ANZ Sustainable Finance Insights, Q1 2025

Sustainable finance market update  |  Notable transactions and sustainable finance updates  |  Key global updates for sustainable finance  |  Australia  |  New Zealand  |  Asia  |  Europe  |  North Amercia  |  ANZ news and updates

All market data is sourced from BloombergNEF as of 31 March 2025 and includes original and tapped issuance, unless otherwise noted.

Graph 1 and 2: Sustainable debt issuance holding up well given the headwinds

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Source: BloombergNEF, for the period ended 31 March 2025 (sourced on 8 April 2025)

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Source: BloombergNEF, for the period ended 31 March 2025 (sourced on 8 April 2025)

Sustainable finance market update

Notable transactions and sustainable finance updates

ANZ supported transactions

• QIC Real Estate won SLL of the year in Financial Institution category in Environmental Finance’s Sustainable Debt Awards 2025. In December 2024, QIC Real Estate converted A$3.75 billion of bank loans into SLLs for its two largest real estate funds, the QIC Property Fund and the QIC Town Centre Fund. The KPIs seek to address the Funds’ carbon emissions (across scopes 1, 2 and 3), and is one of the first to utilise the Green Building Council of Australia’s new Green Star Performance Tool v2 (released in July 2024). ANZ acted as Joint Sustainability Coordinator.
  
  
• Tata Communications US$250 million SLL won Best Sustainability-Linked Loan – Telecom (India) at The Asset Triple A Sustainable Finance Awards 2025. This was Tata Communications’ inaugural SLL under the company’s first SLL framework which was structured to be in line with the company’s SBTi-validated Scope 1-3 emissions reduction targets. The framework is believed to be a first of its kind in the sector in India. ANZ acted as Lead Sustainability Coordinator for this transaction.
  
  
• The Singapore Housing & Development Board (HDB) issued an SGD950 million, 5-year Green Bond in January 2025. The net proceeds will be used to finance or refinance Eligible Green Projects under the Green Buildings category of HDB’s Green Finance Framework. This was HDB’s ninth green bond issue since it published its Green Finance Framework in 2022, and ANZ’s fourth participation. ANZ acted as Joint Lead Manager and Bookrunner.
  
  
• Brambles Limited issued a €500 million Green Bond under its European Medium-Term Note Programme in March 2025. Proceeds from the transaction will be used to finance and/or refinance Eligible Green Projects as outlined in the Brambles Green Finance Framework. ANZ acted as Joint Lead Manager.
  
  
• ETSA Utilities Finance Pty Ltd, for SA Power Networks , printed A$285 million 3-year and A$250 million 10-year of senior-unsecured Green Bonds in March 2025. SA Power Networks will utilise proceeds from the Green Bonds to finance or refinance new or existing distribution assets that support South Australia’s transition to a distributed and decarbonised energy system. ANZ acted as Joint Lead Manager and Sole Green Bond Coordinator.
  
  
• NBN Co issued a A$750 million 10-year Green Bond as part of its A$10 billion AMTN Programme in March 2025. NBN Co is Australia’s broadband network company, serving daily about 20 million people by carrying about 83% of the nation’s data, and bond proceeds will be allocated to eligible energy efficiency projects in line with the company’s June 2024 Sustainability Bond Framework. ANZ acted as Joint Lead Manager.
  
  
• Mercury NZ Limited successfully issued a 6-year A$400 million senior green bond in March 2025. This bond issuance will support further investment in renewable electricity energy generation assets and activities and Mercury’s long-term strategy and objectives, as documented in its Green Financing Framework published in 2020. ANZ acted as Joint Lead Manager.
  
  
• Australia and New Zealand Banking Group Limited (ANZ) returned to the euro bond market with a senior and tier-two SDG bond on January 22, 2025.The transaction comprised €1.25 billion senior-unsecured tranche, and €1 billion tier-two SDG bond tranche under the recently updated SDG Bond Framework, marking ANZ's first issuance of an SDG bond in two years. ANZ estimates it achieved a greenium of approximately 3-5 basis points. ANZ acted as Joint Lead Manager.
  
