Daily Update — July 03, 2025
Climate Impacts on Governments; AI for Sustainability; and Private Credit Promises Bespoke Capital
Today is Thursday, July 3, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Energy Transition & Sustainability
Subnational Governments' Financials Waver Under Climate And Demographic Shifts
Climate changes — shifts in temperature and precipitation patterns, rising sea levels and the energy transition — increase governments' spending and liabilities. More frequent and severe weather events can change the fabric of local economies and alter revenue sources, and may require investments in adaptation and resilience, including infrastructure to support housing and transport. While these factors are present to varying degrees at the national and global levels, it is often at the local level that the effects are most acutely felt and the credit implications are most pronounced.
The energy transition may change local and regional governments' energy mix. It could affect employment, energy costs and revenue from fossil fuels, and demand more investment in costly energy infrastructure. Renewable energy offers significant advantages, including lower carbon emissions, energy independence and reduced fossil fuel imports. However, it also presents grid stability challenges.
Artificial Intelligence
Listen: How tech solutions, AI can drive the business case for sustainability
In this episode of the “All Things Sustainable” podcast, Caspar Herzberg, CEO of Aveva, a UK-based software company and Sustainable Markets Initiative (SMI) member, outlines the technology solutions supporting decarbonization efforts across sectors. Caspar also talks about the role AI can play in driving efficiency and boosting the business case for sustainability.
This is the latest episode in the Terra Carta series of the podcast, a collaboration with the SMI. Throughout 2025, hosts Esther Whieldon and Lindsey Hall will be interviewing SMI member CEOs across industries and around the world on how they’re approaching sustainability challenges and opportunities.
Private Markets
Private credit promises bespoke capital
With its flexibility, private credit is increasingly being tailored to suit many funding situations, from smaller corporate borrowers to fund-based finance, infrastructure and asset-based finance. As a result, private credit is expected to grow. Increasingly comprising more borrowers and with more varied instruments, this private credit growth could make the market more complex and less liquid.
As capital markets grow more customized to meet borrowers’ needs, new technologies, including AI and tokenization, help investors navigate an increasingly illiquid and fragmented market.
Learn more in our upcoming webinar.
In case you missed it
- A New York judge on June 30 ordered Argentina to turn over its 51% stake in YPF, the country's biggest oil producer, to plaintiffs as a partial payment for the $16.1 billion it owes for the expropriation of the company in 2012.
- The S&P 500 finished the first half of the year at an all-time high of 6,204.95, up 24.5% from its April 8 low.
- US President Donald Trump recently revoked a range of sanctions on Syria, including on US imports of Syrian oil.
Upcoming events
- Analyzing US datacenter and energy requirements in fast-growing markets, Georgia case study | July 8 (Webinar)
- Look Forward: The Future of Capital Markets | July 10 (Webinar)
- Navigating Change: The Critical Role of Sustainability in the Financial Function | July 15 (Webinar)
The next edition of the Daily Update will be published Tuesday, July 8.