How to Develop a National Green Taxonomy for Emerging Markets
The World Bank today published a guide outlining the processes that financial regulators can use to develop a green taxonomy. The publication Developing a National Green Taxonomy: A World Bank Guide will help regulators in emerging economies who seek to “green” their countries’ financial systems.
The lack of clarity about which activities and assets can be defined as green has long posed a barrier to scaling up green finance. A green taxonomy identifies the activities or investments that deliver on environmental objectives, helping drive capital more efficiently toward priority environmentally sustainable projects. The guide can help banks and other financial institutions originate and structure green banking products (e.g., loans, credits, and guarantees). It can also help investors identify opportunities that comply with sustainability criteria for impact investments.
“As a pioneering issuer of green bonds, the World Bank has played a key role in developing sustainable capital markets and facilitating innovative transactions,” said Anshula Kant, Managing Director and World Bank Group Chief Financial Officer. “We are delighted to share this guide that financial regulators could use to support their efforts to scale up green finance. We hope that the methodology and recommended approach will benefit emerging markets as they seek pathways to build a more environmentally sustainable future.”
Given the diverse needs and contexts of emerging economies, this guide avoids one-size-fits-all definitions and standards. Instead, it presents ways to develop a taxonomy based on the environmental objectives relevant to a country’s sustainable development priorities and agenda. A key recommendation is for regulators to provide a technically sound justification for the activities and investments considered green.
This Guide was prepared by the World Bank in response to a request by the Malaysian central bank, Bank Negara Malaysia, to develop a common language on environmental issues by the financial sector and to support decisions related to climate risk in fundraising, lending, and investment activities.
“Bank Negara Malaysia is glad to partner with the World Bank to facilitate global knowledge sharing on green and sustainable finance through the World Bank Group Inclusive Growth and Sustainable Finance Hub in Malaysia,” said Datuk Nor Shamsiah Mohd Yunus, Governor of Bank Negara Malaysia. “Central banks and supervisors have an important role to play in scaling up green finance. We hope this guide developed by World Bank experts will encourage central banks and supervisors to develop a taxonomy of activities that will help green the financial system.”
The recommended approach is based on the World Bank Group’s experience in supporting similar initiatives in several countries, including Colombia, Malaysia, Mongolia, and South Africa. To help countries understand and learn from the varied approaches already being taken, the guide also includes an overview of existing green taxonomies, including those developed by Bangladesh, China, Mongolia, the European Union, and the Climate Bonds Initiative.
Bloomberg: U.S. fights for influence in Africa
President Joe Biden’s administration is stepping up a campaign to build American influence in Africa, where the US has lost ground to its main rivals in what’s starting to look like a new Cold War, notes Bloomberg.
At a December summit with the continent’s leaders, Biden pledged a $55 billion support package for Africa.
The push to engage with the mineral-rich continent comes as Russia’s war in Ukraine – and the escalating standoff between the US and China – shake up global diplomacy. Both sides are seeking to win over non-aligned countries in places like Africa.
American officials have raised the Ukraine war with African leaders, and encouraged them to support Kyiv — though many African governments have opted to stay neutral, and some have longstanding ties with Russia that include arms purchases.
The US-China rivalry includes a race to secure minerals that are critical to green energy — Africa has some of the world’s biggest supplies — and a dispute over debt relief, as burdens for poor countries rise along with interest rates. Chinese lending to Africa helped countries develop and build infrastructure.
One example is the US focus on democracy promotion – it recently promised $165 million to support fair elections in Africa – combined with warnings about the destabilizing role of Russia’s Wagner Group, which is active in countries including Mali and the Central African Republic.
The US campaign is pushing up against deep-rooted ties. Countries like Egypt and Morocco have close trade relations with Russia. South Africa has permitted Russian and Chinese warships to carry out exercises in its waters.
Still, US officials have often shied away from publicly drawing direct contrasts with China.
That’s probably because African countries, like many other emerging nations in the Middle East, Asia or Latin America, aren’t receptive to a “with-us-or-against-us” approach. Having to pick sides could set back efforts to develop their economies, and they prefer to do business with both great-power camps.
