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Notable News
US Fed: Executive Branch
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Environmental Protection Agency (EPA) Administrator Lee Zeldin urged the White House to strike down EPA’s Endangerment Finding, according to reporting from the Washington Post. (The 2009 finding enables the regulation of greenhouse gases under the Clean Air Act.) President Trump’s Unleashing American Energy executive order on 20 January gave EPA 30 days to submit recommendations on the legality and continuing applicability of the finding. While EPA has not shared its recommendations publicly, the Agency confirmed it has submitted these to the White House. (March 2025)
President Trump issued an executive order that requires independent agencies to send proposed regulations to the White House for review, asserts that the White House can prevent agencies from spending on projects it disagrees with, and declares that legal interpretations of regulations by the president and the Attorney General are binding. The order would affect independent agencies such as the Federal Energy Regulatory Commission, Environmental Protection Agency, and Securities and Exchange Commission. (Feb 2025)
President Trump signed an executive order establishing a National Energy Dominance Council to advise him on ways to “achieve energy dominance.” The Council is led by Interior Secretary Doug Burgum and Energy Secretary Chris Wright. It will advise the president on ways to improve the permitting, production, generation, distribution, regulation, and transportation of U.S. energy; cut red tape and enhance private sector investments to promote innovation; facilitate cooperation between the federal government and domestic energy partners to ensure policy consistency; and consult with public and private sector stakeholders to expand energy production and address cost barriers. (Feb 2025)
Department of Homeland Security Secretary Kristi Noem sent a memo to top department officials ordering them to “eliminate all climate change activities and the use of climate change terminology in DHS policies and programs.” The directive could lead to modifying or terminating climate-related contracts, ending participation in climate working groups, revising or rescinding climate policies, and ending climate-related reporting requirements. (Feb 2025)
The U.S. Army Corps of Engineers identified over 600 energy and infrastructure projects that are eligible to be fast tracked through environmental review under President Trump's National Energy Emergency declaration. The expedited permits include approval to destroy wetlands or impact waterways with little to no opportunities for local committees to review and voice concerns, according to the
Environmental Integrity Project. (Feb 2025)
The Council on Environmental Quality (CEQ) released its interim final rule
to rescind all National Environmental Policy Act (NEPA) regulations issued since the 1970s, which require federal agencies to consider the environmental impact of their work. The interim rule is
open for public comment for 30 days from being published. (Feb 2025)
The Securities and Exchange Commission (SEC) Acting Chairman Mark Uyeda announced the SEC will pause its defense of its climate disclosure rule against legal challenges. The rule is currently being challenged in a federal appellate court. The rule, finalized in March 2024, requires emissions disclosures when that information might affect investment decisions. Uyeda, who voted against the rule when a commissioner, said he did not believe the SEC had statutory authority to address climate change issues or adopt this rule. (Feb 2025)
PR » THE HILL » NEW YORK TIMES »
EPA Administrator Lee Zeldin announced he plans to revoke $20 billion in climate project grants awarded by the Biden Administration. He is calling for the termination of the financial agent agreement with the bank holding the funds, and for the return of the entire fund balance to the U.S. Treasury. Zeldin also plans to refer this matter to the Office of the Inspector General and Congress. (Feb 2025)
Energy Secretary Chris Wright signed an order directing the Department of Energy (DOE) to “take immediate action to unleash American Energy” in line with President Trump’s executive orders. Actions listed include (Feb 2025):
- Focus on expanding energy options instead of pursuing net-zero policies.
- Prioritize DOE’s R&D efforts on affordable, reliable, and secure energy technologies, including fossil fuels, advanced nuclear, geothermal, and hydropower.
- Undertake a comprehensive review of the DOE Appliance Standards Program, focusing on affordability and consumer choice.
- Enable the rapid deployment and export of next-generation nuclear technology.
- Resume consideration of pending applications to export liquefied natural gas to countries without a free trade agreement.
- Strengthen grid reliability and security, bringing a renewed focus to growing baseload generation.
- Streamline permitting by exercising the DOE's legal authorities to expedite the approval and construction of reliable energy infrastructure.
The Federal Highway Administration (FHWA)
informed state transportation directors that the
Department of Transportation (DOT) will review the policies underlying the National Electric Vehicle Infrastructure (NEVI) Formula Program, a federal clean energy program to expand the U.S. network of EV charging stations. FHWA also
rescinded NEVI program guidance and will update guidance according to “current U.S. DOT policy and priorities,” aiming to have a draft published for public comment in the spring. Through this rescission,
FHWA suspended the approval of all state EV infrastructure deployment plans for all fiscal years. While existing financial obligations will be reimbursed,
no new obligations may occur, and states will be “held harmless” for not implementing their existing plans. As Heatmap notes, this effectively freezes the $2.6 billion (of the $3.27 billion of total NEVI funding) that has not been awarded. (Feb 2025)
The Army Corps of Engineers temporarily paused permitting on 168 renewable energy projects across the U.S. to comply with President Trump’s
Unleashing American Energy
executive order.The pause, started 5 February, was supposed to end “on or about” 7 February. Heatmap reported that the Army Corps announced on 6 February that the pause had been lifted but could not confirm this. (Feb 2025)
The Department of the Interior issued an order suspending its staff from issuing “any onshore or offshore renewable energy authorization,” except for senior officials. This includes leases, amendments to leases, rights of way, and contracts. The order also suspended hiring personnel and issuing Resource Management Plans. It remains in effect for 60 days “or until any of its provisions are amended, superseded, or revoked.” (Feb 2025)
The Secretary of Transportation signed the
“Woke Rescission” Memorandum
directing department heads to eliminate all Biden-era programs and policies that promote climate change activism, environmental justice, and DEI initiatives. The memo gives agencies under the Department of Transportation (DOT) 10 days to identify all relevant programs and policies, and then 10 days to revoke them. In a separate action, the Secretary
also ordered
“an immediate review and reconsideration”
of all existing fuel economy standards applicable to vehicles from model year 2022 forward, and all fuel economy standards “at the earliest opportunity.” (Feb 2025)
The Trump Administration asked the Supreme Court to halt its review of a case challenging California’s stricter standards for vehicle emissions and electric vehicles (EVs). Lower courts had previously thrown out industry and state lawsuits against the standards (reinstated in 2022 by the Biden Administration) finding they lacked the necessary legal standing. The request noted that the EPA ”should reassess the basis for and soundness of” the reinstatement and that this reassessment “could obviate the need for this court to determine” whether the challengers have legal standing. The Administration also
asked the Supreme Court to reconsider
two other environmental cases, both of which would determine which federal courts can take on cases related to certain EPA actions. (Feb 2025)
On Monday (27 January),
the White House Office of Management and Budget (OMB)
issued an internal memo
freezing all federal grants, loans, and other financial assistance programs across the U.S. (including many clean energy and climate programs) in order “to determine the best uses of the funding for those programs consistent with the law and the President’s priorities.” The following day,
a federal judge temporarily blocked enforcing this directive, after one lawsuit was filed by a group of nonprofits, and another by over 20 states. Then Wednesday,
the OMB
rescinded its memo. (Feb 2025)
The Federal Reserve Board withdrew from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), a global coalition of central banks collaborating on climate risk management and green finance. The Fed noted that the NGFS’s work has broadened, covering a wider range of issues “outside of the Board’s statutory mandate.” (Jan 2025)
President Trump issued executive orders also affecting a wide range of social policies (Jan 2025):
- Ordered all agencies to terminate “illegal DEI and DEIA policies” (diversity, equity, inclusion, and accessibility), revoking several executive orders, including
Executive Order 11246 (Equal Employment Opportunity) from 1965, which ensures equal opportunity for women and people of color in federal contractors’ requirements.
AXIOS » - As noted in this
White House Fact Sheet, “federal hiring, promotions and performance reviews will reward individual initiative…and not, under any circumstances, DEI-related factors.” The Order also
requires “unmistakable affirmation” that contractors will not engage in DEI, according to the fact sheet.
AXIOS » - Required all agency heads to terminate all DEIA and environmental justice offices and positions, as well as equity action plans, initiatives, programs, grants, and performance requirements.
- Recognized two sexes, male and female, and required the use by agencies of terms based on sex, not gender, when “administering or enforcing sex-based distinctions.”
President Trump issued a series of executive orders and memorandums, affecting a wide range of environmental, energy, and climate policies (Jan 2025):
- The U.S.
formally withdrew from the Paris Agreement under the United Nations Framework Convention on Climate Change and
rescinded the U.S. International Climate Finance Plan.
ESG TODAY » - Declared the first-ever
“National Energy Emergency,” authorizing the heads of agencies to identify and exercise “any lawful emergency authorities” to facilitate the identification, leasing, siting, production, transportation, refining, and generation of domestic energy resources, “including, but not limited to, on Federal lands.”
NPR » - Signed the “Unleashing American Energy” order, which:
- Terminates the “Green New Deal,” pausing the disbursement of funds appropriated through the Inflation Reduction Act and Infrastructure Investment and Jobs Act.
- “Encourages energy exploration and production on Federal lands and waters”(“with particular attention to oil, natural gas, coal, hydropower, biofuels, critical mineral and nuclear energy resources”) and requires heads of agencies to review all agency actions that potentially burden the development of domestic energy resources, and develop and begin implementing action plans to suspend or revise these actions within 30 days.
- Reduces requirements for environmental considerations to “only the relevant legislated” ones in federal permitting or regulatory processes.
- Eliminates the “electric vehicle (EV) mandate,” terminating state emissions waivers and “considering the elimination of unfair subsidies” that favor EVs.
- Revokes twelve Biden Administration executive orders pertaining to climate action, clean energy, and environmental justice.
- Revokes
Executive Order 11991, from 1977, which, within 30 days,
shifts the Council of Environmental Quality (CEQ) from issuing binding rules
to only guidance on implementing the National Environmental Policy Act (NEPA).
LEGALPLANET » - Disbands the Interagency Working Group on the Social Cost of Greenhouse Gases, including estimates of the social costs of carbon, methane, and nitrous oxide, as it is “marked by logical deficiencies.”
- Requires the EPA to submit recommendations on the legality and continuing applicability of the
2009 “endangerment finding” enabling the EPA to conclude GHG emissions should be regulated as they endanger public health and welfare.
CIPHER » - Requires relevant agencies to identify all actions that impose undue burdens on domestic mining and take steps to revise such actions.
- Withdrew all areas
within the Offshore Continental Shelf for wind energy leasing, effective immediately. This memorandum also requires the “immediate review of federal wind leasing and permitting practices.”
AP »
President Biden signed an Executive Order to accelerate the development of the infrastructure needed for advanced AI operations in the U.S. The order directs the Department of Defense and Department of Energy to select government sites where the private sector can build AI data centers and clean power facilities, with agencies expediting permitting, coordinating the development of transmission lines, and facilitating grid interconnection. Developers will be expected to pay for the full costs of construction and operating the infrastructure and provide sufficient clean energy generation to support the data centers. (Jan 2025)
The Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) released final rules for the section 45V Clean Hydrogen Production Tax Credit, clarifying eligibility for hydrogen production credits. To qualify, lifecycle greenhouse gas (GHG) emissions must be no greater than 4 kg of CO2 equivalents per kg of hydrogen produced, divided into four tiers of credits, with hydrogen producing the lowest GHG emissions receiving the largest credit ($3/kg). The rules establish specific requirements for producing hydrogen from renewables (including incrementality and temporal matching), nuclear power, natural gas with carbon capture, renewable natural gas, and coal mine methane. (Jan 2025)
Treasury and IRS also released
final rules
for the Clean Electricity Investment and Production Tax Credits in tax code sections 45Y and 48E. The rules provide clarity around what zero-emissions technologies qualify for the credits, including wind, solar, hydro, marine, geothermal, nuclear, and certain waste energy recovery. These technology-neutral tax credits are expected to reduce electricity bills by up to $38 billion through 2030 and are
available to projects that began construction before 2025. (Jan 2025)
Treasury and IRS also released guidance on the Clean Fuels Production Credit (section 45Z). This provides a tax credit for the production of transportation fuels with lifecycle GHG emissions below certain levels. The credit
applies both to sustainable aviation fuel (SAF) and non-SAF transportation fuels. The credit consolidates and replaces pre-Inflation Reduction Act (IRA) credits for biodiesel, renewable diesel, and alternative fuels, and an IRA credit for SAF. (Jan 2025)
List of US Federal: Executive Branch News, 2024-2019 (PDF)
US Fed: Legislative Branch
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The House and Senate both passed resolutions to overturn the Biden administration’s rule that requires large oil and gas producers to pay a fee on methane emissions (which EPA has estimated would prevent 1.2 million metric tons of methane entering the atmosphere). However, as the fee is mandated by the 2022 Inflation Reduction Act, fully undoing EPA’s obligation to levy the fees will require additional legislation. (March 2025)
BLOOMBERG » REUTERS » WASHINGTON POST »
The chair of the House Judiciary Committee, Jim Jordan (R-Ohio), and antitrust subcommittee chairman Thomas Massie (R-Kentucky) wrote to over 130 U.S.-based companies, retirement systems, and government pension programs that are members in Climate Action 100+. Jordan and Massie asked the companies to explain their involvement with the group and to preserve materials pertaining to Climate Action 100+ and their efforts to advance ESG-related goals. (Aug 2024)
13 Senate Democrats wrote a letter to the Secretary of the Department of Treasury to express concern about the burdensome restrictions in the proposed requirements for implementing the Section 45V Credit for Production of Clean Hydrogen. The letter makes several recommendations to the 45V Credit guidance, offering alternative compliance pathways along the “three-pillars” of incrementality, temporal matching, and deliverability. (July 2024)
Ranking Republican member of the Senate Committee on Energy and Natural Resources and chair of the House Committee on Energy and Commerce (also Republican) wrote a letter to the director of the International Energy Agency (IEA), urging him to return the Agency to its "core mission of promoting energy security." They argue that the IEA has become an “energy transition cheerleader” and asked over 30 questions regarding the Agency’s analyses, recommendations, and expenditures. (March 2024)
The California Air Resources Board (CARB) approved the Advanced Clean Fleets rule, which will phase in a transition toward zero-emission medium- and heavy-duty vehicles. The rule includes an end to combustion truck sales in 2036 and establishes a phased transition of existing vehicles to zero-emissions, depending on the type (drayage trucks, yard trucks, and last mile delivery trucks by 2035, work trucks and day cab tractors by 2039, and sleeper cab tractors and specialty vehicles by 2042). In a separate announcement, CARB will require industrial and passenger locomotives built in 2030 or after to operate in zero-emissions configurations while in California, and in 2035 for freight line haul. (May 2023)
Florida Governor Ron DeSantis signed a law barring state officials from investing public money based on ESG factors, and prohibiting bonds tied to ESG projects or that impose restrictions tied to ESG ratings. (May 2023)
Under its new state budget deal, New York is set to ban the use of natural gas and other fossil fuels (including furnaces, water heaters, and gas stoves) in new construction. For buildings under seven stories, this ban would go into effect in 2026, for larger buildings, 2029. The rule does not apply to existing buildings or retrofits. (May 2023)
A group of 25 Republican-led states filed a motion with a federal judge in Texas to block a Biden administration rule allowing retirement plans to consider ESG factors in selecting investments until its legal challenge’s outcome is decided (filed last month). The lawsuit claims the rule violates federal law regulating employee benefit plans by redirecting focus to nonfinancial factors. The rule covers plans that together manage $12 trillion on behalf of more than 150 million people. (Feb 2023)
Two members of Congress, Juan Vargas from California and Sean Casten from Illinois, announced the launch of the Congressional Sustainable Investment Caucus (CSIC). CSIC will bring together members of Congress with experts to better understand ESG investing and inform policymaking that provides investor protections and transparency of information to market participants. (Jan 2023)
The U.S. Senate ratified the Kigali amendment to the Montreal Protocol, joining 137 countries in pledging to phase out the use of super-polluting greenhouse gases found in refrigerators and air conditioners. If successfully implemented, scientists estimate the treaty will prevent up to 0.5°C warming by the end of the century. (Sept 2022)
The House of Representatives passed the Inflation Reduction Act of 2022 on a party line 220-207 vote. President Joe Biden said he will sign the bill this week. The final bill appropriates $437 billion for climate, health subsidies, and drought relief and is estimated to generate $739 billion in revenue over ten years. (Aug 2022)
The Senate passed the Inflation Reduction Act of 2022, paving the way for $739 billion in funding focused primarily on efforts to decarbonize the US economy, lower healthcare costs, revise the tax code, and reduce the federal deficit. According to independent modeling analyses from Energy Innovation and Evolved Energy Research, the bill’s $369 billion in climate-related provisions could:
- Reduce greenhouse gas emissions by up to 42% by 2030 (2005 baseline), compared to a projected 24–27% reduction under current policies.
- Avoid at least 24 tons of emissions for every ton of emissions it allows with new land use provisions for fossil fuel development.
- Increase carbon capture 13-fold by 2030 compared to the current trajectory (with carbon capture accounting for up to 20% of CO2 cuts resulting from the bill).
- Lower annual U.S. energy expenditures by at least 4% in 2030—an annual savings of nearly $50 billion dollars—and drive more than $3 trillion in cumulative capital investment in clean energy infrastructure over the next decade.
The House of Representatives is expected to reconvene on Friday, August 12 to consider approving the bill. (Aug 2022)
Senate Majority Leader Chuck Schumer and Senator Joe Manchin reached an agreement on a draft revenue and spending bill—the Inflation Reduction Act of 2022—that allocates an unprecedented $369 billion over ten years to tackling energy security and the climate crisis. The funds, if approved, could put President Biden’s ambitions to reduce US emissions 50% by 2030 (2005 baseline) back in play. The bill’s authors, and independent analyses like this one from Rhodium Group, say the provisions of the plan could reduce emissions by up to 44% by 2030, and that additional action by the Biden administration, subnational governments, and businesses could put reductions over the 50% goal. Key climate-related provisions in the bill include (Aug 2021):
- $60 billion to accelerate US manufacturing of clean energy components like solar panels, wind turbines, batteries, and the processing of essential minerals.
- Creation of a new Methane Emissions Reduction Plan, which includes financial incentives for oil & gas companies to monitor and trap methane in their operations. It also includes a new fee on excess emissions.
- Continuation of a tax credit of up to $7,500 for new clean vehicle purchases and, for the first time, up to $4,000 for used clean vehicle purchases. The bill also creates a 30% tax credit for commercial electric vehicles.
- Creation of a $27 billion Greenhouse Gas Reduction Fund intended to catalyze the development of decarbonization technologies and processes through direct investment and leveraging private capital.
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West Virginia Senator Joe Manchin, citing concerns about exacerbating inflation, has indicated that he will vote against spending and tax legislation that contains climate mitigation measures. The move effectively kills those provisions—which had included hundreds of billions of dollars for funding and incentives to speed the transition to EVs, renewable energy, and more—in democrats’ pending bill. Without that funding, the Biden administration’s climate goals like halving GHG emissions by 2030 (2005 baseline) will be far more challenging to achieve and would rely heavily on increased executive action, especially if democrats lose the House this fall. (July 2022)
List of US Federal Legislative Branch News, 2021-2019 (PDF)
US Fed: Judicial Branch
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Seven customers filed a class action lawsuit against Apple, alleging it misled consumers on claims that some of its Apple Watches are carbon neutral, arguing the products depended on carbon offsets that were not “genuine” or “additional.” Along with damages, the plaintiffs are suing for an injunction to block Apple from marketing the watches as carbon neutral. (March 2025)
A federal judge rejected legal challenges brought by the U.S. Chamber of Commerce in a lawsuit targeting California’s climate reporting laws (SB 253 and SB 261). The Chamber argued that the laws violated companies’ first amendment rights, and that this was an attempt to regulate greenhouse gas emissions by shaming companies through disclosure. The court rejected these claims, noting that the law only requires disclosure, and does not impose liability for failing to reduce emissions. The lawsuit also challenged the laws on extraterritoriality grounds, and for pre-empting federal laws. The court found that as the reporting requirements have yet to be released, this challenge “is not ripe for review.” (Feb 2025)
A New York Supreme Court justice dismissed a New York City lawsuit to hold ExxonMobil, Shell, BP and American Petroleum Institute liable for misleading the public about their products’ role in causing climate change. The judge found no proof that the defendants conducted “greenwashing” campaigns. (Jan 2025)
The U.S. Court of Appeals for DC issued a decision invalidating a joint plan by the Federal Aviation Administration and National Park Service regarding tourist flights over national parks due to failure to comply with the National Environmental Policy Act (NEPA). Most notable is the Court, without prompting, challenged the White House Council on Environmental Quality’s (CEQ) rulemaking authority to implement NEPA, even though CEQ has overseen NEPA policy and implementation for over 50 years. The Court stated that the President cannot grant rulemaking power through an executive order. In the short term, this ruling will “likely further slow down the permitting process and increase litigation risk.” And if the ruling stands, it could weaken many rules implementing NEPA or lead to a piecemeal approach to NEPA practices across various agencies. (Nov 2024)
A judge refused a challenge brought by the U.S. Chamber of Commerce and other business groups to disallow two California climate laws (SB 253 and SB 261) because they violated the First Amendment, according to ESG Today. These laws, which require disclosures of climate emissions and climate-related financial risks, could still be challenged, as the judge did not determine whether they fall under First Amendment protections or commercial speech. (Nov 2024)
The Supreme Court declined to put on hold a new federal rule targeting carbon pollution from coal and gas-fired power plants while litigation proceeds in a lower court. In an opinion, Justice Kavanaugh wrote that the challengers (states and power companies) are “unlikely to suffer irreparable harm” before the lower court completes its review as compliance work does not need to start until June 2025. (Oct 2024)
A U.S. District Judge in Maryland issued a ruling that the U.S. National Marine Fisheries Services’ “biological opinion” on the impact of oil and gas extraction in the Gulf of Mexico on protected marine life is in violation of the Endangered Species Act and the Administrative Procedure Act. The judge determined the NMFS opinion did not adequately address risks species face from oil spills and vessel strikes, and gave the agency until 20 December to either complete a new opinion or plan for changes in Gulf oil operations. (Aug 2024)
A U.S. district court barred Missouri from enforcing a state securities rule requiring advisors to disclose to clients when they consider ESG factors in investment decisions. The rule, adopted in June 2023, was determined invalid as it imposes requirements on brokers and advisors that do not exist in federal law, violates their free-speech rights, and is “unconstitutionally vague.” (Aug 2024)
The Supreme Court overruled the 1984 Chevron v. Natural Resources Defense Council decision, reducing the power of federal agencies to interpret the laws it implements. The 1984 decision required courts to defer to federal agencies when creating regulations based on an ambiguous law. Courts will now be required to “exercise their independent judgment in deciding whether an agency has acted within its statutory authority” (as the majority opinion states). (July 2024)
The Supreme Court also granted a temporary stay
on the Environmental Protection Agency’s
Good Neighbor Plan, which requires 23 upwind states to curb certain pollutants from drifting downwind to other states. The plan has already been paused in 12 states by courts while legal proceedings unfold. (July 2024)
The American Petroleum Institute (API) filed a lawsuit in the D.C. Circuit Court of Appeals challenging EPA’s light-duty and medium-duty vehicle emissions standards for model years 2027-2032. API, joined by the National Corn Growers Association, the American Farm Bureau Federation, and six auto dealers, argued that the EPA “has exceeded its congressional authority” with regulation that will eliminate most new gas cars and hybrids from the U.S. market in less than a decade. (June 2024)
PR »
REUTERS »
The National Association of Manufacturers (NAM) sued the Environmental Protection Agency (EPA) over its final rule on standards for six PFAS substances in municipal water systems. NAM, joined by the American Chemistry Council, alleged that the EPA had exceeded its authority, that the rules were excessively costly, and that no viable alternatives exist for some of the substances. (June 2024)
A federal court of appeals suspended a venture capital firm’s grant contest for Black women business owners while the case against the program by the American Alliance for Equal Rights proceeds. The lawsuit argues that Fearless Fund’s contest, which provides $20,000 to businesses that are majority owned by Black women, is discriminatory. (June 2024)
The Supreme Court issued a ruling that shareholders cannot sue companies under federal fraud law for not disclosing trends that affect their future revenue unless the omission makes another statement misleading. This came in the context of a 2018 case in which a shareholder sued an infrastructure company for failing to disclose that its revenues were vulnerable to an international phase-out of high-sulfur fuel oil. “A duty to disclose does not automatically render silence misleading,” but only if it “renders affirmative statements made misleading,” according to the Court’s decision. (April 2024)
The Supreme Court issued a ruling holding that Title VII of the Civil Rights Act bars employers from discriminating in decisions like lateral transfers, without requiring employees to show the decision caused “significant” harm. The case supported police sergeant Jatonya Clayborn Muldrow, who argued that being transferred from the Intelligence Division to a uniformed job so a man could replace her lost her many perks and responsibilities even though her salary remained the same. The court determined that Muldrow had experienced discrimination as a “disadvantageous” change had occurred through her transfer. (April 2024)
A U.S. appeals court upheld the Environmental Protection Agency’s decision to grant California a waiver to set its own vehicle emissions standards. The court rejected a challenge by 17 Republican-led states and fossil fuel companies to revoke California’s authority, arguing they failed to prove how California’s emission standards would drive up costs for gas-powered vehicles in their states. (April 2024)
A U.S. District Court in Texas struck down a Department of Transportation rule that would have required states and cities to set targets for reducing GHG emissions from vehicles using the national highway system. The judge ruled that the DOT was not authorized to include environmental benchmarks in states’ assessments of highway performance. (April 2024)
A federal judge in Texas declined to block a Biden administration rule allowing employee retirement plans to consider ESG issues in investment decisions. The request of the court was brought by 25 states, who claimed that the rule creates a regulatory bias in favor of ESG strategies. (Sept 2023)
A legal settlement in federal court commits the Environmental Protection Agency (EPA) to several reforms to better protect endangered species from pesticides. The agreement requires the EPA to develop a strategy to better protect endangered species from herbicides by 2024 and insecticides by 2025. (Sept 2023)
The Supreme Court ruled that businesses can refuse to serve same-sex couples if doing so would violate the owners’ religious beliefs. The Court concluded that the plaintiff in the case had a First Amendment right to refuse designing custom wedding websites for same-sex couples. (July 2023)
A federal judge in North Dakota temporarily blocked the EPA’s Waters of the United States rule (finalized in December) in 24 states, pending the outcome of a lawsuit filed by those states. The rule established protections for wetlands and seasonal streams and came into effect March 20. The judge argued that the rule “poses a threat to [states’] sovereign rights” and states would “expend unrecoverable resources complying with a rule unlikely to withstand judicial scrutiny.” The EPA responded, stating that the regulations were “the best interpretation” of the Clean Water Act, and that the agency is reviewing the decision and its options. (April 2023)
The U.S. Court of Appeals for the Eighth Circuit affirmed the Fifth Circuit’s ruling, dismissing Missouri v. Biden, in which several states attempted to prohibit the Biden Administration’s use of interim estimates of the Social Cost of Carbon in agency proceedings. The court explained that the states cannot preemptively challenge the Social Cost of Carbon outside of the context of a specific agency action. The court also noted that the estimate does not cause harm in itself and that the determining of the cost is a “sensible exercise of the President’s executive power” and should not be prohibited. Full ruling is here. (Oct 2022)
The Supreme Court has ruled in West Virginia v. EPA that the agency can't legally try to shift power generation away from fossil-fuels to cleaner sources. The 6–3 ruling established that the 1970 Clean Air Act's provision that the EPA enact "the best system of emission reduction" does not empower it to make decisions with sweeping economic and political impact and suggests that such decisions must be made by Congress. It is a development that presents new challenges to the Biden Administration's decarbonization goals; But, since the EPA's ability to regulate power plant emissions remain intact, the agency has said it will likely enact a suite of additional emission regulations—and fines for non-compliance—on fossil fuel plants. Doing so would reduce GHG emissions, with a likely side effect of making clean alternatives with falling costs, like solar and wind, more attractive. (July 2022)
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The US Supreme Court overturned Roe v. Wade, ending federal constitutional abortion rights and giving states authority to regulate abortions. Nearly half of US states have or are likely to pass laws banning or enacting strict measures regulating abortions. In response to the ruling, dozens of US companies have committed or reaffirmed their position to help employees access abortion services if denied in their state. The following outlets cover corporate responses and benefits: Bloomberg, NY Times, and Forbes. (June 2022)
The Supreme Court denied an emergency application by several Republican-led states to
prevent the Biden administration from factoring the social costs of GHG into government decisions. In April, the Federal District Court in Louisiana sided with the states and issued a preliminary injunction blocking the administration’s use of its estimate of harms from carbon emissions, but the Fifth Circuit stayed the injunction. The emergency application by the states sought to reverse the appellate court’s stay. (May 2022)
A federal appeals court lifted a ban that blocked the Biden administration from using the “social cost of greenhouse gasses” (based on a dollar estimate of the damage caused by emitting 1 metric ton of GHGs into the air) it put into place in January 2021 for federal permitting, investment, and regulatory decisions. (March 2022)
A federal judge blocked the Biden administration from using the “social cost of greenhouse gases” (an estimate of the damage caused by emitting 1 metric ton of GHGs into the air)
it
put into place in January 2021 for federal permitting, investment, and regulatory decisions. The amount will revert from $50 per ton to the $10 or less per ton imposed by the Trump administration. (Feb 2022)
A federal judge struck down a 2020 environmental rule implemented by former President Donald Trump
that allowed pollutants such as pesticides, fertilizers, and industrial chemicals to be discharged into streams and wetlands. (Sept 2021)
A federal judge ordered ExxonMobil, BP, Hess Corporation, and Shell to help cover $7.2 billion’ worth of costs for capping and abandoning hundreds of wells in the Gulf of Mexico they previously owned. (July 2021)
A federal judge in Louisiana issued a
preliminary injunction blocking the Biden administration from pausing new oil and gas leases on federal land. (June 2021)
The Supreme Court ruled in favor of energy companies—including BP, Chevron, ExxonMobil, and Royal Dutch Shell—contesting a lawsuit filed by the city of Baltimore seeking monetary damages from the companies for costs caused by climate change. (May 2021)
A federal appeals court rejected New York City’s effort to hold oil companies—including BP Plc, Chevron Corp, ConocoPhillips, Exxon Mobil Corp, and Royal Dutch Shell—liable to help pay the public costs of climate change. The three-judge panel remarked, “global warming presents a uniquely international problem of national concern. It is therefore not well-suited to the application of state law.” (April 2021)
The U.S. Court of Appeals for the District of Columbia Circuit
struck down the Trump administration’s approach to regulating carbon emissions from power plants (the “Affordable Clean Energy rule”), opening up avenues for the Biden administration to pursue tougher power plant regulations. (January 2021)
A
U.S. appeals court ruled that the Dakota Access Pipeline can continue operations, overriding a prior ruling made by the U.S. District Court for the District of Columbia requiring the pipeline to temporarily shut down until an environmental impact assessment is conducted. However, the appeals court
did not halt the prior ruling requiring the Army Corps of Engineers to
conduct an environmental impact assessment. (August 2020)
The
U.S. Supreme Court upheld a lower court decision to
suspend construction on parts of the
Keystone XL pipeline. (July 2020)
Bayer has agreed to pay around $10 billion to settle around 125,000 claims that its Roundup product causes cancer. The settlement will also resolve potential future litigation. (June 2020)
US States & Cities
