Sustainability Review: April 2025
- Admin
- May 4
- 3 min read
View the complete April 2025 Newsletter
India is implementing a green steel policy to decarbonize its steel industry, aiming for net-zero emissions by 2070. The government plans to offer incentives to steel mills producing low-carbon steel, defined as emitting less than 2.2 metric tons of CO₂ per ton of finished steel. The proposed policy includes support for renewable energy use in steel production, research and development, and increased raw material efficiency. Additionally, banks may be encouraged to offer lower interest rates on renewable energy loans. The incentives are expected to remain in place until 2030. The government is also considering requiring a certain percentage of green steel in publicly funded infrastructure projects. (Reuters)
India's Securities and Exchange Board (SEBI) introduced new guidelines on April 29, 2025, governing the withdrawal of Environmental, Social, and Governance (ESG) ratings. Under these norms, ESG Rating Providers (ERPs) can retract ratings if a company lacks a Business Responsibility and Sustainability Report (BRSR) or if there is no demand for the rating. Additionally, ratings can be withdrawn after three years or 50% of the security's tenure, whichever is longer. SEBI's move aims to enhance the credibility of ESG assessments amid concerns over India's low ESG scores, particularly in environmental and social factors.(Reuters)
Telangana's Clean & Green Energy Policy 2025 aims to enhance the state's renewable energy capacity to 20,000 MW by 2030 and 40,000 MW by 2035. The policy focuses on solar, wind, green hydrogen, floating solar, and waste-to-energy projects. To support this, the government plans to establish a 250 MW/500 MWh Battery Energy Storage System in Shankarpally and collaborate with Singareni Collieries Company Limited and Telangana Renewable Energy Development Corporation on geothermal energy initiatives. The policy also includes financial incentives such as ₹3,000 crore allocated for green energy initiatives in the 2025-26 budget and provisions for subsidies and streamlined approvals to attract investments and foster sector growth. (Times of India)
Key Updates: Global
In April 2025, two pivotal initiatives—Carbon Data Open Protocol (CDOP) and Science Based Targets initiative (SBTi) Version 2.0—are redefining global voluntary carbon markets.
CDOP, launched by a coalition including Sylvera and S&P Global, aims to standardize and harmonize carbon market data, promoting transparency and alignment with Article 6 of the Paris Agreement.
Simultaneously, SBTi's updated Net-Zero Standard introduces stricter requirements for emissions reduction and carbon credit usage, mandating separate targets for Scope 1 and 2 emissions and detailed tracking. These initiatives signal a convergence of voluntary and regulatory approaches, increasing the legal, operational, and reputational stakes for corporations. (Reuters)
In Q1 2025, ESG investment funds saw record net outflows of $8.6 billion, reflecting growing global skepticism toward sustainable investing. While the backlash began in the U.S., it has spread to Europe and Asia, driven by criticism that ESG strategies often prioritize political ideology over financial performance. The exclusion of defense stocks has drawn scrutiny amid heightened geopolitical tensions. In response to stricter EU anti-greenwashing rules, over 300 funds altered their names, and a record number of ESG funds were liquidated or merged, signaling shifting investor sentiment and regulatory pressure.(Financial Times)
Subscribe to our newsletter to receive monthly updates on the sustainability industry.
Comments