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This edition read time: 8-10 minutes

Today we cover:

• COP29 delivers $300B climate finance and heated CBAM debates

• Only 16% are on track for Net Zero, while 45% increased emissions

• IEA: Recycling poised to reshape Cu, Li, and Co supply

• CBAM updates: Industry pushback and submission changes

• EU adopts Forced Labour Regulation - access an updated compliance guide, and more.

KEY UPDATES

CBAM sparks controversy at COP29

The opening day of COP29 in Baku featured intense debate over the EU’s CBAM. The BASIC bloc (Brazil, South Africa, India, and China) pushed to include CBAM on the official agenda, citing its potential harm to developing economies reliant on EU exports. However, the request was denied, leaving CBAM discussions informal for now. Further debates are expected at COP30 in Brazil.

COP29: Key outcomes

Here’s what you need to know from November’s major climate event:

• $300 billion climate finance target by 2035: Nations agreed to triple the previous goal, aiming to aid developing countries in addressing climate impacts. However, the funding still falls short of what is urgently needed.

• Global carbon credit market finalised: COP29 established rules for carbon offset trading, projected to mobilise up to $250 billion annually by 2030, though concerns remain over credit quality and oversight.

• Updated NDCs due by 2025: Countries must submit new emission reduction plans, signalling greater collaboration between governments and businesses to meet climate goals.

Spotlight on critical mineral value chains: COP29 highlighted the critical role of minerals in advancing the energy transition. New cross-continental initiatives were launched to strengthen supply chain cooperation. Sirius’s win in the Sustainable Innovation Challenge 🎉 reflects the increasing focus on optimising these value chains (see Sirius News for more).

Only 16% of companies are on track for Net Zero by 2050

A recent Accenture report reveals that just 16% of G2000 companies are on course to achieve net-zero targets by 2050, with a troubling 45% having increased emissions since the Paris Agreement.

The report underscores the need for transformative strategies. Innovation, especially in AI and technology, must play a central role, actively reducing emissions. Current adoption is lacking, with only 14% of companies using AI for decarbonisation, leaving vast potential untapped.

Beyond technology, regional and sectoral disparities must be addressed. Sharing best practices, incentivising lagging industries, and fostering cross-sector collaboration is critical to creating a unified pathway toward net zero. Without such coordinated efforts, progress risks being uneven, jeopardising global climate goals.

IEA special report: Recycling of critical minerals

The IEA’s latest report highlights recycling’s potential to meet significant portions of future critical mineral demand by 2050:

• 40% of copper demand, vital for renewable energy infrastructure.

• 25% of lithium and cobalt demand, essential for EV batteries.

Yet currently, recycling supplies only 12% of cobalt, 7% of lithium, and 30% of copper, underscoring a major gap. Scaling up collection and processing could reduce dependence on mining, stabilise supply chains, and cut environmental impacts.

For metal producers, this presents a clear opportunity to invest in urban mining, expand material recovery systems, and reclaim end-of-life materials. The report emphasises that boosting recycling will require robust policies, innovative partnerships, and international coordination - steps that could define industry leaders in the energy transition.

CBAM ESSENTIAL UPDATES

New CBAM technical updates

On November 29, the EU introduced several key updates to enhance CBAM reporting:

• Quarterly reports: Revised structure and updated sample files for importers and representatives are now available. Ensure your submissions align with these latest formats.

• Declarant portal: Enhanced features for managing CBAM declarations have been added, improving usability and efficiency.

Access the updated templates and learn more about the latest portal features here.

EU revisits CBAM amid competitiveness concerns

Growing concerns over CBAM's high costs, trade tensions, and complexity - especially in import-heavy regions like Central, Eastern, and Southern Europe - have prompted the EU to consider revisions. Plans include introducing incentives by 2025 to mitigate environmental impacts in carbon-intensive sectors while ensuring fair implementation across regions. Inefficiencies in CBAM are already cited as a factor in ArcelorMittal’s decision to delay low-carbon steel projects in Europe. The pressure is mounting on EU policymakers to work closely with industry associations to address these challenges swiftly.