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Missouri filed a lawsuit against Starbucks, alleging the company violated federal and state anti-discrimination laws. The lawsuit claims the company is using its DEI commitments as a pretext to unlawfully discriminate based on race, sex and sexual orientation in its hiring practices, training, and advancement opportunities. (Feb 2025)
133 mayors, council members, and county officials across 39 states wrote a letter calling on Congress to preserve the 13 clean energy tax credits available to state and local governments, noting that repealing these will upend “countless energy projects and jobs across our country.” The letter also noted that 85% of announced investments and 53% of new clean energy jobs benefited districts represented by Republican members of Congress. (Feb 2025)
22 states, led by West Virginia, filed a lawsuit against the state of New York opposing its Climate Change Superfund Act. The plaintiffs argue that the law is “overreach,” punishing fossil fuel companies for emissions that were regulated by the federal government and “produced legally.” Additional plaintiffs include three fossil fuel trade groups and a coal mining company. (Feb 2025)
Eleven Attorneys General, led by Texas AG Ken Paxton, sent a letter to six financial institutions warning them of potential legal actions over their DEI and ESG commitments. The letter, addressed to Bank of America, BlackRock, Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley, asked the banks to clarify their positions on several diversity topics (including employment, board, and supplier quotas) and their climate policies and practices within 45 days “to avoid a lengthy enforcement action.” (Feb 2025)
The U.S. Climate Alliance, consisting of governors from 24 states and territories representing 60% of the U.S. economy, wrote a letter to the Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC). The letter asserts that the coalition “will continue America’s work to achieve the goals of the Paris Agreement and slash climate pollution,” and that alliance members are on track to reduce their collective GHG emissions 26% below 2005 levels by 2025. (Jan 2025)
New York Governor Kathy Hochul signed into law The Climate Change Superfund Act. This will require fossil fuel companies that have contributed significantly to GHG emissions to pay $3 billion per year for the next 25 years into a state fund for infrastructure projects to increase New York’s resilience to climate change. (Jan 2025)
A federal judge in Texas ruled that American Airlines violated federal law by choosing funds for its 401(k) plan from investment companies pursuing ESG goals. According to the ruling,
the company breached its fiduciary duty of loyalty in allowing its plan to be influenced by corporate goals unrelated to workers’ financial interests. However, the judge found that
the company did not breach its fiduciary duty of prudence as it was "acting according to prevailing industry standards.” (Jan 2025)
The Texas Attorney General filed a lawsuit against BlackRock, The Vanguard Group, and State Street Corporation for “conspiring to artificially constrict the market for coal through anticompetitive trade practices.” The suit claims the investment firms acquired “substantial shareholdings” in major coal companies to pressure the companies to reduce the production of coal. Ten other states also joined Texas in the lawsuit. (Dec 2024)
California voters approved Proposition 4, a ballot measure that will establish a $10 billion bond to fund climate-related projects across the state. These include efforts to improve drinking water, fight wildfires, protect and restore natural lands, and increase resilience against extreme heat and flooding. (Nov 2024)
The
Climate Commitment Act
was upheld in Washington State after an attempt to repeal it was defeated. This “cap-and-invest” law, passed two years ago, requires major greenhouse gas emitters to buy allowances to emit and uses the funds for government programs. (Nov 2024)
Voters in Minnesota voted to renew directing lottery proceeds to the Environment and Natural Resources Trust Fund for another 25 years. Since 1991, the fund has supported at least 1,700 conservation projects with over $1 billion. (Nov 2024)
Voters in Louisiana approved an amendment that will allocate funds from offshore alternative energy projects to coastal restoration and protection (rather than to the state’s general fund). This is already the case for offshore oil and gas revenues. There are currently no completed offshore wind projects in Louisiana yet. (Nov 2024)
Utah launched Operation Gigawatt, an initiative to double Utah’s “reliable energy production” over the next 10 years, in order to address converging issues of population growth, electrification, energy-intensive industry growth, and the retirement of baseload power plants. It aims to increase transmission capacity, develop more energy production, enhance Utah’s policies to enable sources like nuclear and geothermal energy, and invest in innovation and research. (Oct 2024)
California Governor Gavin Newsom signed two new bills into law, including the Climate Corporate Data Accountability Act, which requires large companies doing business in California to report on their value chain emissions and climate-related financial risks. The final version includes amendments that delay Scope 3 emissions reporting based on a schedule determined by the California Air Resources Board. The Governor also signed the Responsible Textile Recovery Act of 2024, a first-of-its-kind bill in the U.S., which requires clothing and textile producers to pay into a Producer Responsibility Organization (PRO) to manage the collection, sorting, and recycling of apparel and textile articles. (Oct 2024)
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The California Attorney General sued ExxonMobil for allegedly engaging in a campaign of deceptive marketing for several decades promising that recycling would address the increasing amount of plastic waste the company produces. The company is the world’s largest producer of polymers used to make single-use plastics. The lawsuit argues ExxonMobil’s recent promotion of “advanced” or chemical recycling of plastics is also misleading. (Sept 2024)
The Michigan Supreme Court ruled that state environmental regulators can require livestock and poultry operations to improve their handling of manure that contributes to waterway contamination. The ruling came after the Michigan Farm Bureau contested state regulations requiring meat, milk and egg producers to improve practices for managing manure and other wastes. (Aug 2024)
A Maryland judge dismissed a lawsuit by Baltimore City attempting to hold oil companies responsible for climate change, explaining that greenhouse gas emissions fall under the federal Clean Air Act. The case, originally filed in 2018, targeted 26 companies. The city’s affirmative litigation chief said the companies were liable because they engaged in false marketing and concealed harms associated with their products, and will seek a higher court’s review. (July 2024)
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Vermont became the first U.S. state to enact a law requiring oil companies to pay for damage from climate change. This “Climate Superfund Act” requires the largest fossil fuel companies to pay for a share of state climate change costs proportional to their emissions from 1995 to 2024. (June 2024)
Republican attorneys general from 27 states, rural power companies, and industry trade groups are suing the EPA (in multiple lawsuits), attempting to block the recent rule that aims to reduce CO2 emissions from existing coal and natural gas power plants by 90% by 2032. One lawsuit by 25 states, led by West Virginia, is also asking the court to stay the regulation, preventing its implementation while litigation is underway. (May 2024)
West Virginia added four banks to a list of financial institutions barred from providing “banking services to the State” due to their “boycotts of fossil fuel companies,” based on a review of each institution’s ESG policies and other publicly available statements. This brings the total to nine banks. (April 2024)
Texas banned Barclays from participating as an underwriter in the state’s municipal bond market after failing to respond to requests for more information regarding its ESG policies. (Feb 2024)
The New Jersey Legislature passed the Electric and Hybrid Vehicle Battery Management Act, which provides a framework for the collection, transportation, remanufacturing, reuse, and recycling of “propulsion batteries” (batteries used to propel electric and hybrid cars and trucks, as opposed to starter batteries). This makes New Jersey the first in the U.S. to pass a law providing industry guidance on recycling propulsion batteries and aims to support the creation of a circular economy in the state around EV batteries, according to Recycling Today. (Jan 2024)
Michigan Governor Gretchen Whitmer signed legislation that mandates 100% carbon-free energy generation by 2040. The state also set a goal for utilities to generate 50% of their energy from renewable sources by 2030 and 60% by 2035, up from 12% currently. (Dec 2023)
New York State filed a lawsuit alleging PepsiCo has harmed the public and the environment with its single-use plastic packaging, one of the first lawsuits of its kind brought on by a state. The lawsuit seeks to force the company to clean up contamination, pay civil penalties and restitution, among other things. (Nov 2023)
The California Public Employees’ Retirement System (CalPERS) announced its new Sustainable Investments 2030 Strategy to reduce carbon emissions intensity of CalPERS’ investments by 50% by 2030. CalPERS will commit over $100 billion toward climate solutions by 2030 (more than twice its current $47 billion in low-carbon assets), and sell off investments that do not have credible plans to reduce carbon emissions. (Nov 2023)
New York Governor Kathy Hochul announced “the largest investment in clean energy in U.S. history”: three offshore wind projects and 22 land-based renewable energy projects totaling 6.4 GW — enough to cover 12% of New York’s electricity needs. Hochul also announced a $300 million state investment in wind turbine blade and nacelle manufacturing. The energy and manufacturing projects are estimated to generate $20 billion in economic investment and 8,300 jobs in New York. (Oct 2023)
The U.S. Climate Alliance, a bipartisan coalition of 25 governors, announced a series of commitments to quadruple heat pump installations by the end of the decade as part of its effort to decarbonize buildings. At least 40% of benefits from the heat pump initiative would flow to disadvantaged communities. The heat pump installations will advance Alliance members’ goal of achieving zero-emission new construction as soon as practicable and eliminating emissions from existing buildings at a pace consistent with the Paris Agreement. (Sept 2023)
California’s Attorney General filed a
lawsuit
against five oil companies and the American Petroleum Institute (API), alleging a decades-long campaign of deception that led to tens of billions of dollars in damages from climate change. The suit asks the court to order the companies to pay the cost of the impacts of fossil fuels; prohibit oil companies from engaging in further pollution; levy financial penalties on the companies for lying to the public and order the industry to end their deceptive statements about their impacts; and award punitive damages to the state. (Sept 2023)
The California Legislature passed a bill requiring businesses operating in California and with annual revenue of over $1 billion to publicly disclose their direct and indirect greenhouse gas emissions (Scopes 1, 2, and 3). Companies would have to start disclosing Scope 1 and 2 emissions annually in 2026, and Scope 3 emissions in 2027. The governor has until October 14 to sign or veto the bill, or it automatically becomes law. (Sept 2023)
A group of 22 U.S. states and territories have dropped their effort to block a proposed $10.3 billion settlement between 3M and U.S. public water providers over water pollution tied to “forever chemicals” (PFAS). The states withdrew their objections after negotiating changes with 3M and the water providers to the proposed deal, which would settle hundreds of lawsuits over PFAS contamination. The U.S. court hearing the case then gave preliminary approval to move forward to a “fairness hearing” in February. (Sept 2023)
A Montana state court ruled that the state’s failure to consider climate change when approving fossil fuel projects was unconstitutional. (The Minnesota Constitution guarantees residents “the right to a clean and healthful environment.”) The suit, brought by 16 young people in 2020, is the first of its kind in the U.S., and could influence other pending climate lawsuits in the country. Montana — a significant producer of oil, gas, and coal — will now have to consider climate change when deciding whether to approve new fossil fuel projects. The state attorney general’s office said the state would appeal. (Aug 2023)
California Governor Gavin Newsom directed the Governor’s Office of Business and Economic Development to develop California’s Hydrogen Market Development Strategy. This all-of-government approach aims to build up California’s “clean, renewable hydrogen market” and decarbonize transportation and industrial sectors, working to identify shared strategies, coordinate multiple state agencies, and engage with relevant stakeholders. (Aug 2023)
Wyoming and Colorado signed a Memorandum of Understanding to partner on direct air capture (DAC) development and activity. The two states will collaborate on activities such as applying for grants, analyzing carbon dioxide removal markets, identifying a process for resolving issues with cross-border CO2 sequestration, developing a commercialization pipeline for nascent technologies, and engaging local, tribal, and state stakeholders. (July 2023)
Eighteen state governors, led by Florida governor Ron Desantis, launched an alliance aimed at coordinating actions to “protect individuals from the ESG movement.” The alliance agreed to work together to protect taxpayers from ESG influences across state systems and protect citizens from ESG influences in the financial sector. (March 2023)
New Jersey passed a new law that incentivizes the decarbonization of the concrete industry. Specifically, the law provides tax credits both for the cost of preparing environmental product declarations that assess the global warming potential of various concrete mixes as well as for the delivery of concrete for use in state projects that has lower emissions associated with its production or that utilizes carbon capture and storage to remove or recycle CO2 generated through the manufacturing process. New Jersey is the first U.S. state to pass a law like this and the NJ environmental commissioner said he will try to encourage other states to adopt similar laws, using his role as infrastructure work group chair at the Environmental Council of the States. (Feb 2023)
The New York state governor, Kathy Hochul, announced a Cap-and-Invest Program that establishes a declining cap on greenhouse gas emissions, invests in programs that drive emissions reductions, limits costs to economically vulnerable households, and maintains the competitiveness of New York industries. The cap will be reduced every year, with a 40% emissions reduction by 2030 and at least an 85% reduction by 2050 (from 1990 levels). In addition, Governor Hochul will propose legislation to create a universal Climate Action Rebate that is expected to drive more than $1 billion in future cap-and-invest proceeds to New Yorkers every year. (Jan 2023)
A group of U.S. state attorneys general have sent civil investigative demands to the six largest banks in the U.S., alleging that their ESG practices hurt the American energy industry. The attorneys general are seeking documents from the banks, which include JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup, Wells Fargo, and Morgan Stanley, about their involvement in the Net-Zero Banking Alliance. (Oct 2022)
Louisiana announced it is divesting $794 million by the end of the year from the company to “protect” the state’s Treasury funds from BlackRock’s “support of ESG investing.” In a letter to BlackRock CEO, state Treasurer John Schroder said BlackRock’s “blatantly anti-fossil fuel policies would destroy Louisiana’s economy.” The state has already divested $560 million of this total. (Oct 2022)
California will ban the sale of all new natural gas-fired space heaters and water heating appliances by 2030, the first U.S. state to do so, under a proposal unanimously approved the California Air Resources Board. The proposal does not include gas stoves, but about 50 cities and towns in California have adopted regulations that ban or discourage the use of gas-fueled stoves in new buildings. (Sept 2022)
The Texas comptroller, Glenn Hegar, released
a list of 10 companies and 348 investment funds
that will be barred from entering into most contracts with Texas state and local entities because they all allegedly “boycott energy companies.” State pension funds and local governments issuing municipal bonds will also have to divest from companies on the list, which include
BlackRock, Credit Suisse, and UBS. As Axios
reports, several targeted companies pushed back on the decision citing facts that counter the claims. West Virginia took a similar action last month, banning fiver major financial firms. (Aug 2022)
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The California Air Resources Board voted to require all new vehicles to be zero-emissions by 2035, with milestones of 35% zero-emissions by 2026 and 68% in 2030. Electric vehicles currently make up 16% of California’s new-vehicle sales. The rule would allow people to continue driving and purchasing used gas-fueled vehicles after 2035 as well as allowing one-fifth of sales to be plug-in hybrids. (Aug 2022)
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The attorneys general of West Virginia and Arizona, joined by 22 others, wrote to the SEC arguing that its Enhancement and Standardization of Climate-Related Disclosures for Investors proposed in April of this year is an agency overreach and should be abandoned. They cited last week's SCOTUS ruling limiting the EPA's regulatory authority over power plants as a parallel, arguing that both cases represent the kind of sweeping change that would require legislation from Congress. The challenge to the proposed rule may be the first of many looking to reverse agency-led climate-related rules, based on the West Virginia vs. EPA precedent. (July 2022)
California Governor Gavin Newson has signed a new law that will “cut plastic pollution and hold the plastics industry accountable for their waste.” The Plastic Pollution Prevention and Packaging Producer Responsibility Act mandates a 65% rate of recycling for plastic packaging and plastic food service ware by 2032 (with interim targets of 30% and 40% in 2028 and 2030, respectively) and a 25% cut in the production of those goods over the same period. The new law also levies a $500 million (total) per year annual surcharge on producers of the plastics in question, to be allocated the California Plastic Pollution Mitigation Fund. (July 2022)
The Biden Administration and eleven East Coast states launched the “Federal-State Offshore Wind Implementation Partnership” to accelerate the development of offshore wind facilities. As the first course of action, the Partnership announced commitments to help strengthen the U.S. offshore wind supply chain by expanding key elements such as manufacturing facilities, port capabilities, and workforce development. The Biden Administration also announced steps to advance a National Offshore Wind Supply Chain Roadmap and designate offshore wind vessels as “Vessels of National Interest” to facilitate more offshore wind construction. (June 2022)
Sixteen states, four environmental groups and the United Auto Workers have filed three separate lawsuits against the United States Postal Service (USPS) and Postmaster General Louis DeJoy over their decision to purchase roughly 40,000 internal combustion vehicles for their delivery fleet. The lawsuits contend that the defendants signed the contracts before conducting a thorough and accurate environmental assessment. The White House and the EPA have also asked that the purchase be reconsidered and that a greater emphasis be placed on cutting emissions. (May 2022)
New offshore wind initiatives (Jan 2022):
- The Interior Department’s Bureau of Ocean Energy Management (BOEM) will hold an offshore wind lease sale for a record 480,000 acres next month, in the “New York Bight” area off the coasts of New York and New Jersey. The sale is projected to generate 5.6-7 gigawatts of clean energy and power 2 million homes. Notably, lease provisions will require lessees to identify any ocean users, tribes, and underserved communities affected by projects, and will financially incentivize lessees to source offshore wind components domestically. MORE »
- The BOEM and the states of New York and New Jersey released a “shared vision” for their new collaboration to develop a domestic offshore wind supply chain that benefits state and regional residents, including disadvantaged and overburdened communities. MORE »
- The National Oceanic and Atmospheric Administration (NOAA) and BOEM are forming an interagency agreement to advance offshore wind energy “while protecting biodiversity and promoting cooperative ocean use.” MORE »
- The National Offshore Wind Research and Development Consortium is awarding over $3 million to six offshore wind R&D projects, including GE Renewable Energy and GE Research. MORE »
New York unveiled the Fashion Sustainability and Social Accountability Act, which would be the first state legislation to hold fashion retailers accountable for their environmental impact. The bill would require apparel and footwear brands selling in the state and generating over $100 million in revenue to map at least 50% of their supply chain, disclose areas in the chain where they have the most social/environmental impact, and make clear plans to reduce the impact. Noncompliant companies would be fined up to 2% of their annual revenue, with their names published on an annual list by the state attorney general. (Jan 2022)
List of US States and Cities News, 2021-2019 (PDF)
International Institutions, Collaborations & Rankings
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The 16th United Nations Biodiversity Conference (COP 16) resumed and concluded this week in Italy, after it was suspended last fall in Colombia. The more than 140 countries that are part of the Convention on Biological Diversity (CBD) agreed to a target of mobilizing $200 billion a year in biodiversity finance by 2030. This includes $20 billion from developed countries to support developing countries’ biodiversity efforts by 2025, rising to $30 billion by 2030. The agreement includes commitments to establish permanent arrangements for the financial mechanism, and outlines a roadmap of activities and decision-making until 2030. (March 2025)
The Cali Fund officially launched at the
resumed sessions of COP 16,
after being established at COP 16 last fall. This fund
encourages companies generating income from products drawing on genetic data to contribute a portion of their revenues or profits to biological conservation, supporting the Kunming-Montreal Global Biodiversity Framework, biodiversity-rich countries, and Indigenous communities whose genetic resources and traditional knowledge contribute to global scientific advancements.
No companies have made firm commitments yet, according to reporting from Reuters. (March 2025)
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The UK and Brazil launched the Global Clean Power Alliance to accelerate the clean energy transition globally. Twelve countries and the African Union signed up to join its first mission, the “Finance Mission.” This aims to harness the political leadership needed to unlock private finance so that no developing country is left behind in the effort to meet COP28 commitments to triple renewable energy and double energy efficiency. (Nov 2024)
COP29 closed with an agreement to triple finance to developing countries, from the previous goal of $100 billion annually to $300 billion annually by 2035, and to “secure efforts of all actors” to work together to scale up finance to developing countries from public and private sources to $1.3 trillion annually by 2035. This agreement is called the New Collective Quantified Goal on Climate Finance (NCQG) and was agreed on unanimously by all nations represented (nearly 200). Along with earlier agreement on carbon markets at COP29, agreements were also reached on transparent climate reporting and on adaptation. (Nov 2024)
Six additional countries signed onto the Declaration to triple nuclear energy capacity by 2050 at COP29. This includes El Salvador, Kazakhstan, Kosovo, Nigeria, and Turkey, and brings the total signatories to 31 countries. (Nov 2024)
Countries reached consensus at COP29 on
the standards for Article 6.4, a key step toward establishing rules for an international carbon market (managed by the United Nations). This market, through efficient matching of buyers and sellers, could reduce national climate plan implementation by $250 billion per year, according to COP29 president Mukhtar Babayev. (Nov 2024)
Biodiversity COP16 concluded with two tangible outcomes. First, a new “Cali Fund,” operated by the United Nations, will direct a portion of profits from digitalized genetic information (much stemming from biodiversity) to the protection of nature. The fund encourages companies benefiting from this data to put aside either 1% of profits or 0.1% of revenue. Second, a new permanent body that will include Indigenous peoples in future decisions on nature conservation will be established, better incorporating traditional ecological knowledge into discussions. However, larger goals, including establishing a new framework for monitoring countries’ progress on addressing biodiversity loss, were not achieved. And only 44 countries (22%) have so far submitted National Biodiversity Strategies and Action Plans (which were due by the COP). New decision text adopted urges countries to submit plans “as soon as possible.” (Nov 2024)
The Supervisory Body of the Paris Agreement’s A6.4 mechanism adopted the Sustainable Development Tool (SD Tool). This tool will be mandatory to use for carbon market projects developed under Article 6.4 to ensure these projects not only reduce greenhouse gas emissions but support the ambitions of the Sustainable Development Goals (SDGs). The SD Tool has three main components: 1) It requires projects to identify, evaluate and mitigate any potential adverse impacts on the environment and community; 2) It provides a framework to measure and report on how the project drives sustainable and equitable development; and 3) It introduces a rigorous validation and verification process to ensure accountability in the market. A short technical analysis can be read here. (Oct 2024)
The Climate Investment Funds (CIF) announced it would deploy up to $1 billion in funding as part of CIF’s Industry Decarbonization investment program. CIF also launched a call for expressions of interest, inviting developing countries to participate in this first-of-its-kind program. (Up to 100% of total financing can be assigned to projects led by the private sector if drawing in private sector co-investments.) Eligible countries can submit expressions of interest here until 17 January 2025. (Oct 2024)
The United Nations General Assembly adopted The Pact for the Future, a document consisting of 56 actions around sustainable development, peace and security, science, youth, and global governance. Notable inclusions: accelerating efforts to address climate change and conserve the environment; strengthening collective efforts to achieve the Sustainable Development Goals by 2030; prioritizing the eradication of poverty and food insecurity; reforming international financial architecture to address climate change; and developing measures of progress on sustainable development that complement and go beyond gross domestic product. (Sept 2024)
The World Bank Group announced it delivered $42.6 billion in climate financing in FY2024, 44% of total financing that year, and a 10% increase over FY2023. It aims to increase climate finance to 45% in FY2025. v
COP29 President-Designate Mukhtar Babayev wrote
an open letter describing the goals and agenda for the November climate conference. It includes a summary of
14 COP29 initiatives, including on finance and investment, digital action, hydrogen, energy storage, tourism, agriculture, and methane reduction from organic waste. (Sept 2024)
The Green Climate Fund (GCF) announced a new organizational structure, with a reconfigured senior management team, as part of its reform agenda and “50 by 30” vision (i.e. aiming to manage $50 billion in climate investments by 2030). (Sept 2024)
Azerbaijan, host of COP 29, announced it would launch a Climate Finance Action Fund, which aims to mobilize at least $1 billion to support mitigation projects in developing countries. Funds would be raised from voluntary contributions by fossil-fuel producing countries and oil and gas companies, either as a fixed sum or tied to the donor’s production. It would become operational once 10 countries pledge a combined $1 billion. (July 2024)
The World Bank’s Board of Executive Directors approved the World Bank’s role as interim secretariat host and trustee of a climate change loss and damage fund to assist developing countries affected by climate change — a key step in operationalizing the fund. (June 2024)
Climate, energy and environment ministers of the G7 adopted a Joint Declaration that sets forth several new commitments and programs, including phasing out existing unabated coal power generation during the first half of the 2030s (or in line with countries’ net zero pathways). The Declaration also included commitments to reduce methane emissions, increase the security and sustainability of critical raw materials, encourage the growth of renewables, and more. (May 2024)
The United Nations established a Panel on Critical Energy Transition Minerals, consisting of states and non-state actors, to develop a set of voluntary principles to safeguard environmental and social standards across the entire value chain. (May 2024)
The Global Environment Facility agreed to invest $1.1 billion for international action on biodiversity, climate change, nature renewal, and pollution control. Meeting as Council of the new Global Biodiversity Framework Fund (GBFF) for the first time, the Council approved over 60 projects and programs, including four blended finance initiatives involving the private sector. These four initiatives, funded with $81 million, are set to mobilize $1.36 billion in outside investment. (Feb 2024)
Nearly 200 countries adopted the final COP28 agreement, deemed the “UAE Consensus,” calling for “transitioning away” from fossil fuels for the first time. As the key passage (28(d)) notes, the agreement calls on Parties to contribute to: “Transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050 in keeping with the science.” Also included in that list of global efforts is: the tripling of renewable energy capacity and the doubling of the global average annual rate of energy efficiency improvements by 2030; accelerating efforts towards the phase-down of unabated coal power; and phasing out inefficient fossil fuel subsidies that do not address energy poverty or just transitions as soon as possible, among other commitments. (Dec 2023)
Countries rejected the latest guidance on operationalizing Articles 6.2 and 6.4 of the Paris Agreement at COP28. These articles cover bilateral and multilateral agreements (Article 6.2) and providing a centralized U.N.-administered mechanism (Article 6.4) to manage international carbon trading. However, Article 6.2 is mentioned in the Global Stocktake, suggesting Article 6.2 pilot deals can continue, according to reporting by Ecosystem Marketplace. (Dec 2023)
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The UN Food and Agriculture Organization (FAO) launched a three-year roadmap to transform land use and food systems to eliminate global hunger while aligning agriculture with the 1.5°C climate pathway. Volume 1 of the Roadmap outlines more than 120 actions across ten domains to transform global food production. In 2024, Volume 2 will move to a regional view and provide a vision for financing; and in 2025, Volume 3 will establish country action plans, monitoring, and accountability. (Dec 2023)
U.S. special climate envoy John Kerry launched at COP28 an international engagement plan to boost nuclear fusion as a tool to fight climate change. Kerry said the plan involved 35 nations and would focus on research and development, supply chain issues, and regulation and safety. (Dec 2023)
Some 116 countries have signed the Global Renewables and Energy Efficiency Pledge, which aims to triple global renewable generation capacity to at least 11,000 gigawatts. It also seeks to double the rate of energy efficiency improvements from around 2% to more than 4% annually through 2030. (Dec 2023)
22 countries including the U.S., France, Japan, and the UK, launched the Declaration to Triple Nuclear Energy, pledging to triple nuclear energy capacity by 2050. The Declaration also invites shareholders of international financial institutions to encourage the inclusion of nuclear energy in energy lending policies. (Dec 2023)
Three food-related commitments were made by governments and civil society organizations at COP28 that aim to ensure that food and agriculture emissions will be Paris-aligned (Dec 2023):
- 134 countries accounting for 70% of global food consumption and 76% of food system emissions signed the Emirates Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action, which requires that countries include food and land-use emissions in their nationally determined contributions (NDCs) and national adaptation plans by 2025.
- 128 countries signed the COP28 UAE Declaration on Climate and Health, which notes the need to adopt dietary shifts to benefit human health and the climate.
- Over 150 entities signed a Call to Action for Transforming Food Systems for People, Nature, and Climate, which brings together actors from all levels of society to transform food systems. In addition, more than $2.5 billion in funding was pledged to support food security, while combatting climate change. GreenBiz offers a breakdown of other notable sustainable food system announcements from COP28.
The Climate Club, a high-level political forum consisting of 35 countries and the EU representing more than 55% of the global economy, was launched at COP28. The Club will focus on accelerating the decarbonization of heavy industry (starting with steel and cement) through stronger collaboration on policies as well as technical and financial assistance. (Dec 2023)
The governments of France and Morocco, and the UN Environment Programme (UNEP), launched the Buildings Breakthrough at COP28, under which countries will collaborate to make climate-resilient, near-zero emission buildings commonplace by 2030. Twenty-seven countries have pledged their commitment to Buildings Breakthrough. Under the initiative, the Global Alliance for Buildings and Construction (GlobalABC) secretariat, the International Energy Agency, and the International Renewable Energy Agency, together with the UN Climate Change High-level Champions, will undertake an annual assessment of global progress in the building sector. (Dec 2023)
On the first day of COP28, delegates agreed on the operationalization of a “Climate Impact and Response Fund” to help compensate vulnerable countries coping with loss and damage caused by climate change. Initial pledges for the fund included €200 million ($218 million) from the European Union, $100 million from the United Arab Emirates, $17.5 million from the U.S., and $10 million from Japan. (Dec 2023)
National climate action plans remain insufficient to limit global temperature rise to 1.5°C,according to a new UN Climate Change report. If current Nationally Determined Contributions (NDCs) are implemented emissions will increase by about 8.8% compared to 2010 levels by 2030. 2030 emissions are projected to be 2% below 2019 levels, indicating the world will reach peak emissions this decade. However, to stay within the 1.5°C target a 43% reduction of GHG emissions by 2030 (compared to 2019 levels) is needed. A second report, exploring long-term low-emission development strategies, found that countries that plan to transition to net-zero could reduce GHG emissions by 63% in 2050 compared to 2019 if all strategies are fully implemented on time. (Nov 2023)
More than a dozen countries, including the U.S., formed an international working group to track GHG emissions across the natural gas supply chain. This MMRV Working Group will develop a shared and credible framework for the Measurement, Monitoring, Reporting, and Verification of methane, CO2, and other GHG emissions during the lifecycle of natural gas (from production to distribution). (Nov 2023)
The U.S. and China reaffirmed their commitment to work jointly and with other countries to address the climate crisis, according to a statement by the U.S. Department of State. The statement includes 25 points of cooperation, including around: accelerating renewable energy deployment; addressing GHG emissions beyond CO2 (methane, nitrous oxide, and HFCs); advancing large-scale carbon capture, utilization, and storage projects; reversing forest loss; and ending plastic pollution. (Nov 2023)
The United Nations Environment Programme (UNEP) published a Handbook for Delegates to the United Nations Environment Assembly. This handbook, aimed at member state representatives, observers, and stakeholders participating in the assembly, provides essential information on the rules of procedure at the Assembly as well as practical guidance related to logistics and visiting Nairobi. (Nov 2023)
The UN Transitional Committee reached agreement on a new proposal for a “loss and damage” fund to support developing countries to respond to climate change. This proposal establishes new guidelines for funding, including allowing for philanthropic donations and revenue from carbon pricing mechanisms. It also sets the World Bank as interim host for this fund. Negotiations will continue at the COP28 meetings. (Nov 2023)
The World Trade Organization is establishing a multilateral task force to create a global methodology for carbon pricing, according to reporting from Reuters. This is to ensure that efforts to tax imports based on carbon emissions do not unfairly penalize developing countries. (October 2023)
COP28 President-Designate Sultan Ahmed Al Jaber wrote a letter offering an agenda for the COP28 gathering. The letter provides discussion on key issues, including the Global Stocktake; adaptation; mitigation; loss and damage; and the means of implementation.
