The world’s largest commodity trader, paid 450 senior employees a record $6.4bn last year. Volatility in commodity markets brought about by Russia’s full-scale invasion of Ukraine in February 2022 has led to a boom for trading companies. Vitol, along with rivals Trafigura and Gunvor, made a combined $46bn in profits in 2022 and 2023.

Countries in eastern Europe plan to build a dozen new nuclear reactors, with a value of €130 bln, but the question is, who will pay for them. Governments need to step in. EU will likely approve state aid for the next budget cycle 2028-34 by June 2025. But inadequate supply chain, and a shortage of experts and contractors will also slow down the projects.

Concerns over Trump presidency and high interest rates caused a clean energy sell-off in the US. Clean energy stocks have tumbled 28% since July last year. Low valuations have prompted takeovers by buyout groups. New equity raised by energy transition companies in the public markets has also fallen, from $68 bln in 2022 to $33 bln in 2023.

Investors rush to get their hands on the juicy yields in the era of interest rates. The yield spreads between corporate and government bonds have become unusually slender, especially for bonds with longer maturities. Pension funds and insurance companies are more interested in yields in comparison with shares than in spreads.

ESG equity funds suffer net $40bn of outflows in 2024 globally, the first sustained exodus. Over the past 12 months, ESG funds made an 11% return, compared with 21% for conventional stock funds. Scandals such as one at German asset manager DWS also hit investors' appetite. But ESG bond funds have have raked in $22bn this year.

Canadian infrastructure giant Brookfield and the investment fund Temasek are in talks to take over Neoen, in a deal valuing the French company at €6.1bn. Neoen has 8 GW of wind, solar and battery projects up and running or under construction, and 20GW under development. Brookfield is a major renewable developer with a pipeline of about 157GW.

Sustainability-linked bonds (SLBs) impose penalties on borrowers when they fail green goals, but they don't need to invest the money into green projects. Enel missed its 2023 GHG emissions target and will pay €83 mln more on the €10 bln worth of SLBs. It’s the most significant penalty yet in a market whose first bond was issued by Enel in 2019.

Extra regulatory requirements, fewer financial incentives and the risk of being accused of greenwashing reduce clients' interest in sustainability-linked loans (SLL), which fell even more than green loans. EU's new rules require companies to back every sustainability statement. Even clean energy companies prefer to get funding through regular debt.

Demand for Europe’s debt sales is running at a record pace as investors clamor to lock in attractive yields before central banks start cutting rates. Issuers from across the ratings spectrum are attempting to get deals done at the start of the year. Because of the swollen public debt, investors want a premium for holding long-term bonds in particular.

The new regulations will require banks to set aside more capital. US banks currently have capital requirements from $9 to $13 for every $100 in risk-weighted assets. Under the new rules, they will need to add $2. This will affect lending, including to green energy projects. Banks will look to work alongside other corners of the finance sector to finance project.

Germany will cease sales of inflation-linked bonds starting next year, the country’s Federal Finance Agency said. Germany has four outstanding inflation-linked bonds totaling €66.25 bln with remaining maturities between 2.5 and 22.5 years. The nation’s outstanding inflation-linked securities will continue to be tradable on the open market.

High inflation will raise interest payments on these of bonds by a third to £92 bln over the next 5 years, on top of the £89 bln extra for the last 2 years (3.4% of GDP). The UK has 25% of debt linked to inflation, Italy is second with 12%. The reason is demand by UK pension schemes eager to buy assets that match their inflation-linkedin payments.