With increasing pressure to fight climate change, scientists, and leaders agree that carbon capture, use, and storage (CCUS) is a cost-effective solution to meet emissions goals made under the Paris Agreement.
In his interview with Hart Energy, Latham partner JP Brisson discusses how aggressive efforts are needed to meet the net-zero goal, but oil and gas companies are making significant progress in deploying CCUS projects at scale.
Watch the video.
By Charles C. Read and Marc T. Campopiano
The right to regulate subject to due process constraints is a foundation of public utility law. This article examines the extent to which a regulatory agency can restrict and ultimately terminate a utility’s operations based on public policy considerations. This issue has arisen in industries confronted with disruptive technological and regulatory change such as deregulation of wholesale natural gas pricing, termination of the vertical integration of electric utilities, broadcast television displacement by
The CFTC continues to demonstrate a commitment to using its regulatory mandate to combat climate change risks to the US financial system.
By Yvette D. Valdez, Douglas K. Yatter, Jean-Philippe Brisson, Paul Davies, Nicola Higgs, and Deric Behar
On March 17, 2021, the Commodity Futures Trading Commission (CFTC) announced the establishment of an interdivisional Climate Risk Unit (CRU) to assess the risks to US financial stability posed by climate change. The CRU aims to be a catalyst for change by highlighting the derivatives markets’ role in understanding, pricing, and addressing climate-related risks, as well as its role in the transition to a low-carbon economy.
The announcement was made by Acting Chairman Rostin Behnam, whose efforts to steer the CFTC’s focus toward climate-related impacts on the financial system led to the publication of a landmark report by the CFTC’s Climate-Related Market Risk Subcommittee of the Market Risk Advisory Committee in September 2020. The report, titled “Managing Climate Risk in the U.S. Financial System” (the Report), makes 53 recommendations to help mitigate climate risk to financial markets. See Latham’s discussion of the report here.
The program will include a multi-jurisdictional cap-and-invest program and aims to address environmental justice and equity concerns.
By Jean-Philippe Brisson, Joshua T. Bledsoe, Benjamin Einhouse, and Brian McCall
On December 21, 2020, the Governors of Massachusetts, Rhode Island, and Connecticut, as well as the Mayor of the District of Columbia, announced that their respective jurisdictions would establish the Transportation & Climate Initiative Program (TCI-P) and released a memorandum of understanding (MOU) describing the agreed-upon principles for adoption and implementation of the TCI-P. While not part of the MOU, the states of New York, New Jersey, Delaware, Maryland, Virginia, Vermont, Pennsylvania, and North Carolina released a statement signaling their desire to work with the states party to the MOU and the Transportation & Climate Initiative (TCI) in general. On March 1, 2021, the TCI released draft Model Rules for public review. Once finalized, the Model Rules are intended to be adapted for use by each TCI-P signatory jurisdiction via state-specific rulemaking processes.
The Division of Enforcement’s new Climate and ESG Task Force will use data analysis to mine and evaluate registrant information for possible violations.
By Paul A. Davies, Paul M. Dudek, and Andra Troy*
On March 4, 2021, the US Securities and Exchange Commission (SEC) announced the creation of a Climate and ESG Task Force in the Division of Enforcement. According to the SEC, the Task Force will develop initiatives to proactively identify ESG-related misconduct in the form of gaps or misstatements of issuer disclosure by means of the Division’s resources, including the collection of tips and whistleblower complaints and the use of data mining and analysis.
The principles are intended to guide the industry’s engagement with policymakers concerning the ongoing economic transition away from carbon.
By Paul A. Davies, Jason C. Ewart, and Edward R. Kempson
The US Climate Finance Working Group, a group of leading financial services trade associations, has published “Financing a US Transition to a Sustainable Low-Carbon Economy” — a set of principles for how the financial services industry can play a role in addressing climate change.
The principles, not meant to be exhaustive, are intended to serve as a useful framework for the industry’s engagement with policymakers to find practical, market-based solutions to the challenges and opportunities related to climate risk and the ongoing economic transition away from carbon. The working group noted that while individual institutions can play a significant role in the global effort to address climate change, policy must provide a critical foundation for driving the transition.
Biden Administration elevates consideration of GHG emissions and climate change in federal agency approvals by rescinding Trump guidance and reviving Obama guidance.
by Janice M. Schneider, Stacey L. VanBelleghem, and Devin M. O’Connor
On February 19, 2021, the White House Council on Environmental Quality (CEQ) published a Federal Register Notice rescinding the June 2019 “Draft National Environmental Policy Act Guidance on Consideration of Greenhouse Gas Emissions” (2019 Draft GHG Guidance) issued by the Trump Administration. This action, directed by President Biden’s Executive Order 13990, “Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis” (January 20 EO), reinstates Obama Administration policy and requires further review and updating on how greenhouse gas (GHG) emissions and the effects of climate change are considered in environmental review under the National Environmental Policy Act (NEPA).
New regulations in renewable energy, infrastructure, telecommunications, and ESG are expected to impact companies and investors in Spain in the coming year.
By José María Alonso and Leticia Sitges
Despite the ongoing effects of the pandemic, the Spanish government has established a route toward decarbonizing and digitalizing the economy and toward promoting circular-economy initiatives.
This post highlights public law-related developments and trends to anticipate in Spain in 2021.
A range of ESG policy, social, and technological developments are poised to impact companies and investors in the coming year.
By Paul A. Davies, Nicola Higgs, Sophie Lamb QC, Ryan J. Maierson, Colleen C. Smith, Michael D. Green, and Edward R. Kempson
Despite concerns early in 2020 that the pandemic would impact the growth of environmental, social, and governance (ESG) initiatives, the opposite proved to be the case with political and investor momentum aligning and ESG initiatives surging in the climate of “building back better”. This growth will likely accelerate in 2021, particularly as leading economies and financial centres in the US, China, the EU, and the UK make political and legislative commitments focused on ESG and investors double down on their ESG demands.
This second instalment of Latham’s annual 10 Things to Look Out For blog post highlights ESG-related developments and trends to anticipate in 2021.
The report lays down policies aimed at fostering carbon neutrality in the UK by 2050 and supporting Paris Agreement pledges.
By Paul A. Davies and Michael D. Green
On 9 December 2020, the UK Climate Change Committee (the Committee) published its 6th Carbon Budget (the Budget), as required under the Climate Change Act. The Budget provides ministers with advice on the volume of greenhouse gases the UK can emit during the period 2033-2037 and also contains policies designed to place the UK on track to achieving carbon neutrality by 2050.
The Budget comes in the context of the UK bolstering its climate ambitions ahead of hosting the COP26 in Glasgow next year, as the Prime Minister has recently committed to cutting emissions by at least 68% from 1990 levels by 2030. The Government also published a ten-point plan aimed at boosting the green economy.