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Notable News
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The Environment Protection Agency (EPA) issued its first-ever legally enforceable drinking water standard to protect communities from exposure to ‘forever chemicals’ (per- and polyfluoroalkyl substances (PFAS)). The rule will reduce exposure for approximately 100 million people, and prevent thousands of deaths. EPA estimates that between 6% and 10% of the 66,000 public drinking water systems subject to the rule may have to take action. EPA also announced nearly $1 billion in funding to help states and territories implement PFAS testing and treatment at public water systems. (April 2024)
EPA finalized stronger clean air standards for chemical plants, which will reduce the emissions of several chemicals, including ethylene oxide (EtO) and chloroprene, and “dramatically” reduce cancer risks in communities surrounding the plants. EPA estimates that the rule will reduce EtO and chloroprene emissions from covered processes and equipment by nearly 80%.
The facilities will also be required to conduct monitoring of the pollutants along their boundaries (or ‘fenceline’), with the data being made publicly available. (April 2024)
The Department of the Interior (DOI) announced it has now permitted nearly 29 GW of clean energy projects on public lands, surpassing its 2025 target of 25 GW. It also finalized a
Renewable Energy rule that will accelerate solar and wind projects on public lands through lower development costs, developer incentives, and improved application processes. (April 2024)
The Biden Administration announced $4 billion in tax credits for over 100 projects in 35 states to accelerate domestic clean energy manufacturing and reduce greenhouse gas (GHG) emissions at industrial facilities. These projects fall under the Qualifying Advanced Energy Project Tax Credit (48C). $2.7 billion went to clean energy manufacturing and recycling; $800 million to critical materials recycling, processing, and refining; and $500 million to industrial decarbonization. $1.5 billion of the credits will also support projects in historic energy communities. A second round of 48C credits will be announced in coming months with the concept paper submission window expected this summer. (April 2024)
The Environmental Protection Agency awarded $20 billion to eight nonprofit organizations to help finance clean energy projects across the U.S. $14 billion will go to three “green bank” initiatives, which will provide
low-interest loans for clean energy projects. $6 billion will fund five organizations that will establish hubs that provide both funding and technical assistance to community lenders working in low-income and disadvantaged communities. Collectively, the organizations have
committed to reduce or avoid up to 40 million metric tons of climate pollution per year and to
leverage almost $7 in private capital for every $1 of federal funds, and invest over 70%
of the $20 billion in low-income and disadvantaged communities.
(April 2024)
The Department of Energy developed
a national blueprint for decarbonizing U.S. buildings by 2050, with targets of a 65% reduction of GHG emissions by 2035 and a 90% reduction by 2050 (2005 baseline). The strategy includes actions the federal government can take, including
increasing building energy efficiency, accelerating onsite emissions reductions, minimizing embodied life cycle emissions, and transforming the “grid edge” (the last mile of distribution networks, including building generation, storage, and energy management). The blueprint prioritizes affordability, equity, and resilience, and projects savings of
$100 billion in annual energy costs and $17 billion in annual health costs. (April 2024)
The Environmental Protection Agency finalized new greenhouse gas (GHG) pollution standards for heavy-duty vehicles (e.g. delivery trucks, trailers, and buses) for model years 2027 through 2032. The standards are technology-neutral and performance-based and are projected to avoid one billion tons of GHG emissions and provide $13 billion in annualized net benefits to society related to public health, climate, and savings for truck owners and operators. (April 2024)
The Department of Energy (DOE) will award up to $6 billion for
33 projects across more than 20 states to decarbonize energy-intensive industries and reduce industrial GHG emissions. The projects, focused on the highest emitting industries, are expected to reduce more than
14 million metric tons of CO2 equivalent each year. Many of the projects will deploy “first-in-the-nation” technologies that have the potential for sector-wide adoption. This investment is matched by the selected projects,
leveraging more than $20 billion in total.
