute to sustainable development goals. The report identifies key challenges hindering the scaling of blended finance, such as complex fund structures and misaligned incentives between public and private investors. To address these issues, the toolkit offers recommendations including simplifying fund structures, standardizing documentation, and aligning risk-return profiles to better suit private sector expectations. By implementing these strategies, the initiative seeks to mobilize substantial private capital towards climate-resilient infrastructure and development projects in emerging markets, thereby contributing to global efforts in combating climate change and promoting sustainable economic growth.
Stonepeak acquires a 46.3% stake in Repsol’s solar portfolio across New Mexico and Texas
Repsol has entered its first U.S. renewables partnership by selling a 46.3% stake in a 777 MW solar and storage portfolio to infrastructure investment firm Stonepeak for $340 million. The portfolio, valued at approximately $795 million including prior tax equity financing, comprises the 632 MW Frye solar project in Texas and the Jicarilla solar-plus-storage facility in New Mexico. Both projects are under long-term revenue contracts, aligning with Repsol’s strategy to ensure stable returns. The deal, expected to close in the third quarter of 2025 pending regulatory approval, marks Repsol’s sixth asset rotation since 2021 as it continues to optimize its renewable energy investments. Repsol currently operates nearly 4,000 MW of renewable capacity globally and is developing additional projects in Texas, including the 629 MW Outpost PV project and two others totaling over 1,400 MW.
EFM and Sojitz announced a joint-venture to launch a forestry investment fund of USD 200m
EFM, a U.S.-based forest investment and management firm, has announced a joint venture with Japan’s Sojitz Corporation to launch a $200 million fund aimed at advancing climate-smart forestry in North America. The partnership seeks to invest in sustainable forest management practices that enhance carbon sequestration, biodiversity, and climate resilience. By combining EFM’s expertise in ecological forestry with Sojitz’s global investment capabilities, the fund intends to support projects that align with both environmental and economic objectives. This initiative reflects a growing trend of integrating private capital into conservation efforts, addressing the urgent need for scalable solutions to combat climate change. The fund’s focus on North American forests underscores the region’s critical role in global carbon dynamics and the potential for sustainable forestry to contribute to climate mitigation strategies.
Regulations, Law and Frameworks
Bank of England launches consultation on approach of managing climate-related risks
The Bank of England’s Prudential Regulation Authority (PRA) has issued a consultation paper in April 2025, urging UK banks and insurers to enhance their management of climate-related financial risks. The PRA identified significant deficiencies in how institutions assess and address both physical risks, such as flooding and extreme weather, and transition risks associated with the shift to a low-carbon economy. Notably, many firms lack critical data, including the geographic locations of insured or mortgaged properties, hindering accurate exposure assessments.
Furthermore, few institutions have fully integrated climate change considerations into their strategic risk assessments, often limiting their focus to reputational concerns linked to fossil fuel financing. The PRA has mandated internal reviews of climate risk frameworks, with a follow-up evaluation scheduled in six months. Failure to address these gaps could lead to financial instability, increased costs, and reduced access to financial services for high-risk properties and carbon-intensive industries. The consultation paper is part of the PRA’s ongoing efforts to ensure the resilience of the financial sector amid escalating climate challenges.
ISSB publishes update to IFRS S2 “Climate-related Disclosures”
The International Sustainability Standards Board (ISSB) released an Exposure Draft proposing targeted amendments to IFRS S2, the climate-related disclosure standard. These amendments aim to ease the application of greenhouse gas (GHG) emissions reporting requirements, addressing challenges faced by companies during implementation. Key proposals include relief from disclosing Scope 3 Category 15 emissions linked to derivatives and certain financial activities, optional use of classification systems other than the Global Industry Classification Standard (GICS) for disaggregated financed emissions, and flexibility in applying jurisdiction-specific measurement methods and global warming potential values not aligned with the latest Intergovernmental Panel on Climate Change (IPCC) data . The ISSB emphasizes that these changes are designed to maintain the usefulness of information for investors while reducing reporting burdens. Stakeholders are invited to comment on the draft until June 27, 2025, with final amendments expected by year-end.
EBA publishes launched a ESG Dashboard as part of broader ESG risk monitoring framework
The European Banking Authority (EBA) published a set of key indicators assessing climate-related risks within the EU/EEA banking sector. The report highlights that banks’ exposures to sectors vulnerable to climate change, such as agriculture, mining, and manufacturing, are significant, comprising approximately 20% of total assets. Furthermore, the EBA notes that while banks have made progress in integrating climate risk considerations into their risk management frameworks, challenges remain in data availability and methodological approaches. The EBA emphasizes the need for enhanced transparency and standardized disclosures to better assess and manage climate-related financial risks. This initiative aligns with the broader EU sustainable finance agenda, aiming to ensure the resilience of the financial system in the face of climate change.
ESG- and Green Bond Issuances
Municipality Finance issues NOK 2bn green bond under its MTN programme
Municipality Finance Plc (MuniFin), Finland’s public sector funding agency, issued a NOK 2 billion (approximately €170 million) green bond under its Medium-Term Note (MTN) programme. The bond, with a five-year maturity and a 3.625% coupon, was priced at 0.5 basis points below the mid-swap rate, indicating strong investor demand. Proceeds will finance projects aligned with MuniFin’s Green Bond Framework, including sustainable buildings, clean transportation, renewable energy, and water management initiatives. This issuance marks MuniFin’s second green bond in Norwegian kroner and its 13th green bond overall, reinforcing its commitment to sustainable finance. The bond attracted a diverse investor base, with 60% of allocations to Nordic investors and 40% to those from continental Europe. The transaction underscores the growing appetite for green investments and highlights the role of public sector institutions in advancing environmental objectives through capital markets.
Net Zero Commitments
Royal Bank of Canada (RBC) published its 2024 Sustainability Report
The Royal Bank of Canada (RBC) released its latest climate report, detailing progress toward its environmental commitments. The bank has mobilized $282 billion in sustainable finance since 2019, moving closer to its $500 billion target by 2025. RBC has also set interim 2030 emissions reduction targets for its lending activities in sectors such as oil and gas, power generation, and automotive, aligning with its goal of achieving net-zero emissions in its lending portfolio by 2050. Operationally, RBC aims to reduce greenhouse gas emissions by 70% and source 100% of its electricity from renewable and non-emitting sources by 2025. The report highlights investments in community initiatives, including over $154 million in global donations and $12 million through the RBC Tech for Nature program, supporting environmental innovation. Additionally, RBC has introduced a climate performance modifier in executive compensation to reinforce accountability in meeting its climate objectives.