CRU webinar: industry insights on CBAM

Mark your calendar for December 12, 2024, when CRU will host a webinar offering sector-specific insights into CBAM’s impact on industries such as cement, fertilisers, iron and steel, aluminium, and hydrogen. The session will cover competitiveness challenges, regulatory developments, and evolving market dynamics - perfect for those new to CBAM or looking for in-depth analysis. Register here.

QUOTE OF THE MONTH

REGULATORY UPDATES

EU adopts Forced Labour Regulation

The EU Council has officially adopted the Forced Labour Regulation (FLR), banning the sale, availability, or export of products made with forced labour within or from the Union. This wide-reaching measure applies to all sectors and companies, regardless of size, and marks a pivotal moment in enforcing ethical trade practices.

To help you stay ahead, we’ve updated our Forced Labour Regulation Guide with the latest requirements and practical steps. 

Critical Raw Materials Act: implementation begins

The EU’s Critical Raw Materials Act (CRMA) is now in its implementation phase, grappling with challenges like insufficient funding and doubts over accelerating mining to meet 2030 benchmarks. Proposed improvements include:

• An EU CRM platform for strategy coordination (Draghi Report).

• Joint purchasing for strategic reserves (Letta Report).

• Boosting circularity, aligning laws, and diversifying supply chains.

Effective execution will determine whether the CRMA achieves its ambitious goals. Though Robert Friedland (as quoted earlier) wasn’t particularly optimistic about the EU’s grasp of these challenges.

Read the EU parliamentary briefing here.

EU is planning to consolidate ESG regulations 

The EU plans to combine ESG reporting frameworks - including the CSRD, EU Taxonomy Regulation, and CS3D - into a single omnibus regulation. This effort aligns with the Budapest Declaration’s call for a 25% reduction in reporting burdens by 2025. The goal is to simplify compliance while maintaining substantive requirements.

Those who have been in sustainability long enough get shivers every time the word “consolidation” is mentioned. Let’s hope this doesn’t create a new monstrosity that complicates things further.

And while we wait, if you’ve had enough of endless ESG questionnaires and reporting forms, request access to Sirius. Save 70% of your time and get granular insights into what truly matters to your customers, turning data into strategy.

New rules for ESG rating kick off in 2026

The European Council has approved new ESG rating regulations to improve transparency and reduce conflicts of interest. Key highlights include:

• ESG rating providers will be authorised and supervised by ESMA.

• Disclosure of methodologies, models, and assumptions will be mandatory.

• Separate Environmental (E), Social (S), and Governance (G) ratings with weightings for combined scores.

• Fines up to 10% of annual turnover for violations.

The UK is rolling out similar regulations to bolster market trust.

Perhaps now it’ll be clearer how to get that EcoVadis Platinum 😁

SIRIUS NEWS

COP29: Sirius wins the Green Innovation Challenge 🎉

Sirius has been named the winner of the COP29 Sustainable Innovation Challenge. The recognition highlights our technology’s ability to pinpoint stakeholder priorities in detail while aligning sustainability with profitability. It’s a significant step forward in reimagining critical metals value chains, and we’re thrilled to be the first in our sector to achieve this level of acknowledgement.

The Code of Conduct standoff, solved

Another customer asks you to sign their Code of Conduct. Your sustainability team is stuck comparing policies, commitments, and material topics - yet again - and it’s all on you to make it work. We’re rolling out our Code of Conduct Comparison Module to change that. It reviews your Sustainability Twin, analyses the counterpart’s CoC, and delivers a clear match report for your legal team. Less time wasted, fewer headaches, and more room to focus on what really matters.

Early access is open for current clients, with limited slots available.

WIM100: Celebrating women in mining

I’m deeply honoured to be included in the ⭐️ Women in Mining (WIM) 100 list ⭐️ for 2024, a celebration of the most inspirational women driving change in the industry. As the only representative from the Netherlands, it’s a privilege to stand alongside such remarkable leaders from around the world who are shaping the future of mining. Explore the full list and the inspiring stories here.

Sirius wins Capgemini Sustainability Award

Selected from over 200 AI technologies, Sirius received Capgemini’s Sustainability Award, showcasing our platform's innovation and recognition by leading tech experts.

This is it for now! Don’t forget to answer the poll question 👇