The Eligibility List sets out the approved host countries, carbon crediting programmes, and methodologies that meet the established Eligibility Criteria in Singapore.

By Paul A. Davies, Jean-Philippe Brisson, Farhana Sharmeen, Don Stokes, Michael D. Green, Qingyi Pan, James Bee, and Kevin Mak

On 19 December 2023, the Ministry of Sustainability and the Environment (MSE) and the National Environment Agency (NEA) in Singapore published the Eligibility List under Singapore’s International Carbon Credit (ICC) Framework, which took effect from 1 January 2024 and was published on Singapore’s Carbon Markets Cooperation website.

The Eligibility List followed the signing of an inaugural Article 6 implementation agreement with Papua New Guinea on carbon credits cooperation.

Under Article 6 of the Paris Agreement, countries may enter into an implementation agreement to cooperate to achieve their nationally determined contributions (NDCs) by trading Paris Agreement compliant carbon credits. Parties to the implementation agreement must also effect certain corresponding adjustment mechanisms to ensure that any emission reductions or removals are struck from the host country’s NDC accounts to prevent double-counting.

The new rules would oblige companies to integrate their human rights and environmental impact into their management systems.

By Paul A. Davies, Michael D. Green, and James Bee

On December 14, 2023, the European Council (Council) and European Parliament (Parliament) reached provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDDD). The agreement follows an extensive negotiation processes, which began in June 2023, after the European Commission had initially proposed the CSDDD in February 2022.

The CSDDD’s key aim is to enhance the protection of the environment and human rights globally. The CSDDD as proposed will set obligations for companies regarding the actual and potential adverse impacts of their own operations, those of their subsidiaries, and those carried out by business partners, described as the “business chain of activities.” The CSDDD would also establish a requirement for large EU companies to adopt a plan to ensure that their business model and strategy are compatible with the Paris Agreement, i.e., including concrete targets and measures in line with limiting global warming to 1.5 °C.

The proposed CSDDD would establish rules on penalties and civil liability for infringements (although these will ultimately be set by Member States).

The Supervisory Body published the Methodology Guidance and the Removal Guidance to be presented for discussion in COP28.

By Jean-Philippe Brisson, Paul A. Davies, Joshua T. Bledsoe, Michael Dreibelbis, Qingyi Pan, and Brett Frazer*

After two years of discussion, the Supervisory Body (SB) responsible for determining the guidelines for Article 6.4 of the Paris Agreement published two sets of recommendations, which will be presented for consideration and adoption by the Parties to the Paris Agreement (CMA) at the 28th annual Conference of Parties (COP28).

The first recommendation came on November 16, 2023, when the SB published guidelines on the requirements for the development and assessment of Article 6.4 mechanism methodologies (the Methodology Guidance).[i] The second recommendation followed the next day, when the SB published guidelines on activities involving removals under the Article 6.4 mechanism (the Removal Guidance).[ii]

We discuss key regulatory trends and strategies to consider when pursing US transmission and interconnection opportunities.

By Tyler Brown, Marc T. Campopiano, and Jennifer K. Roy

Renewable energy production has grown at an exponential clip over the past decade, with continued strong expansion expected because of declining costs, numerous governmental incentives, and long-term decarbonization policies. This trend has driven a tremendous demand for new transmission infrastructure in the US and globally, yet new transmission lines often take years to develop due to regulatory hurdles and litigation challenges.

An unprecedented investment in transmission will be needed over upcoming decades to keep pace with demand and meet decarbonization goals. Companies and investors will need to factor into their strategies these key regulatory trends when pursuing US and global transmission and generator interconnection opportunities.

The framework claims to set the “gold standard” for companies to contribute to the net zero transition while emphasising ambition, action, and accountability.

By Paul A. DaviesMichael D. Green, and James Bee

The UK Transition Plan Taskforce (TPT) launched its transition plan disclosure framework (the Framework) at the London Stock Exchange on 9 October 2023. The Framework encourages businesses to create transition plans for a low greenhouse gas (GHG) emissions economy. It also seeks to help companies and financial institutions create consistent and comparable disclosures on their climate transition plans.

While initially voluntary, the Framework is expected to become mandatory for certain entities in the UK through incorporation into regulatory frameworks.

The draft New Measure aims to enhance the environmental integrity of China’s carbon market by introducing new requirements for project registration and credit issuance.

By Paul A. Davies, Jean-Philippe Brisson, Michael Dreibelbis, and Qingyi Pan

China is preparing to relaunch its carbon credits program, the Chinese Certified Emission Reduction (CCER) Scheme, after suspending the program for over six years. On July 7, 2023, the Ministry of Ecology and Environment (MEE) and the State Administration for Market Regulation (SAMR) of the People’s Republic of China jointly released the draft Measure for the Administration of Voluntary Emission Reduction Trading (the New Measure).

The public consultation for the draft New Measure ended on August 6, 2023, and on September 15, 2023, the MEE ministry conference reviewed and passed the New Measure in principle. The formal release is expected to happen in October 2023, upon which the New Measure would replace the previous set of rules and become the governing law of the CCER Scheme.

Together with the national emission trading scheme (the China ETS) launched two years ago, the CCER Scheme represents China’s continuous efforts towards adopting market-based mechanisms for achieving its climate pledges (peaking emissions before 2030 and reaching carbon neutrality before 2060).[i]