The inquiry seeks further evidence on how and whether the government’s response to COVID-19 should take green ambitions into account.
By Paul A. Davies and Michael D. Green
On 24 July 2020, the UK Treasury Committee (the Committee) relaunched its inquiry into decarbonisation of the UK economy and green finance. Continue Reading
The pioneering case seeks an injunction to restrain the government from further promoting exchange-traded bonds until it complies with its duty of disclosure.
By Paul A. Davies and Michael D. Green
On 22 July 2020, investors filed a class-action claim against the Australian government, alleging that it failed to disclose material climate change risks relating to its bonds (O’Donnell v. Commonwealth and Ors). The claim is thought to be the first of its kind against a national government. Continue Reading
The carbon border adjustment mechanism would aim to prevent carbon leakage resulting from carbon pricing in the EU emissions trading system.
By Paul A. Davies and Michael D. Green
On 22 July 2020, the European Commission (the Commission) published a consultation on a carbon border adjustment mechanism (CBAM) that is open until 28 October 2020. According to the Commission, the CBAM would aim to ensure equivalent carbon costs between imports and goods produced in the EU. Notably, the Commission’s COVID-19 recovery fund includes the CBAM as a repayment option. (For more on the recovery fund, see this post.) Continue Reading
The government provides further details on UK carbon pricing after Brexit.
By Paul A. Davies and Michael D. Green
On 14 July 2020, the UK government published the draft Greenhouse Gas Emissions Trading Scheme Order 2020 (the Order), establishing a framework for the potential UK Emissions Trading System (UK ETS). Subsequently, on 21 July 2020, the government published a consultation on the operation of a potential new carbon emissions tax. Continue Reading
Public agencies prevailed in 71% of CEQA cases analyzed.
By James L. Arnone, Daniel P. Brunton, Marc T. Campopiano, Shivaun A. Cooney, Benjamin J. Hanelin, John C. Heintz, Maria Pilar Hoye, Aron Potash, and Winston P. Stromberg
Latham & Watkins is pleased to present its third annual CEQA Case Report. Throughout 2019 Latham lawyers reviewed each of the 45 California Environmental Quality Act (CEQA) appellate cases, whether published or unpublished. Below is a compilation of the information distilled from that review and a discussion of the patterns that emerged from those cases. Latham has continued to monitor CEQA cases throughout 2020 and regularly posts key summaries to this blog. Continue Reading
While the investor community continues to call for more useful ESG disclosures, some regulators try to put on the brakes.
By Paul A. Davies, Paul M. Dudek, and Kristina S. Wyatt
Calls for Improved ESG Disclosures
Many in the investor community have spoken out about their desire for more comparable, decision-useful environmental, social and governance (ESG) information to help inform investment decisions. The year 2020 rang in with Larry Fink’s now famous letter to CEOs in which he declared “we are making sustainability integral to the way BlackRock manages risk, constructs portfolios, designs products, and engages with companies. We believe that sustainability should be our new standard for investing.” At roughly the same time, State Street Global Advisors issued its annual CEO’s letter in which it emphasized that “addressing material ESG issues is good business practice and essential to a company’s long-term financial performance — a matter of value, not values.” Also in January 2020, the International Business Council of the World Economic Forum issued a consultation draft calling for the development of common, consistent ESG reporting metrics to bring order and consistency to the ESG reporting landscape. The consultation draft was intended to address the “lack of consistency by which companies measure and report to investors and other stakeholders the shared and sustainable value they create.” Continue Reading
The sustainable finance classification system entered into force on 12 July 2020, providing a framework for other green initiatives.
By Paul A. Davies and Michael D. Green
On 12 July 2020, the EU’s regulation on the establishment of a framework to facilitate sustainable investment (the Taxonomy Regulation) entered into force, after several years of planning and deliberation. The EU Commission (the Commission) initially proposed an action plan on financing sustainable growth in March 2018. Action 1 of the plan called for the establishment of an EU classification system for sustainable activities (the Taxonomy). Subsequently, in May 2018, the Commission proposed the Taxonomy Regulation, as reported on in a previous blog post. Continue Reading
Energy system integration is considered a crucial aspect of delivering the EU’s target to achieve climate neutrality by 2050.
By Paul A. Davies and Michael D. Green
On 8 July 2020, the European Commission (the Commission) issued a new Communication, “Powering a climate-neutral economy: An EU Strategy for Energy System Integration” (the Communication). The Communication is one of several recent policy initiatives to further the European Green Deal goal of achieving carbon neutrality by 2050. (See EU Commission Formally Announces European Green Deal.) The Communication notes that the current energy system is built on parallel and vertical energy value chains, which link specific sources of energy with specific end uses. According to the Commission, this system cannot deliver a climate-neutral economy due to its technical and economic inefficiency, substantial losses in the form of waste heat, and low energy efficiency. As such, the Communication outlines a plan for an integrated energy system that would establish a “pathway towards an effective, affordable and deep decarbonisation of the European economy in line with the Paris Agreement”. Continue Reading
The guidance contains practical advice for navigating ESG diligence and compliance.
By James R. Barrett, Paul A. Davies, Michael D. Green, Bobbi-Jo B. Dobush, and Jacqueline J. Yap*
On June 19, 2020, the Equator Principles Association (EPA) issued Guidance on Implementation of the Equator Principles During the Covid-19 Pandemic, as prepared by Ramboll (Guidance).
The 24-page Guidance provides lenders and borrowers with direction on how to address COVID-19-related issues in all aspects of project development and financing. The Guidance contains critical information that must be taken into account in any pending or planned project financings subject to the Equator Principles (EPs). Continue Reading
The consultation aims to gather technical input from stakeholders in the green bond market before finalising an EU GBS.
By Paul A. Davies, Michael D. Green, and Aaron E. Franklin
On 12 June 2020, the European Commission (the Commission) published a targeted consultation document on the establishment of an EU Green Bond Standard (EU GBS). The Commission has committed to the establishment of an EU GBS as part of its broader Action Plan on Financing Sustainable Growth (the Action Plan), and hopes that the promulgation of an official EU standard will help address some of the barriers it has identified in the current green bond market. Continue Reading
