U.S Customs and Border Protection has published its first Isotopic Testing Guidance document, which can be accessed on the CBP website using the following link – https://www.cbp.gov/document/publications/isotopic-testing-guide [cbp.gov]. The Guidance  explains CBP’s perception of the role of isotopic testing in supply chain traceability and sets out recommended isotopic testing standards.
As explained in the Guidance, isotopic testing is a scientific method that identifies the atomic structure of naturally occurring materials, or a “fingerprint” of the material, affected by local environmental conditions. When that “fingerprint” is compared to a library of like materials from various geographic areas, isotopic testing can indicate whether the raw material being tested is consistent with the claimed geographic origin.
Although supply chain traceability has always been important, post implementation of the Uyghur Forced Labor Prevention Act (“UFLPA”), an importer’s ability to fully trace the raw materials and inputs used to fabricate its imported goods has become crucial in accessing the U.S. market. The need for traceability is most pronounced in demonstrating the absence of forced labor, but the ability to substantiate origin can be equally relevant in showing that a shipment is not subject to China 301 duties or antidumping/countervailing duties, among other things. Although not a silver bullet, isotopic testing is one tool importers may want to consider in managing risk in their supply chains.
 
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Multilateral development banks (MDBs) today issued a joint statement at COP29 in Baku outlining financial support and other measures for countries to achieve ambitious climate outcomes.
MDBs estimate that by 2030, their annual collective climate financing for low- and middle-income countries will reach USD 120 billion, including USD 42 billion for adaptation, and MDBs aim to mobilize USD 65 billion from the private sector.
For high-income countries, this annual collective climate financing is projected to reach USD 50 billion, including USD 7 billion for adaptation, and MDBs aim to mobilize USD 65 billion from the private sector.
MDBs significantly exceeded their ambitious 2025 climate finance projections set in 2019, with a 25% increase in direct climate finance and mobilization for climate efforts doubling over the past year.
“It is clear we must stay the course. The green energy revolution is underway, and communities and businesses have understood that ambitious climate action is not only the right thing to do but the smart thing to do. The family of multilateral development banks is walking the talk: with our collective commitment here at COP29 to global climate action over the next five years. This also involves increasing the impact of the projects we finance – helping countries around the world to meet their climate goals and adapt to the effects of climate change,” said EIB President Nadia Calviño.
“While the scale of MDBs’ financial commitments is essential, MDBs’ most significant impact comes from our ability to drive transformative change,” the statement said. “As emphasized by the Group of Heads of MDBs in the recent Viewpoint Note: MDBs Working as a System for Impact and Scale, we MDBs are focused on amplifying our catalytic effect by enhancing the results and impact of our financing, deepening engagement with countries through platforms, supporting clients’ climate ambitions, and increasing private sector mobilization.”
“Rallying to the call for urgent climate action, MDBs recognize the central importance of establishing a New Collective Quantified Goal on Climate Finance (NCQG) at COP 29 in Baku. A robust and ambitious NCQG is essential for achieving the goals of the Paris Agreement, and we urge Parties to reach a strong conclusion on this objective,” the statement said.
Recognizing that quality and systemic impact must be informed by climate results, the MDBs released the Common Approach to Measuring Climate Results: Update on Indicators. The common approach, issued in April, is the first shared framework to define, measure, and link global progress on climate mitigation and adaptation with the climate results of MDB activities.
The MDBs also published their Country Platforms for Climate Action – MDB Statement of Common Understanding and Way Forward, reaffirming their joint support for efforts to foster collaboration between host countries, MDBs, donors, and the private sector. Based on country demand, MDBs will build on successful examples to support the launch of new platforms, while deepening collaboration with partners including the International Monetary Fund.
The statement was issued by the African Development Bank Group, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank, the Islamic Development Bank, the New Development Bank, and the World Bank Group.
EIB at COP29
Find an overview of EIB activities at COP29 on our website. The EIB has a pavilion in the side event area of the blue zone and is running a series of events on numerous topics. You will find the full agenda here. You are welcome to join to watch the sessions either live or later at your convenience. In addition, the EIB shares a pavilion with the group of multilateral development banks. You will find the full agenda here.
Background information
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
The EIB Group has been transforming itself into the climate bank through more than a decade of progress and substantial investment, tied to several milestones: the world’s first green bonds in 2007, our first Climate Strategy in 2015 in the wake of COP21 in Paris, our new Energy Lending Policy in 2019 (ending support for fossil fuel energy projects), and then in 2020 the Climate Bank Roadmap.