It also lays out specific commitments around: global renewable capacity; hydrogen; heavy-industry decarbonization; innovative solutions and policy incentives; and international finance institutions. (October 2023)
The World Bank’s Development Committee agreed to “ambitious reforms” that would increase the bank’s investments in climate action and sustainable development, according to German Development Minister Svenja Schulze, as reported by Reuters. This will allow the bank to offer stronger financing incentives for climate, biodiversity, pandemic prevention and other projects that have global rather than just country-specific benefits.(October 2023)
Leaders meeting at the Group of 20 (G20) summit released the New Delhi Leaders Declaration agreeing to “pursue and encourage efforts to triple renewable energy capacity globally” and a “phasedown of unabated coal power.” Leaders also committed to working “towards facilitating access to low-cost financing for developing countries, for existing as well as new and emerging clean and sustainable energy technologies and for supporting the energy transitions.” (Sept 2023)
A new Global Biofuels Alliance was announced at the G20 Summit by the leaders of India, Singapore, Bangladesh, Italy, the U.S., Brazil, Argentina, Mauritius and the United Arab Emirates. The Alliance intends to expedite biofuels use globally in part by facilitating technology advancements and shaping robust standard setting and certification. The alliance will also act as a central repository of knowledge and an expert hub. (Sept 2023)
The chair of the Intergovernmental Negotiating Committee on Plastic Pollution released a ”zero draft” of the global plastics treaty, the starting point for treaty negotiations. The draft includes two objective options: 1) to end plastic pollution and protect human health and the environment and 2) to protect human health and the environment from plastic pollution (with four sub-options on how to achieve this, including ending pollution; a lifecycle approach; prevention and progressive elimination; or better managing plastics and plastic waste. The draft does not include time-bound, numerical targets but proposes that harmful chemicals and the hardest-to-recycle plastics should be phased out more quickly. The draft also states that countries should development and implement national plans for contribution to the treaty, reporting publicly and regularly on progress. (Sept 2023)
The United Nations’ Committee on the Rights of the Child released a document stating all countries have a legal obligation to protect children from environmental degradation (including climate change). This includes “regulating business enterprises” and allowing children to seek legal recourse. While not legally binding, it is based on the Convention on the Rights of the Child, which every country but the U.S. has ratified. (Sept 2023)
Representatives of 185 countries agreed to launch the Global Biodiversity Framework Fund (GBFF), a new fund for biodiversity to attract funding from governments, philanthropy, and the private sector. GBFF is designed to mobilize and accelerate investment in the conservation and sustainability of wild species and ecosystems. So far, Canada has committed CAD$200 million ($147 million) and the UK £10 million ($13 million). However, the fund will not launch in December unless it reaches a minimum of $200 million, as required by the World Bank as a trustee, according to Reuters. (Aug 2023)
Leaders of the eight countries that share the Amazon basin gathered for a 2-day summit and issued a joint statement, The Belem Declaration, to bolster regional cooperation. The declaration did not include a clear commitment to end deforestation by 2030 but included an agreement to combat environmental crime and illegal activities in the Amazon, including plans to exchange information to combat illegal mining and logging. The declaration also asserted Indigenous rights, and agreements to cooperate on water, health, and sustainable development. Twelve rainforest countries also issued a communiqué calling on “developed countries to fulfill their climate financing obligations and to contribute to the mobilization of $200 billion per year by 2030.” (Aug 2023)
G20 environment and climate ministers met in India to accelerate action on climate change and other key environmental challenges and released an outcome document. However, the ministers failed to reach consensus on curbing emissions or scaling up renewable energy. Some members advocated for peak emissions by 2025 and reducing emissions 60% by 2035 (2019 baseline). No agreement was reached on depleting carbon budgets, historical emissions, net-zero goals and developing country financing, as Reuter reports. (July 2023)
The Council of the International Seabed Authority (ISA) met to negotiate draft regulations on deep sea mining. It expressed its aim to adopt these in 2025, with 2023 focused on adopting a roadmap and 2024 creating a consolidated negotiating text. As of now, no entity has filed any plan of work to mine, which would have triggered the “two-year rule” in which the ISA would consider and provisionally approve applications within two years, even without finalized regulations. (July 2023)
Member States of the International Maritime Organization (IMO) adopted a revised GHG reduction strategy for shipping that set a net zero emissions target "close to 2050." Additional targets include a commitment to having 5%-10% of shipping fuel and energy sources come from “alternative zero and near-zero” GHG fuels by 2030 and reducing emissions by at least 20% by 2030 and 70% by 2040 relative to 2008 levels. (July 2023)
45 countries signed a new ministerial statement at the conclusion of the International Energy Agency’s global conference on energy efficiency. This Versailles Statement recognizes the need for increased efficiency in all sectors and acknowledges these countries’ aim to “strengthen energy efficiency action through implementation of effective policy,” as well as supporting investment, measures to shift consumer preferences, and technological improvements. (June 2023)
The United Nations formally adopted the High Seas Treaty, a landmark legally binding marine biodiversity agreement covering international waters. The treaty contains 75 articles aimed at protecting, caring for, and ensuring the responsible use of the marine environment, maintaining the integrity of ocean ecosystems, and conserving the inherent value of marine biological diversity. It is now open for ratification by UN member states and will enter into force when 60 countries have ratified it. (June 2023)
The UK and France launched the Global Biodiversity Credits Roadmap. This initiative sets out a plan for scaling up global efforts to support companies buying credits that contribute to the recovery of nature in a credible way. The Global Roadmap will facilitate: the sharing of best practice on the governance mechanisms for credit funding; monitoring regimes to ensure biodiversity improvements; and the fair distribution of income to Indigenous peoples and local communities. (June 2023)
The G7 released its Clean Energy Economy Action Plan, outlining seven commitments to enhance cooperation to address the climate crisis, accelerate the clean energy transition and reach net zero emissions by 2050. These include (May 2023):
- Reaffirming commitment to the Paris Agreement and moving forward united;
- Maximizing the impact of incentives, industrial policies, and public and private investments;
- Reducing emissions through trade policies that drive decarbonization and emissions reductions;
- Establishing global supply chains that are both resilient and in line with high ESG standards;
- Promoting clean energy technologies, including their research, wide use, and import and export;
- Promoting trade and investment in clean energy goods and services, including critical minerals;
- Supporting global partners as they address poverty and reorient their economies to deliver inclusive and sustainable growth and decent work for all.
The US- and UAE-led Agriculture Innovation Mission for Climate (AIM for Climate) Summit announced that its partners would increase investment by $13 billion in “climate-smart” innovations in agriculture and food systems (over a 2020 baseline). AIM for Climate partners also agreed to an additional $1.8 billion in 21 new innovation sprints for the same purposes, for a total of 51 innovation sprints and $3 billion in investment. The Summit also welcomed new partner governments, including from Argentina, Fiji, Guatemala, India, Panama, Paraguay, and Sri Lanka. (May 2023)
The World Bank elected former Mastercard CEO Ajay Banga as president, after his nomination in February by U.S. President Joe Biden. (May 2023)
G7 energy and environment ministers released a new communiqué after meeting in Japan that will support main G7 talks in May. The 36-page document includes 92 subtopics, ranging from Sustainable Value Chains and Finance, to Water and Nature-based Solutions. As reported in Edie, commitments to renewables collectively reach 150GW of wind capacity and 1TW of solar by 2030 (see subtopic 64), higher than previous communiqués. Also included was a commitment to collaborate more closely on energy efficiency policies (#63), recognizing that this is “a key pillar in the global energy transition toward net-zero GHG emissions.” (April 2023)
The United Nations General Assembly passed a resolution asking the International Court of Justice (ICJ) to define countries’ legal obligations to address climate change. The resolution, proposed by Vanatu and supported by 17 countries, could provide a (non-binding) advisory opinion from the ICJ that could strengthen global climate cooperation and clarify international law. The opinion, which may take 18 to 24 months, could help shape national climate plans, clarify countries’ financial obligations, and strengthen domestic policy, and could help guide courts around the world facing a growing number of climate change cases. (April 2023)
The U.S. and Japan signed an agreement to strengthen critical minerals supply chains, establishing several new commitments and areas for joint cooperation, including the “non-imposition of export duties on critical minerals,” and the encouragement of higher labor and environmental standards. This is expected to help electric vehicles using metals processed in Japan qualify for tax incentives under the Inflation Reduction Act, as reported by the AP. (April 2023)
A coalition of governments (led by Columbia, the Democratic Republic of Congo, Ecuador, Gabon, Mexico, and Zambia) launched the Freshwater Challenge, the largest ever initiative to restore degraded rivers, lakes and wetlands, at the UN Water Conference. The Challenge calls on governments to commit to clear targets in their biodiversity, climate, and SDG (Sustainable Development Goals) plans to restore freshwater ecosystems, and aims to restore 300,000 km of rivers and 350 million hectares of wetlands by 2030. (March 2023)
After nearly two decades of negotiations, UN member states have agreed on a legal framework to protect the high seas (ocean areas outside national boundaries that make up 60% of the world’s oceans and span almost half the planet). The High Seas Treaty will protect ocean species and ecosystems, providing the ability to designate marine protected areas (by vote) that limit activities that harm marine life (such as fishing, mining, or geoengineering). The treaty will be critical to achieve the pledge to protect 30% of the ocean by 2030 that many countries made at the UN biodiversity conference in December 2022. Delegates have yet to formally adopt the text but will reconvene later to do so. Once approved by the UN General Assembly, the agreement will go into effect once 60 nations ratify it. (March 2023)
The U.S. and United Arab Emirates announced that the first $20 billion of their $100 billion Partnership for Accelerating Clean Energy will fund 15 gigawatts of renewable energy projects before 2035. This will be financed through $7 billion in private sector cash equity and $13 billion in U.S. debt financing and other instruments. (Jan 2023)
The Coalition of Trade Ministers on Climate launched at the World Economic Forum. Officials from more than 50 countries aim to promote trade, trade policies, and investment that support climate action, including “the uptake of goods, services and technologies that support climate mitigation and adaptation,” as well as the development of partnerships with finance communities and relevant stakeholders to foster climate-resilient development. (Jan 2023)
The U.S., Mexico, and Canada announced at the North American Leaders’ Summit that they will strengthen development of clean energy economies and respond to the climate crisis. Notable outcomes include:
- Committing to reduce methane emissions from the solid waste and wastewater sector by at least 15% by 2030 (from 2020 levels), and deepen collaboration on mitigating agriculture methane;
- Committing to trilateral cooperation to meet a joint commitment to conserve 30% of the world’s land and ocean area by 2030;
- Developing a North American clean hydrogen market;
- Coordinating the mapping of both the semiconductor supply chain and critical mineral resources and reserves;
- Developing operating standards for EV charging to ensure a seamless EV charging transition across North America;
- Developing a Food Loss and Waste Reduction Action Plan by 2025 to outline efforts to cut food loss and waste in half by 2030.
The U.S. and Japan signed a Memorandum of Cooperation to launch a Task Force on the Promotion of Human Rights and International Labor Standards in Supply Chains. Through this task force, the two countries will exchange information on relevant laws, policies, and guidance; facilitate stakeholder dialogues with businesses and worker organizations; and promote best practices for human rights and internally recognized labor rights due diligence, in order to help protect workers and enhance predictability and clarity for businesses. (Jan 2023)
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195 nations agreed at COP 15 in Montreal to protect and restore at least 30% of Earth’s land and water by 2030. Countries also agreed on the importance of reforming environmentally harmful subsidies. Rich countries also committed to pay $30 billion by 2030 to poorer countries to help protect nature. Some of this will be channeled through development aid, and some through a new biodiversity fund under the Global Environmental Facility.
In the discussion of whether it should be mandatory for businesses to disclose “their risks, dependencies and impacts on biodiversity,” while negotiators agreed companies should be transparent with regulators, mandatory was not included in the document. (Jan 2023)
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G7 nations will provide $15.5 billion in public and private funding to Vietnam to help the country transition away from coal, making Vietnam the third recipient of a Just Energy Transition Partnership. Vietnam will set a target of getting 47% of its electricity from renewables by 2030, up from its current target of 36%, and limit its peak coal capacity to 30.2 GW, down from its earlier planned 37 GW. (Dec 2022)
The international donor community committed billions of dollars to support the protection and restoration of the natural world through a Donor Joint Statement at COP15. Notable commitments include (Dec 2022):
- The European Commission pledged €7 billion for biodiversity over 2021-2027;
- France doubled its international finance for biodiversity to reach €1 billion by 2025;
- Germany will increase its funding to €1.5 billion by 2025;
- And Spain will double its international funding for biodiversity, dedicating at least €550 million of its Official Development Aid for biodiversity between 2021-2025.
COP27 negotiators came to an agreement Sunday morning to create a climate “loss and damage” fund to help poor countries cope with climate disasters made worse by wealthy countries’ emissions. Representatives from 24 countries will work over the next year to determine what form the fund should take, such as direct payments or insurance payments, and which and how much countries and institutions (such as the World Bank and International Monetary Fund) will contribute to the fund. The agreement also stipulates that countries cannot be held legally liable for payments. Negotiators did not create a new consensus position on moving away from fossil fuels and the text simply reiterates COP26’s call for phasing down coal. The final text also failed to incorporate language calling for a peak in global greenhouse gases by 2025, which would be needed to keep warming to 1.5°C. (Nov 2022)
The U.S. and EU convened a Methane Ministerial at COP27 to highlight progress achieving the Global Methane Pledge (GMP) of cutting anthropogenic methane emissions by at least 30% by 2030 from 2020 levels, and to discuss further implementation steps. In the past year, country endorsements have grown from just over 100 to 150; more than 50 countries have developed national methane action plans or are in the process of doing so; substantial new financial resources are being directed to methane action; and partners have launched “pathways” of policies and initiatives to drive methane reductions in key methane-emitting sectors. Also launched at the Ministerial were the GMP Food and Agriculture Pathway and the GMP Waste Pathway, which will address methane emissions in the agriculture and in the waste sectors. (Nov 2022)
The Government of Indonesia and the World Economic Forum launched Ocean 20 (O20), a public-private initiative to ensure the long-term sustainability of the ocean economy. O20 is being proposed as an official Engagement Group of the G20, which represents 45% of the world’s coastlines, to develop policy recommendations for G20 leaders. O20 will engage leaders in working groups, focusing on blue carbon, plastic pollution, climate change, finance, and other key action areas. (Nov 2022)
The Egyptian COP27 Presidency, Germany, and IUCN launched the ENACT initiative, which will coordinate global efforts to address climate change, land and ecosystem degradation, and biodiversity loss through Nature-based Solutions (NbS). ENACT will serve as a hub for government and non-state actors to foster collaboration, accelerate action, facilitate policy dialogue and bring global coherence to activities. The initiative will also produce an annual State of Nature-based Solutions report to update COP28 and subsequent meetings on progress in implementing NbS commitments. (Nov 2022)
The UK’s COP26 Presidency and partners have launched the Accelerating To Zero (A2Z) Coalition, a platform for leading initiatives to work together to accelerate the transition to all new cars and vans being zero emissions by 2035 at the latest in leading markets and by 2040 globally. A2Z will now host last year’s Zero Emissions Vehicles Declaration, which has grown to 214 signatories — including governments, manufacturers, businesses, NGOs, and fleet owners — up from 130 at COP26. (Nov 2022)
The Biden Administration announced 13 new initiatives with Indonesia, including supporting sustainable development in Indonesia’s new capital, preserving biodiversity, supporting ports and fisheries, investing in green hydrogen, supporting climate-conscious transportation infrastructure, reducing plastic pollution, and investing in carbon capture. CEF member ExxonMobil and state-owned energy company Pertamina have signed a $2.5 billion agreement to further assess the development of a regional Carbon Capture and Sequestration Hub in Indonesia, enabling key industry sectors to decarbonize. (Nov 2022)
The International Partners Group (IPG), a group of countries co-led by the U.S. and Japan, launched the Just Energy Transition Partnership (JETP), developed with Indonesia to develop a comprehensive investment plan to shift Indonesia away from coal, capping power sector emissions by 2030 at 290 megatons (MT) of CO2, down from the baseline value of 357 MT, and deploying renewable energy to comprise at least 34% of power generation by 2030. To do this, IPG will mobilize $20 billion in private and public financing over a 3-5 year period, with $10 billion coming from public sector pledges and $10 billion from private financial institutions coordinated by the Glasgow Financial Alliance for Net Zero. A successful partnership would mean a reduction of over 2 gigatons of GHG emissions through 2060 from Indonesia’s current trajectory. (Nov 2022)
The World Business Council for Sustainable Development, the U.S., and the UK launched a new initiative to step up cooperation between companies and governments in emerging markets to transition to zero-emission vehicles. This one-year initiative will encourage and organize dialogue between governments in emerging markets and major companies to accelerate private investment and support public policies, enabling companies and governments to achieve their ambitious zero-emission vehicles deployment goals. (Nov 2022)
The COP27 Presidency launched the Sharm-El-Sheikh Adaptation Agenda, a new global plan that aims to mobilize state and non-state actors behind a shared set of climate adaptation outcomes for 2030. These 30 outcomes span food security and agriculture, water and nature, coasts and oceans, infrastructure, and human settlements, and could enhance the resilience of 4 billion people living in the most climate vulnerable communities. (Nov 2022)
Countries representing more than 50% of global GDP launched a package of 25 new collaborative actions to be delivered by COP28 to speed up decarbonization under five key breakthroughs of power, road transport, steel, hydrogen and agriculture. These build on the leader-level commitment at COP26 by 45 countries and include: developing common definitions for near-zero emission steel, hydrogen and sustainable batteries; setting a common target date to phase out polluting vehicles; strengthening technological and financial assistance to developing countries; and driving investment in R&D. (Nov 2022)
Leaders from 26 countries and the EU launched the Forest and Climate Leaders’ Partnership at COP27. Co-chaired by the U.S. and Ghana, the partnership will help to deliver the commitment made at COP26 by over 140 world leaders (representing over 90% of the world’s forests) to halt and reverse forest loss and land degradation by 2030 while delivering sustainable development and promoting an inclusive rural transformation. (Nov 2022)
The Green Shipping Challenge launched during the World Leaders Summit of COP27. Countries, ports, and companies made more than 40 announcements on issues such as innovations for ships, expansion in low- or zero-emission fuels, and policies to help promote the uptake of next-generation vessels. Announcements included:
- CEF Member Amazon signaled its demand for zero emissions ocean shipping by 2040 and reviewed its several initiatives supporting this transition, including investments, partnerships, and fuel purchases;
- The U.S. is launching a Green Shipping Corridors initiation project to support green shipping corridors involving developing countries, and is also launching a Green Shipping Corridor Hub, an online platform with tools to streamline green shipping corridors globally;
- The U.S. is facilitating green shipping corridors with Canada, Korea, and the UK.
- The U.S. will develop a national action plan for maritime decarbonization beginning in 2023.
In a parallel announcement, the UK pledged to roll out green maritime links with the U.S., Norway, and the Netherlands, and agreed to launch a special Green Shipping Corridor Task Force with the U.S. to bring sector experts together and encourage R&D. (Nov 2022)
The U.S. and the United Arab Emirates signed a new clean energy framework, the U.S.-UAE Partnership for Accelerating Clean Energy (PACE). PACE is set to catalyze $100 billion in financing, investment, and other support and to deploy globally 100 gigawatts of clean energy by 2035 to advance the energy transition. It will focus on clean energy innovation and development, carbon and methane management, nuclear energy, and industrial and transport decarbonization. (Nov 2022)
The World Bank will launch Scaling Climate Action by Lowering Emissions (SCALE) — a trust fund that will pool public funds to provide grants to developing countries as they successfully complete projects that reduce carbon emissions — at COP27 in November. SCALE will focus on three areas that are aligned with results-based grants: natural climate solutions, e.g. agriculture or forest based; sustainable infrastructure; and financial solutions that indirectly mobilize resources for climate actions. (Oct 2022)
The International Civil Aviation Organization (ICAO) agreed to a long-term but non-binding goal for net-zero aviation emissions by 2050. ICAO also agreed that airlines will use the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) setting the threshold to offset at 85% of 2019 carbon emissions. (Oct 2022)
More than 20 countries, led by Japan, have agreed to boost output of low-emission hydrogen to at least 90 million metric tons a year by 2030 from the 1 million tons today. This is almost in line with the International Energy Agency’s target of 95 million tons required to help achieve its 2050 net zero scenario. (Oct 2022)
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The Governments of Rwanda and Norway launched “The High Ambition Coalition to End Plastic Pollution,” a coalition of 20 countries. This coalition was initiated following the UN Environment Agency resolution in March 2022 to start negotiations on a legally binding instrument to end plastic pollution. The coalition will work to inform negotiations in order to develop a treaty by 2024. Its first formal meeting will be in November. (Aug 2022)
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The UN General Assembly has adopted a resolution declaring access to a “clean, healthy, and sustainable environment” a universal human right. While not technically legally binding, the resolution “emphasizes the underpinning of legal obligations to act, rather than simply of discretionary policy,” according to UN High Commissioner for Human Rights Michelle Bachelet, adding, "The General Assembly resolution is very clear: States must implement their international commitments and scale up their efforts to realize it." There were no votes against the resolution and eight abstentions. (Aug 2021)
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Twenty-one new governments announced they will join the New Plastics Economy Global Commitment, spearheaded in 2018 by the Ellen MacArthur Foundation and UNEP. The Global Commitment engages and coordinates stakeholders across the plastics value chain to drive the transition towards a circular economy for plastic. Business and government signatories must set ambitious actions and targets across the life cycle to address plastic pollution and report annually on progress. (July 2022)
Leaders of the G-7 announced a new Climate Club through which members, who must commit to full implementation of the Paris Agreement, aim to help eliminate a “chaotic patchwork of national regulations that could increase the risk of new trade conflicts as countries slap levies or tariffs on imports deemed less sustainable.” The club hopes to help mitigate disadvantages faced by companies doing business in regions with more ambitious carbon-reduction goals and put pressure on non-members to adopt stricter climate protection measures. (July 2022)
The Bonn Climate Change Conference concluded last week without significant progress on a so-called “loss and damage” process pursued by some developing countries’ representatives. The term refers to compensation sought for climate-caused damages to poorer countries caused primarily by decades of emissions from richer ones—primarily the U.S. and European countries. Without loss and damage compensation, representatives argued, developing countries must spend their limited capital reactively on emergency repair rather than proactively on resilient infrastructure, leaving them vulnerable to a downward economic spiral. Ultimately, efforts to have loss and damage measures placed on the official agenda for COP27 in Egypt later this year were effectively blocked. (June 2022)
The Biden administration, in partnership with 12 Indo-Pacific countries, announced plans to establish the Indo-Pacific Economic Framework for Prosperity (“the Framework”), an economic alliance the administration hopes will lead to improved environmental and labor practices in the region. The Framework is intended to reassert U.S. economic influence in the region that was eroded when the Trump administration pulled the U.S. out of the Trans-Pacific Partnership. In addition to trade, tax, and anti-corruption measures, the Framework will endeavor to (May 2022):
- Improve transparency, diversity, security, and sustainability in supply chains to minimize business disruptions and ensure access to critical materials.
- Accelerate and broaden the adoption of technologies for clean energy, decarbonization, and climate-resilient infrastructure
Details of how its goals will be achieved have yet to be worked out. Negotiations will begin this summer, and the administration hopes to finalize agreements within 18 months.
A newly formed Climate Overshoot Commission will conduct a comprehensive assessment of the risks and response options associated with global temperature rise in excess of 1.5C. The Commission, an offshoot of the Paris Peace Forum, is composed of 15 members including former heads of state, organization directors, environmental leaders, and academics—each acting in an independent capacity. With an emphasis on ethics and equity, they will consider a range of options to limit the severity of global warming, including accelerated adaptation measures, carbon dioxide removal, and sunlight reflection. The group will present its mitigation strategy at the UN Climate Change Conference next year. (May 2022)
Twenty-nine countries jointly pledged a record $5.25 billion to the Global Environment Facility (GEF), a 30% increase of funding to the multilateral global fund that supports developing countries’ efforts to address all aspects of environmental health. Biodiversity protection is the top priority for this latest GEF programming period (GEF-8), in addition to “addressing threats from climate change, land degradation, and chemicals and waste, and alleviating pressures on the ocean and international waterways.” (April 2022)
The International Monetary Fund announced a goal of raising at least $45 billion for a new financial assistance program to help low-and-middle-income countries adapt to climate change and other longer-term challenges. The new facility, “Resilience and Sustainability Trust,” will take effect on May 1. (April 2022)
“G20 Zero-Carbon Policy Scoreboard 2022” (BloombergNEF) — Ranks G20 nations based on their governments’ current decarbonization policies against the 2015 Paris Agreement goal of limiting global temperature rise to 1.5°C. Each country is scored out of 100% based on over 120 metrics covering (April 2022):
- What types of low-carbon policy have been implemented.
- BloombergNEF's assessment of the robustness and effectiveness of these programs and the overall policy-making process.
- Whether these policies are driving change in practice.
BNEF’s main takeaway: Despite some examples of progress, none of the countries are currently on target to fully support the Paris Agreement goal. Scores for the EU, U.K., and U.S. are 76%, 72%, and 57%, respectively. The average score for all countries is 52%, up one point from last year’s figure. (April 2022)
Recent in-person negotiations to establish a broad international framework for preventing biodiversity loss made only modest progress before concluding. Delegates from 164 countries met in Geneva hoping to finalize a draft of the framework that would then be reviewed at the fall 2022 U.N. Convention on Biodiversity summit in China. Financing and timelines are key areas of disagreement. Talks are scheduled to resume in Kenya in June. (April 2022)
The European Council agreed to support the creation of the world's first carbon border adjustment mechanism (CBAM), as part of the “Fit for 55” legislation package to reduce the EU’s GHG emissions by 55% by 2030. The mechanism would apply to products in the cement, aluminum, fertilizer, electric energy production, iron, and steel sectors, with a three-year transition phase starting in 2023 and the mechanism starting in 2026. (March 2022)
175 nations passed a resolution to develop the first-ever global, legally binding treaty to “end plastic pollution.” A new Intergovernmental Negotiating Committee will work to complete a draft treaty by year-end 2024, and UNEP will partner with governments and businesses to shift away from single-use plastics, mobilize private finance, and remove circular economy investment barriers. (March 2022)
The International Monetary Fund outlined plans proposing a $50 billion Resilience and Sustainability Trust (RST) to help low-income and vulnerable middle-income countries build resilience for longer-term challenges, including climate change, digitalization, and pandemic preparedness. If approved by its executive board in April, the lending trust could be operational by year-end. (Jan 2022)
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Canada’s Minister of the Environment announced Canada will aim to reduce greenhouse gas emissions by 45-50% below 2005 levels by 2035. This builds on its earlier 2030 target of 40-45% reductions below 2005 levels. (Dec 2024)
Barbados has completed the first debt-for-climate-resilience swap, in which the country replaced more expensive debt with more affordable financing. The $125 million in savings will be invested in improved water and sewage infrastructure, reducing Caribbean pollution, increasing irrigation, and replenishing groundwater. The Inter-American Development Bank and the Green Climate Fund are also providing upfront funding (as grants and loans) for the project. (Dec 2024)
The government of Brazil announced a new climate target of a 59-67% reduction in GHG emissions by 2035 (2005 baseline), the equivalent of up to 1.05 billion tons of CO2e. This will form the country’s second Nationally Determined Contribution (NDC). (Nov 2024)
The Canadian government released draft regulations to cap greenhouse gas emissions from the oil and gas sector at 35% below 2019 levels by 2030-2032. The government says this will incentivize the investment of the sector’s “record profits” into technically achievable decarbonization measures to produce oil and gas more competitively with less pollution, while helping the sector achieve carbon neutrality by 2050. The regulations would establish a national cap-and-trade system applying to upstream oil and gas activities. It would be phased in for the first four years (2026-29), with large emitters first reporting their 2026 emissions and production in 2027. The consultation period will remain open until 8 January 2025. (Nov 2024)
Canada will impose a 100% tariff on imports of Chinese-made electric vehicles, matching U.S. tariffs. The duties apply to all EVs shipped from China, including those made by Tesla. Canada also announced a 25% tariff on imported steel and aluminum from China. The moves are a response to China’s subsidies to its industries that western governments say give Chinese industry an unfair market advantage. (Sept 2024)
Grenada became the first country in the world to use a hurricane clause in a government bond, which allows the deferral of debt payments after a major natural disaster. This comes in the wake of hurricane Beryl, which caused damage equal to a third of the country’s annual economic output. (Aug 2024)
Canada released its 2030 Nature Strategy, which lays out how Canada will implement its nature protection goals under the Global Biodiversity Framework signed in 2022. It also introduced the Nature Accountability Bill in Parliament, which, if passed, will require the government to develop a national nature strategy and report on its implementation. (June 2024)
The Canadian government launched a new Federal Plastics Registry, requiring plastic producers and other companies across the plastics value chain to track plastic through its full life cycle as it moves through the Canadian economy. The registry aims to provide data to identify opportunities to reduce plastic waste and pollution. Reporting will be phased in over time and by sector. (April 2024)
Canada released an updated on design options being considered for the final Clean Electricity Regulations, based on feedback received during consultations. Four changes are being considered including: how to measure emissions performance of utilities (aggregated or applied to each unit); the underlying performance standard; whether emissions limits can be pooled in the same jurisdiction; and whether emissions overages are allowed if offsets are applied. The public can comment until 15 March 2024. (Feb 2024)
Canada finalized its regulation requiring 100% zero emissions light duty vehicles sales targets by 2035. For the 2026 model year, the percentage of ZEVs is at least 20%, and grows to 60% for 2030. (Jan 2024)
Canada launched a consultation on the creation of a Federal Plastics Registry, which will be used to monitor plastic from its creation to its end of life. The Registry would require producers to report annually on the quantity and types of plastic they place on the Canadian market, how that plastic moves through the economy, and how it is managed at end of life. The Registry would use that information to measure progress toward zero plastic waste and accelerate the transition to a circular economy.