(April 2024)
The Environmental Protection Agency finalized national pollution standards for passenger cars, light trucks and medium-duty vehicles for model years 2027 to 2032 and beyond. Compared with 2026 standards, the final 2032 standards represent a nearly 50% reduction in projected fleet average GHG emissions levels for light-duty vehicles and a 44% reduction for medium-duty vehicles. The rule, which is technology-neutral and performance-based, is expected to avoid 7.2 billion tons of CO2 emissions through 2055, along with reducing fine particulate matter and ozone, preventing up to 2,500 premature deaths in 2055. (March 2024)
The Biden Administration released the National Zero-Emission Freight Corridor Strategy, which will guide the deployment of zero-emission medium- and heavy-duty vehicle charging and hydrogen fueling infrastructure from 2024 to 2040. This roadmap aims to leverage public funds to amplify private investment, as well as focus utility and regulatory energy planning, align industry activity, and improve air quality in communities burdened by diesel emissions. The Strategy will develop in four phases, with 2024-2027 focused on establishing priority hubs based on freight volumes. These hubs will then be connected (2027-2030), corridor connections will be expanded (2030-2035), and linked into a national network (2035-2040). (March 2024)
The Department of Energy awarded $750 million for 52 clean hydrogen projects across 24 states. These projects will help advance electrolyzer manufacturing and supply chain development; fuel cell manufacturing and supply chain development; and recycling capabilities for clean hydrogen systems and components. (March 2024)
The Department of Energy launched its Voluntary Carbon Dioxide Purchasing Challenge.
This calls on companies to purchase high-quality CO2 removal (CDR) credits, following the DOE’s recent commitment to procure $35 million of CDR credits through the
Carbon Dioxide Removal Purchase Pilot Prize.
In response to the challenge, Google
pledged to contract for at least $35 million worth of CDR credits in the next 12 months, making it the first company to commit to match the DOE’s commitment dollar for dollar.
(March 2024)
The Environmental Protection Agency (EPA) said that proposed carbon regulations it plans to finalize this spring will exclude existing natural gas power plants, according to reporting from Reuters. The EPA said it will take a more “comprehensive approach” to regulating natural gas power plants, and will begin stakeholder engagement to create a “more durable, flexible, and affordable proposal.” (March 2024)
The EPA launched a $3 billion
Clean Ports Program
to fund zero-emission equipment, infrastructure, and climate and air quality planning at U.S. ports. This funding program aims to reduce diesel pollution from U.S. ports in surrounding communities, and includes two separate funding opportunities: the $2.8 billion
Zero-Emission Technology Deployment Competition to fund equipment and infrastructure; and the $150 million
Climate and Air Quality Planning Competition
to fund planning activities. (March 2024)
The Environmental Protection Agency announced finalized amendments to the Risk Management Program to further protect at-risk communities from chemical accidents. The final rule includes revisions to improve chemical process safety; to assist in planning, preparing for, and responding to accidents; and to increase public awareness of chemical hazards at regulated sources. It also requires regulated facilities to perform a safer technologies and alternatives analysis (STAA), and in some cases, implement safeguard measures as practicable. (March 2024)
The Department of Energy (DOE) announced it will fund up to $100 million to support carbon capture, utilization and storage projects to help develop a commercially viable CO2 removal industry in the U.S. Selected projects will focus on three areas: small biomass carbon removal and storage pilots; small mineralization pilots to test enhanced mineralization technologies; and multi-pathway CO2 removal testbed facilities. More funding details are available here. (Feb 2024)
The Environmental Protection Agency (EPA) finalized stronger standards for fine particulate matter (soot), tightening the annual national ambient air quality standard from 12 micrograms per cubic meter (µg/m3) to 9 µg/m3. The EPA estimates this will prevent 4,500 premature deaths and 290,000 lost workdays and yield up to $46 billion in net health benefits in 2032. (Feb 2024)
The U.S. General Services Administration
(GSA)
and Department of Defense
(DoD) published a
Request for Information to identify contractors that could provide federal facilities in several mid-Atlantic and Midwest states with 100% carbon pollution-free electricity (CFE) by 2030.
This procurement, slated for later this year, would be one of the federal government’s largest-ever CFE purchases, averaging about
2.7 million MWh annually.
