© Donatas Dabravolskas
Brazil launches a comprehensive sustainable taxonomy linking social and environmental goals, as the Net-Zero Banking Alliance votes to cease operations immediately, and the European Parliament is divided over transition plan requirements.
Brazil breaks new ground, centring social justice in sustainable taxonomy
Brazil is making waves with its newly approved sustainable taxonomy, placing social justice front and centre in the climate finance conversation. The framework is a bold step away from traditional “green” taxonomies, directly linking investment standards not just to environmental impacts, but also to racial, gender, and regional equity. Designed to scale up gradually and proportionately, keeping the specific needs of SMEs in mind, the taxonomy will shift from voluntary to mandatory by January 2026.
Unlike the EU’s taxonomy, which leaves agriculture out, Brazil’s sweeping approach covers high-impact sectors crucial to both the national economy and its emissions profile—think agribusiness, energy, mining, and construction. The taxonomy was finalised after an extensive period of public consultation and mandates that from 2030, only properties with no deforestation in the previous five years will be eligible for green label financing.
Brazil’s Deputy Secretary for Sustainable Economic Development Cristina Reis called the taxonomy a “tool to redirect investment,” aiming to position the country as a pioneer in both industrial and trade policy for a low-carbon future. Meanwhile Baker McKenzie analysis frames the tool as a “strategic opportunity to position themselves in a market that is increasingly guided by ESG criteria.”
Net-Zero Banking Alliance dissolves after mass member exodus
The Net-Zero Banking Alliance (NZBA) voted overwhelmingly to cease operations immediately after widespread departures by major financial institutions. The alliance, which launched in 2021 with backing from former UN Special Envoy for Climate Action Mark Carney, lost its most prominent members including JPMorgan Chase, Citigroup, Bank of America, Morgan Stanley, Wells Fargo, HSBC, and Barclays over the past year.
The dissolution follows a member vote to transition NZBA’s guidance into a framework rather than maintaining a membership-based structure. The alliance had previously weakened its commitments in April by allowing members to choose between 1.5°C or 2°C climate targets, abandoning its original pledge to support alignment with the more ambitious UN target. European institutions, which initially held strong as US counterparts departed, eventually followed suit as political pressure mounted across jurisdictions.
David Carlin, senior associate at the Cambridge Institute for Sustainability Leadership, stated on Linkedin: “The end of the Net-Zero Banking Alliance is a real loss” as the network provided market signalling… a community of practice to learn faster by learning from peers [and] a set of criteria that help to establish good practices around client engagement and each sector’s unique trajectory.”
EU transition plan requirements face elimination amid political divisions
A deep political rift is threatening to derail the European Parliament’s scheduled 13 October vote on key amendments to EU sustainability rules, potentially throwing the Commission’s wider omnibus process into turmoil.
MEPs remain sharply divided over the Corporate Sustainability Due Diligence Directive (CSDDD). One bloc—backed by far-right and some centre-right European People’s Party (EPP) members—wants to scrap mandatory transition plans entirely. The other, which includes centre-left and parts of EPP, supports keeping transition plans but watering down implementation requirements.
Another sticking point between the two groups is whether to raise employee thresholds for the Corporate Sustainability Reporting Directive (CSRD) to either 1,000 or 1,750 employees.
Lead rapporteur Joergen Warborn insists the stricter deregulatory proposal has majority backing, but says he “remains open” to finding broader consensus ahead of the critical vote.
Amid this turmoil, the Centre for Research on Multinational Corporations flagged concerns over ExxonMobil lobbying. The fossil giant has stated it views due diligence rules and mandated energy transition plans as risks that could “adversely affect” profits.
African Development Bank commits USD$145mn to Niger’s energy transition
Under the leadership of the new governor, Sidi Ould Tah, The African Development Bank Group signed a USD$145mn financing agreement with Niger’s government to support the country’s energy transition. The initiative targets increasing national electricity access from 22.5% to 30% by 2026 while boosting the manufacturing sector’s contribution to GDP from 2.5% to 3.8%.
The money will go to Phase 1 of Niger’s Energy Sector Governance and Competitiveness Support Programme, which is designed to “improve the legal environment of the energy sector, address the country’s critical energy deficit, and strengthen economic governance”.
Niger Prime Minister Ali Mahamane Lamine Zeine emphasised the agreement reflects “our government’s commitment and determination to achieve the objectives set under this programme reflecting our resolve to pursue the structural reforms needed for sustainable development”. The programme focuses on building solar capacity and prioritises social inclusion with specialised support for internally displaced persons, women, and young people.
The programme will also tackle critical governance challenges by strengthening public financial management systems, particularly domestic revenue mobilisation and oversight mechanisms.
Singapore appoints first dedicated Chief Sustainability Officer
The Monetary Authority of Singapore (MAS) appointed Abigail Ng as its first dedicated Chief Sustainability Officer, effective 6 October. Ng, who has served MAS for nearly 20 years most recently as Department Head of the Markets Policy & Consumer Department, takes over from Gillian Tan, who will continue leading the Development & International Group.
MAS stated that with its “sustainability agenda entering a more developed and mature phase, this is an opportune time to transition SG’s leadership to a dedicated CSO role.” Ng brings extensive experience in sustainability policy development and stakeholder collaboration across international organisations.
Research Highlights
European Perceptions of Sustainable Development Study
A sweeping survey across 16 European countries finds 80% of citizens want sustainability as a top government priority—and 85% see strict corporate regulation as essential for a more sustainable world. Yet most doubt 2030 Sustainable Development Goals will be met, and want both governments and businesses to increase financial commitments to climate action. The research spotlights AI optimism, enduring concern over greenwashing, and a continent-wide conviction that sustainability remains a driver of competitiveness.
Reimagining Africa’s Critical Mineral Value Chains
Africa’s “extraction-only” model is under fire in this G20 taskforce briefing. The authors call for a pivot: true green industrialisation means adding value locally, protecting artisanal miners’ rights, and anchoring community benefits at the core of new projects. Reviewing G20 and EU policy efforts, the brief urges regional cooperation—backed by technology transfer, robust standards, and a green industrialisation index—to prevent a ‘race to the bottom’ and ensure minerals power sustainable, equitable development, not just global supply chains.
This page was last updated October 14, 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.
