Europe faces a significant financial hit due to extreme weather, with annual losses soaring to €44.5 billion from 2020 to 2023. This is more than double the damages from the previous decade, as reported by the European Environment Agency (EEA). The rise in natural disasters is linked to climate change and has raised concerns about the stability of businesses across the eurozone. Over 75% of companies depend on natural ecosystems, meaning more frequent disasters could lead to devastating economic impacts. A notable 15% of industrial assets are located on floodplains, putting them at risk. As the EU debates a 90% emissions reduction by 2040, the lack of effective natural carbon sinks could hinder progress.
For further details on this alarming trend, you can read more in the FT article.
In Southeast Asia, Malaysia is aiming for a greener future in its steel industry by 2050. The new roadmap includes tougher licensing, a carbon pricing framework, and better financing to transition to lower-emission production. Currently, the country faces an oversupply of steel, which threatens competitiveness. Trade Minister Tengku Zafrul Aziz called for ASEAN countries to collaborate on a unified database to manage capacity and promote sustainable practices. This roadmap aligns Malaysia with global climate goals while helping stabilize the regional market.
For more on Malaysia’s green steel initiatives, check out the Reuters article.
On a different note, the Trump administration is pushing for a revival of coal production in the U.S. This initiative is seen as a move away from global efforts to reduce carbon emissions. Officials are offering regulatory rollbacks and federal support to revitalize the industry. While the administration argues this will secure energy jobs, critics worry it will entrench high emissions and increase climate risks. This approach puts the U.S. at odds with the global trend towards renewable energy, raising concerns for investors focused on sustainability.
Learn more about this development in the Reuters article.
Mercedes-Benz is making strides in sustainability by using low-carbon aluminium in its new electric vehicles (EVs). This material, produced by Norsk Hydro, significantly reduces CO2 emissions during production. The aluminium, formulated with renewable energy and 25% recycled content, emits only 3 kg of CO2 per kilogram, compared to the global average of 16.7 kg. Despite the higher costs, Mercedes maintains that sustainability and luxury are intertwined, and increasing demand is helping them adapt. This partnership efficiently cuts emissions in production by 40% compared to previous models, showcasing the potential for automakers to work with suppliers in the decarbonization journey.
Find out more about this development in the Reuters article.
These stories highlight the ongoing efforts and challenges within industries as they grapple with climate change. By adapting and innovating, companies not only aim for compliance with new standards but also seek to align with the evolving expectations of consumers and investors in an increasingly aware market.
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Climate Change,Coal,electric vehicles,EVs,Extreme Weather,steel