  
• The World Bank (International Bank for Reconstruction and Development) kicked off its 2025 funding program in the Australian dollar market with a A$1.75 billion 5-year Sustainable Development bond on January 3, 2025, followed by a A$600 million fixed rate Sustainable Development bond on January 24, 2025. ANZ acted as Joint Lead Manager for both transactions.
  
  
• The Export-Import Bank of Korea (KEXIM) issued a US$850 million Sustainability Bond in January 2025. Proceeds will be used to finance or refinance projects or assets aligned with KEXIM’s most recent Sustainable Finance Framework (2023). ANZ acted as Joint Lead Manager and Bookrunner.
  
  
• The Industrial Bank of Korea issued a A$700 million 5-year Social bond in February 2025, equally split across fixed and floating rate note tranches. This transaction aims to support social projects as detailed in the bank’s 2023 Sustainability Finance Framework, enhancing the bank's commitment to sustainable finance and contributing to social development initiatives. ANZ acted as Joint Lead Manager.
  
  
• BoCom Leasing Management Hong Kong Co Ltd (BLMHK) issued US$1 billion 3 year and 5-year senior unsecured green floating-rate notes in March 2025. Proceeds are to finance and/or refinance Eligible Green Projects defined under the Clean Transportation and Renewable Energy categories of BLMHK’s Sustainable Finance Framework published in June 2024. ANZ acted as Joint Lead Manager.

Global transactions

• Slovenia published its inaugural Sustainability-Linked Bond (SLB) Framework in February 2025, making it the first European country to formally propose such a performance-based instrument. S&P Global provided a second-party opinion. The SLB aims to support the country’s focus on reducing its total Greenhouse Gas (GHG) emissions, with targets by 2030 and by 2033, on increasing the share of renewable energy consumed (by 2030) and on capping the final energy consumed (to improve energy efficiency). The SLB Framework specifies the proposed targets and include stretched targets for each of the three indicators. The sovereign plans to issue its first SLB in June 2025.
  
  
• Paris region’s Île-de-France Mobilité became the world’s first public sector issuer of a European Green Bond with its €$1 billion green bond, in late January 2025. The proceeds are to be used to make significant investments to modernise the network, renew the electric rolling stock (trains, metros, tram-trains, trams), deploy low-emission buses and electric bicycles, while also developing the necessary supporting infrastructure in order to achieve the regional mobility plan to reduce greenhouse gas emissions from transport in the region by 25 to 30% by 2030, compared to 2019 levels.
  
  
• Italy’s A2A Life Company issued its inaugural European Green Bond of €500 million with a 10 year tenor also in late January 2025. The net proceeds will be used for selected projects that will be 100% aligned with the European Taxonomy, playing a pivotal role in implementing the company’s strategic plan for energy transition and circular economy which are at the heart of its activities. These projects include the development of electricity networks and renewable energy, energy efficiency and waste collection.

Key global updates for sustainable finance

• Updated sustainable finance loan principles - The loan sustainable finance principles and related guidance documents were updated by the global loan market associations (LSTA, LMA, and APLMA) in late March 2025. The revised versions of the Green Loan Principles, Social Loan Principles, and Sustainability-Linked Loan Principles aim to reflect the latest market consensus and best practices. Key changes include enhanced alignment with the bond market (ICMA)'s principles, the removal of the 2023 "grandfathering" language, and clarification of terms, including that the purpose of the SLL instrument is to support transition to more sustainable business practice, not just climate transition.
  
  
• LMA insights on managing greenwashing risks - The LMA’s latest sustainable finance insights report focusing on greenwashing impacts for the loan market highlights the risks of misleading environmental claims, such as reputational damage and regulatory penalties. It provides the outcomes of market participants’ views gathered during roundtables, as well as recent updates to UK and EU rules and initiatives. The report documents recommendations to mitigate greenwashing risk, including clear communication and third-party verification. Looking ahead, the LMA anticipates increased regulatory scrutiny and a greater focus on ESG criteria in lending decisions.
  