This consultation is open until 13 February 2024. (Jan 2024)
The Canada Growth Fund (a federal investment arm) committed to buy as many as one million metric tons of carbon credits from Entropy, a carbon capture and storage developer, helping to guarantee the future price of carbon in a
first-of-its-kind deal, according to reporting from Bloomberg and Reuters. The Fund will initially purchase
185,000 metric tons annually at C$86.50 ($64.93) per ton and has set aside C$1 billion to fulfill the first and second phase of the commitment.
The Fund aims to sell these credits to companies that cannot decarbonize as efficiently. (Jan 2024)
Brazil’s Securities and Exchange Commission (CVM) and Ministry of Finance announced a new resolution (CVM Resolution 193) that aims to make sustainability reporting mandatory in 2026. Initially this resolution will allow public companies and investment funds to disclose sustainability reports (based on IFRS S1 and S2) on a voluntary basis starting in 2024. (Oct 2023)
Ecuador inked the largest debt for nature swap on record, a deal that will channel $12 million annually into environmental protection of the Galapagos Islands. The swap, with support from the U.S. International Development Finance Corporation, Inter-American Development Bank, and Credit Suisse, creates a $656 million Galapagos Marine Bond that will finance conservation measures on the islands, while providing investors in this “blue bond” 5.645% interest. The deal cuts Ecuador’s debt by more than $1 billion. (May 2023)
Canada proposed new regulation to reduce plastic waste. These include: recycled content requirements mandating minimum levels of post-consumer plastics in packaging; labelling rules that would require more accurate information on recyclability; and compostability labelling rules that would prohibit “biodegradable or “degradable” on plastic packaging and single-use plastics (SUPs) and put limits on the use of the term “compostable.” The regulation would also expand collection programs in provinces, increase consistency in collection and recycling programs in Canada, and improve recycling infrastructure for packaging and SUPs. Stakeholders are invited to view the full framework and provide feedback before 18 May 2023. (April 2023)
Canada announced C$83 billion ($61 billion) in sustainable investment tax credits over the next decade in its 2023 budget. These include a C$25.7 billion through the Clean Energy Investment Tax Credit — a 15% refundable tax on investments in non-emitting electricity generating systems, abated natural gas-fired electricity, and electricity storage; C$11.1 billion on a 30% refundable clean technology manufacturing credit; as well as tax credits on clean hydrogen (C$17.6 billion), clean technology (C$15.8 billion), and carbon-capture (C$516 million), which were previously announced. (April 2023)
Canada’s Office of the Superintendent of Financial Institutions (OSFI) published new guidelines on climate risk management. These will set out requirements for banks and insurance companies to manage and disclose climate-related risks, including governance, strategy, risk management, and metrics and targets. Also required will be the reporting of scope 1, 2, and 3 emissions, including financed, facilitated, and insured emissions. The banks and insurers are also directed to maintain capital and liquidity buffers for climate-related risks. (March 2023)
New standards released by the Canadian government will require large government suppliers (procurements greater than $25 million) to measure and disclose greenhouse gas emissions and set targets to reduce them. The measure takes effect on April 1, 2023 and will require suppliers to participate either in a federal program that tracks and verifies climate plans or an internationally recognized equivalent. The government also announced a new construction standard that will require all new major government construction projects to report and reduce their embodied carbon footprint. (March 2023)
Canada will require all new cars, SUVs, and pick-up trucks sold in the country to be zero emission vehicles (ZEVs) by 2035, according to proposed regulations in December. Canada also introduced a series of interim sales mandates, requiring ZEVs to make up 20% of new vehicle sales by 2026 and 60% by 2030. There is a 75-day consultation period for these regulations with public comment possible here. (Jan 2023)
The Business Development Bank of Canada (BDC) announced the launch of its Climate Tech Fund II, a new $400 million fund aimed at investing in and supporting Canadian climate teach and clean tech firms. This follows the $600 million Climate Tech Fund I launched in 2018, and brings commitments to $1 billion. (Nov 2022)
Former president Luiz Inácio Lula da Silva defeated incumbent Jair Bolsonaro in Brazil's presidential runoff election. Lula has a history of empowering enforcement and monitoring agencies to stop illegal deforestation activities, with deforestation declining 43.7% during in his first term (from 2003 to 2006) and another 52.3% during his second term (until 2010). Under president Bolsonaro, deforestation surged 72%. (Nov 2022)
Canada released draft guidance on how new oil and gas projects should demonstrate "best-in-class" greenhouse gas emissions performance, following up on a government announcement first made in April. Companies are expected to identify best emissions performance on similar projects globally and show how their projects will match this performance, and how they will aim to get projects toward net-zero emissions. (Oct 2022)
Canada has released a discussion paper outlining proposals to sharply reduce greenhouse gas emissions from its oil and gas sector, which accounts for 27% of the country's total emissions. The paper puts forward two options to bring the sector's emissions into alignment with Canada's goal of net zero emissions by 2050 and 2030 interim targets: 1) Implement a cap-and-trade system that sets regulated limits on emissions from the sector, and 2) Adjust carbon pricing for heavy industry to create a cost incentive to reduce emissions. Alberta's provincial government has already raised objections, saying the proposals challenge the province's "constitutionally protected ability to develop [its] resources." The consultation period will run through September 30, 2022. (July 2022)
The Government of Canada launched the country’s Greenhouse Gas Offset Credit System, a key part of its 2030 Emissions Reduction Plan that will give municipalities, foresters, farmers, Indigenous communities and others that register with the system a market-based incentive to undertake innovative projects that prevent greenhouse gas (GHG) emissions and remove GHGs from the atmosphere. Projects that meet specific criteria and follow a federal offset protocol for measuring GHG emissions reductions or removals, can then generate one offset credit for every ton of emissions they reduce or remove from the atmosphere, and can be sold to others to meet compliance obligations or emissions reduction goals. The first of five planned protocols was announced: the Landfill Methane Recovery and Destruction protocol, which will permit municipalities and other landfill operators to generate offset credits for recovering landfill gas and destroying it or repurposing it into energy. Future protocols under development will cover activities such as advanced refrigeration, agriculture, and forest management. (June 2022)
The Bahamas is developing a plan to be one of the first countries to monetize its natural ocean-based carbon sinks—primarily mangroves and seagrass meadows—on the voluntary carbon market. Officials there have identified about $300 million in assets and are still counting. They would be offered as “blue” carbon credits starting later this year, with revenue channeled into projects that would improve the nation’s readiness for climate change. Officials will be holding a regional meeting in coming weeks to try to bring other Caribbean nations into the initiative. (May 2022)
Canadian Prime Minister Justin Trudeau’s new budget includes significant tax incentives to encourage oil and gas companies to accelerate their efforts to lower emissions. The proposals for years 2022–2030 include refundable tax credits of (April 2022):
- 60% for investments in direct air capture (DAC) equipment.
- 50% for investments in all other carbon capture, utilization, and storage (CCUS) equipment.
Those rates will be cut in half for the period from 2031–2040, in a move meant to drive as much investment in this decade as possible. The budget also proposes a 30% tax credit for mineral exploration expenses, and specifically for many minerals essential to renewable energy generation and storage. (April 2022)
Canada has introduced its new “2030 Emissions Reduction Plan (ERP),” laying out its roadmap to achieve 40–45% GHG emissions reduction by 2030 (2005 baseline). It is the first ERP to be issued since Canada’s 2021 adoption of the Canadian Net-Zero Emissions Accountability Act, which enshrined Canada’s commitment to reaching net-zero emissions by 2050. (April 2022)
List of Americas News, 2021-2019 (PDF)
Asia Pacific
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China’s Ministry of Industry and Information Technology began public consultations on regulations designed to tighten state control over its domestic rare earth industry. The draft regulations govern quotas for mining, smelting, and separating as well as monitoring and enforcement. (Feb 2025)
The Japanese government adopted new greenhouse gas reduction goals that would cut emissions by more than 70% from 2013 levels by 2040. To this end, the government also set new energy goals:
nuclear power would account for 20% of Japan’s energy supply in 2040 and renewables would cover 40-50%, up from nearly 23% today. Coal-fired power would supply 30-40%, down from nearly 70% today. The plan also calls for development of next-generation energy sources, such as solar batteries and portable solar panels. (Feb 2025)
Taiwan upgraded its 2030 greenhouse gas emissions reduction target to a 26-30% reduction (from 2005 levels), up from its earlier 2030 target of a 23-25% reduction (also from 2005 levels), set in 2022. (Jan 2025)
The Hong Kong government launched a Roadmap on Sustainability Disclosure, which sets out its plan to require large public companies to adopt the International Sustainability Standards Board(ISSB) Standards. It provides a pathway for companies to fully adopt the ISSB Standards no later than 2028, with large cap companies disclosing on a mandatory basis starting 1 January 2026. (Dec 2024)
China announced it would ban exports to the U.S. of certain critical minerals, including gallium, germanium, and antimony (China is a primary source of these minerals for the U.S.). This comes in retaliation to the U.S. Commerce Department announcing new restrictions curbing memory chip and chip making equipment exports to 140 Chinese companies. (Dec 2024)
The Hong Kong Monetary Authority (HKMA) published its Sustainable Finance Action Agenda. This includes eight goals, including for banks to strive for net zero both in their own operations (2030) and financed emissions (2050) and increase transparency on climate-related risks and opportunities; supporting high-quality and comprehensive sustainability disclosures; closing talent and knowledge gaps in sustainable finance in the region; and supporting transition in the region through investment. HKMA will now work to implement the Action Agenda, providing further guidance and tools for the industry. (Oct 2024)
The Indian Supreme Court reprimanded two state governments for not addressing ongoing air pollution (from agricultural burning), reminding them of the Constitutional right to live in a pollution-free environment. The Court directed the governments to submit compliance reports by the next hearing. (Oct 2024)
China’s Minister of Ecology and Environment announced that China would strengthen the development of its carbon market, and plans to expand its emission trading scheme beyond power utilities to new industries, such as steel, cement, and aluminum, by the end of the year. However, according to Reuters, the enterprises covered will be granted “large amounts of free allowances during the 2024-2026 implementation phase” suggesting a “low bar” in these first years. (Sept 2024)
Australia passed a bill including mandatory climate-related reporting requirements for large and medium-sized corporations through both its Senate and House of Representatives. Reporting for large businesses will commence from 1 January 2025. Both bodies also passed a bill to establish a Net Zero Economy Authority, which is tasked with promoting an orderly and positive economic transformation as the world decarbonizes, supporting workers, coordinating government programs and policies, and helping investors find investment opportunities. (Sept 2024)
The President-elect of Indonesia shared plans to launch a new green economy fund aiming to raise $65 billion by 2028, according to Reuters. The fund would raise money selling carbon credits internationally from projects such as forest preservation and mangrove replanting, while helping Indonesia reach its goal of net zero by 2060. (Sept 2024)
China approved 11 nuclear reactors across five sites, a record amount of permits, totaling $31 billion in investment, according to reporting from Bloomberg. In related news, a new report by Greenpeace found that China cut the number of permits for new coal-fired power plants by 79.5% in the first half of 2024 (for a total capacity of 10.34 GW). (Aug 2024)
China released a plan to standardize carbon emission calculations across key sectors, with 70 national standards (e.g. on carbon accounting, carbon footprint, and carbon capture) to be published by the end of 2024. In 2025, China aims to have a standardized calculation and evaluation system in place for businesses, projects, and products, aiming to meet world-leading benchmarks for energy consumption. The country also aims to accelerate the creation of carbon footprint standards for photovoltaics, lithium batteries, and electric vehicles, as these are important export products. China also announced it would set quotas for key polluting industries and provinces, and introduce carbon label certifications for products (to determine the carbon footprint for all products). These new initiatives will track both carbon emissions and emission intensity, starting in 2026, during the next five-year plan period (2026 to 2030). (Aug 2024)
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The Australian government released its Sustainable Finance Roadmap, outlining its vision for delivering key finance reforms. These include: implementing climate-related financial disclosures; developing a preliminary finance taxonomy; developing a labelling regime for investment products marketed as sustainable; and supporting credible business transition planning through best practice guidance. (June 2024)
The Australian government announced large-scale investments in the country’s clean energy sector, including plans to invest A$8 billion (USD$5.3 billion) in hydrogen production and technology over 10 years. (May 2024)
China set a stronger energy intensity target for 2024, aiming for a 2.5% reduction in the amount of energy per unit of economic growth, according to Reuters. This comes after missing its 2023 goal of a 2% reduction, having only cut energy intensity 0.5% that year. (March 2024)
Singapore announced it will require all departing flights to use sustainable aviation fuel (SAF) starting in 2026. Singapore is aiming for a 1% SAF target from 2026, increasing to 3-5% by 2030. It will introduce a SAF levy to provide cost certainty for airlines and passengers, based on the current SAF target and price. (March 2024)
China announced it would compile an annual greenhouse gas inventory for the country as part of an effort to halt emissions growth before 2030 and to achieve carbon neutrality by 2060, according to reporting from Reuters. Its last official inventory, submitted in 2023, covered 2017. (Jan 2024)
The Australian Competition and Consumer Commission (ACCC) published final guidance on environmental claims, laying out eight principles to help businesses ensure any environmental marketing claims they make do not mislead customers. The principles include: Make accurate claims; Have evidence to support your claims; Don’t omit important information; Explain any conditions on claims; Avoid unqualified claims; Use easy-to-understand language; Visual elements should not mislead; and Be direct about your sustainability transition. In early 2024, the ACCC will release further guidance on emission and offset claims. (Dec 2023)
China will increase monitoring, reporting and data transparency of methane releases, according to a Ministry of Ecology and Environment document as reported by Bloomberg. China will deploy new technologies to identify and reduce methane emissions in power generation, industry, and agriculture, though specific targets were not set. (Nov 2023)
The Chinese government announced it will impose export controls starting 1 December 2023 on certain graphite materials and related products, including both natural graphite, and artificial graphite materials and related products with high purity, strength, and density, unless permission is granted. (Oct 2023)
The Asian Infrastructure Investment Bank (AIIB) announced it will triple its financing for climate-related projects by 2030 (compared to 2022 levels). This adds up to at least $7 billion in annual climate finance approvals by 2030.
India will set carbon emission reduction targets for four fossil fuel dependent sectors, said two unnamed government officials, according to reporting by Reuters. These include petrochemicals, iron and steel, cement, and pulp and paper and will set both reduction targets and emission intensity benchmarks for three years. They will also likely be the first sectors to trade on the country’s carbon trading market starting in April 2025.
Indonesia delayed its plan to announce investments from a fund of $20 billion pledged by wealthy countries and global lenders to speed its energy transition until later this year. The delay of Indonesia’s Just Energy Transition Partnership (JETP) will provide more time for public feedback, and allow technical experts additional time to prepare a credible pathway, according to reporting from Reuters. (Aug 2023)
The Securities and Exchange Board of India (SEBI) announced new investment and disclosure rules for ESG funds to “facilitate green financing” and mitigate greenwashing risks. ESG funds will be required to have at least 80% of their assets invested in securities aligned with their specific strategies (such as exclusion, best-in-class, and transition-related investments). Asset managers will also be required to provide monthly ESG scores for their holdings and provide explanations supporting their voting decisions, including whether the vote was made for ESG reasons. (July 2023)
The Australian government is planning to implement mandatory climate-related financial disclosure and is seeking feedback on these rules. Requirements would apply as soon as 2024 for large businesses, with a phased-in approach for smaller businesses. Views are especially being sought on whether the proposed positions relating to coverage, content, framework and liability are workable. This is the second consultation period and runs until 21 July 2023. The consultation paper and information on how to submit views is available here. (July 2023)
The Indian government will not consider new proposals for coal-fired power plants for the next five years, focusing instead on developing renewable energy. This is different than its draft national electricity plan released in September, which projected the country required nearly 8,000 MW of coal capacity by 2027. Instead the new strategy proposes building out more than 8,600 MW of battery energy storage. Building of new coal-fired plants could resume in 2027. Currently coal supplies around 75% of India’s electricity. (June 2023)
India’s Ministry of Electronics and Information Technology launched a pilot project to capture a larger share of the global electronics repair industry, promoting India as a global repair hub. This Electronics Repair Services Outsourcing (ERSO) program will do so by relaxing customs and e-waste rules and allow companies to repair consumer electronics and telecom equipment imported from other regions. Repaired products will then be exported, not sold on domestic markets. The project will run for two months (from 1 June) before being assessed for setting a wider policy. (June 2023)
India announced it plans to mandate the use of 1% sustainable aviation fuel (SAF) for domestic airlines by 2025 (subject to approval by the cabinet), as reported by Reuters. This would total about 140 million liters of biofuels. The mandate could rise to 4-5% if biofuel supplies are available. (May 2023)
China announced it would enforce stricter emissions standards for vehicles starting 1 July. After that date, vehicles that do not meet the new standards (VI-b) will be banned from being produced, imported, or sold. The standards include stricter requirements on pollutants, including carbon monoxide, and require Real-Driving Emission (RDE) tests. For cars that have yet to meet the requirements of the RDE test, distributors will have until 31 December to sell these. (May 2023)
The Reserve Bank of India released a report that found India will need to spend about $1.05 trillion by 2030 to adapt its industries to be compliant with climate change norms. The bank recommended sector-specific approaches to climate risk mitigation, and, according to Reuters, is expected to set a disclosure framework on climate-related financial risks and guidance on climate scenario analysis soon. (May 2023)
The Asian Development Bank (ADB) launched the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP), a program that could significantly ramp up support for addressing climate change in the region. IF-CAP would raise funding from its partners (currently Denmark, Japan, the Republic of Korea, Sweden, the U.S., and the UK) to provide loans for climate projects. The program would provide $5 in loans for every $1 made in guarantees, with an initial ambition of $3 billion in guarantees (and $15 billion in loans). According to the ADB, this is the first time a multinational development bank is using a leveraged guarantee mechanism for climate finance. (May 2023)
The central banks of Singapore and China launched the “China-Singapore Green Finance Taskforce (GFTF)” to deepen bilateral cooperation in green and transition finance and facilitate public-private collaboration required to finance Asia’s low carbon transition. GFTF’s priority areas include achieving interoperability between the Singapore and China taxonomies and piloting digital green bonds with carbon credits. (May 2023)
The Monetary Authority of Singapore (MAS) launched its Finance for Net Zero (FiNZ) Action Plan. This sets out MAS’ strategies to mobilize financing to catalyze Asia’s net zero transition and decarbonization activities in Singapore and the region. The plan has four strategic goals: to promote consistent and reliable climate data; foster sound environmental risk management practices and climate stress testing; support the development of credible transition plans; and promote innovative transition financing solutions. (April 2023)
South Korea weakened its 2030 target for reducing greenhouse gas emissions in the industrial sector from 14.5% to 11.4% but maintained its goal of reducing emissions 40% by 2030 (from 2018 levels). The country eased targets in light of “domestic conditions including raw material supply and technology prospects.” South Korea also aims to increase nuclear energy from 27.4% (in 2021) of total power generation to 32.4% in 2030 and renewables to at least 21.6%, up from 7.5%. (March 2023)
Japan’s ministry of industry set a target for annual CO2 storage capacity of 6-12 million metric tons (MT) by 2030 as part of its long-term roadmap for carbon capture and storage. It aims to increase annual CO2 storage by 6-12 million MT every year from 2030, storing 120-240 million MT annually in 2050. The ministry also wants to have legislative frameworks in place to allow companies to launch full-scale CCS operations from 2030, according to reporting from Reuters. (Jan 2023)
The government of India announced cabinet approval of its National Green Hydrogen Mission, a strategy to establish the country as a leading green hydrogen production hub. India expects to produce five million metric tons of green hydrogen and generate $97 billion in investment and 600,000 jobs by 2030. The plan is also expected to reduce fossil fuel imports by more than $12 billion by 2030. The cabinet also approved more than $2 billion in incentives for the green hydrogen transition. (Jan 2023)
The Australian government published a consultation paper on the development of mandatory climate-related financial disclosures for large listed companies and financial institutions. Questions included whether ISSB standards are most appropriate, and what reporting requirements for Scope 3 emissions should entail. Responses can be submitted until February 17, 2023. (Dec 2022)
China announced it will build a “green technology innovation system” between 2021 and 2025 to tackle air, soil, and groundwater pollution, reduce waste, protect ecosystems, and achieve carbon neutrality by 2060. This system, which will based in high-tech solutions using innovations in big data, biotech and artificial intelligence, will be backed by tax incentives and new “green technology banks.” (Nov 2022)
Australia joined over 120 countries committing to collectively reduce global methane emissions by at least 30% below 2020 levels by 2030 across energy and resources, agriculture, and waste sectors. The Australian government will invest up to $3 billion for low emissions technologies and agricultural methane reduction. It will also make smaller investments in low-emissions livestock feed supplements, and capturing methane from landfills, coal mines, and gas infrastructure. (Oct 2022)
President Xi Jinping said China will prioritize environmental protection, vowing to “basically eliminate” heavy air and water pollution and bring soil contamination under control. He said China will promote green lifestyles, support low-carbon industries, and build a new energy system while continuing to promote the “clean and efficient use of coal.” (Oct 2022)
Indonesia will start subsidizing electric vehicle (EV) purchases in 2023 to achieve its goal of having 2.5 million EV users by 2025 to stimulate demand and reduce air pollution. This is a ninety-fold increase from its current total of 28,000 EVs, most of which are motorcycles. It is also considering subsidizing the conversion of internal combustion vehicles. (Oct 2022)
Australia’s Minister for the Environment and Water released the Threatened Species Action Plan: Towards Zero Extinctions, which sets a path for threatened species conservation and recovery over the next 10 years. The plan sets objectives to prevent any new extinctions of plants and animals, and to protect and conserve at least 30% of Australia’s land mass. It prioritizes 110 species and 20 places, identified by independent scientists, to focus action where most needed. (Oct 2022)
Indonesia has issued new regulation to increase renewable energy use. The country aims to increase the proportion of renewables in its energy mix to 23% by 2025, up from its current 12%, and has set a new pricing system for renewables. It also plans to retire 15 gigawatts of coal power generation early, with the government helping to absorb losses. No new coal power plants can be built, other than those that service natural resources processing and are already in the pipeline. Coal currently makes up 60% of Indonesia’s energy mix. (Sept 2022)
The Australian Senate passed a new climate law that will make legally binding a 43% CO2 emissions cut from 2005 levels by 2030. This law marks the first time Australia has mandated climate targets. (Sept 2022)
GAIL, India’s state-owned natural gas utility, has set a target to achieve net zero carbon emissions from its operations by 2040. Specifically it intends to achieve a 100% reduction in Scope 1 and Scope 2 emissions and a 35% reduction in Scope 3 emissions. GAIL aims to produce green hydrogen and install 3 GW of renewable energy capacity by 2030. (Aug 2022)
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Recently elected Australian Prime Minister Anthony Albanese announced new, more ambitious climate targets for Australia, in recognition of the fact that the country is one the world’s highest per-capita carbon emitters. To bring them more in line with the commitments of other developed economies, he pledged to cut carbon emissions by 43% (2005 baseline) by 2030, approximately 15% more than the previous government’s target. (June 2022)
China’s state planning agency announced a new five-year plan for its renewable sector, aiming for grids to generate 33% of power from renewable sources by 2025, up from 28.8% in 2020. The country pledged to nearly double current wind and solar capacity, increasing the combined capacity to 1,200 gigawatts by 2030. The plan also states an intention to raise the share of non-fossil fuels in total energy use to 20%, up from 15.4% in 2020. (June 2022)
China has announced plans to plant and conserve 70 billion trees by 2030. The commitment is a response to the World Economic Forum’s 1t.org initiative, which has a mission of conserving, restoring, and growing 1 trillion trees by 2030 in support of the UN Decade on Ecosystem Restoration. (May 2022)
China’s Shandong province, an industrial hub south of Beijing, issued a call for bids to construct 10 offshore solar farms in its shallow coastal waters. The capacity planned is 11.25 gigawatts—more than peak consumption in New Zealand—and is part of the province’s broader plans to build 42 gigawatts of solar and 35 gigawatts of wind power in its offshore areas, and China’s target of 1,200 gigawatts of wind ad solar by 2030. (May 2022)
Japan intends to help companies store carbon dioxide underground or under the seabed by 2030 to help the country achieve its 2050 carbon neutral goal. Japan also said it would store 120-240 million tons of CO2 a year in 2050. A new legal framework will be created to improve predictability for companies. (April 2022)
Taiwan announced plan to spend about NT$900 billion ($32 billion) between 2022 and 2030 to accelerate its use of renewable technologies, grid infrastructure, and energy storage. The announcement follows news that Taiwan will likely be 1–2 years behind on its goal of 20% renewable-sourced power by 2025—a milestone on its path to reach 60–70% renewable-sourced power by 2050. (April 2022)
China’s National Development and Reform Commission (NDRC) announced that China aims to produce 100,000 to 200,000 tons of green hydrogen per year and have about 50,000 hydrogen-fueled vehicles by 2025. The statement also described ambitions to establish a comprehensive hydrogen industry spanning transportation, energy storage and industrial sectors and to "significantly improve" the portion of green hydrogen in China's energy consumption by 2035. (March 2022)
India unveiled the first phase of its new National Hydrogen Policy and announced plans to manufacture 5 million tons of “green hydrogen” (hydrogen produced using renewable energy) by 2030. It plans to mandate power plant use of green hydrogen and green ammonia in the second phase. (Feb 2022)
China released its five-year agricultural plan, which for the first time includes cultivated meats and other “future foods” as part of its strategy for food security. (Feb 2022)
Japanese Prime Minister Kishida Fumio outlined a new vision to transform Japan by implementing “liberal democratic capitalism” and investing in green technology, human capital, and digitization. He plans to more than double investment in green technology, introduce a carbon-pricing system, transition to clean energy, increase corporate disclosure, and utilize public-private partnerships to drive the development of new policies. (Jan 2022)
Taiwan's largest pension fund—the Bureau of Labor Funds, which has $199 billion worth of assets—will issue what a fund official says is Asia's first climate change-focused stock mandate, worth $2.3 billion. Selected asset managers are expected to deliver an additional 0.5% annualized return “on top of the performance of a climate index,” according to
Reuters, and all portfolio companies that the managers choose must be “index constituents.” (Jan 2022)
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List of Asia Pacific News, 2021-2020 (PDF)
European Union
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The European Commission introduced The Clean Industrial Deal, which maps out a plan to accelerate decarbonization in the EU, while increasing industrial competitiveness and growth, particularly in addressing climate change. Main elements of the Deal include (March 2025):
- The Affordable Energy Action Plan to accelerate clean energy and electrification, improve efficiency, and decrease imported fossil fuels.
- The Industrial Decarbonization Accelerator Act to increase demand for EU-made clean products.
- An Industrial Decarbonization Bank to mobilize over €100 billion ($104 billion) to support EU-made clean manufacturing.
- A Circular Economy Act, with an aim to have 24% of materials circular by 2030.
- Clean Trade and Investment Partnerships to diversify supply chains.
The European Commission is proposing exemptions to 90% of importers covered by the EU’s Carbon Boarder Adjustment Mechanism (CBAM)
as they produce only 1% of emissions included in the scheme. CBAM would only
apply to companies importing at least 50 metric tons of goods per year (rather than the current threshold of €150 per shipment). The draft also
simplifies calculating reductions where CO2 prices are paid in other countries, based on average carbon prices in those countries. (March 2025)
The European Commission pledged “far-reaching simplification” in the fields of sustainable finance reporting, sustainability due diligence, and taxonomy (pp. 17-18) in its new Competitive Compass for the EU, a productivity and global competitiveness roadmap. It also aims to reduce reporting for smaller companies by simplifying the Carbon Border Adjustment mechanism and by creating a new definition of small mid-cap companies. The Compass also includes a “joint roadmap for decarbonization and competitiveness,” (pp. 8-12) with a series of “flagship actions” to move forward over 2025 and 2026, including (Feb 2025):
- Clean Industrial Deal (Q1 2025);
- Sustainable Transport Investment Plan (Q3 2025);
- Electrification Action Plan and European Grids Package (Q1 2026);
- Circular Economy Act (Q4 2026).
