CARB will not penalize reporting entities for incomplete Scope 1 and 2 emissions disclosures under SB 253, irritating lawmakers and raising the specter of oversight hearings.
By Joshua Bledsoe, Nikki Buffa, Betty M. Huber, and Matthew Green
On December 5, 2024, the California Air Resources Board (CARB) issued an Enforcement Notice for Senate Bill 253, the Climate Corporate Data Accountability Act (SB 253),1 stating that CARB will not penalize in-scope entities for incomplete compliance
In-scope entities should keep preparing for compliance with Senate Bills 253 and 261 as the lawsuit proceeds past an initial summary judgment motion.
By Joshua Bledsoe, Betty Huber, Nicole Valco, and Matthew Green
On November 5, 2024, in Chamber of Commerce of the United States of America et al. v. California Air Resources Board et al.,1 the US District Court for the Central District of California denied plaintiffs’ summary judgment motion which sought to declare
Listed issuers will be subject to additional emissions disclosure requirements as the Singapore Exchange Regulation announces enhancements to its sustainability reporting regime.
By Paul A. Davies, Farhana Sharmeen, Michael D. Green, James Bee, and Kevin Mak
On 23 September 2024, the Singapore Exchange Regulation (SGX RegCo) announced that it will begin incorporating the IFRS Sustainability Disclosure Standards (IFRS Standards) issued by the International Sustainability Standards Board (ISSB) into its sustainability reporting regime.
The announcement comes after
The Tribunal confirmed that States party to UNCLOS must take measures to prevent marine pollution caused by climate change, on top of their obligations under the Paris Agreement.
By Paul A. Davies, Sophie J. Lamb KC, Michael D. Green, and Stephanie Forrest
On 9 April 2024, the International Tribunal on the Law of the Sea (ITLOS, or the Tribunal) issued a long-awaited advisory opinion on climate change and international law, concluding that States party to the United Nations Convention on the Law of the Sea (UNCLOS) are subject to specific obligations to prevent, reduce, and control greenhouse gas (GHG) emissions and their adverse effect on the marine environment.
The guidelines aim to transform China’s approach to ESG by introducing sustainability disclosure rules for large listed companies.
By Hui Xu, Paul A. Davies, Jean-Philippe Brisson, and Qingyi Pan
On February 8, 2024, under the auspices of the China Securities Regulatory Commission (CSRC), each of China’s three major stock markets — Shanghai Stock Exchange, Shenzhen Stock Exchange, and Beijing Stock Exchange— unveiled draft guidelines on sustainable development reports (SDRs) (collectively referred to as the Guidelines). The Guidelines require the largest Chinese public companies to publish high-quality and standardized SDRs, and are open for public comment until February 29, 2024.
On appeal of a strike out decision, the Court gives the plaintiff “his day in court” to argue that corporates owe a common law duty of care in tort to reduce greenhouse gas emissions.
By Sophie J. Lamb KC and Stephanie Forrest
On 7 February 2024, the Supreme Court of New Zealand decided to allow a novel climate change claim to proceed to trial. In Smith v. Fonterra, the Supreme Court reversed the earlier decision of its Court of Appeal
The target aims to set the path for climate neutrality by 2050.
By Paul A. Davies, Michael D. Green, and James Bee
On 6 February 2024, the European Commission (Commission) presented its recommendations for the EU’s 2040 climate target, following a detailed impact assessment on potential emission reduction pathways. This publication aligns with the implementation of the EU’s Climate Law, which enshrines the EU’s commitment to become climate-neutral by 2050, alongside the 2030 target to reduce net greenhouse gas (GHG) emissions by at least 55%, relative to 1990.
The Commission recommends a 90% net GHG reduction by 2040, as compared to 1990 levels. Notably, the recommendation refers to “net” GHG reduction, and therefore opens the door for the use of carbon removal technologies within the EU to meet the target.
New report raises social cost of carbon estimates, surpassing previous estimates by more than 250%.
By Joshua Bledsoe, Kevin Homrighausen, and John Detrich
On December 2, 2023, the US Environmental Protection Agency (EPA) released a final report that substantially increases estimates of the social cost of greenhouse gases (GHG), including carbon dioxide, methane, and nitrous oxide (collectively, SC-GHG). The report describes SC-GHG as “the monetary value of the net harm to society from emitting one metric ton of that GHG into the atmosphere in a given year.”[1] The new estimates are intended to serve as a tool for decision-makers, aiding in the cost-benefit analysis of actions that would reduce or increase GHG emissions. Indeed, federal agencies are expected to use the estimates in future rule-makings and in the environmental review of forthcoming projects.
The agency’s two recent actions introduce enhanced restrictions on hydrofluorocarbons and provide a series of compliance dates for industry stakeholders.
By Stacey VanBelleghem and Jennifer Garlock
On October 5, 2023, the US Environmental Protection Agency (EPA) issued two rules, one final and one proposed, to phase down hydrofluorocarbons (HFCs) under the bipartisan American Innovation and Manufacturing Act of 2020 (AIM Act). The agency’s recent actions represent major steps in the Biden administration’s goal to significantly reduce HFCs over the next decade.
HFCs are a group of chemical refrigerants and potent greenhouse gasses (GHGs), commonly used in foam products, cooling systems, aerosols, and fire suppressants. International focus on managing these compounds sharpened in the 1980s, when countries agreed in the Montreal Protocol to shift global markets away from the ozone-depleting chlorofluorocarbons (CFCs) — the then dominant strain of refrigerant and aerosol chemicals — toward HFCs. Although HFCs are less damaging to the ozone layer than CFCs, they have global warming potential (GWP) values (a figure that allows comparison of relative climate impact of a GHG) hundreds or thousands times higher than carbon dioxide (CO2), which has a GWP equal to 1. In 2016, nearly 200 countries adopted the Kigali Amendment to the Montreal Protocol agreeing to a global phasedown of production and use of HFCs. The US ratified that amendment on October 31, 2022.
The guidance, published by a key entity behind the Greenhouse Gas Protocol, provides information on reporting of avoided emissions, and eligibility criteria for companies.
By JP Brisson, Paul A. Davies, Michael D. Green, and James Bee
On 22 March 2023, the World Business Council for Sustainable Development (WBCSD) released guidance on avoided emissions, i.e., emissions that occur outside of a company’s value chain. The WBCSD said the new guidance “will help ensure credible accounting of avoided emissions” and “seeks to bring harmonization and concrete guidance on how companies can assess and account for the decarbonizing impact of their solutions”.