  
• CBI’s latest sector criteria - The Climate Bonds Initiative (CBI) published the Alternative Proteins Eligibility Criteria in April 2025. Alternative proteins can support a dietary shift to animal agriculture and production of animal feed, which are estimated to generate 12-20% of all Greenhouse Gas (GHG) emissions worldwide, to use 41% of total agricultural water and to use three-quarters of total global farmland, hence this new CBI sector criteria. The CBI also published an Agrifood Transition Framework in April 2025, to provide criteria for certifying agricultural production, focusing on reducing emissions, enhancing biodiversity, and improving water use and social impacts.
  
  
• SBTi’s continuous development - The Science-Based Targets initiative (SBTi) counted a cumulative total of nearly 7,500 companies with verified targets in early April 2025. The SBTi Target Dashboard underwent significant updates a month earlier to improve the clarity and usability of the data, making it easier for businesses, and financial markets to monitor corporate climate action and accountability. SBTi also launched its draft Corporate Net-Zero Standard V2 for consultation (18 March – 1 June 2025) proposing to split out scope 1 and scope 2 emissions, new options for tackling scope 3 emissions reductions (e.g. through green procurement and revenue generation), options for addressing unabated and residual emissions, ways of communicating progress and simplified requirements for developing markets and small and medium-sized companies. Of note also for this quarter, SBTi published a helpful document titled ‘SBTi FLAG Guidance in Brief’ to support setting Forest, Land and Agriculture (FLAG) climate targets.
  
  
• TNFD’s continuous development - The Taskforce on Nature-Related Financial Disclosures (TNFD) launched a new capacity-building platform to scale market confidence and capabilities on nature-related issues via their Knowledge Hub. This follows the January 2025 issuance of a second tranche of sector guidance to support the assessment, management and disclosure of nature-related issues by companies globally in apparel, textile & footwear, beverages, construction materials and engineering, construction & real estate. The TNFD also announced a global adoption campaign ahead of the UN Climate Change Conference (COP30) in Belém, Brazil, in November 2025. With already over 530 adopters and 1,700 forum members, this campaign aims to support further the Global Biodiversity Framework's goals.
  
  
• SBTN’s latest targets - The Science-Based Targets Network (SBTN) launched the first-ever ocean science-based targets with an initial focus on the seafood sector , to complete its initial suite of science-based targets for nature across freshwater, land and ocean. Developed with the support of WWF and Conservation International, the ocean methods define three types of science-based targets for seafood companies: avoid and reduce overexploitation (overfishing), protect structural habitats (habitat destruction), and reduce risks to Endangered, Threatened and Protected (ETP) marine wildlife populations (marine biodiversity loss).
  
  
• IMO and shipping emissions - Countries have reached a global agreement to reduce shipping emissions after nearly a decade of negotiations. The United Nations International Maritime Organisation (IMO) approved the IMO Net-zero Framework in April 2025, seen as the first in the world to combine mandatory emissions limits and a global pricing mechanism for emissions across an entire industry sector. The measures are due to be formally adopted in October 2025 before entry into force in 2027: they will be mandatory for large ocean-going ships over 5,000 gross tonnage (estimated to emit 85% of the total CO2 emissions of the sector). An IMO Net-Zero Fund will be established to disburse associated revenues to reward low-emission ships, support research, just transition initiatives in developing countries and negative impacts on vulnerable States. 

Selected global reads for sustainable finance

• “Too hot to think straight, too cold to panic”: the Boston Consulting Group and the University of Cambridge published a report on Landing the Economic Case for Climate Action with Decision Makers. Current policies could lead to a 3℃ rise by 2100 which would reduce the cumulative economic output by 15%-34% compared to a 2℃ rise. This is the equivalent of reducing annual GDP growth by 0.56%. The net cost of climate inaction is estimated at 11% to 27% of cumulative economic output. Barriers to economically rational climate action can be broken down in five baskets: the economic case is not widely or deeply understood by leaders; many costs come before 2050 while the bulk of benefits after 2050; costs and benefits are unevenly distributed among countries; the transition threatens to create winners and losers within economies; the full economic damages are not understood by economists with enough detail.
  