 In 2023, EIB Group green finance reached nearly €50 billion, more than double the amount of green finance provided in 2019, when European countries asked the EIB to strengthen its role as the climate bank.
 In 2021, the EIB became the first MDB to align our financial activities with the Paris Agreement.
With its Climate Bank Roadmap the EIB Group is on track to support €1 trillion of investment in climate action and environmental sustainability through the critical decade, 2021-2030.
The EIB has committed to increase investment in climate action and environmental sustainability to more than 50% of annual EIB lending by 2025 – last year that was exceeded with 60%.
In August 2024, the EIB passed the €100 billion mark of Climate Awareness Bonds and Sustainable Awareness Bonds  issuance. This makes the EIB the world’s largest issuer of green bonds as well as assured sustainable bonds with dedicated use of proceeds among multilateral development banks. To meet the needs of a broad investor base, the EIB has issued these bonds in 23 currencies, a market record.

EIB Global is the EIB Group’s specialised arm dedicated to operations outside the European Union, and a key partner of the European Union’s Global Gateway strategy. We aim to support at least €100 billion of investment by the end of 2027, around one-third of the overall target of Global Gateway. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local communities, companies and institutions through our offices across the world.
 
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A significant gap in policy ambition exists between globally agreed temperature goals and the emissions reductions of national climate targets, according to a new report on countries covered by the OECD’s International Programme for Action on Climate (IPAC).
According to the 4th edition of the Climate Action Monitor, Nationally Determined Contributions (NDCs) currently commit to a collective reduction in greenhouse gas emissions of only 14% by 2030, compared to 2022 levels, in countries covered by IPAC which produce over 80% of global GHG emissions. This is well short of the estimated 43% global emission reduction needed to limit global warming to 1.5° Paris Agreement goal according to the Intergovernmental Panel on Climate Change (IPCC).

The report also points to the risk that net-zero targets may not be fulfilled, noting that most current commitments lack a legal basis on which to be enforced. As of August 2024, 110 countries have pledged a net-zero target for 2050 and beyond, covering about 88% of global GHG emissions. However, only 27 countries and the EU, representing 16% of global GHG emissions, have enshrined these targets into law.
“Our 2024 Climate Action Monitor underscores the growing impact of climate-related hazards and confirms that countries’ emission reduction pledges are not consistent with the Paris Agreement temperature goals,” OECD Secretary-General Mathias Cormann said. “Making real progress on the net-zero transition requires more ambitious mitigation targets and effective implementation”.
The report also highlights the recent slowdown in countries’ climate policy action across the countries that produce nearly two thirds of total greenhouse gas emissions. Based on the Climate Actions and Policies Measurement Framework (CAPMF), which tracks both the number of adopted national climate policies and their stringency, national climate mitigation action only expanded by 1% and 2% in 2022 and 2023 respectively, compared to an average of 10% per year between 2010-21. This trend suggests that there could be a significant implementation gap where even the current modest GHG emissions reduction targets may not be achieved by 2030.
With 2024 on track to set new records for global warming, the detrimental effects of rising temperatures, changing rain patterns and other climate-related hazards are being seen on food systems, with croplands increasingly exposed to agricultural droughts. Many countries have observed a notable decline in soil moisture levels on croplands during 2019-23 when compared to the reference period of 1981-2010, highlighting the urgent need for adaptation strategies to enhance resilience in farming practices. Heatwaves, wildfires, floods, and hurricanes have raged across the globe, destroying lives and livelihoods and the population exposed to extreme temperatures is growing rapidly. During the same period, the countries covered in the report experienced on average an additional 30 days of above-average temperatures compared to the baseline period.
 
