News in the spotlight: Citi closes USD 72mn carbon removal-linked note
Citi has closed a USD 72mn, 3.5-year principal-protected Carbon Removal-Linked Note to finance Applied Carbon’s biochar project in Texas. Citi describes it as its first “outcome bond” tied to verified carbon removal.
Products and Services
HKEX introduces "Green Equity" designation for sustainable companies
Hong Kong Exchanges and Clearing (HKEX) has launched HKEX Green Equity, a voluntary designation for Hong Kong-listed companies with substantial green business activities. The programme is intended to make it easier for investors to identify companies with measurable exposure to the low-carbon economy. Eligible issuers will be assessed by independent Recognised Reviewers against the HKEX Green Equity Framework, which measures how far a company’s activities contribute to the green economy. Companies that pass receive the designation and may use its mark, subject to annual reassessment and continued compliance. Applications opened on 20 October 2026. HKEX says the framework aligns with internationally recognised approaches and supports use of the Hong Kong Taxonomy for Sustainable Finance. It also complements the exchange’s existing climate-disclosure requirements and Core Climate platform, which includes carbon credits and Green Electricity Certificates. The designation is primarily a market-identification tool rather than a financing mechanism: it does not itself raise capital or guarantee investment performance.
AIIB commits USD 100mn to TPG Climate Strategy
The Asian Infrastructure Investment Bank (AIIB) has committed USD 50mn to TPG Rise Climate’s Global South Initiative Fund, with a further USD 50mn available for co-investments. The move aims to increase private climate capital in AIIB member countries across Asia, the Middle East and Africa. The fund, developed with ALTÉRRA, runs alongside TPG Rise Climate II and targets climate investments in emerging and developing economies. Its sectors include energy transition, green mobility, sustainable fuels and materials, carbon solutions, and climate adaptation and resilience. AIIB’s commitment is intended to catalyse additional private investment rather than substitute for it. The bank says the structure should strengthen local climate-finance markets and support its target of directing 50% of annual financing to private-sector-oriented operations by 2030. The fund is classified as Article 9 under the EU Sustainable Finance Disclosure Regulation, meaning sustainable investment is an explicit objective. The announcement does not disclose the fund’s total target size, deployment schedule, expected returns, or specific investments.
Timber Carbon launched AI-powered infrastructure for carbon removals in the building sector
Zurich-based Timber Carbon has internationally launched an AI-powered platform that turns long-term carbon storage in timber and other bio-based building materials into certified, tradable carbon-removal credits. The company says it is the first infrastructure to connect building-sector carbon storage directly to carbon markets. After three years of development, the platform has been used across more than 90 buildings in German-speaking Europe, which Timber Carbon says collectively store over 72,000 tonnes of CO2. It also estimates that substituting timber for conventional materials avoided roughly 65,000 tonnes of emissions. The system automates the credit process: it collects construction-project data, calculates region-specific carbon storage, supports independent certification and registry, then handles credit issuance, sale and ongoing monitoring. Developers can retain credits for their own climate accounting (“insetting”) or sell them on the voluntary carbon market (“offsetting”), immediately or later. The platform also records building components in detail, which the company says can support later material reuse and urban mining.
Citi closes USD 72mn carbon removal-linked note
Citi has closed a USD 72mn, 3.5-year principal-protected Carbon Removal-Linked Note to finance Applied Carbon’s biochar project in Texas. Citi describes it as its first “outcome bond” tied to verified carbon removal. Instead of receiving conventional coupons, investors forgo interest payments, and an upfront amount funds Applied Carbon’s operations. Investors then receive payments linked to the issuance and delivery of carbon credits generated by the project. The structure links private-capital returns directly to verified removal outcomes and provides the developer with early funding. Applied Carbon uses mobile pyrolysis units to convert agricultural crop residue into biochar, processing and applying the material in the field. Biochar stores carbon in a stable form and can improve soil health. Microsoft has had an offtake agreement since 2022 for part of the project’s credits, giving the financing a long-term buyer for a portion of expected output. Nuveen participated in the note, citing the project’s relative valuation, impact reporting and credit offtake.
Regulations, Law and Frameworks
ISSB proposes global Nature-related Financial Disclosure Requirements
The International Sustainability Standards Board (ISSB) has published proposals for nature-related disclosures and opened a 120-day consultation, closing on 19 February 2027. The proposals aim to improve how companies report material nature-related risks and opportunities that could affect their financial prospects. The ISSB proposes a new Practice Statement rather than a mandatory standard. Companies applying IFRS S1 already must disclose material sustainability-related risks and opportunities, including nature-related ones; the new guidance would specify how to identify, assess and report them. A Practice Statement would not affect a company’s ability to state compliance with ISSB standards, reducing disruption during early implementation of IFRS S1 and IFRS S2. The proposals draw heavily on the Taskforce on Nature-related Financial Disclosures (TNFD) framework. They emphasise location-specific information and engagement with Indigenous Peoples, Local Communities and other affected stakeholders. The ISSB also seeks to connect nature-related information with climate disclosures and financial statements, rather than treating it as a separate reporting exercise.
NGFS shares practical guidance on managing nature-related financial risks
The Network for Greening the Financial System (NGFS) has published a compendium of implementation practices to help central banks and supervisors assess and manage nature-related financial risks. It draws on surveys of more than 30 initiatives across jurisdictions and six detailed case studies. The report finds that disruption of water-based ecosystem services is the most consistently identified source of nature-related financial risk. It also finds that risks are concentrated in agriculture, forestry, manufacturing and real estate, but can spread through supply chains and financial exposures to affect the wider economy and financial system. Central banks and supervisors are moving from conceptual analysis to practical tools for identifying, measuring and monitoring vulnerabilities linked to ecosystem degradation. The compendium is intended to support capacity building, exchange of methods and international cooperation among NGFS members. NGFS Chair Olaf Sleijpen said nature underpins economic prosperity and financial stability, and that the report shows members are turning understanding of nature-related risks into action.
ESG Data and Analytics
LRQA acquires supply chain monitoring platform Omega Compliance
LRQA has acquired Omega Compliance, a specialist in social compliance auditing, responsible sourcing and supply-chain integrity. The deal adds regional auditing capacity in China, South Asia, Southeast Asia and Turkey, where many major sourcing operations are concentrated. Omega’s client base is concentrated in retail and apparel. It holds APSCA membership and Sedex Affiliate Audit Company status, and is certified by U.S. Customs and Border Protection to conduct CTPAT validations. It also provides supply-chain security assessments through its SCAN programme. For LRQA, the acquisition strengthens its ability to offer auditing, traceability and supply-chain transparency services at a time when companies face tighter due-diligence and disclosure requirements. Omega’s local expertise will be combined with LRQA’s global footprint, EiQ supply-chain intelligence software, and advisory, cybersecurity and AI capabilities. Omega was previously part of the Connor Group, a global merchandise-sourcing organization founded in 1949. The parties did not disclose the transaction value, Omega’s revenue, employee count or expected integration timetable.