Today’s ESG Updates
- Malaysia Bans U.S. Plastic Waste Imports: Growing resistance to plastic waste exports signals demand for stronger circular policies.
- Spain and the World Bank Launch Global Hub for Debt Swaps: With development aid shrinking, the initiative hopes to unlock investment in climate adaptation and education.
- JPMorgan Develops a New Service to Tokenize Carbon Credits: Pilot program aims to restore market transparency with digital carbon tracking.
- Zelestra Secures €770M to Expand Global Renewable Energy Projects: The loan will power projects across the U.S., Europe, India, and Latin America.
U.S. plastic exports face mounting barriers as Malaysia bans imports
Malaysia has officially banned imports of plastic waste from the U.S., citing environmental concerns and improper labeling of hazardous shipments. The decision, part of a growing global backlash against plastic waste exports, follows seizures of over 100 containers misclassified as raw materials. Malaysia joins Thailand and Indonesia in curbing imports, a blow to U.S. scrap brokers and the numerous companies that rely on offshore recycling. Experts say the global recycling system has yet to adapt fully since China’s 2018 ban. Malaysia’s recent decision spotlights the need for upstream plastic regulation and circular solutions, as the U.S. recycles less than 10% of its plastic waste.
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Further reading: The U.S. Sends Lots of Plastic Trash Overseas. Malaysia Just Said No Thanks.
Spain and World Bank launch global hub to boost debt swaps for sustainable development
Spain’s Ministry of Economy announced on Tuesday that in partnership with the World Bank, the country is launching a Global Hub for Debt Swaps for Development in Seville, aiming to help countries free up funds for climate, education, and public health projects. With official development aid declining and debt payments rising, nations are turning to innovative financial mechanisms, such as debt-for-nature or debt-for-health swaps. The hub will streamline these deals by offering technical assistance and replicable frameworks, supported by €3M from Spain and a new World Bank-managed trust fund. The hope is that this initiative will scale up development-focused swaps as traditional financing becomes more constrained.
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Further reading: Spain, World Bank launch debt-swap hub to free up development funds
JPMorgan is testing blockchain to boost trust in voluntary carbon markets
JPMorgan Chase is developing a trial to tokenize carbon credits using blockchain, in collaboration with S&P Global Commodity Insights, EcoRegistry, and the International Carbon Registry. The initiative aims to enhance transparency, traceability, and liquidity in the voluntary carbon market, which inefficiencies, fragmentation, and concerns about greenwashing have long plagued. Tokenized carbon credits, each representing one ton of avoided or removed CO2, would be digitally tracked from issuance to retirement. JPMorgan’s blockchain unit, Kinexys, believes tokenization could lay the groundwork for a global carbon credit system and revitalize trust in a market that has seen its ups and downs in recent years. However, technological fixes, such as tokenization, risk diverting attention from the deeper need to reduce emissions at the source rather than merely commodifying them.
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Further reading: JPMorgan’s Blockchain Unit Explores Tokenizing Carbon Credits
Zelestra expands sustainability loan to €770M, targeting 9 GW by 2026
Zelestra has secured a €235M increase to its sustainability-linked loan, bringing the total to €770M. Backed by 11 international banks, the facility has been extended to 2029 with improved terms, reflecting lender confidence in Zelestra’s renewable energy expansion strategy. The Spain-based company, owned by EQT, plans to accelerate solar, wind, and battery storage projects across six global markets: the U.S., Germany, Spain, Italy, Latin America, and India. With 5.4 GW currently contracted and a 29 GW pipeline underway, Zelestra aims to reach 9 GW by 2026 and 40 GW in development by the end of next year.
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Further reading: Spain’s Zelestra gains an extra $280 million in financing for renewable energy projects
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Marc Newberry
