Two Weeks In: A Year That Will Demand Our Best Effort
14 Jan 2025
Photo by Mathieu Deslauriers on Unsplash
Just over two weeks into the new year and we have been confronted by news that the journey towards sustainability presents significant challenges. The year has begun with the stark reminder that global temperatures continue to rise, pushing us past the critical 1.5-degree Celsius mark above pre-industrial levels. Various regions are witnessing a rollback in sustainability policies, influenced by shifts in political leadership; and major investments firms, most notably, the world's biggest investment firm, BlackRock, have stepped back from the Climate Alliance and similar coalitions after pressure and accusations of breaching anti-trust rules, signaling a concerning trend. For reference, BlackRock today has $11.600 billion of assets under management. That is the size of India, Germany and Japan together in one year in Gross National Product. Their decisions certainly will be of significance.
Some of these articles;
We know all of this news can make the start of the year feel overwhelming; which is why we want to share three recent positives that remind us of all the opportunity that still lies ahead;
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1. Advancements in land restoration and carbon markets in Brazil and LATAM: With a pledge of $10 billion from the U.S., a new initiative aims to restore 5.5 million hectares of degraded land in Brazil. Additionally, the Brazil Restoration and Bioeconomy Finance Coalition reports carbon markets would contribute to 1.5 gigatonnes of emissions reduction and removals through 2050 with major corporations like Microsoft and Meta signing long-term contracts on nature-based carbon-removal credits.
With the recent ICAO’s approval of four additional carbon standards—Gold Standard, Verra, ACR, and GCC—the global eligibility potential for CORSIA first-phase credits has expanded by more than 24 million new credits. These new registries unlock the path for authorization of 743,761 credits from projects in Mexico, Colombia, Guatemala, and Peru. These join 7,144,362 fully authorized credits from Guyana—the only country in the region to have issued LoAs so far—bringing LATAM’s share to 12.18% of the global pool of potentially eligible CORSIA first-phase credits.
Additionally, last year, the COP16 biodiversity conference in Cali, Colombia launched the Pan-Amazon Network for Bioeconomy, bringing together diverse stakeholders, including Indigenous communities, local producers, impact investors, and financial institutions. The Inter-American Development Bank highlights the strategic position of the Amazon's nine countries and 50 million residents in contributing to the global bioeconomy market, which is currently valued at approximately $4 trillion and is expected to expand to $7.7 trillion by 2030.
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2. Innovation in Blue Carbon: The blue carbon market is projected to be worth $190 billion by 2030. In Canada, companies like Great Bear Carbon are now exploring a methodology for blue carbon credits using kelp and seaweed farming, which can store carbon on the seabed after they die and sink. Additionally, large-scale African coastal projects are increasingly recognized as valuable for biodiversity financing, when in the past many of these projects have faced challenges due to the many obstacles to quantify and price them. Improving blue carbon ecosystems can significantly improve the livelihoods and cultural practices of local and traditional communities, as done by initiatives like West Africa Blue.
Patagonia water repellent technology - Source
3. Bans on forever chemicals: Forever chemicals, or PFAS, are synthetic compounds used widely due to their resistance to heat, water, and oil, making them common in consumer goods, textiles, and manufacturing. However, they contaminate surface, ground-, and drinking water, as well as soil and are associated with several health risks, such as cancer and hormonal disruptions, which have prompted increasing global regulations. This year, countries like Denmark have implemented bans, with the EU proposing to restrict over 10,000 PFAS chemicals, affecting industries from fast fashion to manufacturing significantly. The proposal would restrict the use of PFAS in consumer products, including cosmetics, food packaging, and outdoor textiles, giving companies between 18 months and 12 years to find alternatives. The EU's broad proposal to restrict these chemicals has pushed sectors like textiles and consumer goods to explore new materials and processes that are less harmful to health and the environment. Examples, such as Patagonia, which has recently introduced a line of outdoor clothing that uses PFAS-free water repellent, lead the way for innovation in the sector.
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4. Expansion of Protected Areas in the US: Through initiatives like the America the Beautiful initiative, the Biden administration has aimed to conserve, restore, and protect at least 30 percent of U.S. lands and waters by 2030. Although there is still a lot of work to do, the U.S. has experienced one of the most rapid accelerations of conservation progress in U.S. history with the administration is closing on 2025 with more than 41 million acres of land and water conserved in three years, representing a historic acceleration of progress and record levels of investment to support private land conservation.
More recently, this January, 2025, President Biden banned new oil and gas leasing on 625 million acres of the Outer Continental Shelf. These withdrawals protect coastal communities, marine ecosystems, and local economies – including fishing, recreation, and tourism – from oil spills and other impacts of offshore drilling, since approximately forty percent of Americans live in coastal counties and rely on their subsistence.
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5. UAE announced plans to create a $6 billion new solar and battery energy facility that will deliver 1 gigawatt of uninterrupted clean power: Managed by the state-owned Masdar, the project aims to offer five gigawatts of solar power and 19 gigawatt-hours of storage, ensuring one gigawatt of consistent energy supply. Masdar's chief, Sultan al-Jaber, who also serves as the UAE's industry minister, noted that the $6 billion facility is expected to be operational by 2027. Nevertheless, it is important to note that despite the UAE's strides in solar energy, it predominantly uses natural gas for power generation.
We felt compelled to address recent developments early in the year, given the substantial challenges and opportunities that lie ahead. Businesses that offer value beyond mere economic benefit—to society and the planet—are generally stronger, attract more motivated personnel, and exhibit greater long-term stability. With a clear business perspective, sustainable solutions continue to promise a bright future. It is crucial that we maintain this focus and advocate for these initiatives and keep fighting for a net positive future, particularly in this pivotal year.
We invite you to follow up by reading our closing 2024 blog, "Looking Back at 2024 and Moving Forward: A Year-End Reflection," which offers insights on our progress over the last year and the paths ahead.