Switzerland approved a new climate target of a 65% reduction of greenhouse gas (GHG) emissions by 2035 compared to 1990 levels, up from its earlier 2030 target of a 50% reduction. Emissions must also fall by 59% on average between 2031 and 2035. (Feb 2025)
Eleven European companies, investors, and trade associations, including Mars, Nestlé and Unilever, wrote an open letter to European Commission leaders in support of the EU’s sustainability due diligence and corporate reporting rules. In light of a forthcoming omnibus initiative to streamline corporate reporting, the letter asks Commission leaders to prevent the use of this omnibus process to renegotiate “already agreed and adopted legal texts,” particularly the Corporate Sustainability Due Diligence Directive (CSDDD), and clarify that position publicly. (Jan 2025)
The Swiss government opened a consultation on a new proposal to amend its Ordinance on Climate Disclosures. The current ordinance, in force since 1 January 2024, assumes obligations of large companies to report on climate matters is fulfilled by implementing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). With TCFD’s dissolution, the proposal shifts the obligation to report via an internationally recognized standard, or the EU’s Corporate Sustainability Reporting Directive (CSRD). The proposal also establishes minimum requirements for net-zero roadmaps for financial companies. The amended Ordinance would enter into force on 1 January 2026 and the consultation is open until 21 March 2025. (Dec 2024)
Starting 1 January 2025, Italy will require companies to buy insurance to protect their assets from floods, landslides, and other climate-related disasters, according to reporting from Bloomberg. The law will also require insurers to write these policies, and is backed by a €5 billion ($5.3 billion) reinsurance fund run by a state-controlled financial institution. However, the law could be delayed due to concerns that a large disaster could overwhelm the fund and that insurers will leave Italy’s riskiest areas. (Dec 2024)
The European Union reached a provisional agreement for a 12-month delay for the EU Deforestation Regulation (EUDR). The agreement did not include adding a ‘no risk’ category of countries with reduced oversight. If formally adopted by the European Parliament and Council, the law will become applicable for large companies on 30 December 2025, and 30 June 2026 for micro- and small companies. (Dec 2024)
The Council of the EU adopted a regulation prohibiting products in the EU market that are made using forced labor (including both for sale within the EU and the export of these products from the EU market). The regulation will also establish a database of forced labor risk areas to support assessment and investigation of possible violations. Once signed, the regulation will be published in the Official Journal and enter into force the following day. It will apply three years after entry into force. (Nov 2024)
The Council of the EU finalized a regulation establishing the first EU-level certification framework for permanent carbon removals, carbon farming, and carbon storage in products. It is a voluntary framework with carbon removal activities needing to meet the following criteria to be certified: they must be quantifiable; additional; ensure long-term storage; and should do no significant harm and result in sustainability co-benefits. Activities must also be independently verified. Once entering the EU’s Official Journal, the regulation will enter into force 20 days later. Four years later, the Commission will establish an electronic EU-wide registry to ensure transparency and traceability of the certified removals. (Nov 2024)
The Council of the European Union (EU) adopted a new regulation on ESG rating activities, which aims to make rating activities in the EU more consistent, transparent, reliable and comparable in order to boost investors’ confidence in sustainable financial products. ESG rating providers established in the EU will also need to be authorized and supervised by the European Securities and Markets Authority (ESMA), while those outside the EU will need to obtain an endorsement, recognition, or an inclusion based on equivalence. The regulation will now enter the EU’s Official Journal and enter into force 20 days later, and apply 18 months after that. (Nov 2024)
The European Parliament voted to delay implementation of the EU Deforestation Regulation (EUDR) for one year, as well as amend the law to create a “no risk” category to exempt countries that pose little deforestation risk. The legislation will now need to be approved again by the EU Council and Parliament before entering into force. (Nov 2024)
A Dutch Court overturned a 2021 ruling that Royal Dutch Shell had to reduce absolute carbon emissions by 45% by 2030 (from 2019 levels)
in a case brought by Dutch environmental organization Milieudefensie (Friends of the Earth Netherlands). The court agreed with Shell that demands for companies to reduce emissions should be made by states not courts.
This ruling can still be appealed to the Dutch Supreme Court. (Nov 2024)
The European Securities and Markets Authority (ESMA) issued common enforcement priorities for 2024 corporate reporting. Among other topics, ESMA and European enforcers will focus in 2025 on materiality considerations in reporting under the European Sustainability Reporting Standards (ESRS); scope and structure of the sustainability statements; and disclosures related to Article 8 of the Taxonomy Regulation. (Nov 2024)
The European Commission selected 85 net-zero projects to receive €4.8 billion ($5.2 billion) in grants from its Innovation Fund (with funding coming from the EU Emissions Trading System). The projects are located in 18 countries and range across a variety of sectors. They are expected to reduce emissions by about 476 million metric tons of CO2 equivalent over their first 10 years of operation. The next call for proposals will be launched in early December. (Oct 2024)
Germany awarded 15 companies support guarantees totaling up to €2.8 billion ($3.1 billion) under the country’s Climate Contracts for Difference scheme. The companies receive compensation (once annual emissions targets have been achieved) to cover the extra costs of reducing climate emissions. The projects are expected to reduce up to 17 million metric tons of CO2 equivalent over the 15-year term contracts. (Oct 2024)
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The European Commission proposed delaying implementation of the EU Deforestation Regulation for 12 months (until 30 December 2025 for large companies, and 30 June 2026 for small enterprises), providing additional time to prepare. It also published additional guidance documents to provide further clarity (around issues such as legality requirements, timeframes, and product scope) and an international cooperation framework to support global stakeholders and member states. (Oct 2024)
Germany’s Environmental Agency rejected 215,000 tons of carbon credits derived from reducing pollution during oil and gas production. Authorities identified “irregularities” in these upstream emissions reductions (UER) credits, coming from eight climate projects based in China. (Sept 2024)
The Spanish government announced the approval of almost 300 renewable power projects with a total capacity of more than 28 GW. The projects comprise mainly photovoltaic power plants, as well as 43 wind farms and one hydropower plant, a total investment of over €17 billion ($18.4 billion). Spain intends to increase renewable-generated electricity to 81% of its total by 2030, up from about 50% now. (Aug 2024)
The European Commission approved a €998 million ($1.09 billion) Dutch initiative to support renewable hydrogen production. The initiative will fund construction of at least 200 MW of electrolysis capacity. The Dutch government expects this initiative to reduce CO2 emissions by approximately 55,000 metric tons annually until 2030. (Aug 2024)
The European Union invested nearly €3 billion ($3.2 billion) of emissions trading revenues (via the Modernisation Fund) to support 39 energy projects in 10 EU Member States. This is the largest disbursement to date from the fund and includes projects ranging from reinforcement of transmission grids, and renewables, to upgrading EV charging infrastructure and the energy efficiency of buildings. (July 2024)
Spain’s Prime Minister announced a new €2.3 billion ($2.5 billion) plan to accelerate the country’s transition to clean energy, according to Reuters. This will include subsidies for green energy companies and hydrogen made from renewables, as well as support for agriculture, infrastructure and communities to transition to green energy. (July 2024)
The European Council formally adopted the first of its kind Nature Restoration Law, which will put measures in place to restore at least 20% of the EU’s land and sea areas by 2030 (and 30% for habitats in poor condition) and all ecosystems in need of restoration by 2050. States will also have to make efforts to reverse the decline of pollinator populations and prevent significant deterioration of areas that have reached good condition after being restored. The regulation will now enter into force once published in the EU’s Official Journal. (June 2024)
The European Commission launched the European Solar Academy, the first in a series of Net-Zero Academies to train workers with the skills needed along net-zero value chains. It will provide learning content and credentials to certify the skills acquired in the training courses, deployed via local partners. (June 2024)
The three European Supervisory Authorities (ESAs), including ESMA, EBA, and EIOPA,
published a joint opinion
recommending that the European Commission consider introducing a sustainability indicator that would grade financial products, such as investment funds and pension products. The ESAs also recommended improving definitions of sustainable investments; creating at least two categories for products to reduce greenwashing risks (such as “sustainability” and “transition” products); and simplifying the way disclosures are presented to investors. (June 2024)
The European Commission has provisionally concluded that the battery electric vehicles (BEV) value chain in China benefits from unfair subsidization and threatens economic injury to EU BEV producers. The Commission revealed the provisional countervailing duties it would impose on imports of battery electric vehicles from China starting 4 July if discussions with Chinese authorities do not lead to a resolution. Duties will range from 17.4% up to 38.1%. (June 2024)
The European Council announced final approval of the Net-Zero Industry Act (NZIA), which sets a framework for scaling up Europe’s capacity to manufacture clean technologies. By 2030, the EU seeks to manufacture at least 40% of its annual deployment of strategic net-zero technologies such as batteries, heat pumps, and grid-related technologies. (June 2024)
The European Council announced final approval of regulations for a new “Ecodesign” framework to establish sustainability requirements for nearly all products across the EU, and to ban the destruction of unsold textiles and footwear. The regulation also requires the creation of a new “Digital Product Passport” meant to help consumers and businesses make informed choices when purchasing products. (June 2024)
The European Union will leave the Energy Charter Treaty
(ECT) over concerns that it is no longer in line with the Paris Agreement as it protects fossil fuel investments and undermines efforts to fight climate change. The ECT was entered into force in 1988 as a multilateral agreement for cross-border energy industry cooperation. EU member states will have the opportunity to remain part of the ECT. (June 2024)
Italy, Germany, and Austria have agreed to cooperate on the development of a network to transport hydrogen from North Africa to northern Europe. The agreement is part of the EU’s strategy to secure renewable hydrogen supplies by 2030 to help decarbonize its most polluting industries. (June 2024)
The European Securities and Markets Authority (ESMA) released final guidelines on the use of sustainability language in investment fund names. At least 80% of assets in a fund whose name includes ESG or sustainability-related terms must meet ESG investment objectives. They also establish a transition category for investments that are not yet green but are headed there. The guidelines will apply three months after being translated into EU languages and published on ESMA’s website. (May 2024)
The EU Council formally adopted legislation requiring a 90% reduction in CO2 emissions from heavy-duty trucks and buses by 2040. The regulation included reduction interim targets of 45% by 2030 and 65% by 2035, which also apply to medium trucks and heavy trucks weighing more than 7.5 tons. The new rules maintain the existing 2025 target of 15% emissions reduction for heavy-duty trucks weighing over 16 tons. (May 2024)
The European Council adopted a regulation reforming the existing EU gas legislation and establishing common internal market rules for hydrogen and renewable and natural gases. This aims to advance the EU’s shift to low carbon gases, and provides specific rules for the transport, supply, and storage of natural gas and hydrogen. It also ends long-term contracts for fossil gas lasting beyond 2049, and will set up a voluntary mechanism to support the hydrogen market for five years. The regulation will now be signed and published, and become applicable six months after publication. (May 2024)
The European Council adopted the Corporate Sustainability Due Diligence Directive (CSDDD). It will enter into force 20 days after publication in the Official Journal of the EU. The directive will apply three years after entry into force to companies with over 5,000 employees and €1.5 billion ($1.63 billion) in turnover, with more companies phased in in subsequent years. (May 2024)
The European Council gave its final approval to delay the adoption of sector-specific reporting standards for EU companies and general sustainability reporting standards for non-EU companies until 30 June 2026, under the Corporate Sustainability Reporting Directive (CSRD). Once signed, the directive will enter into force on the 20th day after being published in the Official Journal. (May 2024)
The European Commission and EU consumer authorities sent
letters to 20 airlines identifying several types of potentially misleading green claims and inviting them to bring their practices in line with EU consumer law. The focus was on claims that CO2 emissions caused by a flight could be offset by climate projects or through the use of sustainable fuels.
The airlines have 30 days to respond, outlining proposed measures to address the concerns. (May 2024)
The European Parliament approved several directives this week including:
- The Corporate Sustainability Due Diligence Directive (CSDDD), requiring firms and their upstream and downstream partners to prevent, end, or mitigate their adverse impacts on human rights and the environment. The rules will be gradually phased in, applying to EU companies (and non-EU companies reaching the same turnover thresholds in the EU) with over 5,000 employees and worldwide turnover of €1.5 billion ($1.6 billion) in 2027; over 3,000 employees and €900 million in turnover in 2028; and over 1,000 employees and over €450 million in turnover in 2029.
- The “Right to Repair” directive, requiring manufacturers to provide timely and cost-effective repair services for certain repairable goods (e.g. washing machines, vacuum cleaners, and smartphones). States will also be required to implement at least one measure to promote repair, such as repair vouchers and funds, offering repair courses, or conducting information campaigns.
- The Packaging and Packaging Waste Directive to make packaging more sustainable and reduce packaging waste in the EU. This will set packaging reduction targets (5% by 2030, 10% by 2035, and 15% by 2040) along with banning certain single use plastic packaging from 1 January 2030.
- The “Net Zero Industry Act” to bolster EU production in technologies needed for decarbonization. This sets a target for Europe to produce 40% of its annual deployment needs in net-zero technologies by 2030 and to capture 15% of the global market value for these technologies. The law will also simplify the permitting process and set maximum timelines for projects to be authorized depending on their scope and output.
These now need to be approved by the Council before becoming law. (April 2024)
At the Our Ocean Conference, the European Union announced €3.5 billion ($3.73 billion) in commitments to protect the ocean. These include up to €1.9 billion to support sustainable fisheries, up to €980 million to fight maritime pollution, €264 million to support sustainable blue economies, and €103 million for ocean observation programs to help advance climate research, among other commitments. The EU, along with 13 other countries, also urged countries to ratify the UN Treaty of the High Seas to protect the world’s oceans. (April 2024)
Scotland will abandon its target to cut GHG emissions by 75% by 2030, but will keep its goal to reach net zero by 2045, according to reporting from the BBC. According to a
government Climate Change Committee report, Scotland missed its annual target eight out of the past 12 years (though it had reduced emissions 49.2% by 2021 from 1990 levels). The report found that
the acceleration in emissions reduction needed to meet the 2030 target is now “beyond what is credible.” (April 2024)
Europe’s highest human rights court ruled in favor of the Association of Senior Women for Climate Protection Switzerland in a landmark climate ruling. This group, representing more than 2,000 Swiss women over 64 years old (and thus particularly vulnerable to heat-related illnesses) argued that the Swiss government was not doing enough to combat climate change, which increases heat risks. The court found the government had failed to quantify greenhouse gas emissions limitations and meet its past emission reduction targets and ordered the country to address these shortcomings. The ruling is binding and may affect the law in Europe and the outcomes of other pending court cases. The court dismissed two other climate cases, one by Portuguese youth, and one by a former French mayor. (April 2024)
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The European Council formally adopted the revised Energy Performance on Buildings Directive, which sets that by 2030 all new buildings should be zero-emissions, and that by 2050 EU’s building stock should be zero-emissions. New performance standards will set minimum energy performance standards for non-residential buildings and renovation targets for residential buildings, and provisions to phase out fossil fuel boilers by 2040. Once signed, member states will have two years to incorporate the rules into national legislation. (April 2024)
The European Parliament adopted a provisional agreement to establish a new voluntary certification framework for carbon removals to boost their deployment and monitor their quantity and quality. The framework includes different types of removals including industrial removal, carbon farming, and carbon storage in long-lasting products.
The agreement now needs to be adopted by the Council. (April 2024)
The European Council removed a vote on the Nature Restoration Law from its agenda after failing to get necessary support from EU members. Eight member states withdrew support for the legislation at this final stage of passing the law. (April 2024)
The European Parliament adopted the Green Claims Directive, which would require companies to submit evidence about their environmental marketing claims before advertising products such as “biodegradable,” or “less polluting.” Green claims based solely on carbon offsetting will remain banned. EU countries would assign verifiers to approve claims. Companies that break the rules could lose revenues or face fines of at least 4% of their annual turnover. Parliament will have to follow up on this after European elections in June. (March 2024)
The European Parliament adopted the Energy Performance of Buildings Directive to help reduce energy consumption and emissions from the building sector.
All new buildings should be zero-emission as of 2030. Member states will have to
renovate the 16% worst-performing non-residential buildings by 2030, and the 26% worst-performing by 2033. Member states will also have to outline how they will adopt measures to
phase out fossil fuels in heating and cooling by 2040. The directive, already adopted by the Council, now needs to be formally endorsed by the Council of Ministers to become law. (March 2024)
The European Parliament adopted its proposed revision of the
Waste Framework Directive, to prevent and reduce waste from food and textiles across the EU. The proposal establishes
2030
waste reduction targets of
at least 20% in food processing and manufacturing (up from 10%)
and 40% per capita in retail, restaurants, food services and households (up from 30%). It would also
extend producer responsibility schemes for textiles, with member states being required to establish these schemes 18 months after the directive enters into force. Parliament will have to follow up on this after the June elections. (March 2024)
The European Council approved the Corporate Sustainability Due Diligence Directive (CSDDD), which would set obligations for companies to identify, prevent, and address impacts on human rights and the environment.
This comes after a compromise that raises the threshold of companies covered to those with 1,000+ employees (up from 500), and those with revenue greater than €450 million ($490 million), up from €150 million.
This cuts the scope of the CSDDD by about two-thirds. Other changes include a longer phase-in time (between 3-5 years depending on company size), and the exclusion of product disposal activities from the scope of the law. (March 2024)
The European Parliament and Council reached a provisional agreement on new rules to reduce, reuse, and recycle packaging. The rules set packaging reduction targets (5% by 2030, 10% by 2035, and 15% by 2040), and require reductions of the amount of plastic packaging waste. Certain single use plastic packaging would be banned from 2030. PFAS substances (forever chemicals) would also be banned in food contact packaging. And consumers would have more options for reusable packaging and bringing their own containers (both 10% targets). Parliament and Council now need to formally approve the agreement. (March 2024)
The European Parliament and Council reached a provisional agreement on new rules that ban products made with forced labor from the EU market. The regulation would create a
framework for enforcing this ban, through investigations, digital tools, and cooperation with other countries. If an investigation concludes forced labor was used,
goods can be removed from the EU market (with banned products being allowed back on the market if forced labor is eliminated). Parliament and Council now have to give final approval. Then EU countries would have three years to apply the new rules. (March 2024)
The European Parliament adopted a new landmark nature restoration law, setting a target to restore at least 20% of the EU’s land and sea areas by 2030, and all ecosystems in need of restoration by 2050. Member states will be required to restore at least 30% of habitats covered by the law by 2030, increasing to 60% by 2040, and 90% by 2050, and will have to adopt national restoration plans detailing how they will achieve these targets. The law now needs to be adopted by the European Council. (March 2024)
The European Parliament approved strengthened rules on environmental crimes. It contains an
updated list of offenses, including illegal timber trade, depletion of water resources, serious breaches of EU chemicals legislation, and pollution caused by ships.
Penalties include imprisonment, requirements to reinstate or compensate for the damaged environment, and fines (potentially up 5% of annual worldwide turnover for companies).
The directive will enter into force 20 days following its publication in the EU Official Journal. (March 2024)
The European Council failed to endorse the Corporate Sustainability Due Diligence Directive (CSDDD), which would set obligations for companies to identify, prevent, and address impacts on human rights and the environment. Its status is now uncertain. (March 2024)
The European Council adopted new rules protecting consumers from misleading environmental claims and harmonizing sustainability labeling across the EU. Once signed, the directive will be published in the Official Journal and enter into force twenty days after, with member states having two years after that to integrate the rules into national law. (Feb 2024)
The European Parliament and Council reached a
provisional agreement to
establish the first
EU-level certification framework for carbon removal to improve the EU’s capacity to quantify, monitor and verify carbon removal activities. This voluntary framework
covers permanent carbon removals, temporary carbon storage in products and from farming, and soil emission reduction from farming. Activities that do not result in carbon removals, such as avoided deforestation, are not included in the scope of the regulation.
Tailored certification methodologies for different types of removal activities will be developed. And an
EU registry will be established to create a high level of transparency about certified removals. The agreement will need to be formally adopted by both the Council and Parliament before it can enter into force. (Feb 2024)
The European Parliament and Council reached a
provisional agreement to strengthen air quality standards, setting stricter 2030 limits and target values for several pollutants, including
particulate matter (PM2.5 and PM10), nitrogen dioxide (NO2), and sulfur dioxide (SO2). For NO2 and PM2.5, the annual limits will be more than halved. Total air quality sampling points in cities will also be increased. Member states will have to create
air quality roadmaps by 31 December 2028 setting out measures to comply with 2030 limits. The rules now need to be adopted by the Council and Parliament. (Feb 2024)
Germany will provide up to €3.53 billion ($3.8 billion) to procure green hydrogen and its derivatives from different import regions between 2027 and 2036. The funds will be used to compensate for the difference between global supply prices and prices hydrogen can be resold regionally and used economically. (Feb 2024)
The EU Commission approved €6.9 billion ($7.4 billion) in aid for hydrogen infrastructure projects. The project, the third Important Project of Common European Interest (IPCEI) Hy2Infra, is expected to unlock a further €5.4 billion ($5.8 billion) in private investments, with 32 companies participating in 33 projects. The project will support the deployment of 3.2 GW of large-scale electrolyzers, 2,700 km of transmission and distribution pipelines, as well as storage facilities and handling terminals. (Feb 2024)
The European Council and Parliament reached a provisional deal on a directive to postpone the sector-specific European Sustainability Reporting Standards (ESRS), standards for small and medium-enterprises, and standards for third country companies (with €150 million turnover in the EU) until 30 June 2026 (two years after the original date). The agreement now needs to be endorsed and formally adopted by the Council and Parliament. (Feb 2024)
The European Council and Parliament reached a provisional agreement on new rules to strengthen the reliability and comparability of ESG ratings. ESG rating providers will need to be authorized and supervised by the Europeans Securities and Markets Authority and comply with transparency requirements. The agreement is subject to approval by the Council and Parliament before going through the formal adoption period. The regulation will start applying 18 months after entering into force. (Feb 2024)
The European Council and Parliament reached a provisional agreement on common rules to promote the repair of goods for consumers, increasing consumers’ right to repair during a one year legal guarantee and increasing consumer options beyond that period. Once formally adopted, the rules will enter into force 20 days after publication in the Official Journal of the EU. (Feb 2024)
The European Commission recommended a 90% net greenhouse gas emissions reduction by 2040 compared to 1990 levels, based on
its impact assessment on pathways to reach climate neutrality by 2050. The announcement also noted several conditions needed to achieve this, including full implementation of the agreed 2030 framework and expanding the Green Deal into an “industrial decarbonisation deal.” A legislative proposal will be made by the next Commission (after elections).
The Commission also adopted an
Industrial Carbon Management Communication, providing details on how carbon capture technologies could contribute to this 90% target and net-zero by 2050. CO2 storage capacity would need to grow
from 50 million metric tons per year in 2030 to 280 million tons by 2040 and around 450 million tons by 2050. (Feb 2024)
The European Council adopted two regulations to phase down fluorinated gases (F-gases) and other ozone-depleting substances (ODSs). Under the new rules, the consumption of hydrofluorocarbons (HFCs) will be completely phased out by 2050 and the production of HFCs will be phased down to a minimum (15%) as of 2036. ODSs will also be banned for almost all uses with exemption for the use of some ODSs as feedstocks. The laws will now be signed and enter into force 20 days after being published in the EU’s Official Journal. (Feb 2024)
The European Central Bank (ECB) announced it will expand its work on climate change, identifying three areas that will guide its activities in 2024 and 2025: 1) the impact and risks of the transition to a green economy; 2) the increasing physical impact of climate change; and 3) the risks stemming from nature loss and degradation. Specifically, the ECB will increase work on
green investment needs; deepen analysis of the
impact on extreme weather events on inflation and the financial system; and
explore the role of ecosystems for the financial system. It will also launch its eighth environmental management program to support achieving its 2030 carbon reduction targets.
Read more in the ECB’s
Climate and Nature Plan 2024-2025. (Feb 2024)
The Legal Affairs Committee of the European Parliament approved a proposal to delay full enactment of the Corporate Sustainable Reporting Directive (CSRD) by two years. Specifically this includes delaying: 1) sector-specific sustainability disclosures (until June 2026), and 2) the adoption of the general sustainability reporting standards for non-EU companies until 2026. The committee also suggested that the Commission publishes the eight sector standards as soon as they are ready to increase the transparency and flexibility of the process. This will now move to member state negotiations to shape the final legislation. (Jan 2024)
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The EU Parliament voted to adopt a new law banning greenwashing and misleading product information. The law bans use of general environmental claims like natural, environmentally friendly, climate neutral, biodegradable, and eco. It will also regulate sustainability labels based on official certification schemes, and ban claims that products have a reduced, neutral or positive impact on the environment because of offsetting schemes. The law will also ban unfounded product durability claims. (Jan 2024)
The EU Council and Parliament reached a provisional deal to reduce CO2 emissions from heavy-duty vehicles, including most smaller trucks, buses, and trailers. New targets include a 45% reduction by 2030, a 65% reduction by 2035, and a 90% reduction by 2040. It also includes a 100% zero-emission target for urban buses by 2035. The proposal will now go to member states. (Jan 2024)
The Norwegian Parliament voted to authorize seabed mining exploration, a first step in commercial-scale deep sea mining. This will open up 280,000 km2 of its national waters for exploration. The government said it would only begin issuing licenses once further environmental studies were carried out, according to reporting by the BBC. (Jan 2024)
The European Securities and Markets Authority (ESMA) released an update of its guidelines on ESG and sustainability-related terms in fund names, including details on the timing of their publication. The Guidelines are expected to be approved and published in Q2 2024, after publication of two revised texts initiated during reviews, with the Guidelines applying three months after publication. (Jan 2024)
The European Parliament and Council reached a provisional agreement on new rules obliging firms to integrate their human rights and environmental impact into their management systems. The new directive (the Corporate Sustainability Due Diligence Directive (CSDDD)) sets obligations for companies to mitigate their negative impact on human rights and the environment such as child labor, pollution, deforestation, excessive water consumption or damage to ecosystems. Companies will have to integrate “due diligence” into their policies and risk-management systems, as well as adopt a plan ensuring their business model complies with limiting global warming to 1.5°C. The legislation will apply to EU companies over 500 employees and a worldwide turnover higher than €150 million, as well as smaller companies in certain sectors, and non-EU companies with equivalent turnover in the EU. The draft requires formal approval by Parliament and the Council before it can enter into force. (Dec 2023)
The European Parliament and Council announced provisional agreement on proposed regulations to establish sustainability requirements for nearly all products across the EU. The regulations would require that products be more energy-efficient, durable, reusable, repairable, recyclable and increasingly made of recycled materials. Prioritized products would include iron, steel, aluminum, textiles, furniture, tires, detergents, paints, lubricants and chemicals. A “Digital Product Passport” would be created to help consumers and businesses make sustainability-driven choices when purchasing. It would prohibit the destruction of unsold products, and would address premature product obsolescence. (Dec 2023)
The European Commission opened a call for proposals for €4 billion ($4.4 billion) to support the deployment of innovative decarbonization technologies. This 2023 Innovation Fund, funded by revenues from the EU Emissions Trading System, devotes €1.7 billion to large–scale decarbonization projects, €500 million for medium-scale projects, and €200 million for small-scale projects, as well as €1.4 billion for cleantech manufacturing projects, and €200 million for deep carbonization pilot projects. Applicants can submit their proposals here until 9 April 2024. An online information session will occur on 7 December 2023. (Dec 2023)
The European Commission proposed an Action Plan for Grids to address the main challenges of expanding, digitalizing and better using EU electricity grids. Specifically, the plan will help develop new projects; improve the long-term planning of grids to accommodate more renewables; introduce regulatory incentives; improve network tariffs for smarter grids; improve access to finance for grid deployment; stimulate faster permitting for grids; and secure grid supply chains. (Dec 2023)
The European Council adopted new regulation creating a European green bond standard. The regulation lays down uniform requirements for issuers of bonds that wish to use the designation ‘European green bond’ or ‘EuGB’ for their environmentally sustainable bonds. It also establishes a registration system and supervisory framework for external reviewers of European green bonds and provides some voluntary disclosure requirements for other environmentally sustainable bonds and sustainability-linked bonds issued in the EU in order to prevent greenwashing. It will now be signed, enter into force 20 days later, and start applying 12 months after that. (Oct 2023)
The European Commission adopted its 2024 Work Programme, which aligns with President von der Leyen’s commitment to reduce reporting requirements by 25% in order to improve the EU’s long-term competitiveness and reduce reporting burdens on small and medium enterprises. The Programme proposes 26 new rationalization proposals (in addition to 15 proposals and initiatives initiated since March), including delaying the sector-specific European Sustainability Reporting Standards and for non-EU companies by two years. (October 2023)
The European Council reached an agreement on new rules to strengthen CO2 emission standards for heavy-duty vehicles, as well as increase the share of zero-emission vehicles in the EU-wide heavy-duty vehicle fleet. The rules expand emissions reduction targets to
45% from 2030 (up from 30%), 65% from 2035, and 90% from 2040. It also expands the regulation to include almost all new heavy-duty vehicles with certified CO2 emissions, including smaller trucks, urban buses, coaches, and trailers. (October 2023)
The European Banking Authority (EBA)
published a report
on the role of environmental and social (ES) risks in the prudential framework of credit institutions and investment firms. It assesses how the current framework captures these risks and recommends targeted enhancements to accelerate the integration of ES risks to support the transition to a more sustainable economy while ensuring the banking sector remains resilient. Specific proposals include:
including environmental risks as part of stress testing programs; encouraging inclusion of ES factors as part of external credit assessments and as part of due diligence requirements; and requiring institutions to identify whether ES factors constitute triggers of operational risk losses. (October 2023)
The EU’s Carbon Border Adjustment Mechanism (CBAM) came into force on 1 October. This aims to equalize the price of carbon between domestic products and imports. In its first, “transitional,” phase, CBAM will only apply to imports of cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen. (Oct 2023)
The European Parliament and Commission reached a provisional agreement on strengthened rules to prevent 500 million metric tons of greenhouse gas emissions (CO2 equivalent) from fluorinated gases (F-gases) and Ozone-Depleting substances by 2050. Reinforced F-gases Regulation will
prevent the emission of around 300 million tons of CO2 equivalent by reducing hydrofluorocarbons by 95% by 2030 (2015 baseline), going to zero by 2050. A new regulation on Ozone-Depleting Substances will
prevent the release of 200 million tons of CO2 equivalent by 2050, primarily from recovering these substances from insulation foams when buildings are renovated or demolished. The agreement still requires formal adoption before entering into force. (Oct 2023)
European Union lawmakers adopted a new voluntary standard for the use of a “European Green Bond” (or EuGB) label, the first of its kind in the world. The regulation provides standards for issuers who want to use this designation for marketing their bonds. Issuers will be required to “disclose considerable information” about how the bond’s proceeds are used and how they feed into companies’ transition plans.
The regulation also establishes a registration system and supervisory framework for external reviewers. (Oct 2023)
The European Commission adopted measures to help prevent microplastic pollution, estimating that these new rules will prevent the release of half a million metric tons of microplastics into the environment. They will prohibit the sale of microplastics, and of products to which microplastics have been added on purpose, and that release those microplastics when used. (Products used at industrial sites and those that do not release microplastics to the environment are not in the scope of this restriction.) Microplastics includes all synthetic polymers that are below 5 millimeters, are organic, insoluble and resist degradation. The restriction starts in 20 days for some products, like microbeads and glitter, though a sales ban will apply after a longer period for some products (e.g. 4-12 years for cosmetics) to give affected stakeholders time to develop and switch to alternatives. A Q&A with more details is available here.