We are witnessing the birth pangs of a new World Order
Unlike in the bipolar world during the Cold War, the behaviour of the majority is the most crucial factor that will determine the structure of the future international order, writes M.K. Bhadrakumar, Indian Ambassador and prominent international observer.
The latest happenings in international politics may seem esoteric, like the secret ceremonies of Knights Templar of the medieval order. But they are anything but abstruse. It has dawned on most rational minds that the conflict in Ukraine is not intrinsic but symptomatic of an epochal struggle consequential to the making of the World Order.
On March 20, British Defence Minister Annabel Goldie stated in the House of Lords that her government would provide Ukraine with shells containing depleted uranium. Indeed, there is a tragic precedent — NATO’s use of depleted uranium shells while carpet-bombing Serbia during Yugoslavia’s dismemberment. (Today, the highest incidence of cancer in entire Europe occurs in Serbia.)
Britain, chafing under its free fall as a world-class power, is overzealous about power projection, and, fortuitously, Washington also desperately requires a ‘game changer’ to stave off defeat in Ukraine. But madness has limits. If the Anglo-Saxon bravado translates into action, there is bound to be a fearsome Russian reaction.
Suffice to say, we are tiptoeing toward use of tactical nuclear weapons in modern warfare, with all its horrific implications for South Asia. India must voice concern over the Anglo-Saxon move.
Again, on March 14, the United States, the United Kingdom, and Australia (AUKUS) unveiled the details of their plan to create a new fleet of nuclear-powered submarines. AUKUS is undermining nuclear non-proliferation efforts. Alongside, AUKUS is also preparing for a military showdown with China.
Furthermore, Japan continues to ratchet up its hostile power projection vis-a-vis Russia and China, while simultaneously returning to the path of militarisation which it abandoned after World War II. Whether New Delhi voiced its concerns to the Australian and Japanese Prime Ministers visiting India recently we do not know.
There is another side to this, too. For, AUKUS is coercing the IAEA Secretariat into endorsement on the relevant safeguards issues. This is yet another instance of the Western powers systematically dismantling the United Nations system to serve their geopolitical interests.
Plainly put, the US is replacing the UN with NATO as a global security organisation, anticipating that its capacity to dominate the world body is fast diminishing. NATO’s arrival in Asia is already foretold.
Two other major developments last fortnight — the reinvigoration of the “no limits” strategic partnership between Russia and China, and the China-brokered Saudi Arabia-Iran normalisation pact — are of a different genre, but signify the shape of things to come in India’s external security environment.
One lifts the veil on the military-political confrontation between Russia and the West which is going to shape international politics in the 21st century, while the second development in India’s extended neighbourhood carries a sense of immediacy as the harbinger of international politics being shaped by the many states that do not seek to align themselves with the banners of the opposing sides. Here lies the germane seed of the new world order for countries such as India, stresses M.K. Bhadrakumar.
Shedding light on the Sun
As questions abound about the Earth’s closest star, scientists are seeking answers critical to forecasting solar flares that threaten satellites and other electronics.
By ANTHONY KING
For most of humankind’s history, it has been hard to explain the Sun as anything other than a powerful deity.
For instance, the ancient Greek god Helios – the personification of the Sun – raced his chariot across the sky to create night and day, whereas the ancient Egyptians worshipped their falcon-headed sun god, Ra, as creator of the universe.
Since then, science has revealed that, for example, the Sun on average turns on its axis once every 28 days. But at its equator, the hot plasma ball rotates once every 25 days, while it takes around 35 days at the poles, creating a swirling soup of piping hot plasma.
Nonetheless, the power of the Sun can still offer surprises, with blasts fierce enough to fry communication satellites or electronics on Earth. Scientists warn of more powerful solar flares as a peak of activity approaches in late 2024 and early 2025.
‘There is this turbulent motion inside our star, called convection, that is a bit like how water wrinkles just before it boils,’ said Professor Sacha Brun, director of research at CEA Paris-Saclay, part of the French Alternative Energies and Atomic Energy Commission.
An infamous magnetic storm that hit Earth in September 1859, known as the Carrington Event, triggered spectacular auroras far from polar regions and sizzled telegraph systems around the world.
