Brazil's Forest Finance Moment: Why Companies Can't Afford to Wait
Starting in 2026, significant volumes of high-integrity jurisdictional forest carbon credits are expected to become available. The key question remains whether corporate demand will match this supply, as highlighted by Keith Tuffley.
International and Governmental Actions
The International Sustainability Standards Board (ISSB) plans to advance a "standard-setting process" focused on disclosure of nature-related risks and opportunities.
Fidelity International has observed that the UK government is not generating many new sustainability investment opportunities for pension funds. A recently launched major initiative has mainly served to raise awareness of existing projects rather than creating fresh avenues for investment.
Sectors and Investment Insights
According to Nuveen, the data centre sector is especially appealing to sustainable fixed income investors due to the variety of available financial instruments and flexible investment strategies.
Challenges in Adaptation
“The adaptation agenda has yet to leave the starting line,” writes Simon Zadek.
This underscores the slow progress in mobilizing adaptation-focused initiatives despite growing environmental challenges.
Author's Summary
While new forest carbon credits promise growth, sustainable investment momentum varies across sectors, with clear challenges remaining in adaptation efforts and pension fund engagement.