News in the spotlight: IDB to launch landmark $1bn ‘Amazonia Bond’ in 2026
The Inter-American Development Bank (IDB) has announced plans to issue up to $1 billion in Amazonia Bonds starting in 2026. Proceeds will be dedicated to protecting the Amazon rainforest, financing biodiversity conservation, and supporting local communities in the region. The program is set to become a milestone in sustainable finance, positioning nature protection at the heart of capital markets and potentially inspiring similar issuances worldwide.
Products and Services
Australian super fund backs Macquarie with AUD 2bn impact allocation
The Australian Retirement Trust (ART), one of the world’s largest pension funds with more than A$280 billion under management, has committed to allocate AUD 2 billion ($1.3 billion) to impact investing by 2030. Its first major move under this strategy is a significant allocation to Macquarie Asset Management, reflecting confidence in Macquarie’s expertise in infrastructure and sustainability-focused projects. ART’s goal is to channel large-scale pension savings into initiatives that deliver both measurable environmental and social benefits alongside long-term financial returns for its members. The fund views impact investing not as philanthropy but as a core investment strategy, where supporting renewable energy, sustainable transport, and resilient infrastructure can enhance returns while contributing to global climate targets. With ART’s scale and long-term horizon, this move demonstrates the growing role of pension funds in financing the energy transition and sustainable development, potentially setting a precedent for other institutional investors worldwide (source: australianretirementtrust.com).
Robeco launches euro sovereign bond fund powered by ASCOR
Robeco has launched a euro-denominated sovereign bond exchange-traded fund (ETF) that integrates climate risk analysis through the pioneering Assessing Sovereign Climate-related Opportunities and Risks (ASCOR) framework. This innovative tool evaluates governments’ preparedness for climate change by analyzing policies, emissions trajectories, and resilience to transition and physical risks. The fund allows investors to allocate capital to sovereign issuers that are better positioned for the low-carbon economy, adding transparency and accountability to sovereign debt markets that traditionally lacked ESG metrics. By embedding ASCOR into its methodology, Robeco aims to differentiate its product at a time when demand for climate-aware fixed income strategies is rising. The ETF not only offers exposure to euro sovereign bonds but also enables investors to align their portfolios with climate goals without sacrificing liquidity. This launch reflects the increasing convergence between data-driven ESG analytics and mainstream investment products, potentially influencing how governments are evaluated in capital markets (source: robeco.com).
Regulations, Law and Frameworks
European equity funds drop ESG from names as ESMA rules bite
Dozens of European equity funds have dropped ESG or sustainability-linked terms from their names in 2025, as new European Securities and Markets Authority (ESMA) guidelines came into force. The rules require at least 80% of investments in funds carrying “sustainable” or “ESG” labels to align with the promoted strategy, and at least 50% for those marketed as “transition” or “impact.” Morningstar data suggests this triggered the largest wave of fund rebranding in ESG’s history, with managers keen to avoid regulatory penalties. While some critics call the trend “brownwashing,” arguing funds are backtracking from ESG, others say it will restore trust by ensuring greater alignment between branding and portfolio holdings. For investors, the change may reduce confusion and greenwashing risk, but it also highlights how regulation can reshape the ESG fund landscape overnight. The outcome may push managers to strengthen strategies to regain the right to use ESG terminology (source: esma.europa.com).
SEC chair slams EU sustainability rules, urges end to double materiality
Gary Gensler, chair of the US Securities and Exchange Commission (SEC), has voiced strong criticism of the EU’s Corporate Sustainability Reporting Directive (CSRD), particularly its requirement for companies to disclose under the principle of “double materiality.” Unlike US rules, which focus only on financially material risks to investors, the EU requires companies to report both how sustainability risks affect them and how their operations impact people and the planet. Gensler argued this creates excessive burdens for US companies operating in Europe, risks duplication with US standards, and could discourage cross-border business. His comments expose deepening transatlantic tensions over ESG regulation, with the EU pursuing a holistic approach to accountability while the US maintains a narrower, investor-centric model. The debate could shape the future of global reporting convergence and raises questions about whether multinational firms will face increasingly fragmented sustainability disclosure regimes (source: sec.gov.com).
China’s transition taxonomy pilot gains momentum, says Ma Jun
China’s pilot “transition finance taxonomy” is gathering pace, according to leading green finance expert Ma Jun. Several provinces and cities have implemented the classification system, which aims to support carbon-intensive industries such as steel, cement, and chemicals in securing lower-cost financing for decarbonization projects. By providing clear definitions for what counts as “transition” activity, the taxonomy helps lenders and investors identify credible projects that contribute to China’s goal of peaking emissions before 2030 and achieving carbon neutrality by 2060. The pilot has already spurred increased demand from heavy industry for loans and bonds linked to transition activities, reflecting companies’ desire to access affordable funding while improving their sustainability credentials. If rolled out nationally, the taxonomy could become a global benchmark for transition finance, influencing how capital markets distinguish between “green” and “brown” activities. Given China’s role in global emissions and finance, its framework may reshape international sustainable finance standards (source: hkgreenfinance.org).