There have been more since. In 1989, a geomagnetic storm caused a blackout in Quebec, Canada, according to Brun.
Greater knowledge about the Sun is needed to predict and understand such events.
That swirling ball of hydrogen and helium is also unimaginably hot – with core temperatures of 15 million °C. And it’s ginormous – more than 1 million Earths fit inside the Sun.
Its peaceful presence on a summer’s day belies the intense nuclear reactions at its core that generate vast amounts of energy. The Sun is a churning ball of plasma, with gases so hot that electrons are booted out of atoms, generating intense magnetic explosions from its surface that spew billions of tonnes of matter into space.
As it spins, the Sun’s mechanical energy turns into magnetic energy – a bit like the dynamo on a bicycle light, where pedal motion is converted into magnetic energy.
On the Sun, twisty ribbons of magnetism rise and break out as sunspots, dark patches at the surface where the magnetic field is 3 000 times more intense than in the surrounding areas.
Sunspots can trigger those solar flares that damage electrical equipment. But this activity isn’t constant.
‘The magnetism of the Sun is variable over an 11-year cycle,’ said Brun, an astrophysicist.
Over that cycle, coronal mass ejections rise in frequency, from one every three days to an average of three per day at its peak.
‘As we go further into the cycle, more outbursts will emerge from the Sun,’ Brun said. ‘People don’t realise that the Earth bathes in the turbulent magnetic atmosphere of our star.’
So there’s an obvious need to anticipate when such solar storms approach. For example, a solar flare in February 2022 knocked out 40 SpaceX commercial satellites by destroying their electronics.
Those energetic particles take just 15 minutes to reach Earth from the Sun. The threat posed by magnetic clouds usually takes a few days, offering more time to brace for any onslaught.
Brun co-leads an EU-funded project called WHOLE SUN to understand the interior and exterior layers of the only star in the Earth’s solar system.
Running for seven years through April 2026, the initiative focuses on the inner turbulence of the Sun and the complex physics that turns the inner turmoil into magnetism in the outer layers.
This requires the most powerful supercomputers in the world. Yet forecasting solar flares means that scientists gain greater understanding of the insides of the Sun.
A star is born
What about the distant past of the Sun? It has been around for 4.6 billion years – 100 million years before Earth. Where and how it was formed would seem to be an impenetrable mystery.
Not so, according to Dr Maria Lugaro at the Konkoly Observatory of the Hungarian Academy of Sciences.
Lugaro, an Italian astrophysicist, is researching this very question in the EU-funded RADIOSTAR project. It began in 2017 and runs through August this year.
‘We believe that the Sun wasn’t born alone, but was born in a star-forming region where there’s lots of stars,’ Lugaro said.
She is looking into this past by examining chemical fossils in meteorites today.
Radioactive atoms are unstable. They release energy and decay into so-called daughter atoms, over a certain length of time, which are measurable. The daughters are therefore chemical fossils, offering information about long-gone radioactive atoms.
Lugaro’s research suggests that the Sun originated in a stellar nursery that contained lots of siblings, including exploding stars – supernovas. But digging into the Sun’s history first requires finding meteorites, bits of rock formed before Earth.
These meteorites can contain traces of the radioactive atoms such as aluminium-26 and hafnium-182. It is known that these lived only a certain length of time. Together, traces of such atoms can be used as a radioactive clock to compute the age of the stars that made them, relative to the age of the Sun.
Some radioactive atoms are made in only certain types of stars. Their presence in meteorites helps to recreate a picture of the Sun’s birthplace, albeit one that’s up for debate.
It may be that the Sun was birthed amid dust and gas clouds in a tempestuous region alongside supergiant stars and exploding stars.
Within perhaps 20 million years, the different stars begin to make their own way out of the nursery. But things are far from being scientifically settled.
‘Every year there’s debate: is the Sun normal or is it a weird star?’ said Lugaro. ‘It’s quite fun.’
Research in this article was funded via the EU’s European Research Council (ERC). The article was originally published in Horizon, the EU Research and Innovation Magazine.
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