French President Emmanuel Macron announced a new goal to reduce the country’s greenhouse gas emissions by 55% by 2030 compared to 1990 levels. This translates to an annual reduction of 5% per year between 2022-2030, compared to the 2% reduction per year over the past five years. The strategy includes tripling heat pump production, producing one million electric vehicles, increasing commuter trains, and phasing out the two remaining coal power plants by 2027.
Lawmakers at the European Parliament and EU Council announced provisional agreement on rules to protect consumers from misleading sustainability claims and greenwashing practices. The rules would ban unverified generic environmental claims and claims based on emissions offsetting schemes. It would also prohibit the use of sustainability labels that are not based on approved certification schemes. The rules require formal adoption by the Council and Parliament before they take effect in 2026. (Sept 2023)
European Union lawmakers endorsed a deal to raise the share of renewables in the EU energy mix to 42.5% of total consumption by 2030, and to aim for 45%, up from the current goal of 32%. The bill requires that authorities grant permits for new renewable power plants within 12 or 24 months, depending on their location. The bill now needs formal approval by member countries to take effect. (Sept 2023)
The European Parliament adopted the Critical Raw Materials Act, agreeing to diversify sources of critical raw materials, and increasing domestic capacity for extraction, processing, and recycling of key minerals. It also sets a goal of recycling 45% of critical minerals found in EU waste. The law will now move to the Council for further negotiations. (Sept 2023)
The European Parliament set binding targets for use of sustainable aviation fuels (SAF) by airlines in Europe. Under the new rules, 2% of fuel supplied to EU airports must be SAF in 2025, rising to 6% in 2030, 20% in 2035 and 70% in 2050. From 2030, 1.2% of fuels must also be synthetic fuels, rising to 35% in 2050. The bill still needs approval by EU member countries. (Sept 2023)
Results of the European Central Bank’s (ECB) second economy-wide climate stress test show that a net-zero economy in the euro area is best achieved by accelerating the green transition. The test analyzed the resilience of firms, households and banks to three transition scenarios: an accelerated transition (achieving Paris Agreement goals), a “late-push” transition that achieves the goals but does not speed up until 2026, and a delayed transition, also starting in 2026 but failing to meet goals. The results show that frontloaded investments in renewable energy pay off earlier and ultimately reduce energy expenses. Delayed investment puts firms at higher risk, particularly in energy-intensive sectors such as manufacturing, mining, and electricity, with debt levels rising and profits falling around twice as much as for the average euro area firm. Banks’ credit risk could rise by more than 100% by 2030 if initiatives to hit global climate goals are pushed off to the second half of the decade. (Sept 2023)
The European Commission (EC) adopted rules governing the implementation of the Carbon Border Adjustment Mechanism (CBAM) during CBAM's transitional phase (1 October 2023 until the end of 2025). The Implementing Regulation details the transitional reporting obligations for EU importers of CBAM goods, as well as the transitional methodology for calculating embedded emissions released during the production process of CBAM goods. During the transitional phase, traders will only have to report on emissions, not pay any financial adjustments. The EC also published guidance for EU importers and non-EU installations on the practical implementation of the new rules, and IT tools to help importers with reporting are also under development. (Aug 2023)
The European Council adopted three new climate laws and rules, including (July 2023):
- New rules to reduce final energy consumption at the EU level by 11.7% by 2030. Annual energy savings targets will gradually increase, with an average annual rate of 1.49%.
- A new law increasing the number of recharging and refueling stations across Europe. This includes fast recharging stations of at least 150kW for cars and vans every 60km along the EU’s main transport corridors by 2025. Additional rules for heavy-duty vehicles, hydrogen refueling, ports, airports, and simplifying payment are also included.
- The FuelEU Maritime Initiative, which will increase the demand for and consistent use of renewable and low-carbon fuels and reduce shipping sector emissions. The law reduces greenhouse gas intensity of fuels by 2% in 2025 and as much as 80% by 2050, as well as rules on additional fuel types, using on-shore power supplies when moored, a ship pooling mechanism and other provisions.
The European Commission proposed measures to make freight transport more efficient and sustainable through three initiatives. (July 2023)
- Proposed regulation to optimize the use of rail tracks, improve cross-border coordination, and improve punctuality and reliability. This builds on the industry-led Timetable Redesign Project.
- A proposal revising maximum weight rules for heavy-duty vehicles to allow additional weight and length for vehicles using zero-emission technologies, as they tend to increase a vehicle's weight. The additional four metric tons of weight allowed will compensate the weight of zero-emission technologies, and as these become lighter over time will enable extra payload.
- A proposed methodological approach for companies to calculate their greenhouse gas emissions if they choose to publish this information, or if they are asked to share it for contractual reasons.
The European Parliament adopted its position on the EU nature restoration law, which proposes to restore damaged ecosystems across Europe and reduce the use of chemical pesticides by 50% by 2030. The draft law does not impose the creation of new protected areas in the EU nor block new renewable energy infrastructure as a new article was added underlining that such installations are overwhelmingly in the public interest. A proposal to restore agricultural ecosystems was removed and the law’s full implementation will be delayed until an assessment of Europe’s food security is completed. The Parliament will now negotiate with the Council on the final shape of the legislation. (July 2023)
The European Commission adopted a package of measures for sustainable use of key agricultural resources to strengthen the resilience of EU food systems and farming. A soil monitoring law will harmonize the definition of soil health, make soil data available to farmers, and promote sustainable soil management. Measures will also enable use of new genomic techniques (NGTs), to foster development of climate-resilient and pest-resistant crops, reduce the use of chemical pesticides, and increase the diversity of seeds and reproductive material for plants and forests. Two categories of NGT plants, one covering comparable to naturally occurring or conventional plants, the other encompassing plants with more complex modifications, will be created and will be regulated differently. The new measures also propose to reduce food and textile waste to increase efficiency in the use of natural resources. (July 2023)
The European Commission proposed rules to make producers responsible for the full lifecycle of textile products and to support the sustainable management of textile waste across the EU. The Commission proposes to introduce mandatory Extended Producer Responsibility (EPR) schemes for textiles in all EU Member States. Producers would cover the costs of managing textile waste, thereby incentivizing waste reduction and increasing the circularity of textile products. The proposal also addresses the issue of illegal exports of textile waste, in part by clarifying what constitutes waste and what is considered reusable. (July 2023)
The European Council reached an agreement on a proposal for a nature restoration law (used as a mandate for negotiations with the Parliament). The proposal aims to put in place recovery measures that will cover at least 20% of the EU’s land and 20% of sea areas by 2030, and all ecosystems in need of restoration by 2050. It sets specific legally binding targets and obligations for nature restoration in each of the listed ecosystems, including agricultural land, forest, marine, freshwater, and urban ecosystems. (June 2023)
The European Commission is seeking feedback on carbon capture, utilization and storage’s role in achieving carbon neutrality in the EU by 2050, including on what technologies, and measures are needed to optimize their potential. Feedback can be given here until 31 August 2023. (June 2023)
The European Commission is also seeking feedback until 7 July on an act setting out European Sustainability Reporting Standards under the Corporate Sustainability Reporting Directive. A good summary of the standards is available here. And feedback can be given here. (June 2023)
The European Commission has introduced new measures to strengthen the EU sustainable finance framework, including adding additional activities to the EU Taxonomy, and proposing new rules for ESG rating providers to increase transparency on the sustainable investments market. (June 2023)
The EU Parliament adopted new rules for the design, manufacture, and recycling of all types of batteries in the European Union, which were initially proposed in December. These include recycling requirements for battery materials, including incorporating a certain amount of these into new batteries. The Council must now endorse the text before it enters into force. (June 2023)
The German government will make tens of billions of euros available for firms facing substantial energy costs, in a bid to help its industrial sector shift towards carbon-neutral production. Program funding from the “Carbon Contracts for Difference” scheme could total about €50 billion ($54 billion) over 15 years and could save about 350 million metric tons of CO2 over its lifetime. Companies have two months to express interest in the program, aimed at fulfilling Germany's pledge to become carbon neutral by 2045, before an auction process starts, with funding going to the lowest bidders. Firms emitting 10,000 tons or more of CO2 annually would be eligible for the auction, opening the process to thousands of mid-sized companies. (June 2023)
The EU reached a provisional agreement on three proposals creating the European Single Access Point (ESAP). This will create a single point of access to public financial and sustainability-related information about EU companies and EU investment products, facilitating decision-making for a broad range of investors. The ESAP will not impose additional information reporting requirements. The ESAP is expected to be available starting summer 2027 and will be gradually phased in to allow “robust implementation.” Phase 1 will include data according to the short selling, prospectus, and transparency directives. Six months later, Phase 2 will include sustainability-related disclosures in the financial services sector regulation, the credit rating agencies regulation, and the benchmark regulation. Phase 3 (the final phase) will include information stemming from 20 additional pieces of legislation including the EU Green Bond standard. (June 2023)
The EU Parliament voted on rules to integrate human rights and environmental impact into companies’ governance. Key components of the Corporate Sustainability Due Diligence Directive include (June 2023):Companies will be required to identify, and where necessary prevent, end or mitigate the
negative impact of their activities on
human rights (such as child labor and slavery)
and the environment (such as pollution or biodiversity loss);
- Companies will also have to monitor and assess the impact of their value-chain partners including not only suppliers but also sale, distribution, transport, storage, waste-management and other areas;
- Companies will have to implement a transition plan to limit global warming to 1.5°C and, in the case of companies with over 1,000 employees, meeting the plan’s targets will have an impact on a director’s variable remuneration;
- Non-compliant companies will be held liable for damages and can be sanctioned, including fines and removing a company’s goods from the market;
- These new obligations would apply after 3 or 4 years depending on the company’s size.
Negotiations with member states on the final text will now begin.
The EU will not vote on phasing out forever chemicals (PFAS) before 2025, according to reporting from Reuters. The European Chemicals Agency opened a consultation on restricting PFAS after five countries submitted a proposal to reduce PFAS emissions and make products safer in January. The consultation is expected to take place this year and next. (May 2023)
The European Council has formally adopted the new regulation to minimize the risk of deforestation and forest degradation associated with products that are placed on or exported from the EU market. The regulation sets mandatory due diligence rules for a variety of forest commodities and derived products. It applies only to products produced on land after 31 December 2020. The regulation also sets a benchmarking system that assigns a level of deforestation risk for countries, which will determine the level of obligation operators and authorities have to carry out inspections and controls. It will now enter into force 20 days after being published in the EU’s Official Journal. (May 2023)
French President Emmanuel Macron announced the government will offer a tax credit for renewable investments, according to Reuters. These would cover capital expenditures of 25-40% of investments in wind and solar facilities, heat pumps, and batteries, and would also increase investment in training and expedite time needed to build new factories. An existing cash incentive of €5,000 ($5,425) for consumers buying new electric cars would also be made conditional on meeting low-carbon standards, favoring European carmakers. (May 2023)
The European Council adopted its position on new proposed rules to enhance consumers’ rights, protecting against unfair commercial practices, such as misleading green claims and products that break early or are difficult to repair. Specifically, the council proposal includes:
- Banning generic environmental claims such as “eco-friendly,” “green,” or “climate neutral.” Product claims would need to be substantiated by a publicly accessible certification scheme;
- Only sustainability labels based on official certification schemes would be allowed;
- An expansion of unfair commercial practices that are banned in all circumstances (the “blacklist”), including not warning consumers if products are designed with a limited lifespan or contains a feature introduced to limit its durability; and
- A harmonized graphic format (a logo) to clearly inform consumers about durability guarantees.
The proposal also shifts implementation from 18 to 24 months to allow for sufficient time to adapt. This will now move to negotiations with the European Parliament. (May 2023)
The European Council adopted five new laws as part of the “Fit for 55” strategy to reduce GHG emissions by 55% by 2030. Outcomes from the laws will include (May 2023):
- Establishing a new Carbon Border Adjustment Mechanism (CBAM) concerning imports of products in carbon-intensive industries. CBAM will only apply as a reporting obligation through 2025, then a gradual phase-out of free allowances will occur over nine years.
- Increasing emission reduction ambitions of the EU Emissions Trading System (EU ETS).
- Adding maritime transport emissions into the scope of EU ETS for the first time, with obligations for shipping companies to surrender allowances introduced gradually: 40% for verified emissions from 2024, 70% from 2025, and 100% from 2026.
- Establishing a new ETS for the buildings and road transport sectors as well as small industries.
- Phasing out free emission allowances for the aviation sector and implementing full auctioning from 2026, while holding 20 million allowances in reserve until December 2030 to disincentivize fossil fuel use.
The European Parliament adopted a new law obliging companies to ensure certain products sold in the EU have not led to deforestation and forest degradation. These include cattle, cocoa, coffee, palm-oil, soya and wood, rubber, charcoal, printed paper products and a number of palm oil derivatives (as well as products made from these). Companies will only be allowed to sell products in the EU if the supplier of the product has issued a due diligence statement confirming the product does not come from deforested land or has led to forest degradation. Companies will also have to verify these products comply with relevant legislation of the company of production. These regulations were agreed to in December 2022 and now only need formal adoption by EU Council before coming into force. (April 2023)
The European Parliament adopted the reform of the Emissions Trading System (ETS). This increases the ambition of the ETS, with greenhouse gas (GHG) emissions being reduced by 62% by 2030 compared to 2005 levels. The new reforms also (April 2023):
- Phase out free pollution allowances to companies from 2026 to 2034;
- Include the maritime sector for the first time
- Revise provisions governing aviation, including phasing out free allowances by 2026 and promoting the use of sustainable aviation fuels;
- Create a new ETS II to cover road transport and buildings from 2027;
- Establish a Social Climate Fund to combat energy and mobility poverty.
The European Council adopted regulation setting stricter CO2 emission performance standards for new cars and vans, including: 55% CO2 emissions reductions for new cars and 50% for new vans from 2030 to 2034 compared to 2021 levels, and 100% reductions for both cars and vans from 2035. Manufacturers will be able to receive less strict CO2 targets until the end of 2029 if they reach certain benchmarks for zero- and low- emissions vehicles (25% for cars, 17% for vans). The regulation will now go into force twenty days after being published in the EU’s Official Journal. (April 2023)
The European Council and Parliament reached a provisional agreement to ensure there is a sufficient infrastructure network for recharging or refueling road vehicles and ships with alternative fuels, and that these are easy to use and interoperable throughout the EU. The law sets specific requirements for publicly available charging infrastructure for cars and vans, including the deployment of fast-charging stations every 60 km along the trans-European transport network (TEN-T) by 2025, and stations dedicated to heavy-duty vehicles every 100 km (and 60 km in the TEN-T core network), and hydrogen refueling infrastructure every 200 km along the TEN-T core network by 2030. (April 2023)
The European Council and Parliament reached a provisional agreement to raise the share of renewable energy in the EU’s overall energy consumption to 42.5% by 2030 (with an additional 2.5% top up that would allow to reach 45%). The EU got 22% of its energy from renewables in 2021 and its current target for 2030 is 32%. Specific sector targets include (April 2023):Industry would increase their use of renewable energy annually by 1.6%;
- A 49% renewable energy share in buildings in 2030;
- Transport: Member states can choose between either a 14.5% reduction in greenhouse gas intensity in transport from the use of renewables or at least a 29% share of renewables within the final consumption of energy in the sector by 2030;
- The agreement also includes accelerated permitting procedures for renewable energy projects.
The European Commission adopted a new proposal to adopt common criteria against greenwashing and misleading environmental claims. These claims will need to be independently verified and proven with scientific evidence. They will also have to be relevant to the product and identify any possible trade-offs. This proposal would also regulate the more than 230 different environmental labels that currently exist and are a potential source of consumer confusion. (March 2023)
The European Commission adopted a new proposal on common rules promoting the repair of goods, making it easier and more cost-effective for consumers to repair rather than replace products, which include washing machines, vacuum cleaners, refrigerators and other goods deemed repairable under EU law (and negotiators could extend this to smartphones and tablets). Within the legal guarantee period (two years), sellers will be required to repair the product except when it is more expensive than replacement. Beyond the guarantee period, new rights and tools will be available to consumers to make repair easy and accessible, including (March 2023):
- A right for consumers to claim repair to producers for products that are technically repairable;
- An online matchmaking repair platform to facilitate repair locally;
- A European Repair Information Form that brings transparency to repair conditions and price;
- And a repair quality standard to help identify high quality repair services.
The European Parliament and Council reached a provisional agreement on cleaner maritime fuels, asking to cut ship emissions by 2% as of 2025, 6% as of 2030, 31% as of 2040, and by 80% as of 2050. This would apply to ships above a gross tonnage of 5,000. The agreement would also oblige containerships and passenger ships to use on-shore power supplies for all electricity needs while moored in major EU ports as of 2030 and all EU ports as of 2035. (March 2023)
The European Commission has extended support measures in sectors that are key for the transition to a net-zero economy. This allows member states to support renewable energy, energy storage and industrial decarbonization schemes until 31 December 2025. It also enables investment support for the manufacturing of strategic energy transition equipment, such as solar panels, wind turbines, batteries, heat-pumps, and electrolyzers. (March 2023)
The European Commission proposed the Net-Zero Industry Act to scale up manufacturing of clean technologies in the EU. It will create enabling conditions to set up net-zero projects in Europe and attract investments, with the aim of net-zero manufacturing capacity reaching at least 40% of the EU’s deployment needs by 2030. Most notably, the Act sets an EU objective to reach an annual 50 million metric ton (Mt) injection capacity of CO2 storage, with oil and gas companies having to contribute based on their production. (March 2023)
The European Commission proposed a comprehensive set of actions to ensure the EU’s access to a secure, diversified, affordable and sustainable supply of critical raw materials. The Critical Raw Materials Act sets benchmarks for domestic capacities by 2030, including: at least 10% of the EU’s annual consumption extracted, 15% recycled, and 40% processed domestically; and not more than 65% of the EU’s consumption of any key raw material being processed from a single third country. (March 2023)
The European Parliament adopted the Effort Sharing Regulation, which sets binding annual reductions for greenhouse gas emissions from transport, buildings, agriculture, small industrial installations, and waste management, and increases the overall EU emissions reduction goal from 30% to 40% by 2030, compared to 2005 levels. The new law, if accepted by the Council, will require all member states to reduce emissions by 2030 with targets ranging from 10-50% depending on GDP per capita and cost-effectiveness. (March 2023)
The European Parliament adopted measures to increase the rate of renovations and reduce energy consumption and greenhouse gas emissions in the building sector. Under the proposed revision of the Energy Performance of Buildings Directive, all new buildings would have to be zero-emission and equipped with solar technologies (where technically suitable and economically feasible) by 2028. All buildings would also have to meet a minimum energy performance rating over the next seven to ten years. (March 2023)
The European Commission agreed to cut final energy consumption by 11.7% by 2030, helping to fight climate change and reduce Europe’s use of Russian fossil fuels. Once formally adopted, the target will be legally binding, with countries setting their own goals to achieve new savings each year of 1.49% of final energy consumption on average from 2024 to 2030 (up from the current level of 0.8%). Companies that exceed 85 TJ of annual energy consumption will have to implement an energy management system or be subject to an energy audit. The agreement also strengthens provisions on energy efficiency financing and provides the first ever EU definition of energy poverty, with states having to implement energy efficiency measures for those affected by energy poverty. (March 2023)
European lawmakers announced a provisional agreement that establishes an EU voluntary high-quality standard for green bonds: The European green bond standard (EUGBS). To qualify, issuers of European green bonds (EuGB) would need to ensure 85% of the funds raised by the bond are allocated to economic activities that align with the Taxonomy Regulation (a classification setting four conditions for economic activities to meet to qualify as environmentally sustainable). This will allow investors to more easily assess, compare and trust these investments are sustainable, thus reducing risks posed by greenwashing. The agreement now needs to be confirmed and adopted by the European Council and the European Parliament, and will apply 12 months after it enters into force. (March 2023)
A new French law will require canopies of solar panels to be built on all parking lots larger than 16,000 square feet in France. This could generate between 6.75 GW to 11.25 GW of electricity, the equivalent electricity of 7 to 11 nuclear power plants. The law will go in effect in July with parking lot owners having between 3 and 5 years to comply. (Feb 2023)
The European Central Bank announced that corporate bond purchases will be tilted more strongly towards issuers with a better climate performance. This will reduce climate-related risks while supporting the gradual decarbonization of the Eurosystem’s €344 billion corporate bond portfolio. (Feb 2023)
The European Commission proposed A Green Deal Industrial Plan for the Net-Zero Age to enhance the competitiveness of Europe's net-zero industry and support a faster transition to climate neutrality. The Plan aims to provide a more supportive environment for the scaling up of the EU's manufacturing capacity for the net-zero transition. This includes (Feb 2023):
- A predictable and simplified regulatory environment; which will include a proposed Net-Zero Industry Act and a Critical Raw Materials Act to ensure sufficient access to key materials like rare earth minerals;
- Faster access to sufficient funding (including €250 billion for green measures made available from remaining pandemic recovery funding and €100 billion for green transition from cohesion policies including the Just Transition Fund);
- Developing up-skilling and re-skilling programs in strategic industries;
- And supporting open trade for resilient supply chains, including protecting the EU market and clean-tech sector from foreign subsidies that distort competition.
The European Central Bank (ECB) published a set of climate-related statistical indicators to better assess the impact of climate-related risks on the financial sector and to monitor the development of sustainable and green finance. These indicators are deemed “a work in progress” by the ECB, and the ECB will work to improve the methodology and data used, together with the national central banks, as new data sources become available. Currently, the indicators cover three areas: tracking the volume of debt instruments with some sort of sustainability label; carbon emissions financed by financial institutions; and climate-related physical risks. (Jan 2023)
European Commission president Ursula von der Leyen proposed plans for a “Green Deal Industrial Plan,” which would loosen state aid rules for EU member states to subsidize clean tech manufacturing in Europe in order to compete with subsidies coming from the US and China. This plan, which will be discussed by EU member states in February, would make it easier to set subsidies for green industries and simplify and fast-track permitting for new clean-tech production sites. (Jan 2023)
The EU has drafted measures to combat greenwashing, requiring EU countries to ensure that environmental assertions made by companies about their products are backed by scientific evidence, according to reporting from Bloomberg and Reuters. The plans would require firms that promote climate benefits of their products to also highlight detrimental effects. EU member states would be able to impose penalties on companies that fail to back up their claims. The draft rules would cover all products and services sold in the EU, unless covered by comparable EU rules. (Jan 2023)
The European Council and Parliament reached a provisional agreement on the Carbon Border Adjustment Mechanism (CBAM), which will impose a CO2 emissions tariff on imports of goods such as steel, cement, aluminum, electricity and hydrogen. Companies importing these goods into the EU will be required to buy certificates to pay for embedded CO2 emissions, “to incentivise non-EU countries to increase their climate ambition.” CBAM will start being phased in October 2023, beginning with reporting obligations only. (Dec 2022)
The European Parliament and Council came to a provisional agreement to make all batteries placed on the EU market more sustainable, circular, and safe. The law will gradually introduce sustainability requirements on carbon footprint, recycled content, and performance and durability, from 2024 on. A more comprehensive Extended Producer Responsibility framework will apply in 2025, which will include higher collection targets being introduced in 2027, 2030, and 2031. (Dec 2022)
Portugal will end mandatory environmental assessments for green hydrogen projects in March 2023, in order to accelerate investments in these projects. Mandatory assessments will also end for solar plants smaller than 100 hectares and wind farms with towers more than 2 km apart. (Dec 2022)
The European Council and Parliament reached a provisional agreement to revise the EU Emissions Trading System (EU ETS) rules applying to the aviation sector. Currently, flights within the EU have to submit permits to the EU’s carbon market but receive these for free. These free permits will be gradually phased out, with a 25% reduction in 2024, 50% in 2025, and 100% from 2026. Flights originating or ending outside of the European Economic Area will use the global market-based measure CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) if those countries participate. However, if CORSIA proves insufficient, the commission (after an assessment in 2025) will propose extending the scope of the EU ETS to all flights departing the European Economic Area. (Dec 2022)
The European Parliament and Council agreed on a new EU Regulation on deforestation-free supply chains. Once adopted and applied, all relevant companies will have to conduct strict due diligence, proving the products are both deforestation-free and legal if they place on the EU market, or export from it, the following commodities: palm oil, cattle, soy, coffee, cocoa, timber and rubber, as well as derived products (such as beef, furniture, or chocolate). (Dec 2022)
The European Union has agreed to add shipping to its carbon market for the first time, with the shipping sector now required to pay for its emissions, including CO2, methane, and nitrogen dioxide. This will start in 2024, when shipping companies will have to buy EU carbon permits to cover 40% of their emissions, and will rise to 70% in 2025, and 100% in 2026. (Dec 2022)
The European Commission adopted a proposal for a first EU-wide voluntary framework to reliably certify high-quality CO2 removals from the atmosphere. The proposed regulation will significantly improve the EU's capacity to quantify, monitor and verify carbon removals, increasing transparency and reducing greenwashing. The proposed regulation will set out rules for independent verification of carbon removals as well as rules to recognize certification schemes, and establishes criteria around quantification, additionality, long-term storable, and sustainability. The Commission plans to prioritize carbon removal activities that provide significant benefits for biodiversity. (Dec 2022)
The European Commission is proposing new EU-wide rules on packaging, including a target to reduce packaging waste by 15% by 2040, per member state per capita compared to 2018. The rules will restrict unnecessary packaging and promote reusable and refillable packaging solutions. It will also make all packaging on the EU market recyclable in an economically viable way by 2030. And it will increase the use of recycled plastics in packaging through mandatory rates of recycled content. The rules will also clarify what applications of biobased, compostable, and biodegradable plastics are environmentally beneficial. (Dec 2022)
The European Parliament adopted a new EU law requiring corporate boards of large companies in the European Union to have 40% of women among non-executive directors and 33% among all directors by 2026. Listed companies will have to report annually on gender representation on their boards and if they fall short of targets, explain how they plan to meet them. (Nov 2022)
The EU’s three primary financial regulatory agencies, the European Supervisory Authorities (ESAs), published a Call for Evidence on greenwashing to gather input from stakeholders on how to understand the key features, drivers and risks associated with greenwashing and to collect examples of potential greenwashing practices across the sustainable investment value chain. It is motivated by the need to better understand which areas may become more prone to greenwashing risks and to help inform policy making and supervision and foster the reliability of sustainability-related claims. Respondents can submit their responses here until January 10, 2023. (Nov 2022)
In a speech at COP27, EU president von der Leyen announced that the EU will double renewable energy deployment to 100 GW next year. This is after more than doubling deployment in 2022 to 50 GW. Von der Leyen also urged Global North countries to meet their obligations to provide $100 billion per year in climate finance to the Global South, pointing out that the EU gave €23 billion ($23.1 billion) for the second year in a row. (Nov 2022)
A new provisional agreement between the European Commission and Parliament will set stricter EU emissions reductions in five sectors that account for 60% of total EU emissions, bringing the reduction target from 29% to 40% by 2030. These sectors include building, agriculture, waste, small industry, and transport. The new law allows banking and borrowing emissions reductions between years, and trading emission reduction allocations among states. (Nov 2022)
The European Commission presented a proposal to reduce air pollution from new motor vehicles sold in the EU. The new Euro 7 standards will ensure that cars, vans, trucks and buses are much cleaner, and tackle emissions from tailpipes, as well as particulate emissions from brakes, and microplastic emissions tires. This will be the first worldwide standard addressing tire and brake emissions. (Nov 2022)
The EU adopted the Corporate Sustainability Reporting Directive (CSRD), which will make businesses more publicly accountable by obliging them to regularly disclose information on their societal and environmental impact. The CSRD introduces more detailed reporting requirements on companies’ impact on the environment, human rights and social standards, based on common criteria in line with EU’s climate goals. The CSRD will apply to all large companies, nearly 50,000, compared to the approximately 11,700 covered by the current rules. The rules will applying between 2024 and 2028 depending on the size of the business. (Nov 2022)
The European Commission launched its third call for large-scale clean tech projects under the EU Innovation Fund, with a total budget to €3 billion ($2.9 billion), significantly more than the first two rounds. This includes €1 billion budgeted for “general decarbonization,” such as renewable energy, energy storage, and CCS; €1 billion for electrification in industry and hydrogen production; €0.7 billion in clean tech manufacturing; and €0.3 billion for breakthrough technologies in deep decarbonization. (Nov 2022)
The Netherland’s highest court ruled that the “Porthos” carbon capture project — Europe’s largest — might have to be halted because it did not meet European environmental guidelines. Specifically, the project’s environmental impact failed to include nitrogen emissions, which is exempted by Dutch law, but the court said violated European law. This could have ramifications on many other projects that have used that exemption. (Nov 2022)
The European Council agreed on stricter rules for the energy performance of buildings. All new buildings should be zero-emissions by 2030 (with new buildings owned by public bodies becoming zero-emissions by 2028) and existing buildings should be transformed into zero-emission buildings by 2050. The agreement also includes requirements to deploy solar energy, for all new public and non-residential buildings with useful floor area over 250 m2 by the end of 2026, for existing public and non-residential buildings undergoing a major renovation and larger than 400m2 by the end of 2027, and for all new residential buildings by the end of 2029. (Oct 2022)
The European Council, Parliament, and EU countries reached an agreement that carmakers must achieve a 100% cut in CO2 emissions of new passenger cars and vans by 2035, effectively banning the sale of new petrol and diesel cars and vans from 2035 on. By 2030, emissions must be cut by 55% for new cars and 50% for vans from 2021 levels. (Oct 2022)
The European Council announced that its member states have agreed on the EU’s negotiating position for COP27. This includes: substantially increasing the global ambition of Nationally Determined Contributions to keep the 1.5°C Paris target within reach; that all countries should also enhance adaptation efforts; and scale up efforts to mobilize finance from all sources to support climate action and to “mainstream climate in all financial flows.” (Oct 2022)
France announced it planned to reduce overall energy consumption by 10% over the next two years (compared to 2019 levels) in order to prevent shortages in gas supplies and help achieve longer-term climate change goals. This “energy sobriety” is based on voluntary measures, such as lowering default heating temperatures, turning off unneeded lights, and reducing business travel. (Oct 2022)
Norway’s wealth fund will push companies it invests in to have a plan to cut their greenhouse gas emissions to net zero by 2050. The fund holds $1.2 trillion in wealth, on average, 1.3% of all listed global stocks. Rather than selling its most polluting stocks, the fund will prioritize dialogue with the 174 companies that are the biggest emitters and account for 70% of the fund’s emissions. (Sept 2022)
The European Central Bank (ECB) will tilt its corporate bond holdings towards issuers with better climate scores. These scores, created by the ECB, will measure past emissions, future emissions targets, and disclosures of greenhouse gas emissions. Scores will help shape bond purchases, to reduce the Eurosystem’s exposure to climate-related financial risk. However, ECB won’t exclude issuers if they receive low climate scores and won’t disclose the scores assigned. (Sept 2022)
The European Parliament voted to adopt and strengthen a European Commission proposal for regulation on deforestation-free products. The commission’s proposal required companies to ensure that products sold in Europe are not driving deforestation or human rights abuses, and covers “cattle, cocoa, coffee, palm-oil, soya and wood, including products that contain, have been fed with or have been made using these commodities (such as leather, chocolate and furniture).” Parliament expanded this to also include several additional commodities including maize, rubber, and charcoal. Parliament will now start negotiations on the final law with EU member states. (Sept 2022)
The European Parliament voted to increase the share of renewable energy in the EU’s final energy consumption to 45% by 2030. The legislation includes sector sub-targets, including annual renewables increases of 1.9% per year for industry. The law also included amendments to phase down the share of primary wood counted as renewable energy. It also included a more ambitious quota for renewable fuels of non-biological origin of at least 5.7% of all fuels by 2030, including hydrogen, and a target of 50% of industry transitioning to green hydrogen by 2030 and 70% by 2035. In a separate vote, Parliament also voted to raise the EU target for reducing final and primary energy consumption so collectively these are reduced by 40% and 42.5% respectively by 2030. (Sept 2022)
Ireland's updated Climate Action Plan calls for a 51% reduction in total greenhouse gas emissions by 2030, with sector-specific reductions of 75% in electricity, 50% in transport, 40% in residential buildings, 35% in industry, and 25% in agriculture (which represents 38% of the country's total emissions). The plan, which includes about 1,000 specific recommended or required measures in support of those reductions, is estimated to require about €125 billion ($128 billion) of private and public investment. (Aug 2021)
European Parliament has voted to back—and enhance—proposed new rules aimed at decarbonizing the airline industry. The updated proposal (July 2022):
- Lays out a trajectory for incorporating sustainable aviation fuel (SAF) into the overall fuel mix, moving from 2% in 2025 to 37% in 2040 to 85% in 2050 (up from 63% in the original proposal), and expands the definition of sustainable fuels to include electricity and hydrogen.
