Sustainability Snippets July 2025

  • Global Banks Retreat from Climate Progress in 2024

  • Sustainable aviation fuel production accelerates globally

  • Nuclear energy gets renewed World Bank Support

  • UK pledges £30bn a year to renewables at London Climate Week 2025

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Article Type
Sustainability Soapbox
Topic
Responsible Investing
Published
July 04, 2025
Read time
5 mins
Author
Aegon AM Responsible Investment Specialists
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Global Banks Retreat from Climate Progress in 2024

 

The new Banking on Climate Chaos  report is out – and it doesn’t make for cheerful reading. After two years of decline, Fossil fuel financing by the world’s biggest banks has risen again in 2024, reaching $869 billion. That’s just shy of the 2021 peak of $922 billion. 

 

This isn’t an isolated uptick. Two-thirds of the 65 banks covered increased their fossil fuel financing last year, including 16 of the 23 European banks featured in the report. 

 

Of course, headline numbers don’t tell the whole story – many of these banks are also backing transition efforts. But it’s a worrying shift in trend, especially against the backdrop of mounting political headwinds and the sobering reality that the world is on track to exhaust the remaining global carbon budget within the next three years. 

 

SAF: Time for Takeoff? 

 

The International Air Transport Association (IATA) projects that global production of Sustainable Aviation Fuel (SAF) will double in 2025, reaching 2 million tonnes. That’s a big jump – but still only 0.7% of global jet fuel demand. 

 

To stay on course for net-zero by 2050, the aviation sector needs SAF to deliver 65% of its emissions reductions. That means continued policy support such as tax incentives, blending mandates, and a ramp-up in corporate offtake agreements to give producers the confidence to invest. 

 

We’re starting to see momentum. Companies like Honeywell, Johnson Matthey, GIDARA, and Samsung Engineering have teamed up to accelerate SAF production. But scaling up won’t be easy. It means tackling challenges across the value chain, from securing sustainable feedstock like waste oils and green hydrogen, to innovation in synthetic and biofuel technologies. 

 

Still, the opportunity is huge. With the right policy signals and capital flows, SAF could become one of the defining growth stories of the next decade. 

 

World Bank Ends Nuclear Energy Financing Ban 

 

For the first time since 1959, the World Bank has lifted its ban on financing nuclear energy projects. It’s a major policy shift, aimed at accelerating the deployment of low-emissions technologies in developing countries amid surging electricity demand and intensifying climate goals. 

 

The original ban was shaped by concerns over nuclear proliferation and strong opposition from key member states – particularly Germany. But with Germany’s new government reversing its anti-nuclear stance and growing international support, including from the United States, the World Bank has changed course. 

 

It will now work with the International Atomic Energy Agency (IAEA) to implement its new nuclear financing strategy: 

 

  • Extending the life of existing reactors 
  • Upgrading nuclear facilities to meet modern safety and efficiency standards 
  • Accelerating the development of Small Modular Reactors (SMRs), 
  • Modernising electricity grids to accommodate increased and diversified energy loads. 

 

Electricity demand in developing countries is projected to more than double by 2035. Meeting that demand will require annual investment in power generation, grids, and storage to rise from $280 billion to $630 billion. Nuclear energy, with its low emissions and high reliability, is now seen as a critical component of this transition. 

 

This policy shift also aligns with the COP28 pledge by over 30 countries to triple global nuclear capacity by 2050. It could prompt other development banks, like the Asian Development Bank, to revisit their own nuclear financing policies. 

 

London Climate Action Week 2025: A Call for Alignment and Ambition 

 

London Climate Action Week wrapped up at the end of June – just as England recorded its hottest June on record, and the UK’s second warmest overall. Now in its seventh year, the climate event is the largest of its kind in Europe and continues to grow, showing there’s still strong appetite for climate action. 

 

This year’s focus was on climate finance, policy, and adaptation. A central theme emerged: the urgent need to better align policy frameworks, market signals, and investment strategies to meet climate goals. 

 

One of the standout moments came from Energy Secretary Ed Miliband, whose keynote speech set a bold tone. He laid out his ambition to make Britain a clean energy superpower and a global leader in climate finance. He announced a new green industrial strategy, committing over £30 billion a year to renewables through 2035, alongside proposed regulations on transition plan disclosures and broader sustainability reporting. 

 

It was a strong signal of intent – and a timely reminder that the UK and Europe still have a leadership role to play on the global climate stage. 

 

Disclosures

Author

Aegon AM Responsible Investment Specialists
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