  
• The UNEP Finance Initiative (UNEPFI) summarised the latest Trends and Innovations in Nature Finance: What to Look Out for in 2025 in a recent article. UNEPFI monitors private finance for nature amounts in its annual State of Finance for Nature reports and recorded that these surged to US$102 billion in 2024 (US$9.4 billion in 2020). The insurance sector is increasingly recognised for the role it can play in supporting nature-positive transitions (UNEPFI published a related guidance in December 2024), while insured losses from natural disasters continue to mount (US$140 billion in 2024). The UNEPFI article highlights that innovative financing structures such as parametric insurance products for regenerative agriculture and wildlife insurance can promote better forestry practices, while indigenous leadership can advance equitable and impactful nature finance. It also recognises that advances in technology and AI, such as remote sensing and machine learning, are enhancing data collection and risk assessment.
  
  
• Boston Consulting Group assessed "What is Water Really Worth?" in a report published in February 2025. Global demand for water is expected to continue to rise at approximately 1% annually through 2050, however water is often undervalued, leading to inefficient allocation and underinvestment, and stemming from outdated pricing models, subsidies, and political resistance to raising costs: for instance Italy recovers approximately 44% of the cost of supplying water while the World Wildlife Fund estimates the direct and indirect value of water globally at US$58 trillion. Estimates suggest that investing US$1 trillion in water infrastructure between 2020 and 2030 could unlock US$7 trillion in total net benefits, while failing to do so could result in societal costs of US$2 to 7 trillion: the BCG report further highlights the Water Value Framework, developed to inform decision-making through capturing the full economic, social, and environmental benefits of water (i.e. its indirect costs and externalities).
  
  
• An international panel of conservation scientists and artificial intelligence (AI) experts identified 21 key ideas that could support biological conservation with AI. These ideas, selected from a long list of 104, include novel interpretation of image and audio data, digital twins for ecosystems, improving species distribution models and AI-powered conservation advisors. The related article, published in February 2025, also considers potential negative impacts of AI adoption such as AI colonialism and loss of essential conservation skills.
  
  
• The 2024 MSCI report on Women on Boards and Beyond highlights the progress and trends in gender diversity within corporate boards globally. In 2024, women held 27.3% of board seats at publicly listed large- and mid-cap companies, marking a 1.5% increase from the previous year, while 46.2% of companies had at least 30% female directors. Despite these gains, female representation in key leadership roles such as board chair, CEO, and CFO remains limited. The report emphasises the correlation between higher female board representation and improved company performance, while also addressing the slow progress in racial and ethnic diversity on boards.
  
  
• PWC’s second annual State of Decarbonisation Report published in March 2025, based on more than 4,000 companies submitting to the CDP surveys, found that 37% of companies increased their ambitions in 2024 against 16% lowering them, with more small companies engaged, showing a focus on scope 3 emissions. Accenture’s fourth annual Destination Net Zero report published November 2024, using a different lens, found that 16% of the world’s largest companies (c.2,000) were on track to reach net zero emissions in their operations by 2050, about 37% (same as in 2023) had net zero targets, while 45% were continuing to increase operational (scope 1 and 2) emissions.

Australia

• The Australian Sustainable Finance Institute (ASFI) published the Australian Sustainable Finance Action Plan 2025-27 in March 2025, outlining its proposed strategies to integrate sustainability into financial systems. The 26 key actions include developing green financial products, enhancing risk management practices, and fostering collaboration among stakeholders to drive systemic change towards a more sustainable economy and align financial flows with environmental and social goals, promoting transparency, and encouraging investments in sustainable projects.The mandatory climate-related financial disclosures (AASB S2) came into effect on 1 January 2025 marking the beginning of a phased implementation for other businesses by 2027/28. The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 requires large entities (>A$500 million in consolidated revenue, >A$1 billion in consolidated gross assets, and > 500 full-time equivalent employees) to disclose climate-related risks and emissions across their entire value chain, helping investors make informed decisions and supporting Australia's transition to a low-carbon economy.
  