Note to Editors:
The fourth edition of the Climate Action Monitor is a deliverable of the Net Zero+ International Programme for Action on Climate (IPAC), which provides foundational data and metrics to assess country progress towards net-zero greenhouse gas emissions and the Paris Agreement goals. IPAC examines key trends and developments while assessing the progress of countries’ climate policies, complementing and supporting the monitoring frameworks of the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement.
IPAC data underpins numerous climate initiatives at the OECD, including the Inclusive Forum on Carbon Mitigation Approaches. Making progress towards the net-zero challenge not only demands ambitious mitigation targets and effective implementation, but also dealing with the barriers and opportunities presented by the policy landscape and ensuring that the transition is resilient to changing circumstances.
IPAC covers the following countries: all OECD countries, OECD partner countries (Brazil, People’s Republic of China, India, Indonesia, South Africa), prospective members (Argentina, Bulgaria, Croatia, Peru, Romania), Saudi Arabia, Malta and the EU.
Countries that have enshrined net-zero targets in law: Australia, Austria, Canada, Chile, Colombia, Denmark, Fiji, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Japan, Korea, Liechtenstein, Luxembourg, Maldives, New Zealand, Nigeria, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, and the EU.
The Climate Actions and Policies Measurement Framework (CAPMF) is a climate mitigation database developed by the OECD that measures governments’ climate policy action both in terms of policy adoption and stringency. It consistently tracks 56 key climate policies based on 130 policy variables from 1990 to 2023 for all OECD and OECD partners countries except the United States, which jointly account for nearly two thirds of global greenhouse gas emissions.

 
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NEW YORK—The Federal Reserve Bank of New York’s Center for Microeconomic Data today issued its Quarterly Report on Household Debt and Credit. The report shows total household debt increased by $147 billion (0.8%) in Q3 2024, to $17.94 trillion. The report is based on data from the New York Fed’s nationally representative Consumer Credit Panel. It includes a one-page summary of key takeaways and their supporting data points.
The New York Fed also issued an accompanying Liberty Street Economics blog post examining the evolution in aggregate debt to income ratios and what that suggests about Americans’ ability to manage their debt obligations.
“Although household balances continue to rise in nominal terms, growth in income has outpaced debt,” said Donghoon Lee, Economic Research Advisor at the New York Fed. “Still, elevated delinquency rates reveal stress for many households, even amid some moderation in delinquency trends this quarter.”
Mortgage balances increased by $75 billion from the previous quarter and reached $12.59 trillion at the end of September. HELOC balances increased by $7 billion, representing the tenth consecutive quarterly increase since Q1 2022, and stood at $387 billion. Credit card balances increased by $24 billion to $1.17 trillion. Auto loan balances saw a $18 billion increase and stood at $1.64 trillion. Other balances, which include retail cards and other consumer loans, were effectively flat, with a $2 billion increase. Student loan balances grew by $21 billion, and now stand at $1.61 trillion.
The pace of mortgage originations increased slightly from the pace observed in the previous four quarters, with $448 billion of newly originated mortgages in Q3. Aggregate limits on credit card accounts increased modestly by $63 billion, representing a 1.3% increase from the previous quarter. Limits on HELOC increased by $9 billion, the tenth consecutive quarterly increase.
Aggregate delinquency rates edged up from the previous quarter, with 3.5% of outstanding debt in some stage of delinquency. Delinquency transition rates were mixed. Credit card delinquency rates improved, with 8.8% of balances transitioning to delinquency compared to 9.1% in the previous quarter.  Early delinquency transitions for auto loans and mortgages worsened slightly, rising by 0.2 and 0.3 percentage points respectively. About 126,000 consumers had a bankruptcy notation added to their credit reports this quarter, a small decline from the previous quarter.
Household Debt and Credit Developments as of Q3 2024

CATEGORY
QUARTERLY CHANGE * (BILLIONS $)
ANNUAL CHANGE** (BILLIONS $)
TOTAL AS OF Q3 2024 (TRILLIONS $)

MORTGAGE DEBT
(+) $75
(+) $580
$12.594

HOME EQUITY LINE OF CREDIT
(+) $7
(+) $38
$0.387

STUDENT DEBT
(+) $21
(+) $7
$1.606

AUTO DEBT
(+) $18
(+) $49
$1.644

CREDIT CARD DEBT
(+) $24
(+) $87
$1.166

OTHER
(+) $2
(+) 17
$0.546

TOTAL DEBT
(+) $147
(+) $778
$17.943

*Change from Q2 2024 to Q3 2024
** Change from Q3 2023 to Q3 2024
Flow into Serious Delinquency (90 days or more delinquent)