(Feb 2024)
The Department of Energy (DOE) announced $171 million for 49 projects to reduce industrial greenhouse gas (GHG) emissions and accelerate the development of innovative decarbonization technologies. Selected projects focus on: decarbonizing industrial heat; low-carbon fuels utilization R&D; decarbonizing chemicals, steel, and cement; among others. DOE also opened the application process for $83 million in funding to decrease emissions from hard-to-decarbonize industrial sectors. (Jan 2024)
The Department of the Interior released an updated roadmap for solar energy development across the West. This proposed roadmap updates the Bureau of Land Management’s (BLM) 2012 Western Solar Plan and identified 22 million acres of land across 11 states open for solar development. The public can comment through 18 April 2024. BLM also announced the next steps on several renewable projects in Arizona, California, and Nevada, representing more than 1,700 megawatts of potential solar generation and 1,300 megawatts of potential battery storage capacity. (Jan 2024)
The Departments of Transportation and Energy announced $325 million in new investments for EV chargers, including grants to: increase the reliability and resilience of publicly accessible chargers, advance EV technologies, and support workforce development for EV charging deployment and maintenance. This includes $149 million in grants to repair, replace, or bring up to code nearly 4,500 existing EV charging ports. The Departments of Treasury and Energy also released new definitions that expands the 30C EV charging tax credit (providing up to 30% off the cost of chargers to individuals and businesses) to areas covering two-thirds of the U.S. population, including low-income communities and non-urban areas. (Jan 2024)
The U.S. Department of the Treasury and Internal Revenue Service released proposed regulations on the Clean Hydrogen Production Credit established by the Inflation Reduction Act. The proposed rule aims to make production of clean hydrogen with minimal climate pollution more economically competitive and accelerate development of the U.S. clean hydrogen industry. The credit, ranging from 60 cents to $3 per kilogram depends on the lifecycle emissions of the hydrogen production. The proposed rule provides definitions of key terms, including lifecycle GHG emissions, qualified clean hydrogen and facilities, the use of energy attribute certificates, and third-party verification for hydrogen sale or use. Public comment is open until 26 February 2024. (Jan 2024)
The U.S. Department of Energy (DOE) launched a new office to oversee U.S. investments in artificial intelligence, biotechnology, quantum computing, semiconductors, and other emerging technology. This Office of Critical and Emerging Technology will leverage DOE expertise to solve critical science, energy and security challenges; coordinate DOE equities in these technologies; and develop partnerships with industry and academia to advance breakthroughs and accelerate commercialization of these technologies. Critical and emerging technologies have broad applications across the DOE, including clean energy, national defense, and pandemic preparedness, as noted in the press release. The new office will “support the goal of strengthening our Nation’s resilience against climate change impacts and building an equitable clean energy economy for the future.” (Dec 2023)
The U.S. Department of Treasury and the Internal Revenue Service released proposed guidance on the section 45X Advanced Manufacturing Production Credit, established by the Inflation Reduction Act (IRA), to incentivize domestic production of solar, wind, inverter, and battery components. The guidance proposes clarifying definitions and confirms credit amounts for eligible components, including solar and wind energy components, inverters, qualifying battery components, and applicable critical minerals. It also proposes definitions for key terms to incentivize production in the U.S. and to clarify the circumstances under which taxpayers can claim the credit. (Dec 2023)
The Department of the Treasury and IRS released guidance on the Sustainable Aviation Fuel (SAF) Credit established by IRA to provide clarity around eligibility for the SAF Credit. The credit incentivizes the production of SAF that achieves a lifecycle greenhouse gas emissions reduction of at least 50% as compared with petroleum-based jet fuel, providing producers with a tax credit of $1.25 to $1.75 per gallon (depending on the percentage of emissions reduced, with a $1.25 credit for a 50% reduction and an additional $0.01 per additional percentage point of reduction up to $1.75). (Dec 2023)
The Biden Administration announced a series of public and private commitments to boost access to electric vehicles (EVs). These include (Dec 2023):
- The release of new Federal employee travel guidelines that direct the use of sustainable transportation (EVs, rail travel, and public transit) for official and local travel, both domestically and internationally.
- New commitments by companies, nonprofits, and California through the Administration’s EV Acceleration Challenge, including by CEF Members Delta Air Lines, Enterprise Mobility, Marriott International, and Siemens.
