ESG highlights for financial advisers
- World Bank drops climate finance target – The World Bank has dropped its target to direct 45% of financing toward climate-related projects after pressure from the US administration. Instead, it’s been instructed to focus more broadly on economic development and poverty reduction.
- Heatwave fuels demand for cooling technology – Europe’s record-breaking heatwave has sent demand for portable air conditioners soaring, giving Chinese appliance manufacturers a welcome sales boost. Extreme weather is creating new investment themes. As temperatures rise, demand for cooling technologies and climate adaptation solutions is expected to grow.
- Record-breaking green bond backs Germany’s energy transition – Electricity transmission operator TenneT Germany has raised €3.5 billion through the largest green corporate bond issued under new EU standards. The funds will help expand the electricity grid and connect more renewable energy to the network.
- Tencent increases its carbon removal efforts – Chinese tech giant Tencent has made its first ever carbon-removal credit purchase outside China, agreeing to buy 300,000 credits over the next 10 years from an Indonesian agroforestry project. The move supports its goal to achieve carbon neutrality across its operations and supply chain by 2030.
China's coal challenge
Source: Bloomberg; Energy Institute, July 2026
Why this matters
China uses more coal than the rest of the world combined. Despite leading the world in renewable energy deployment, coal continues to play a central role in powering its economy.
Beijing sees coal as a bridge fuel, helping maintain energy security while renewable capacity continues to expand. At the same time, many regional economies remain heavily reliant on coal-related jobs and revenues, making a rapid phase-out politically and economically challenging.
China's investment in wind and solar has been remarkable, but reaching its target of net zero emissions by 2060 will almost certainly require coal use to decline much more quickly over the coming decades.
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