CATEGORY1

Q3 2023
Q3 2024

MORTGAGE DEBT
0.72%
1.08%

HOME EQUITY LINE OF CREDIT
0.41%
0.43%

STUDENT LOAN DEBT
0.77%
0.77%

AUTO LOAN DEBT
2.53%
2.90%

CREDIT CARD DEBT
5.78%
7.10%

OTHER
4.96%
5.50%

ALL
1.28%
1.68%

 
About the Report
The Federal Reserve Bank of New York’s Household Debt and Credit Report provides unique data and insight into the credit conditions and activity of U.S. consumers. Based on data from the New York Fed’s Consumer Credit Panel, a nationally representative sample drawn from anonymized Equifax credit data, the report provides a quarterly snapshot of household trends in borrowing and indebtedness, including data about mortgages, student loans, credit cards, auto loans, and delinquencies. The report aims to help community groups, small businesses, state and local governments, and the public to better understand, monitor, and respond to trends in borrowing and indebtedness at the household level. Sections of the report are presented as interactive graphs on the New York Fed’s Household Debt and Credit Report webpage and the full report is available for download.
 
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Complacency in fighting climate change and preserving biodiversity is endangering our economic survival. The longer we wait, the higher the costs will be. Christine Lagarde, President of the European Central Bank, warns of the growing gap between the commitments made and the investment needed.
We’ve all heard it time and again: either we tackle climate change and safeguard nature, or we face the steep price of our inaction. And that price is rising by the day. Just consider the recent flooding in Spain, the droughts in the Amazon basin or the storms in North America. These events are horrific in and of themselves, but they are also ruining the foundations of our economies and, ultimately, the basis of our economic survival.
Tackling the climate and nature crises demands urgent investment in three areas: climate change mitigation, adaptation and disaster relief. In other words: we must curb climate change to the greatest extent possible, prepare ourselves for what we cannot avoid and help those who are hardest hit. All of this is vital — and all of it is costly. But so far, we have mobilised only a fraction of the funding we need.
To stay on track to meet Paris Agreement goals, global annual investment in climate change mitigation designed to help transition our economies have to reach up to USD 11.7 trillion annually by 2035, according to estimates by the United Nations Environment Programme (UNEP). That equals about 10 percent of global economic output. The energy transition alone requires investment in clean energy to triple by 2030. We urgently need to unlock all possible sources of capital, at speed and at scale, and to put in place the regulatory conditions to finance our green future and preserve nature.
Climate change and nature degradation will transform our societies irrespective of the actions we take. That means we must adapt and become more resilient – and we must do so in a manner that is fair and equitable.
Even in the most optimistic scenarios, governments will need to help, particularly those in the most vulnerable groups. Yet, looking at the investment for climate adaptation, the difference between what is needed and what is planned – what we call the “financing gap” – is widening. UNEP also estimates that those financing needs are growing. They are 50% higher than previously estimated and up to 18 times greater than current commitments.
Falling behind on climate change mitigation and adaptation increases the risk of natural disasters and, in turn, the need for disaster relief. It is especially a duty for the strongest countries to help the most vulnerable ones, for both humanitarian and economic reasons. But here again, our efforts are far from sufficient, and funding for climate disaster relief is a long way from where it needs to be.
This is in part due to the widening gap between insured and uninsured losses. According to Swiss Re, only 38% of the total USD 280 billion in global economic losses in 2023 was insured, and most of it was concentrated in the industrialised world. The agreement on the Loss and Damage Fund reached two years ago at COP 27 in Sharm el-Sheikh was a welcome step, and COP 29, which begins this week in Baku, is an opportunity for countries to equip it with the capital it needs. Given the unequal impacts of climate change, however, more developed countries should increase their contributions to it.
Climate change and nature degradation are threats to our economies. This is why the European Central Bank and other central banks take them into consideration when working to keep prices stable, banks sound and the financial system safe. It is our task to gather and analyse data on how climate change and the loss of nature have an impact on banks and the economy. This can help to guide already committed and future funding efficiently, so that the economy will align with the Paris goals.
But it is governments that are at the forefront of the fight against climate change. They are the ones with the means and the tools to tackle it. However, they cannot do so alone. Companies, capital markets and venture investors will also have a vital role to play in financing green innovation. And within the EU, structural policies, fiscal incentives (such as carbon pricing and abolishing fossil fuel subsidies), transition plans and progress on the capital markets union are all critical to removing investment barriers and accelerating the green transition.
Tackling climate change and safeguarding biodiversity fairly and equitably is not a task we can afford to leave to future generations – it is our duty to act now. To ensure our economic survival, we need to invest in our green and resilient future. This year’s COP marks the time to close the global climate finance gap.
This post was also published as an opinion piece in the Financial Times.
Check out The ECB Blog and subscribe for future posts.
 