- Proposes the creation of a Sustainable Aviation Fund from 2023 to 2050 to support investment in the further development of SAF options, new propulsion technologies, fuselage design, and other efficiencies.
- Tasks the Commission with creating labelling system on the environmental performance of aircraft and airlines to inform the public as they select their carriers.
The European Commission has voted to classify natural gas and nuclear power as "green" in its taxonomy of sustainable activities. The vote paves the way for the European Union proposal to pass into law, barring opposition by an unlikely 20 of the bloc's 27 member states. Proponents of the new classification argue that the two energy sources are critical bridges to a clean energy future and the bloc's long-term climate goals. Critics counter that the decision will divert critical investment funds away from renewables and, in the case of natural gas, exacerbate GHG emissions. Legal challenges are expected from environmental groups and dissenting countries like Luxembourg and Austria. (July 2022)
EU environmental ministers have reached consensus on core elements of the European Commission’s proposed new environmental laws. They agreed that all cars sold in the EU as of 2035 must have zero CO2 emissions, effectively mandating a phase-out of internal combustion engines in the interim. Ministers also backed a new EU carbon market, with a request that it launch in 2027, that would impose CO2 costs on polluting fuels used in transport and buildings--and a related €59 billion ($59.3 billion) fund to shield low-income citizens from the pass-along costs through 2032. (July 2022)
Denmark adopted a new corporate carbon tax, the highest in Europe. For companies subject to the EU Emissions Trading System (ETS), the carbon tax will be 1,125 Danish crowns ($159) per ton by 2030, with the exception of mineralogical-based industries like cement which will pay a reduced price of 125 crowns ($17) per ton. Companies outside the boundaries of the ETS will pay a 750 crowns ($106) carbon tax. (June 2022)
The European Commission unveiled two landmark proposals to restore and support biodiversity across Europe:
- The Nature Restoration Law—the first-ever EU legislation to explicitly target nature restoration—seeks to “repair the 80% of European habitats that are in poor condition, and to bring back nature to all ecosystems, from forest and agricultural land to marine, freshwater and urban ecosystems” by 2050.
- Reduce the use and risk of chemical pesticides across Europe by 50% by 2030 through legally binding targets and restrictions at EU and national levels and banning all pesticides in sensitive areas, including ecologically sensitive areas to be preserved for threatened pollinators.
EU negotiators reached a provisional agreement on a bill for the bloc's first quota for women on corporate boards. The draft bill would require listed companies with 250 or more employees, in all 27 EU member countries, to have women take up at least 40% of non-executive board seats, or 33% of executive and non-executive roles combined. Pending final approval by the European Council and Parliament, the compliance date for companies will be June 30, 2026. Those that fail to meet the requirement will be subject to fines and possible annulment of selected board members by a judicial body. (June 2022)
Germany, Belgium, the Netherlands, and Denmark announced a joint pledge to build at least 150 gigawatts of offshore wind in the North Sea by 2050. The initiative would facilitate an almost tenfold increase in the EU’s offshore wind capacity, enough to power 230 million European homes. The partner countries also plan to use the wind power to make hydrogen and green fuel for hard-to-abate sectors. (May 2022)
The European Commission unveiled the REPowerEU Plan (“the Plan”), a €210 billion ($220.7 billion) plan for the EU to end its reliance on Russian fossil fuels by 2027 and accelerate its transition to green energy. The Plan’s three-pronged approach calls for the EU to import more non-Russian gas, speed up rollouts of renewable energy, and save energy through efficiency improvements and behavioral changes. The EU says the large investment required will be partially offset by cutting Russian fossil fuel imports, which will save the EU almost €100 billion per year. (May 2022)
The EU has published a “restrictions roadmap” that lays the groundwork for a potential ban on entire classes of chemicals for the first time. The plan is to use existing laws to outlaw chemicals known to cause serious health disorders, illnesses, and reproductive issues—while shutting down a common industry tactic known as “regrettable substitution,” by which companies simply replace banned chemicals with another chemical in the same class and with similar risks. The scale of the potential ban is unprecedented, with up to 12,000 toxic or potentially harmful chemicals—including those commonly found in fire retardants, textiles, single-use diapers, cosmetics, playground surfaces, and food containers, among other things—up for regulatory review by the European Chemicals Agency (ECHA). (May 2022)
EU lawmakers agreed on a legislative package, the Digital Services Act (DSA), that will “impose major new obligations on how Big Tech companies handle content on their platforms—and big fines if they fail to comply,” according to Axios. (April 2022)
The Dutch Advertising Code Committee ruled that a KLM Royal Dutch Airlines’ promotion claiming customers could fly carbon-emission free is misleading. The Dutch watchdog determined that the scheme, which allows customers to offset their flight emissions by paying for carbon credits certified through Golden Standard, resulted in a certain “level of emission offsetting” but is not “adequate” enough to claim absolute carbon neutrality. (April 2022)
The European Commission proposed updates to EU consumer rules to give consumers the right to know the durability and reparability of products and to strengthen consumer protection against false environmental claims and misleading practices. The proposed amendments would be made to the Consumer Rights Directive and the Unfair Commercial Practices Directive (UCPD). (April 2022)
The European Council agreed to support the creation of the world's first carbon border adjustment mechanism (CBAM), as part of the “Fit for 55” legislation package to reduce the EU’s GHG emissions by 55% by 2030. The mechanism would apply to products in the cement, aluminum, fertilizer, electric energy production, iron, and steel sectors, with a three-year transition phase starting in 2023 and the mechanism starting in 2026. (March 2022)
Germany plans to spend $220 billion on “industrial transformation” by 2026, including hydrogen technology, climate protection, and the expansion of its EV charging network. (March 2022)
The Platform on Sustainable Finance, a European Commission advisory body, published a report proposing a structure, social criteria, and indicators for an EU “social taxonomy,” which would define economic activities that can be considered socially sustainable. (March 2022)
Germany accelerated its goal to generate almost all of its electricity from renewable sources by 15 years to 2035. It proposed new legislation that aims to more than double offshore wind capacity and roughly triple annual additions of onshore wind and solar facilities. (March 2022)
The European Commission proposed a new Corporate Sustainability Due Diligence law that would require over 13,000 companies operating in the EU (large companies and certain companies in high-impact sectors) to ensure that their suppliers don’t have adverse impacts on human rights and the environment. Companies would have to assess their supply chains at least annually, take action to prevent or mitigate issues, and publicly communicate on due diligence, with non-compliant companies facing fines or potentially being liable for damages. Large companies would also have to align their business strategy with 1.5°C of warming. (Feb 2022)
The Clean Oceans Initiative—created by the European Investment Bank, the Agence Française de Développement (AFD), and KfW to finance projects to reduce ocean plastic pollution—doubled its 2023 finance commitment to $4.6 billion of financing by year-end 2025. The European Bank for Reconstruction and Development (EBRD) also joined the initiative. (Feb 2022)
The European Commission proposed new rules for labeling certain gas and nuclear energy investments as “green” under the EU taxonomy, which would go into effect in January 2023 if approved. Key provisions (Feb 2022):
- Nuclear and natural gas plants would be labeled “transitional” green energy sources if they meet certain conditions.
- Only natural gas plants that meet specific emissions criteria and replace coal facilities would be labeled green.
- Nuclear plants labeled green would have to have regular safety updates and be in a country whose national government guarantees safe disposal of radioactive waste by 2050.
- Newly built nuclear plants would only be labeled green until 2045.
Scotland awarded 25 gigawatts of offshore wind development rights in a record auction that more than doubles the U.K.’s current capacity. BloombergNEF notes that it is the first global auction for seabed sites that have gigawatt-scale floating wind projects. (Jan 2022)
Denmark plans to make domestic flights fossil fuel-free by 2030, as part of its goal to cut the country’s overall carbon emissions by 70% by 2030 (1990 baseline). (Jan 2022)
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List of European Union News, 2021-2019 (PDF)
Middle East/Africa
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Nigeria will require companies to disclose sustainability and climate-related financial information, according to Reuters. Reporting will be required from 2028 (2030 for small businesses), with voluntary compliance expected between 2024 and 2027. The standards will be based on the International Financial Reporting Standards, making Nigeria the first African country to adopt the standards. (March 2024)
The Abu Dhabi National Oil Company announced it would increase its allocation for decarbonization projects, technologies, and lower-carbon solutions to $23 billion (up from its earlier $15 billion target for 2030). These projects, which aim to meet its 25% reduction in carbon intensity by 2030 target, include using 100% clean energy for onshore grid electricity needs connecting its offshore operations to the grid, and planting 10 million mangrove trees by 2030. (Jan 2024)
The United Arab Emirates strengthened its emissions reduction target from 31% to 40% by 2030, compared to a business-as-usual level. The UAE already set a net zero goal for 2050, making it the first Middle Eastern country to do so. (July 2023)
Iran announced it discovered what may be the second-largest lithium deposit in the world, containing 8.5 million tons. (March 2023)
Saudi Arabia announced it will invest one trillion riyals ($266.5 billion) to generate cleaner energy and expand and modernize its power grid. This will include infrastructure to produce and export clean hydrogen as well as increased investment in carbon capture solutions. (Feb 2023)
Saudi Arabia announced it is seeking $170 billion of mining investment for energy-transition metals by 2030, auctioning exploration licenses to foreign investors for the first time. The country is also setting up a new firm to invest in mining assets internationally, with the sovereign wealth fund and state mining company Maaden forming a company that will be funded with as much as $3.2 billion. The company will invest in iron, copper, nickel, and lithium, to provide metals for development in the country. (Jan 2023)
The Indian government set green hydrogen consumption targets for some industries in order to increase demand for the fuel. This includes setting goals for its largest shipping fleet company to retrofit at least two ships to run on green hydrogen-based fuels by 2027. All state-run oil and gas companies that charter 40 vessels or more for fuel transport will have to hire at least one green hydrogen-powered ship each year from 2027 to 2030. (Jan 2023)
India Prime Minister Modi’s cabinet has approved plans to cut the emissions Intensity of the country’s GDP by 45% by 2030 (2005 baseline) and achieve “about 50 percent” non-fossil fuel-based energy capacity in the same timeframe. The announcement comes ahead of the next round of global climate talks scheduled for November and comes with the caveat that implementation will require financial support from developed countries in excess of what is currently planned. (Aug 2022)
The United Arab Emirates (UAE) Circular Economy Council, comprised of 17 representatives of relevant federal and local government entities, private sector businesses, and international organizations, has approved 22 policies to support the implementation of UAE’s circular economy model, focused on four main sectors: manufacturing, food, infrastructure, and transport. The Council also identified at least 16 circular economy activities designed to open business opportunities such as upcycling textile waste into new products, developing automated AI-enabled waste management solutions, and remanufacturing electronic waste. (July 2022)
Israel committed to
reducing carbon emissions to net-zero by 2050.
(Nov 2021)
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Bahrain committed to
reaching net-zero carbon emissions by 2060.
(Nov 2021)
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The United Arab Emirates committed to reaching net-zero by 2050 and plans to invest $163 billion in renewable energy. (Nov 2021)
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Saudi Arabia
committed to
net-zero GHG emissions by 2060
and
reducing 278 million metric tons of emissions annually by 2030.
Axios notes that the commitments “apply only to Saudi Arabia's internal emissions, which are roughly 2% of global CO2 emissions.” (Nov 2021)
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South Africa, the largest GHG emitter in Africa, started geological mapping at its first carbon capture and storage site
and said it plans to bring the project online in 2023. (Aug 2021)
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Oman announced plans to build one of the largest green hydrogen plants in the world, capable of producing 1.8 million tons of green hydrogen and up to 10 million tons of green ammonia annually. Construction for the $30 billion project is scheduled to begin in 2028. (May 2021)
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Bahrain, Egypt, Iraq, Kuwait, Qatar, Sudan, the UAE, and the U.S. released a joint statement pledging to accelerate climate action, mobilize investments in a new energy economy and help the world’s most vulnerable cope with climate change. (April 2021)
The U.S. and the United Arab Emirates (UAE) announced plans to work together to coordinate financing to accelerate economic decarbonization, with a focus on renewable energy, hydrogen, industrial decarbonization, carbon capture and storage, nature-based solutions, and low-carbon urban design. (April 2021)
Saudi Arabia signed PPAs with 7 new solar power projects, equivalent to 3,670 MW. Some projects set a new world record for the lowest cost of solar-produced electricity—1.04 US cents per kWh. (April 2021)
Saudi Arabia is building a $5 billion green hydrogen plant powered entirely by sun and wind energy to lessen its dependence on petrodollars. The plant is expected to be completed in 2025. (March 2021)
Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, plans to build 10 gigawatts of solar energy capacity by the end of 2030. It seeks to generate 20% of its total energy production from renewable sources. (March 2021)
A global alliance of world leaders and organizations — including the European Union, the UK, Norway, and Saudi Arabia — helped raise $8 billion to ensure the collaborative development and universal deployment of diagnostics, vaccines, and treatments against COVID-19. (May 2020)
United Kingdom
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The UK Prime Minister announced a new climate target to cut UK greenhouse gas (GHG) emissions by 81% by 2035 (1990 baseline). This is an update of its 2021 target of a 78% reduction. (Nov 2024)
The UK’s Financial Conduct Authority (FCA) announced “temporary flexibility” to comply with the naming and marketing rules under its Sustainability Disclosure Requirements. The new rules come into force on 2 December 2024. However, firms now have until 2 April 2025 to meet requirements for funds using the terms “sustainable,” “sustainability,” or “impact,” or a variation of these, but not funds using other sustainability-related terms. (Sept 2024)
The UK published initial extended producer responsibility (EPR) packaging base fees for “year 1 of EPR for packaging,” beginning in 2025. Fees will be incurred from 1 April 2025. Final fees have yet to be calculated but are “first estimates” with refined figures being published in September. From year 2 on, fees will be modulated to ensure that packaging materials that have lower environmental impacts will be the least expensive for producers to use. (Aug 2024)
The British government increased the budget for the current annual renewable power auction by 50% to a record £1.5 billion ($1.92 billion) as part of its effort to decarbonize the electricity sector by 2030. The auction budget includes £1.1 billion for offshore wind, £185 million for onshore wind and solar, and £270 million for emerging technologies such as floating offshore wind and tidal. (Aug 2024)
The UK Emissions Trading Scheme (ETS) Authority published two consultations, one on expanding ETS to include energy from waste and waste incineration sectors from 2028 on, and one on how engineered greenhouse gas (GHG) removals (such as direct air capture) could be integrated and on whether nature-based removals could be suitable for the scheme. Stakeholders are invited to comment on Waste until 18 July, and on GHG removals until 15 August. (May 2024)
The UK government confirmed its target that requires at least 10% sustainable aviation fuel (SAF) in the UK jet fuel mix by 2030 and 22% by 2040, which, subject to Parliamentary approval, will be implemented from 1 January 2025 (starting with a 2% requirement and increasing linearly to 10% in 2030). (April 2024)
The UK government will now require developers to deliver 10% Biodiversity Net Gain (providing a total biodiversity increase of at least 10%) when building new housing, industrial or commercial developments. This makes the UK the first country to make Biodiversity Net Gain a legal requirement, and will apply from April 2024 for small sites, and late 2025 for Nationally Significant Infrastructure Projects. (Feb 2024)
The UK government released a roadmap outlining the largest expansion of nuclear power for 70 years. This sets out how the UK will increase generation of nuclear energy by up to four times, to 24 GW by 2050, enough to provide a quarter of the UK’s electricity needs. The government will also invest up to £300 million ($381 million) to launch a high-tech nuclear fuel program. (Jan 2024)
The UK will implement a new import carbon pricing mechanism for goods with a lower or no carbon price by 2027, ensuring imported products face a comparable carbon price to those produced in the UK. This carbon border adjustment mechanism (CBAM) will apply to carbon-intensive products including iron, steel, aluminum, ceramics, hydrogen, and cement. The design and delivery of the CBAM is subject to further consultation in 2024, including the precise list of products included. (Jan 2024)
The UK announced companies that pollute the environment can be hit with unlimited financial penalties from the Environment Agency. The previous cap of £250,000 ($313,000) on Variable Monetary Penalties has been removed and the range of offences has been expanded, such as breach of permits, illegal discharges to water, and illegal waste offences. (Dec 2023)
The UK Financial Conduct Authority (FCA) released its Sustainability Disclosure Requirements and an investment labels regime (after extensive stakeholder engagement). Included in the measures are: an anti-greenwashing rule for all FCA authorized firms; naming and marketing rules for investment products; four labels to enhance consumer trust; naming and marketing requirements; and information for consumers and institutional investors. (Dec 2023)
The UK’s Environmental Principles Policy Statement has come into force, requiring ministers and policymakers to consider the environmental impacts of new policies. This includes considering five key environmental principles: 1) integrating environmental protection into policymaking; 2) aiming to prevent environmental harm of policymaking; 3) addressing environmental damage at the source; 4) the polluter pays principle; and 5) the precautionary principle. (Nov 2023)
The UK Competition and Markets Authority published guidance on the application of competition rules to agreements relating to environmental sustainability between competitors. It also sets guidance on agreements to address climate change, where a more permissive approach to assessing benefits is adopted. The guidance provides practical examples that businesses can use to shape their decisions working with competitors on environmental sustainability initiatives. (October 2023)
The UK government set the percentage of new zero emission cars manufacturers will be required to produce each year up to 2030. This will require 80% of new cars and 70% of new vans sold in the UK to be zero emissions by 2030, increasing to 100% by 2035. 22% of new cars sold in 2024 will be required to be zero emission.
The UK prime minister announced the UK will delay its ban on new petrol and diesel cars and vans to 2035 from 2030. Car companies and sustainable investment companies responded with statements that this would cause policy uncertainty and threaten climate investment. (Sept 2023)
The UK Emissions Trading Scheme (UK ETS) Authority announced tightened emissions limits and other reforms for the industrial, power, and aviation sectors from 2024. The new limits follow 2022 consultations by the Authority to keep UK ETS aligned with net-zero goals, which resulted in allowance levels 30% – 35% below the current legislated cap. To provide maximum flexibility, the new limits will 1) be set at the highest level of the range consulted on, with extra allowances to be made available to the market between 2024 and 2027; 2) guarantee current levels of free allocation of allowances for industry until 2026; and 3) allocate free allowances to support businesses that might otherwise relocate to places with looser emissions limits. The Authority also announced that (July 2023):
- the UK ETS will be extended to cover domestic maritime transport from 2026 and waste from 2028;
- free allocations to the aviation industry will be phased out in 2026; and
- greenhouse gas removal technologies such as Direct Air Capture (DAC) will be incorporated into the UK ETS.
The Advertising Standards Authority (ASA) of the UK banned several ads from energy companies Shell, PETRONAS, and Repsol, charging that the ads would likely mislead consumers regarding the environmental impact of the companies or their products. The ASA faulted the ads, which appeared on TV, in a poster, on YouTube, and online, for making misleading claims about reducing carbon emissions or promoting green energy and said the ads must not appear again in their current forms. (June 2023)
The UK released a series of strategies to address climate and environmental challenges and what steps the country is taking to move forward. These include (April 2023):
- The 2023 Green Finance Strategy, which updates the UK’s 2019 strategy, and sets out how the UK government will pursue its ambition to become the world’s first net-zero aligned financial center;
- Nature Markets, which provides a framework for scaling up private investment in nature recovery and sustainable farming;
- Powering Up Britain, which brings together the government’s energy security plan and net zero growth plan to provide a blueprint for the future of energy in the UK;
- UK International Climate Finance Strategy, on how the UK will spend the £11.6 billion pounds ($14.3 billion) to 2026 (with priority areas in clean energy, nature for climate and people, adaptation and resilience, and sustainable cities, infrastructure, and transport); and the
- 2030 Strategic Framework for International Climate and Nature Action, on how the UK will deliver on its climate and nature goals internationally in the next decade.
The UK-commissioned Parker Review Committee published results of a voluntary census of UK companies’ ethnic diversity progress. The review found 96 FTSE 100 companies met the target of at least one minority ethnic director on their boards, up from 89 last year (with 49 having more than one, for a total of 17.9% of all board positions). 67% of responding FTSE 250 companies had at least one minority ethnic director, up from 55% last year. The committee also announced new targets for December 2027, including each FTSE 350 company being asked to set a target for senior management positions that will be occupied by ethnic minority executives, and that 50 of the largest private UK companies have at least one ethnic minority director on the main board. (March 2023)
The UK will classify nuclear power as “environmentally sustainable” in its upcoming green taxonomy, allowing the same investment incentives provided for renewable energy. (March 2023)
The UK’s Competition and Markets Authority (CMA) has published draft guidance that exempts agreements between competitors or potential competitors to avoid impeding “legitimate collaboration between businesses that is necessary to the promotion or protection of environmental sustainability.” This draft sets out guidance in relation to environmental sustainability and to agreements that combat or mitigate climate change. Achieving net zero, as the CMA notes, will likely require industry collaboration. Specific examples of exemptions include firms acting collaboratively to prevent the first actor from sustaining a competitive disadvantage (such as switching to a more expensive input), or where firms acting individually would lack the resources or capabilities to achieve a more sustainable outcome but could achieve them collectively. To learn more, the CMA is hosting a webinar on March 13, 2023 at 2:30pm GMT and the public can comment on the guidance until April 11, 2023. (March 2023)
The UK’s Competition and Markets Authority (CMA) will scrutinize the ‘green’ claims in sales of fast moving consumer goods, such as food, drink, cleaning products, and personal care items, to ensure shoppers are not being misled. The CMA will analyze both online and in-store environmental claims to consider whether companies are complying with UK consumer protection law, including the use of broad or unsupported eco-statements and misleading claims about recyclability. The CMA also produced the Green Claims Code to help businesses understand how to communicate their green credentials without misleading shoppers. (Jan 2023)
The UK released new legally binding environmental targets, after extensive consultation. The targets require the UK to:
- Halt species decline by 2030 and increase to exceed current levels by at least 10% by 2042;
- Restore precious water bodies to their natural state;
- Increase tree cover to 16.5% of total land in England by 2050;
- Halve the waste per person sent to treatment by 2042;
- Cut exposure to PM2.5 air pollutants;
- Restore 70% of designated features in the UK’s Marine Protected Areas to a favorable condition by 2042, with the rest in a recovering condition.
The government will publish its Environmental Improvement Plan in January 2023, providing details on how to achieve these, including interim targets. (Dec 2022)
The UK’s Financial Conduct Authority announced the formation of an independent group to develop a voluntary Code of Conduct for ESG data and ratings providers. The group will be composed of stakeholders including investors, ESG data and ratings providers, and rated entities, and will aim to meet for the first time later this year. (Nov 2022)
The UK government has delayed publication of targets relating to the Environment Act 2021, due to the need to fully analyze the 180,000 responses to the consultation finishing June 27, 2022, according to a ministerial statement by the environment secretary. No new date of release was given. (Oct 2022)
The UK Advertising Standards Authority ruled that HSBC’s ads highlighting the bank’s climate actions were misleading as they omitted information about the bank’s continued financing of emissions-intensive companies. HSBC was ordered to not display the ads again (which were displayed in bus stops in two UK cities before COP26) and to provide context for its contribution to greenhouse gas emissions in future marketing communications featuring environmental claims. (Oct 2022)
The UK government has released its “Jet Zero Strategy” (JZS) to achieve net zero emissions in the aviation sector by 2050. It also sets 2040 net-zero targets for UK domestic aviation and airports in England. Based on a “high-ambition” scenario, the JZS places peak UK aviation emissions in 2019, at 39.6 megatons of CO2 equivalent (MtCO2e) and sets targets of 35.4 MtCO2e in 2030, 28.4 MtCO2e in 2040, and 19.3 MtCO2e in 2050. Key elements of the strategy include (July 2022):
- 2% annual increase in fuel efficiency, focusing initially on upgrades to airport operations and facilities.
- A requirement of at least 10% sustainable aviation fuel (SAF) use by 2030, supported by a new £165 million ($198 million) Advanced Fuels Fund.
- Near-term development of zero emission aircraft, with the aim of having zero-emission routes connecting places across the UK by 2030.
- Residual emissions will be covered by carbon credit offsets.
The UK’s High Court has ruled that the government’s Net Zero Strategy (NZS) is invalid in its current form because it lacks a quantified explanation of how policies would achieve climate targets. Environmental organizations that brought the case—Friends of the Earth, ClientEarth and the Good Law Project—successfully argued that the failure of the Department for Business, Energy and Industrial Strategy (BEIS) to require that information before signing the NZS was illegal under the 2008 Climate Change Act. The judge ordered BEIS to prepare a report explaining projected policy outcomes towards emissions reductions and present it to parliament by April 2023. (July 2022)
The UK Government announced that it will contribute £330 million ($412 million) to the 2022–2026 cycle of the Global Environment Facility (GEF), the largest global financial mechanism to help developing countries tackle their most serious environmental challenges and meet international commitments. Total contributions to the GEF for this cycle now stand at $5.25 billion, a real increase of 29% over the 2018 replenishment total. The UK’s announcement was made as leaders from government, business, and civil society came together last week for Stockholm +50, a UN-convened conference focused on creating a decisive action plan toward the goals of the 2030 Agenda for Sustainable Development, Paris Agreement, and Global Biodiversity Framework. (June 2022)
UK Transport Secretary Grant Shapps pledged to deliver the world's first transatlantic flight powered exclusively by sustainable aviation fuel (SAF) by the end of 2023. Shapps announced a £1 million ($1.25 million) competitive fund that will support testing, research, and personnel costs of companies pursuing the milestone flight. Made from waste materials such as used cooking oil, SAF can deliver a GHG emissions reduction of more than 70% compared to conventional fossil jet fuel. While current jet fuel specifications do not allow flights to use 100% SAF, development of the technology is seen as essential to the aviation industry’s decarbonization path. (May 2022)
The British finance ministry has created a new task force to establish requirements for financial firms and listed companies to publish plans, starting in 2023, for transitioning to a net-zero economy—including interim goals and specific measures that will be taken to meet them. The taskforce will also develop protocols to counter greenwashing and assist companies in creating “investable, accountable” plans upon request. (May 2022)
Britain’s financial watchdog, the UK Financial Conduct Authority, set diversity standards for London-listed companies. Among the targets: At least 40% of boards should be women and one director should be a person of color. Annual corporate statements must show compliance. (April 2022)
The U.K. Prime Minister’s Office has published its British Energy Security Strategy. Framed as a pathway to greater energy independence, dramatically lower carbon emissions, and lower energy costs for consumers, it includes proposals to (April 2022):
- Produce as much as 95% of electricity from low-carbon sources by 2030.
- Triple nuclear power capacity by 2050 (2020 baseline), with a goal of 24 gigawatts (GW).
- More than triple current offshore wind capacity, with a goal of 50GW, by 2030.
- Boost North Sea oil and gas production to allow for near-term self-reliance.
- Quintuple current solar capacity, with a goal of 70 GW, by 2035.
- Create investment and subsidy funds totaling £360 million ($469 million) to accelerate the production and use of hydrogen as a clean energy source.