  
• The Investor Group on Climate Change (IGCC) published its annual IGCC State of Net Zero Investment 2025 in April 2025. The report is based on data from 65 of the largest superannuation funds, retail funds and fund managers active in Australia (managing c.A$4.2 trillion in total). Six climate practice indicators are assessed: five continued to increase while the number of investors with a climate action plan reduced. The main barriers to investing in climate solutions remained, and increased, across lack of opportunities with appropriate risk return, policy or regulatory uncertainty and lack of government incentives.
  
  
• The New Vehicle Efficiency Standard (NVES) came into effect on 1 January 2025 with compliance enforceable from 1 July 2025. The NVES aims to increased adoption of electrified vehicles and reduce climate pollution from new cars by more than 50% by 2030. Car manufacturers are required to sell more fuel-efficient models to offset less efficient ones, with credits and penalties based on their performance.
  
  
• The Australian Prudential Regulation Authority (APRA) is proposing eight measures to enhance governance standards for banks, insurers, and superannuation trustees (discussion paper released in March 2025). The proposed measures aim to address directors’ skills, board performance assessments and conflict of interest management. APRA seeks to update its prudential standards (CPS 510, SPS 510, CPS 520, SPS 520, and SPS 521) to reflect contemporary governance practices and ensure entities are led by high-calibre, high-integrity teams.
  
  
• Australia published its first National Ecosystem Accounts in February 2025 providing a comprehensive assessment of the country's ecosystems. These accounts quantify the economic, social, and environmental benefits of ecosystems, including carbon storage, water supply and coastal protection, and were prepared by the Department of Climate Change, Energy, the Environment and Water, with the Australian Bureau of Statistics and CSIRO. It highlights the mixed health estimates of Australia's environment: while some ecosystems, like mangroves, show signs of good health, others, such as perennial rivers and threatened species, continue to decline.

New Zealand

• The External Reporting Board (XRB) continues to publish supporting guidance to the mandatory Aotearoa New Zealand Climate Standards: (a) the Greenhouse Gas (GHG) Assurance Reports Explainer helps readers identify what information has been assured, at which level, with what type of conclusions and with which narrative: mandated Climate Reporting Entities (CREs) must have their Scope 1 and 2 GHG emissions disclosures assured from accounting periods ending after 27 October 2024, and after 31 December 2025 for Scope 3 GHG emissions (b) XRB has plans to consult further, during the year, on differential climate-related reporting; (c) XRB has completed its suites of transition planning guidances for directors, executives and staff. Finally, XRB published in December 2024 He Tauira, a voluntary non-financial reporting framework designed to help a reporting entity share the stories of the value it creates in a meaningful way for its hunga whaipānga (stakeholders); the tikanga within He Tauira assist in managing the reporting output.
  
  
• The New Zealand government presented via the ANZ-sponsored KangaNews Debt Capital Markets Forum in March 2025 its new measures to support Community Housing Providers (CHPs). CHPs currently account for 16% of social homes. These initiatives include providing up to NZ$150 million to the Community Housing Funding Agency through Crown Lending Facilities, which will then offer lower-cost finance to CHPs. Additionally, the government is exploring a Loan Guarantee Scheme where it would take some of the loan's default risk, to encourage banks to offer better interest rates to CHPs. These steps aim to create a level playing field between the private (CHPs) and the public (Kāinga Ora) providers of social housing in the country, to ensure affordable and accessible housing for those in need.
  
  
• Fonterra, Aotearoa New Zealand’s largest dairy co-operative, introduced new funding incentives for farmers to reduce on-farm emissions. Under its updated Co-Operative Difference framework, eligible farms can get access to on-farm solutions (tools and services) and farms that have the lowest footprints will receive customer-funding additional incentive payment of NZ$0.1-0.25 per kgMS (thanks to the partnerships with Mars and Nestlé).
  