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The first seven proposals for artificial intelligence (AI) Factories have now been submitted under the EuroHPC Joint Undertaking (JU), which manages the call announced in September 2024. These AI Factories will create a thriving European ecosystem for training advanced AI models and developing AI solutions. They will be built around the EU’s world-class network of  European High-Performance Computing (HPC) supercomputers and will be bringing together the key ingredients for success in AI: computing power, data and talent. The AI Factories will substantially increase the computing power available for AI in Europe. They will be interconnected and available to European AI startups, industry and researchers.
The seven proposals submitted in total by 15 Member States and two associated participating states demonstrate a very strong interest in this important initiative. Proposals to build an AI Factory around an existing or a new supercomputer adapted to AI needs were submitted by Finland (together with the participation of Czechia, Denmark, Estonia, Norway and Poland), Luxembourg, Sweden, Germany, Italy (together with the participation of Austria and Slovenia), and Greece. Furthermore, Spain has prepared a proposal with the participation of Portugal, Romania and Turkey which is expected imminently.
The submitted proposals will now be evaluated by an independent panel of experts. The EuroHPC JU expects to announce the selection of the first AI Factories in December 2024 and launch them soon thereafter.
In addition to the above proposals, Cyprus and Slovenia have submitted letters of interest to either join or create an AI Factory at a later stage.  The next cut-off date for the subsequent proposals is the 1st of February 2025.
The EU is now one step closer to setting up the first AI Factories in early 2025, as announced in the political guidelines of Commission President Ursula von der Leyen.
 
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Today, the Council formally adopted the amended regulation on European environmental economic accounts, the EU’s common statistical system which brings together economic and environmental information. The new rules extend the scope of the European environmental economic accounts, introducing forest accounts, ecosystem accounts, and environmental subsidies accounts. The amended regulation aims to provide better information for the European Green Deal, in order to support monitoring and evaluation of the EU’s progress in meeting its environmental objectives.
 
New account modules 
The current regulation on European environmental economic accounts sets out a common framework for collecting, compiling, transmitting and evaluating European environmental economic accounts. The regulation contains six modules, including air emissions accounts and environmentally related taxes.
Relevant and detailed data from member states is key to keeping the EU on track to meet the European Green Deal objectives. Therefore, the new regulation introduces three new environmental account modules for more comprehensive monitoring:

ecosystem accounts, which provide data on the extent and condition of ecosystems and on the services delivered to society and the economy by ecosystem assets

forest accounts, which specifically measure forest areas and the share available for timber extraction, and trace changes over time

environmental subsidies, which identify and quantify resources that support the Green Deal through economic activities and products, protecting the environment and safeguarding natural resources

Member states will start reporting these data to the Commission (Eurostat) in 2025 and 2026.
Statistical data portal 
The amended regulation introduces a new statistical data portal (statistical dashboard) for environmental economic accounts, which will summarise the key indicators and data from those accounts in an understandable and accessible way for all users. It will also contain data on climate change mitigation investments by member states.
The data portal will be operated by the Commission (Eurostat) from December 2024 and will be updated once a year. It will be publicly available on the Eurostat website.
Next steps
This formal adoption marks the last step in the ordinary legislative procedure. The regulation will now be published in the Official Journal of the European Union and will enter into force 20 days after its publication.
By 31 December 2024 and at least every two years thereafter, Eurostat will publish data and statistics on climate change mitigation, including on related investments.
Within two years from the date of entry into force of the regulation, the Commission will present a report on the quality of the data available on energy subsidies, including fossil fuel subsidies, on climate change adaptation and on water, and may submit a legislative proposal to introduce a further three new modules on these issues.
Background
The current regulation on environmental economic accounts already includes six modules: air emissions accounts, environmental taxes by economic activity, economy-wide material flow accounts, environmental protection expenditure accounts, environmental goods and services sector accounts, and physical energy flow accounts.
The existing rules provided for new modules to be introduced later based on Commission proposals; on 11 July 2022, the Commission adopted the relevant proposal.
On 15 December 2022, the Council agreed on its negotiating mandate. After one trilogue on 5 December 2023 and several technical meetings, the European Parliament and the Council agreed on the final shape of the regulation.
 
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