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The UK Department for Transport released a vision and action plan for electric vehicle charging infrastructure within the United Kingdom. The strategy announced intentions to end the sale of new internal combustion engine vehicles by 2030 and for all new cars and vans to be “fully zero-emission at the tailpipe” by 2035. As part of the strategy, the UK government has committed £1.6 billion ($2.1B) to expand the UK charging network, with around 300,000 public chargers expected to be available by 2030. (March 2022)
UK Government | Vision and Action Plan
List of United Kingdom News, 2021-2019 (PDF)
Policy Forecasts
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Inevitable Policy Response (IPR) 2021: Policy Forecast (Principles for Responsible Investing – PRI) (March 2021)
- Building on findings from a survey of 200 policy experts in 21 countries, makes 10 major climate policy-related forecasts for investors, including:
- Carbon Pricing: Carbon Border Adjustments Mechanisms (CBAMs) will become increasingly prominent; the U.S. will announce a national carbon pricing system by 2025; the EU will have an ETS carbon price of $75/tCO2 by 2030
- Coal: India and China will end construction of new coal-fired power production by 2025; the U.S. will end all coal-fired power generation by 2030
- Clean Power and Industrial Plants: The U.S. will implement a binding 100% clean power standard for 2040; all major industrial economies (including the US, Germany, Japan, and China) will require all new industrial plants, led by steel and cement, to be low-carbon by 2040
- Zero Emissions Vehicles: China, France, Germany, Italy, and Korea will end the sale of fossil fuel cars and vans in 2035
- Agriculture and Land Use: The U.S., Canada, Australia, and other major agricultural producers will have comprehensive mitigation policy in place by 2025 to reduce emissions from production of crops and livestock; major tropical forest countries will end deforestation by 2030
Research & Trends
Climate Action & Policy Research
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The Solar Energy Industries Association (SEIA) published a vision for the future of energy storage in the U.S., setting out a target to deploy 10 million distributed storage installations and reach 700 GWh of total installed energy storage capacity by 2030. This is up from the 83 GWh of installed storage capacity currently, and from the 450 GWh projected for 2030 under a baseline scenario. The whitepaper outlines policy recommendations to open markets for storage development, build financial support, and grow a domestic storage supply chain. SEIA also released a 50-state guide to energy storage policies at the state level. (Feb 2025)
Climate Policy Monitor (University of Oxford Net Zero Regulation and Policy Hub) — Assesses how policies and regulations align with climate goals, exploring 30 jurisdictions in 2024 in three domains: 1) climate-related disclosure: obligations on companies and financial institutions to publicly report on climate risks; 2) transition planning: rules requiring companies to lay out steps they will take to align with climate goals; and 3) public procurement: rules that align government spending with governments’ climate goals. The Monitor finds 17 jurisdictions mandate companies to disclose emissions across their entire value chains and that government procurement rules collectively cover $9.7 trillion (also in 17 jurisdictions). (Nov 2024)
The continuation of current national climate policies will lead to a temperature rise of between 2.6°C and 3.1°C by 2100 (depending on whether current, unconditional, or conditional Nationally Determined Contributions (NDCs) are enacted), according to the United Nations Environment Programme’s Emissions Gap Report 2024. To get on a 1.5°C pathway, countries would need to collectively commit to cutting emissions 42% by 2030 and 57% by 2035 in the upcoming round of NDCs (to be submitted in early 2025). (Oct 2024)
Clean energy projects announced in the first two years of the Inflation Reduction Act are expected to add $238 billion to the U.S. GDP during construction and $20 billion annually over their operational lifetime, according to a first-of-its kind survey of nearly 930 business stakeholders. 621,000 direct and indirect jobs will also be created over the next five years, including 154,000 permanent jobs. (Oct 2024)
Playbook of Solutions (World Economic Forum (WEF)) — Explores 100 adaptable policy, finance, and de-risking solutions from 47 countries to mobilize clean energy financing in developing economies. The solutions, implemented over the past two decades, range from energy and climate policies, to guarantees and insurance, to bonds and debt swaps, and are detailed in an online database. The Playbook also highlights four national approaches, exploring how Brazil, Chile, Egypt and India raised billions in clean energy capital deploying a blend of strategies. (Oct 2024)
Policy Scenarios for Eliminating Plastic Pollution by 2040 (Organisation for Economic Co-operation and Development (OECD)) — Finds that comprehensive global policies addressing the entire plastics lifecycle can reduce plastic leakage into the environment by 96% by 2040. Without stronger policies, annual plastic production and use are projected to increase 70%, from 435 million tons (Mt) in 2020 to 736 Mt in 2040. And annual mismanaged plastic waste will increase from 81 Mt in 2020 to 119 Mt in 2040. However, using a mix of policies, mismanaged plastic waste could be nearly eliminated by 2040, preventing 74 Mt of plastics from entering rivers and oceans. This includes stringent policies to curb production and demand (limiting total plastics use to 508 Mt in 2040), combined with policies to quadruple recycling rates to 42%. This is projected to incur a 0.5% global GDP loss in 2040 compared to the baseline scenario but would result in “vastly improved environmental outcomes.” Global investment needs for plastic waste management are projected to amount to $2.1 trillion between 2020 and 2040. (Oct 2024)
Climate policies that achieved major emission reductions: Global evidence from two decades (Science) — Evaluates 1,500 climate policies that have been implemented between 1998 and 2022 across 41 countries and identified the 63 most successful ones. These 63 led to total emission reductions between 0.6 billion and 1.8 billion metric tons of CO2. Using machine learning, researchers identified 69 cases with the largest emission reductions, 63 of which were associated with at least one policy adoption or tightening. (Of the 69, 24 occurred in the building sector, 19 in transport, 16 in industry, and 10 in electricity. 48 were in developed countries and 21 in developing countries.) Conclusions from the analysis include (Aug 2024):
- Pricing is a “particularly effective policy” in sectors dominated by profit-maximizing firms.
- Policy combinations are effective and can have complementary or reinforcing effects.
- Successful policy mixes vary across sectors, thus policymakers should focus on sector-specific best practices when designing policy.
- Effective policies vary with levels of economic development, with pricing interventions relatively ineffective in developing economies.
The Global Regulations Radar (ERM Sustainability Institute) — Provides an overview of the environmental, social and governance (ESG) and the environmental, health and safety (EHS) regulations that have the greatest impact on companies across the globe. It includes information on the scope, timeline, and compliance requirements of such regulations and is intended to help companies track which major regulations they may be subject to and what actions they should take to comply. The report includes information on three regions: Europe, North America, and Asia and discusses a variety of regulations categorized under General Sustainability; Climate; and Materials (such as U.S. PFAS regulations and the EU battery regulation). It also includes a useful 2024-2030 timeline of ESG and EHS regulations on page 10. (July 2024)
Credible Contributions: Bolder Plans for Higher Climate Ambition in the Next Round of NDCs — (Energy Transitions Commission (ETC)) — Calls for industry and government collaboration to nearly triple the ambition of the next round of Nationally Determined Contributions (NDCs) by COP30. This requires governments at the next NDC round to reflect existing policy commitments made at COP28 and nationally, as well as the latest technological progress. The result could be around 18 GtCO2 equivalent of mitigation per year in 2035 (up from the currently expected 6 GtCO2e), which would put the world on the path to a 2°C limit to warming. (June 2024)
Current pledges in national climate action plans (Nationally Determined Contributions (NDCs)) do not meet the global ambition to halt or reverse deforestation by 2030, according to a new UN-REDD report. Only 8 of the top 20 countries with the highest rates of tropical deforestation have quantified targets on forests in their NDCs and 11 contain quantified targets related to afforestation or reforestation. (June 2024)
Re-election of Donald Trump would decelerate the low-carbon energy transition in the U.S., resulting in about 55% or $5.3 trillion less investment in the US energy sector over 2023-50 compared to a net-zero scenario, says Wood MacKenzie. The analysis breaks down probable changes to US energy policy, including rolling back methane regulations and reducing incentives for electric vehicles, low-carbon hydrogen and carbon capture projects. (May 2024)
Automakers with low levels of EV production lobby the hardest against policies to cut emissions from road transport, says a new report from Influence Map. The report examined climate strategies of 15 large automakers in Australia, the EU, Japan, India, South Korea, the UK, and the US. (May 2024)
War Plans Red & Blue: The Post Election Outlook for US Climate, Energy & Transport Policy (TD Cowen Washington Research Group) — Explores post 2024 U.S. election policy opportunities and risks, depending on outcomes in both the Presidential and Congressional elections. The report finds that outright repeal of the Inflation Reduction Act (IRA) is “overstated,” with the possibility of repeal or revision of select tax credits narrowing. However, the risk of IRA guidance revision (i.e. a change to credit implementation language) is “understated,” and could limit access to IRA’s tax credits. Both parties could also increase trade protectionism. 2025 could bring “legislative catalysts,” including debt ceiling, FY26 budget, and tax cut expiration, that could elevate policy volatility risk around IRA repeal. Policy implications for specific sectors (e.g. renewables, oilfield services, hydrogen) are also analyzed depending on which party wins, as are the impacts on over 75 companies. (April 2024)
The Inflation Reduction Act is projected to cut annual GHG emissions by 710 million metric tons (MMT) by 2030, according to analysis by the International Monetary Fund. This comes primarily through renewables and electric vehicles, with fiscal costs amounting to $700 billion through 2030. However, emissions reductions could be reduced by about a third due to permitting delays. (April 2024)
Filling the climate governance gap: Do corporate decarbonization initiatives matter as much as state and local government policy? (Energy Research & Social Science) — Analyzes CDP data to assess the respective roles of corporate initiatives and subnational public policies in driving corporate decarbonization in the U.S. from 2010 to 2019. Finds that although corporate decarbonization initiatives are associated with greenhouse gas reductions, the primary drivers of corporate facility decarbonization were state-level climate policies, in particular financial incentives for energy efficiency. The study also found that total emissions by disclosing corporations increased substantially during that period, suggesting expansion of corporate and subnational efforts may be key to reduce overall corporate emissions. (March 2024)
The election of Donald Trump could lead to an additional four billion metric tons of U.S. emissions (CO2 equivalent) by 2030, compared to Biden’s plans, according to new analysis by Carbon Brief. U.S. emissions are projected to fall 28% below 2005 levels in 2030 under Trump, compared to 43% under Biden. The analysis accounts for Trump’s stated plans to roll back Biden’s climate policies, but not additional fossil fuel production Trump might support, or additional policies Biden might implement in a second term. (March 2024)
A review of intergovernmental cooperation on the mitigation of climate change (World Resources Institute (WRI)) — Analyzes 93 intergovernmental climate alliances and partnerships designed to tackle emissions. The paper finds that there has been a surge of cooperation since the Paris Agreement in 2015, and that nearly all national governments are members of at least one initiative. However, two-thirds of the initiatives have been established to share knowledge, and just 6% pursue the adoption of policies or the achievement of targets at the country level. Also, developed countries “dominate the landscape,” being involved in many initiatives (the UK leads the list at 71 of 93). Energy supply is the focus of the most initiatives, at 28%, with transport second at 18%. Also, while many have robust operational infrastructure, many lack transparency arrangements. (Oct 2023)
Views on the elements for the consideration of outputs component of the first global stocktake (United Nations Framework Convention on Climate Change (UNFCCC)) — Synthesizes governments’ and stakeholders’ views for the global stocktake at COP28, including ideas for national and collective policies. Some options listed include: tripling renewable energy capacity by 2030; cutting methane emissions by 40% by 2035; phasing out unabated coal power generation by 2040; phasing out fossil fuel use, exploration, and subsidies; and providing $200-400 billion in finance each year for a loss and damage fund by 2030. (Oct 2023)
Government Energy Spending Tracker (International Energy Agency (IEA)) — Tracks spending policies in 68 countries governing clean energy investment support and short-term energy affordability measures. Policies on clean energy investment include measures to support investment in energy infrastructures, renewables, electrification, efficiency, and energy sector supply chains. The report finds that (June 2023):
- $1.34 trillion has been allocated by governments to support clean energy investment since 2020;
- Direct incentives for manufacturers for bolstering domestic manufacturing of clean energy technologies total around $90 billion;
- Since early 2022, governments have allocated $900 billion to short-term consumer affordability measures in addition to pre-existing support programs and subsidies;
- Affordability measures have blunted the impact of rising energy prices, but in 12 countries representing nearly 60% of the global population, the average household share of income spent on energy in 2022 increased;
- As high prices persist, the uptake of clean energy technologies is set to accelerate further, hastening the emergence of a new energy economy.
90% of Net Zero plans by 35 countries are unlikely to be achieved, according to new research in Science. The evaluation assesses countries’ Nationally Determined Contributions based on whether they are legally binding and have “credible” policy plans, and on whether and how fast the countries’ emissions are already declining. It ranks national efforts as “higher,” “lower,” or “much lower” confidence levels. World-leading emitters China and the US fall into the “lower” level, while India, Brazil, and Australia fall in the “much lower” level. The EU falls in the “higher” level. When only the most credible net-zero targets are included in the analysis, warming is projected to reach 2.4°C by the end of the century, well past the Paris goals. Only with lower and very low-credibility targets does projected warming remain below 2.0°C. (June 2023)
Increasing Recycling Rates with EPR Policy (The Recycling Partnership) — Explores how Extended Producer Responsibility (EPR) programs at the state level affected recycling rates and other key metrics. In this study of EPR for printed paper and packaging (PPP) across six U.S. states and seven jurisdictions worldwide, researchers found that (Feb 2023):
- EPR programs in five countries increased the collection and recycling of PPP to over 75%, with Belgium reaching 90% (the remaining two increased collection to over 60%);
- U.S. recycling rates are substantially lower than in jurisdictions with EPR programs, where rates ranged from 66% to 75%;
- By adopting EPR policies, U.S. states could increase their recycling rates by as much as 48%, as Colorado did after implementing an EPR policy (going from 21% to 70%);
- U.S. states with EPR policies retained between $13 million and $91 million in economic value of the recycled materials; reduced greenhouse gas emissions, and produced thousands of jobs.
The State of Nationally Determined Contributions: 2022 (World Resources Institute) — Since the first round of the Paris Agreement, 80% of Nationally Determined Contributions (NDCs) have been updated, according to a new report by WRI. Key findings include (Oct 2022):
- By September 2022, countries have communicated 139 new or updated NDCs;
- The latest NDCs reduce 2030 emissions by about 5.5 gigatons of CO2 equivalent more than initial NDCs, a 7% reduction from 2019 levels. However, emissions must decline at least 43% from 2019 levels to keep the 1.5°C goal within reach;
- 77% of NDCs include greenhouse gas emissions reductions targets and 96% include sector-specific mitigation targets and other measures;
- 86% of NDCs include an adaptation component;
- 53% include estimates of climate finance requirements, and total $4.3 trillion: $2.7 trillion for mitigation, $1.1 trillion for adaptation, and $475 billion unspecified.
The U.S. government will spend an estimated $514 billion on climate technology and clean energy over the next ten years under three recently enacted laws (the Inflation Reduction Act, the CHIPS acts, and the Infrastructure Investment and Jobs Act), according to RMI. The investments are projected to reduce US emissions by around 40% and increase new cumulative capital investments by $3.5 trillion. Annual real federal spending on climate and clean energy is likely to be 3.5 times more than 2009-2017 levels and 15 times levels in the 1990s and early 2000s. (Aug 2022)
Environmental Performance Index (EPI) 2022 (Yale University Center for Environmental Law & Policy / Columbia University Center for International Earth Science Information Network) — Ranks 180 countries on their efforts to address critical sustainability issues including air & water pollution, waste management, biodiversity & habitat protection, and the clean energy transition. The EPI projects 2050 emissions based on 40 performance indicators measured against internationally established targets. It does not account for pollution that spills across borders. Key findings include (June 2022):
- Most countries will not achieve the 2050 net zero goal established in the 2021 Glasgow Climate Pact.
- Denmark and the United Kingdom were the highest performers and are currently projected to reach net zero by 2050, having put in place some of the world’s most ambitious climate policies. The U.S. ranked 43rd (20th out of 22 wealthy democracies in the Global West).
- More than 50% of emissions in 2050 are projected to come from just 4 countries: China, India, the United States, and Russia.
- On the current trajectory, 24 countries will account for nearly 80% of 2050 residual GHG emissions.
- India ranks lowest on the scorecard, with worsening air quality and rapidly rising greenhouse gas emissions noted as urgent challenges.
- Factors noted for contributing to environmental success include good governance, country wealth, quality of life, independent media, and well-crafted regulations.
- The report assesses the impact of COVID-19 and describes how efforts to return to status quo policies “will erase the environmental gains achieved during the past few years."
ESG Regulatory Trends
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Carrots & Sticks: Beyond Disclosure in ESG and Sustainability Policy (GRI, Stellenbosch University Business School et al.) — Analyzes over 2,460 ESG and sustainability policies from 132 countries and 76 international and regional organizations from 1897 to the present. Key findings (March 2024):
- 55.2% of all policies are voluntary. This trend reversed after the Sustainable Development Goals (SDGs) were introduced in 2015, going from 52% mandatory prior to 2015, to 36% mandatory after.
- Less than 20% of policies exhibit a high level of restrictiveness on business. 75% fall in the low restrictiveness category, suggesting limited power of enforcement. Disclosure policies are two to three times more likely to be high restrictive on business.
- Of Environment (E), Social (S), and Governance (G), E-focused policies dominate, followed by S, and then G. E-focused policies tend to address climate change, energy, waste, and water. S-focused policies focus primarily on compensation.
- Certain SDGs dominate in policies, including SDG 8 (decent work) and SDG 12 (responsible consumption and production).
The number of material and credible national policy announcements on the land and nature transition doubled in the last 12 months, according to Inevitable Policy Response’s latest quarterly forecast tracker. More than two-thirds of tracked policies are in line with the well below 2°C climate goal, but only 1% with the 1.5°C goal. The tracker also forecasts that land utilized for nature-based solutions could grow 10-fold by 2035, equivalent to 10% of global agricultural land. (March 2024)
2023 Climate Risk Scorecard (Ceres Accelerator for Sustainable Capital Markets) — Assesses ten U.S. federal financial agencies across nine categories on their actions to protect capital markets, financial institutions, and communities from climate-related financial risks. This third annual Scorecard found the agencies have collectively taken more than 100 public actions to address climate-related financial risk between July 2022 and June 2023. Most of the assessed regulators have made meaningful strides in producing research and data on climate risk and incorporating climate risk into their supervision of regulated entities. All but one agency, the Public Company Accounting Oversight Board, have publicly affirmed climate as a systemic risk. And all agencies have expanded internal climate-related capacities, with six making significant progress, and four making some progress. Eight agencies also improved transparency regarding their actions to measure and manage climate-related financial risks at their regulated entities. However, only one agency, the Securities and Exchange Commission, has made any progress in including climate risk in regulation. (July 2023)
ESG regulations have increased 155% in the past decade, according to ESG Book analysis of more than 2,400 ESG regulations in more than 80 jurisdictions. 1,255 ESG policy interventions have been introduced worldwide since 2011, compared to 493 between 2001 and 2010. (June 2023)
ESG Battlegrounds: How the States Are Shaping the Regulatory Landscape in the U.S. (Harvard Law School Forum on Corporate Governance) — Summarizes the current efforts in the U.S. on ESG-related regulations, listing laws, policies, and statements by state, that both support and restrict ESG activities. The article also provides key takeaways including: an expected increase in ESG measures especially as the presidential election approaches; that the measures pose “significant legal, operational, reputational, political and financial concerns” for asset managers and companies; and that the measures are still relatively untested, resulting in uncertainties in their “ultimate interpretation and implementation.” (March 2023)
“Global Insights Report 2018: The Rise of ESG Regulations” (Datamaran, 2018) analyzes the growth of ESG regulations dating from 2012 in the financial services, utilities, and healthcare and pharmaceuticals sectors across the U.S., Canada and the UK. The report points to an evolving regulatory landscape that increasingly favors more non-financial information from public companies.
Public Attitudes on Policy
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Twenty-two leading climate advocates and diplomats wrote an open letter calling for COP reform, arguing the current structure cannot deliver change at the exponential speed and scale needed to ensure “a safe climate landing for humanity.” Measures for reform include: Improving the selection process for COP presidencies; streamlining meetings to deliver concrete actions; improving accountability; ensuring robust tracking of climate financing; integrating the latest science; recognizing interdependence between poverty, inequality, and planetary instability; and enhancing equitable representation (including reducing fossil fuel lobbyist presence). (Nov 2024)
Large majorities of Americans believe climate change poses a significant risk and businesses, governments and individuals should be taking action, says a new report from Resources for the Future. 74 percent endorse the federal government taking steps to limit GHG emissions by U.S. businesses, with strong support for taxing importing emissions (84 percent support), paying for green skills training in the transition away from fossil fuels (78 percent), and increasing energy efficiency of products (cars, appliances, and buildings) through tax breaks (62, 68, and 69 percent, respectively). (Sept 2024)
80% of people globally want their governments to take stronger action to tackle climate change, according to the UN Development Programme’s Peoples’ Climate Vote 2024, which surveyed over 73,000 people across 77 countries. 81% want their countries to take more action to protect and restore nature and 86% want them to set aside geopolitical differences and work together on climate change. 72% were in favor of a quick transition away from fossil fuels. 49% said they think their country is doing well addressing climate change, while just 39% said business is doing well addressing climate change. (June 2024)
85% of people polled worldwide believe a global plastic pollution treaty should ban unnecessary single-use plastics, according to a survey of 24,727 people in 32 countries commissioned by WWF and the Plastic Free Foundation. 87% of people also supported banning plastic products that cannot easily and safely be recycled, and 90% supported banning hazardous chemicals used in plastic. (April 2024)
“2021 Edelman Trust Barometer” (Edelman) an annual assessment of global public trust in institutions, finds that business is the most trusted institution — compared to governments, NGOs, and media — and is the only institution seen as both ethical and competent. (January 2021)
Nearly two-thirds (62%) of U.S. voters say they would be more likely to vote for a candidate who supports federal stimulus funding for the renewable energy industry, according to a survey conducted by the Yale Program on Climate Change Communication and the George Mason University Center for Climate Change Communication. The report also finds that 71% of voters support legislation to achieve a 100% clean economy by eliminating fossil fuel emissions from the transportation, electricity, buildings, industry, and agricultural sectors in the United States by 2050. (July 2020)
“Politics & Global Warming” (Yale Program on Climate Change Communication and George Mason University Center for Climate Change Communication, June 2020) analyzes survey responses from around 1,000 Democratic, Independent, and Republican registered voters in the U.S. to better understand how they view global warming, climate and energy policies, and personal and collective action. Select key findings included the following:
- A majority of registered voters (61%) believe global warming is “caused mostly by human activities.”
- 43% stated that a candidate's position on global warming will be "very important"when deciding who they will vote for in the 2020 presidential election.
- More than 85% of registered voters support policies that boost funding for research into renewable energy sources and increase renewable power generation on public land in the United States.
- 77% support U.S. participation in the Paris Climate Agreement.
- 72% believe that corporations and industry should do more to address global warming.
- Only 2% say they are currently participating in a campaign to convince elected officials to take action on global warming. However, an additional 8% say they "definitely would" participate in such a campaign, and another 24% say they "probably would."
Climate Litigation News & Trends
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Edison Electric Institute (EEI) filed a petition for review of the Environmental Protection Agency’s recent power plant rules. The utility trade group noted that while it supported EPA’s authority to regulate greenhouse gas emissions and efforts to provide paths to additional carbon reductions, it was intervening to preserve its ability to defend final elements of the rules that are consistent with the energy transition and customer reliability. (This is in contrast to an earlier suit by 25 states calling the rule unlawful.) EEI specifically noted it is seeking judicial review of EPA’s determination that carbon capture and storage should be the basis for compliance, which it argues is not ready for full-scale, industry-wide deployment, nor is there sufficient time to permit, finance, and build the infrastructure needed for compliance by 2032. (May 2024)
The U.S. Supreme Court denied the appeal by the American Petroleum Institute, ExxonMobil, and Koch Industries to stop Minnesota’s lawsuit against the companies for deceiving consumers about their products’ role in climate change. The case can now proceed in state court. (Jan 2024)
A New York judge ruled that Danone must face a lawsuit challenging its “carbon neutral” claim on bottles of Evian spring water. The judge called “carbon neutral” an ambiguous and confusing term, according to reporting from Reuters. (Jan 2024)
National Consumers League sued Starbucks in a D.C. court, alleging that the company is deceiving customers with its claims of “100% ethical” coffee and tea sourcing, citing evidence that it relies on farms that commit labor and human rights violations. (Jan 2024)
Truck engine manufacturer Cummins Inc. agreed to pay fines of $1.675 billion in a $2 billion settlement to address U.S. regulatory claims regarding its use of “defeat devices”
to bypass or disable emissions controls in certain pick-up trucks. This is the largest-ever civil penalty for a Clean Air Act violation according to the Department of Justice. Cummins will also spend $325 million to remedy the excess emissions. (Jan 2024)
The total number of climate change court cases has more than doubled since 2017 and is growing worldwide according to a new report by the UN Environment Programme and the Sabin Center for Climate Change Law at Columbia University. As of December 2022, there have been 2,180 climate-related cases filed in 65 jurisdictions, including international and regional courts, tribunals, quasi-judicial bodies, or other adjudicatory bodies. This has grown from 884 cases in 2017 and 1,550 cases in 2020. Of the cases, more than two-thirds have been filed in the U.S., and 17% in developing countries. (July 2023)
Global Trends in Climate Change Litigation: 2023 Snapshot (The Grantham Research Institute on Climate Change and the Environment) — Between May 2022 and May 2023, 2,341 cases have been captured in climate change litigation databases, 190 of which were filed in the last year. Growth in cases is slowing, but diversity in cases is still expanding. Key trends include (July 2023):
- Seven new countries have now had climate litigation cases, including China and Russia;
- More than 50% of 549 assessed climate cases (in which an interim or final decision has been rendered) have direct judicial outcomes that can be understood as favorable to climate action;
- Most recorded cases are climate-aligned outcomes but non-climate aligned litigation (e.g. ESG backlash) is increasing;
- More cases are being filed against corporate actors, with a more complex range of legal arguments;
- There has been growth in ‘climate-washing’ cases challenging the accuracy of green claims and commitments over the past few years;
- Around 20 cases filed by U.S. cities and states against the Carbon Majors are now likely to go to trial;
- Challenges to the climate policy response of governments and companies have grown significantly outside the U.S.;
- Litigation concerning investment decisions is increasing and can help clarify the parameters within which decisions should be made in the context of climate change;
- High-emitting activities are now more likely to be challenged at different points in their lifecycle, from initial financing to final project approval.
Friends of the Earth France, Notre Affaire à Tous, and Oxfam France sued BNP Paribas over its “massive support” to fossil fuels and for its substantial contribution to climate change, arguing the bank violated a 2017 French law requiring companies to identify and reduce environmental risks. The three groups said the bank was involved in indirectly funding more than 200 new fossil fuel projects by eight oil and gas companies and urged the bank to immediately stop financing fossil fuels and adopt an oil and gas exit plan. This is the world’s first climate lawsuit against a commercial bank. (Feb 2023)
The legal organization Client Earth filed a lawsuit in the UK high court against the Board of Directors of Shell for failing to manage the material and foreseeable risks posed to the company by climate change. This is the first ever derivative action against a Board of Directors over failure to properly prepare for the energy transition. Institutional investors holding more than 12 million shares in the company and over £450 billion ($546 billion) in total assets under management support the claim. The lawsuit argues that the company’s transition plan has serious shortcomings and will only result in a 5% reduction in net emissions by 2030 and will force an abrupt pivot “to retain commercial competitiveness as the energy transition accelerates.” (Feb 2023)
While only 2% of corporate counsel surveyed reported ESG-related litigation in 2022, 28% said their exposure to this area increased in 2022, and 24% expect increased exposure in the coming year, according to Norton Rose Fulbright’s latest Annual Litigation Trends Survey. The food and beverage sector had the highest proportion of respondents (40%) who expect increased exposure to ESG disputes in the coming year, possibly related to lawsuits tied to recycling and single-use plastics, according to the report. Also, of those concerned with class actions in the coming year, 37% said ESG-related class actions are an area of future concern. (Jan 2023)
Three environmental organizations, ClientEarth, Surfrider Europe, and Zero Waste France, have sued France-based food and beverage company Danone over its plastic usage. The organizations sued Danone under the French “Duty of Vigilance” law, which requires large companies to have plans to assess and prevent operational impacts on the environment and human rights. The groups are calling on the company to assess its plastic footprint; the impacts its use of plastics has on the environment, health, and human rights; and based on the assessment, create and implement a deplastification plan with specific and dated objectives. (Jan 2023)
The Price of Plastic Pollution (Minderoo Foundation) — Corporate liabilities from plastic pollution, including environmental clean-up, ecosystem degradation, shorter life expectancy and medical treatment, could exceed $20 billion per year in the United States, and $100 billion globally between 2022 and 2030. Beyond 2030, corporate liabilities may increase by an order of magnitude. This report is a first-ever attempt to calculate quantitative estimates from both the social costs and corporate liabilities to plastics, chemicals, and waste companies from all forms of plastic-related pollution. Manufacturers of chemical additives used in plastics are most exposed to litigation risk. The report concludes with action steps for corporates, insurance companies, policymakers, and investors, particularly focused on more fully disclosing plastic-related pollution risks. (Oct 2022)
H&M / DECATHLON — H&M and sporting goods chain Decathlon have made commitments to the Netherlands Authority for Consumers and Markets (ACM) to remove sustainability-related labels from their products and websites, and to improve the use of sustainability claims in the future, following an investigation by ACM. ACM found that H&M uses sustainability claims such as “Conscious” and “Conscious Choice,” without explaining what they mean, or providing a description of the sustainability benefits of the products. H&M and Decathlon also agreed to make donations of €400,000 and €500,000, respectively, to sustainable causes “to compensate for their use of unclear and insufficiently substantiated sustainability claims.” (Sept 2022)
Environmental law nonprofit ClientEarth is suing Shell’s board of directors for “mismanaging climate risk” and “[failing] to properly prepare” the company for the net-zero transition. ClientEarth says this is the first-ever legal case of its kind. (March 2022)
A panel of lawyers for the Netherlands-based Stop Ecocide Foundation unveiled draft law defining “ecocide,”
making the case that the International Criminal Court should adopt it to prosecute environmental offenses by governments and companies. (June 2021)
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“Global Trends in Climate Change Litigation: 2020 Snapshot” (Grantham Research Institute on Climate Change and the Environment, the Sabin Center for Climate Change Law at Columbia Law School, and the Centre for Climate Change Economics and Policy, July 2020) provides an overview of trends and developments in climate change litigation from May 2019 to May 2020. The report finds that 58% of cases filed outside of the U.S. had outcomes favorable to climate change action, 33% had unfavorable outcomes, and 9% had no discernible likely impact on climate policy.
“Global Trends in Climate Change Litigation: 2019 Snapshot” (Grantham Research Institute on Climate Change and the Environment and the Centre for Climate Change Economics and Policy) provides an overview of trends and developments in climate change litigation from May 2018 to May 2019. The report finds that more than 75% of climate change cases were filed in the United States.