ESG Data & Analytics
RepRisk: Geospatial technology could transform ESG risk management
ESG data provider RepRisk has doubled the coverage of its geospatial risk tool, which integrates location-based data with ESG signals to assess biodiversity and environmental risks. The platform enables investors, lenders, and corporates to link physical assets such as mines, factories, and infrastructure projects with potential controversies and regulatory risks in real time. By overlaying satellite and mapping data with ESG intelligence, RepRisk offers a forward-looking view of environmental liabilities, helping firms anticipate problems before they escalate. The tool is particularly valuable as biodiversity emerges as a key risk area alongside climate, with global regulators and investors demanding better disclosure under frameworks such as TNFD (Taskforce on Nature-related Financial Disclosures). RepRisk’s expansion addresses persistent data gaps in biodiversity finance and positions the firm as a leader in ESG analytics innovation. For investors, adopting geospatial technology may soon become essential to manage reputational, legal, and financial risks tied to nature loss (source: reprisk.com).
Net Zero Commitments
Norges Bank excludes French mining company over environmental damage
Norway’s sovereign wealth fund, the world’s largest with $1.6 trillion in assets under management, has excluded French mining group Eramet from its portfolio. The decision follows recommendations from the fund’s Council on Ethics, which found “unacceptable risks” of severe environmental damage and serious human rights violations linked to Eramet’s operations. The exclusion is significant given the fund’s size and influence, with past divestments often triggering broader scrutiny of targeted companies across global markets. By cutting ties with Eramet, Norges Bank signals to the mining and extractives industry that environmental destruction and rights abuses will not be tolerated by leading institutional investors. The move aligns with the fund’s mandate to safeguard wealth for future generations while promoting responsible investment practices. It also demonstrates how divestment decisions by large asset owners can reshape capital flows, potentially forcing companies to improve practices or face restricted access to global capital markets (source: nbim.com).
Finance set to dominate COP30 agenda, CISL predicts
The Cambridge Institute for Sustainability Leadership (CISL) has forecast that finance will be a central theme of COP30, scheduled for 2025 in Belém, Brazil. Unlike previous climate summits that emphasized policy pledges, COP30 is expected to spotlight how capital flows can accelerate decarbonization and adaptation efforts. Banks, asset managers, and development institutions will be under pressure to scale up commitments, mobilize trillions in private finance, and channel resources toward renewable energy, nature protection, and climate resilience. The focus reflects growing recognition that without significant capital mobilization, global climate targets cannot be met. CISL anticipates that new financing models, blended finance mechanisms, and nature-positive investments will take center stage. Positioning finance at the heart of COP30 could mark a turning point, transforming the summit into a catalyst for aligning global financial systems with net zero. Investors and policymakers alike will be watching for breakthroughs on capital mobilization (source: cisl.com).
ESG- and Green Bond Issuances
IFC to invest up to $250m in Bank Pekao’s green and blue bonds
The International Finance Corporation (IFC), a member of the World Bank Group, is planning to invest up to $250 million in green and blue bonds issued by Poland’s Bank Pekao. The proceeds will support renewable energy, energy efficiency, and sustainable water and ocean-related projects. IFC’s participation not only brings significant capital but also lends credibility to Bank Pekao’s sustainable finance program, encouraging other investors to follow. The deal highlights the growing importance of “blue” finance, which targets ocean and freshwater protection, alongside traditional green bonds focused on climate and energy. For Poland, a country still heavily reliant on coal, this transaction represents a meaningful step toward diversifying its funding base for low-carbon and climate-resilient projects. IFC’s involvement is expected to catalyze further international investment, signaling confidence in Poland’s ability to develop a robust sustainable bond market with regional impact (source: solarquarter.com).
IDB to launch landmark $1bn ‘Amazonia Bond’ in 2026
The Inter-American Development Bank (IDB) has announced plans for a groundbreaking $1 billion “Amazonia Bond” program, with the first issuance expected in 2026. The bond proceeds will finance projects dedicated to protecting and restoring the Amazon rainforest, a critical ecosystem that serves as one of the world’s largest carbon sinks. The initiative reflects growing momentum to link debt capital markets directly to biodiversity conservation, going beyond traditional green bonds focused on energy or infrastructure. If successful, the Amazonia Bond could inspire similar instruments from other development banks and sovereign issuers, scaling up nature-positive finance globally. With COP30 taking place in Brazil, the program is expected to gain political and investor momentum, potentially becoming a flagship project for aligning finance with planetary health. The issuance could reshape how investors think about natural capital, positioning biodiversity conservation as a mainstream asset class in sustainable finance (source: iadb.org).
Sobha Realty raises $750m in debut green sukuk
Dubai-based luxury property developer Sobha Realty has raised $750 million in its inaugural green sukuk, one of the largest corporate Islamic sustainable finance deals to date. The issuance was oversubscribed, reflecting strong demand from global investors seeking exposure to Sharia-compliant green instruments. Proceeds will fund renewable energy use, energy-efficient real estate, and sustainable construction projects, supporting the UAE’s broader sustainability agenda ahead of its climate goals. The deal highlights how Islamic finance and green finance are converging, opening new channels for mobilizing capital in the Middle East and beyond. By issuing a green sukuk, Sobha Realty demonstrates that corporate players in traditionally carbon-intensive sectors such as real estate are also embracing sustainable finance innovation. The success of this issuance could encourage other regional firms to tap into green sukuk markets, expanding the diversity and depth of global sustainable bond markets (source: sobharealty.com).
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