BRICS leaders push local currency lending to address climate finance currency risks, Trump’s copper tariff drives market volatility and supply chain concerns, and Japan may postpone ISSB standards, following EU delays.
BRICS leaders call for more local currency lending
In its recent climate finance declaration, BRICS leaders acknowledged “the cost of hedging foreign exchange (FX) risks poses a significant challenge to cross-border investments in developing countries.” The group called on its development finance institution – the New Development Bank (NDB) – and other multilateral development banks to expand the use of local currencies to help reduce this burden.
The summit, held earlier this month, also pushed for global financial architecture reform to better serve developing countries’ climate needs and ease constraints exacerbated by “external economic volatility” and “structural limitations” in the current system.
NDB President Dilma Rousseff warned of the risks developing economies face when borrowing in US dollars, which can expose them to unpredictable policy shifts from institutions like the Federal Reserve.
The BRICS declaration praised the NDB as “a robust and strategic agent of development and modernization in the Global South”. The climate finance statement also cited progress in local currency green bonds, which are enabling growing cross-investment among BRICS members in each other’s sustainable finance ecosystems.
Trump’s copper tariff announcement puts price pressure on green mineral supply chains
President Trump’s announcement of a 50% copper import tariff, effective August 1, sent copper futures surging 13% in one day, up to a record high of US$5.69 per pound last week, putting significant price pressure on green mineral supply chains.
The copper tariff has already created a 25% premium for US copper over London Metal Exchange prices, effectively creating a bifurcated global market. For central banks and climate policymakers, the move signals fresh price volatility for the core commodity underpinning the energy transition. A development LSE researchers have indicated could pose a risk to renewable energy supply chains and overall price stability.
However, ING Bank commodities strategist Ewa Manthey said the tariff is “unlikely” to boost US production. She noted that the US produces only about 5% of global supply, has seen a 20% production decline over the past decade, and that building new mines can take up to 29 years due to lengthy permitting. Meaning “higher copper prices also risk higher inflation, raising costs for US manufacturers without a domestic alternative available,” Manthey said.
The administration argues this tariff is more than trade protectionism. Invoking concerns around national security and military preparedness, Trump’s announcements underscores the administration’s critical minerals strategy that explicitly prioritises domestic military applications over global climate goals.
Investigators at Global Witness have highlighted Trump’s strategy extends beyond tariffs to include what they describe as
exploitative “minerals-for-security” arrangements, as seen in Ukraine and the Democratic Republic of Congo.
Japan weighs ISSB delay following EU omnibus simplification
Japan’s Sustainability Standards Board (SSBJ) is reportedly considering delaying its planned implementation of International Sustainability Standards Board (ISSB) requirements, following the European Union’s omnibus simplification package that has delayed key ESG reporting requirements by two years.
The EU’s “stop-the-clock” directive affects the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), with large companies now expected to begin reporting under CSRD in 2027 instead of 2025. This has created a domino effect across jurisdictions that were aligning their standards with EU requirements.
The SSBJ published its sustainability disclosure standards in March 2025, closely mirroring IFRS S1 and S2 frameworks while incorporating jurisdiction-specific modifications. These standards were designed to eventually become mandatory for Tokyo Stock Exchange Prime market companies, with implementation expected to begin in fiscal year 2026.
Uruguay’s SLB shows climate progress despite shortfalls
Uruguay released its third annual report for its pioneering US$2.2bn sovereign sustainability-linked bond (SSLB), a step-up/step-down coupon structure tied to environmental performance, showing mixed progress on climate targets.
Uruguay achieved a 46% reduction in greenhouse gas emissions intensity per GDP unit compared to 1990, but is still 4 percentage points short of the 50% target needed to avoid a coupon step-up. The report states the shortfall is mainly due to a 1.3% rise in absolute GHG emissions in 2023, largely from increased nitrous oxide emissions tied to synthetic nitrogen fertiliser use in agriculture.
While emissions targets are lagging, Uruguay continues to preserve its native forest coverage, supporting its “zero-deforestation” pledge, through stronger regulatory measures. However, KPIs around native forest cover — are “too infrequently reported to enable timely investor assessments”, say analysts from the Anthropocene Fixed Income Institute.
Latvijas Banka releases sustainability disclosure report
Latvia’s central bank has strengthened its integration of sustainability across its non-monetary policy portfolios, according to its latest climate-related disclosures report.
The 2025 report from Latvijas Banka is aligned with the Eurosystem’s unified disclosure framework and TCFD recommendations. It covers the 2024 calendar year and demonstrates the central bank’s evolving commitment to climate transparency and responsible investment.
Notably, this year’s disclosures include Scope 3 greenhouse gas emissions, offering a fuller view of portfolio climate impacts. The developed markets equity portfolio achieved a 73% reduction in carbon footprint since 2022 thanks to a dedicated sustainability strategy, while the emerging markets fixed income portfolio’s ESG score improved by 11% after a benchmark shift favouring stronger ESG issuers.
Mārtiņš Kazāks, Governor of Latvijas Banka, commented: “Climate change is not a distant threat – it is a present-day challenge that demands urgent and coordinated action… we are committed to doing our part by integrating sustainability into our investment decisions and by promoting transparency.”
Call for comments
- The Accounting Standards Board (ASB) Nepal is consulting on the development of Nepal Sustainability Reporting Standards (NSRS), aligned with IFRS S1 and S2. Comments are open until 16 August 2025.
- The Department for Business and Trade has released exposure drafts for the inaugural UK Sustainability Reporting Standards. Comments close on 17 September 2025.
This page was last updated July 18, 2025
Written by
Ike Walker, a Green Central Banking contributor since 2023, has a decade's experience in research writing. An Utrecht-based scholar, Ingrid specialises in transformative justice, green finance, law and systems change. They are an Utrecht University's Bright Minds scholar and previously worked for Cambridge University and various justice-based NGOs.