  
• One of the first examples of local climate adaptation plan was published in March 2025 through the South Dunedin Future program, a collaboration between the Dunedin City Council and Otago Regional Council. It is divided into a first report documenting a comprehensive risk assessment of flood-related hazards in South Dunedin, and a second report identifying and visualising seven potential adaptation futures: these futures range from maintaining the status quo to significant infrastructure investments and relocating residents from high-risk areas, aiming to enhance the area's safety and resilience. Both reports will be put for consultation and endorsement in the next few months.
  
  
• The New Zealand Government is considering the establishment of Special Economic Zones (SEZs) to enhance certain strategic areas of the country. The proposed SEZs would offer business-friendly regulations, infrastructure, investment support, and customs and trade facilitation. One example of this could be Marsden Point near Whangārei, where Channel Infrastructure NZ, formerly Refining NZ, is already working to turn the site into a potential energy precinct (concept report released in October 2024).

Asia

• Japan’s Ministry of the Environment updated its Green Bond and Green Loan guidelines in February 2025, to align its Green List with international standards and national strategies. This revision seeks to broaden the scope of green financing by including more issuers and sectors.
  
  
• Japan’s Sustainability Standards Board (SSBJ) introduced sustainability, include climate, disclosure standards in March 2025. The standards build on the Financial Services Agency’s 2023 mandate for annual sustainability disclosures and complements the Corporate Governance Code’s TCFD-aligned requirements. They are also aligned with the International Sustainability Standards Board (ISSB). The SSBJ’s framework includes Universal, General (IFRS S1), and Climate-related (IFRS S2) standards, with some jurisdiction-specific alternatives, and are required for companies on the Tokyo Stock Exchange’s Prime Market.
  
  
• Indonesia’s Financial Services Authority (OJK) released its updated Indonesia Taxonomy for Sustainable Finance (TKBI) in February 2025. This second version includes technical screening criteria for the construction, real estate, transportation, and selected agriculture sectors. The first version was focused on the energy sector. This update aligns with the Association of Southeast Asian Nations (ASEAN) Taxonomy for Sustainable Finance and aims to enhance sustainable financing, supporting Indonesia's net zero emissions targets.
  
  
• The Ministry of Finance of the People's Republic of China issued RMB6 billion of 3-year and 5-year green bonds in April 2025 under its recently published Sovereign Green Bond Framework 2025. The Framework aims to enable green bond international issuance backed by financing projects in six categories, mapped to the country 2021 Green Bond-endorsed projects catalogue: clean transportation; sustainable water and wastewater management; environmentally sustainable management and restoration of living natural resources and land use; marine ecosystem protection and restoration; pollution prevention and control; and resource utilisation and recycling. Second-Party Opinions were provided by DNV and Lianhe Green Development.

Europe

• The European Commission’s so-called Omnibus package updates announced in February 2025 introduce several significant changes to sustainability reporting and regulations. These include (a) limiting the 2023 Corporate Sustainability Reporting Directive (CSRD) reporting to large companies (>1,000 employees and >EUR50m turnover on average), reducing covered entities by 80%, and delaying reporting for certain companies and listed SMEs by two years; (b) making the EU Taxonomy voluntary for companies below a certain threshold and reducing data points by nearly 70%; (c) postponing the Corporate Sustainability Due Diligence Directive (CSDDD) by one year, focusing on direct suppliers only, streamlining stakeholder engagement and supporting better European harmonisation; and (d) simplifying the Carbon Border Adjustment Mechanism (CBAM) to exempt smaller importers and make the reporting easier.
  
  
• European regulators are intensifying their focus on implementing the EU sustainable finance framework. For instance, in the European Securities and Markets Authority (ESMA)’s 2025 annual work programme, one of the six priorities is on sustainable finance, focusing on combating greenwashing, promoting transparency, and developing technical standards under the EU Green Bond and ESG Ratings Regulations. Some key changes are the utilisation of natural language processing to identify greenwashing risks, and enhancing the detection of exaggerated or misleading sustainability claims. Additionally, ESMA will work on improving the clarity and reliability of ESG-related disclosures, ensuring that market participants have access to accurate and comprehensive information.
  
