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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 agency has further strengthened electrification targets and provided additional details on compliance options for Transportation Network Companies.

By Joshua T. Bledsoe, Charles C. Read, and Jen Garlock

The California Air Resources Board (CARB) is developing the Clean Miles Standard and Incentive Program (Clean Miles Standard), a first-of-its kind regulation designed to reduce greenhouse gas (GHG) emissions from ride-sharing vehicles and increase the use of zero-emission vehicles.

CARB staff presented updates to the regulation at a November 2020…

The decision clears a path for President Biden’s climate priorities, striking down a Trump Administration rule that had repealed the Obama Administration’s power plant greenhouse gas regulations.

By Stacey L. VanBelleghem and Devin M. O’Connor

On January 19, 2021, on the eve of President Biden’s inauguration, in American Lung Association, et al. v. EPA, the US Court of Appeals for the District of Columbia Circuit overturned the Environmental Protection Agency’s (EPA’s) Affordable Clean Energy (ACE) Rule, which sought to replace the Obama Administration’s Clean Power Plan (CPP). Both rules would regulate carbon dioxide (CO2) emissions from existing electric generating units (EGUs) under Section 111(d) of the Clean Air Act (CAA).[1]

The ACE Rule (summarized in this Latham blog post), took three key actions:

  1. It formally repealed the Obama Administration’s CPP, finding that the CPP exceeded the EPA’s statutory authority by employing generation-shifting (shifting electric generation from higher to lower emitting sources) as a Best System of Emission Reduction (BSER). In the ACE Rule, the EPA concluded that the agency’s authority to define BSER is limited to measures that can be applied “to or at” an individual stationary source, that generation-shifting conflicts with the CAA’s unambiguous statutory requirement, and the ACE Rule interpretation is the only permissible reading of the statute.
  2. It established EGU heat rate improvements as the BSER for CO2 emissions, identifying much weaker targets for these existing sources.
  3. It updated the foundational implementing rules for existing source emissions guidelines under Section 111(d) by extending compliance timelines.

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.

President Xi Jinping promises to reduce carbon emissions in speech before the UN General Assembly.

By Paul A. Davies, Michael D. Green, R. Andrew Westgate, and Jacqueline J. Yap

On 22 September 2020, during a speech before the UN General Assembly, President Xi Jinping announced China’s commitment to become carbon neutral by 2060 and reaffirmed China’s commitment under the Paris Agreement to peak its carbon emissions by 2030. China is the world’s largest greenhouse gas (GHG) polluter and emitted approximately 10 billion tons of carbon dioxide in 2018, according to the Global Carbon Project. Given this, China’s commitment to become carbon neutral by 2060 would significantly reduce global GHG emissions and set the stage for China’s development of a green economy.

The EU Commission aims to enshrine into law the 2050 climate-neutrality target and has taken further steps to establish a unified EU “green” classification system.

By Paul A. Davies, Michael D. Green, and Federica Rizzo

The European Green Deal, presented on 11 December 2019, provides a roadmap with actions aimed at boosting the efficient use of resources and the circular economy, decarbonising the energy sector, and investing in environmentally friendly technologies.

On 4 March 2020, the EU Commission (the Commission) published its Proposal for a Regulation of the European Parliament and of the Council establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (the proposed European Climate Law). This year, the Commission will also present measures to increase the EU’s greenhouse gas emission reduction target for 2030, which will require additional investments of €260 billion a year by 2030, and to promote a climate-neutral EU by 2050.

Court finds the Netherlands’ 20% greenhouse gas emissions target to be unacceptable, citing the UN Framework Convention on Climate Change and the ECHR.

By Paul A. Davies and Michael D. Green

On 20 December 2019, the Dutch Supreme Court upheld the Court of Appeal ruling in the Urgenda case, determining that the Dutch State was required to reduce Dutch greenhouse gas emissions by 25%[i] by the end of 2020. This decision marked the final ruling in a series of cases dating back to 2015.

In 2015, environmental nongovernmental organization, the Urgenda Foundation (Urgenda), brought a case against the Dutch State, alleging that the national target for greenhouse gas emission reductions was insufficient. The Dutch target at that time was the EU-wide figure of 20% compared to 1990 levels. According to Urgenda, the risks of climate change meant that the 20% target was insufficient, and only a decrease of at least 25% would be adequate.

The Hague District Court at first instance agreed with Urgenda, and ordered emissions be reduced by 25% by 2020, a finding that was initially confirmed by the Hague Court of Appeal in 2018. Now, the Dutch Supreme Court has followed suit.

Non-governmental organizations release new studies and reports on new developments in carbon capture, usage, and storage technology.

By Jean-Philippe Brisson, Christopher G. Cross, Paul J. Hunt, Eli M. Katz, Joshua T. Bledsoe, Benjamin W. Einhouse, and Taylor R. West

At the 25th annual Conference of Parties (COP 25) United Nations Climate Summit, held in December 2019 in Madrid, non-governmental organizations (NGOs) and other groups submitted reports and studies on the latest developments in environmental technology. Several organizations, including the Innovation for Cool Earth Forum, the Global CCS Institute, and the National Petroleum Council of the United States, submitted reports on the use and future development of carbon capture, use, and storage (CCUS) technologies.

Innovation for Cool Earth Forum

The Innovation for Cool Earth Forum (ICEF), an organization that organizes an annual conference hosted by Japan’s Prime Minister that brings international leaders together to tackle climate change, published a roadmap for Industrial Heat Decarbonization in December 2019 (the Roadmap).[i] The Roadmap outlines how the use of industrial heat must be changed to reduce global greenhouse gas (GHG) emissions, specifically discussing the issue of carbon dioxide (CO2) emissions. The Roadmap further notes that industrial heat is particularly important due to the fact that roughly 10% of all GHG emissions come from industrial heat production. The Roadmap discusses the use of heat in a variety of industries, including cement, iron, and steel, as well as chemical production. Generally, the Roadmap discusses solutions that include the use of low-carbon energy sources such as hydrogen combustion and biomass burning, and electrical sources such as resistance heating, microwaves, induction, and electric arc furnaces. Moreover, the Roadmap discusses the role of CCUS in reducing the carbon produced in the creation of industrial heat.