  
• The European Banking Authority published its final Guidelines on the management of ESG risks in January 2025. These guidelines set requirements for institutions to identify, measure, manage, and monitor ESG risks, ensuring resilience in the short, medium, and long term. They align with the sixth Capital Requirements Directive (CRD6) and support the EU's transition towards climate neutrality by 2050. The guidelines will apply from January 2026, with a later date for small and non-complex institutions.
  
  
• The EU's new Green Bond Regulation came into effect in December 2024, building on the definitions of the EU taxonomy. This voluntary standard is expected to boost green bond issuance as issuers adapt their frameworks to comply with the new regulation. The first issues started in January 2025, with A2A’s €500m green bond and Île-de-France Mobilité’s €1 billion green bond.
  
  
• The Platform on Sustainable Finance has responded to the public consultation on the draft delegated act amending the EU taxonomy delegated acts. The response emphasises the importance of simplifying and enhancing the usability of the EU taxonomy to foster sustainable investments. Key recommendations include reducing corporate reporting burdens by one-third, simplifying the green asset ratio, adopting a more practical approach to the "do no significant harm" criteria, and improving access to sustainable finance for SMEs. The Platform published its first review early April 2025.

North America

• The United States were withdrawn from the Paris Agreement by Executive Order signed on 21 January 2025. The withdrawal will take effect one year after the official notice was submitted to the Secretary-General of the United Nations. After that, the country will not have to submit NDCs every five years (noting one was submitted in December 2024), account of progress toward commitments, submit biennial transparency reports, and generally be expected to provide climate finance. The United States will also lose its voting rights under the Paris Agreement. The executive order does not withdraw the United States from the UN Framework Convention on Climate Change (UNFCCC), which would require two-thirds majority in the Senate.
  
  
• Climate grants to nonprofit organisations amounting to US$20 billion in the Greenhouse Gas Reduction Fund, established under the 2022 Inflation Reduction Act, have been identified to be terminated by the Environmental Protection Agency (EPA). The EPA cited concerns about potential fraud, waste, and abuse. This decision has led to legal challenges, with advocacy groups suing the EPA and Citibank for withholding the funds. The Fund was set up to finance climate projects, specifically in low-income communities, such as solar installations or battery electric truck manufacturing. The Justice Department and FBI are also reviewing the program, and the EPA stated it would reallocate the funds with enhanced controls to align with its priorities.
  
  
• New Securities and Exchange Commission (SEC) rules were introduced. SEC reviewed how companies can challenge shareholder resolutions, demanding extended disclosures from large shareholders in companies that seek to engage with management on ESG matters while narrowing the scope of resolutions investors can introduce. SEC also voted to end its defence of the rules requiring disclosure of climate-related risks and greenhouse gas emissions.
  
  
• Further Net Zero Banking Alliance (NZBA) withdrawals have occurred in the quarter, including Wells Fargo (following other major US banks), Canadian banks, and Japanese banks with Mizuho being the most recent. The banks cited challenges in meeting net-zero targets due to factors beyond their control, such as public policy and technological advancements. Despite this, these banks expressed a commitment to supporting real-economy decarbonisation by providing clients with the necessary advice and capital to transform business models and reduce carbon intensity. Further insights into NZBA’s membership and revised mandate published in April 2025 will be included in our next report. 

ANZ news and updates

As a global bank supporting sustainable finance market growth, ANZ is working with customers to help them transition to net zero emissions by 2050. ANZ’s sustainability highlights for the quarter include:

ANZ research and publications

• Australian Major Projects: ANZ Research expect Australia’s major project investment to average around A$72 billion per year over the five years to 2028-29, almost 50% higher than the previous five-year period.
  
  
• Funding Options to reduce Fiji’s infrastructure deficit: ANZ Research investigates Fiji’s funding options for more infrastructure investment.
  
  
• Carbon Market Chartbook: ANZ Research assesses how the close correlation between the prices of Europe’s Emissions Trading Scheme (ETS) and natural gas is likely to lead to some weakness in the short term.