The U.S. Commodity Futures Trading Commission (CFTC) proposed guidance for companies seeking to trade voluntary carbon credit derivative contracts. The proposed guidance outlines the factors that a CFTC-regulated exchange, or designated contract market, should consider with regard to the requirements of the Commodity Exchange Act. It also proposes CFTC regulations relevant to the contract design and listing process. A public comment period for the proposed guidance ends on 16 February 2024. Comments can be submitted here. (Dec 2023)
38% of the 23,000+ entities disclosing to CDP in 2023 disclosed on nature-related issues beyond climate. 56% disclosed how much energy they used, and 31% disclosed having no energy consumption from renewable sources. Also, of 575 financial institutions that disclosed, half reported an estimated $9 trillion in their financial portfolios were linked to fossil fuels. (Dec 2023)
The U.S. Department of the Treasury and the International Revenue Service released proposed guidance on the clean vehicle provisions of the Inflation Reduction Act. It proposes that beginning in 2024, eligible vehicles may not contain any battery components that are manufactured or assembled by a foreign entity of concern (FEOC), and, beginning in 2025, may not contain any critical minerals that were extracted, processed, or recycled by a FEOC. The Department of Energy also released proposed guidance defining FEOCs (essentially entities owned or controlled by China, Russia, North Korea, or Iran). The proposed rules would also create an upfront review system starting in 2025 both to provide FEOC compliance oversight, as well as certainty to manufacturers. The public can comment on these proposals for 45 days.(Dec 2023)
The Biden Administration released The Fifth National Climate Assessment (NCA5), which assesses climate change and its national and regional impacts. The report found that every region of the country is already experiencing the impacts of climate change, and these are getting worse. Key findings include:
- U.S. emissions have declined 12% between 2005 and 2019 (primarily through the shifting from coal to renewables) even as the economy and population have grown.
- U.S. net emissions would have to fall more than 6% each year on average to meet existing targets.
- Accounting for all GHG pollutants from 1850-2021, the report finds that the U.S. is responsible for 17% of current global warming.
- The U.S. now experiences a billion-dollar disaster every three weeks on average (up from one every four months in the 1980s).
- Underserved and overburdened communities face disproportionate risks and impacts from climate change.
- Harmful impacts will increase in the near term even if GHG emissions fall substantially.
- Long-term risks include flooding, drought, sea level rise, and disruptions to food systems.
- Released with NCA5 was a new web-based NCA Atlas to explore climate projections locally to inform resilience, adaptation, and mitigation efforts.
The Administration also announced more than $6 billion in investments to make communities more climate resilient, including $3.9 billion for strengthening the electric grid, $2 billion for Environmental and Climate Justice Community Change Grants, and $300 million in aid for communities affected by catastrophic flooding. (Nov 2023)
The U.S. Department of Energy announced $3.5 billion to strengthen domestic battery manufacturing. The funding opportunity will prioritize next-generation technologies and battery chemistries. Concept papers are due on 9 January 2024 and full applications on 19 March 2024. (Nov 2023)
Vice President Kamala Harris launched the Women in the Sustainable Economy (WISE) Initiative, which aims to help bolster women’s participation in industries critical to the future, such as renewable energy, recycling, forest management, and environmental conservation. This includes more than $900 million in commitments by governments, companies, foundations, and civil society for aligned efforts, including from CEF members Amazon, PepsiCo, Unilever, and Visa. (Nov 2023)
The U.S. General Services Administration (GSA) announced a $2 billion investment for 153 federal construction projects using low-embodied carbon (LEC) materials. These projects across 39 states, the District of Columbia, and Puerto Rico, will help “catalyze the market for American-made low carbon asphalt, concrete, glass and steel,” according to the GSA. Total investments include $384 million for asphalt, $767 million for concrete, $464 million for glass, and $388 million for steel. (Nov 2023)
White House officials added “clean power” projects to its Invest.gov website that tracks various private investments made during the Biden administration, according to reporting from Axios. According to the White House, private companies have announced plans for 94 GW of clean power projects as of August (an estimated $133 billion in investment), and employment in power generation is up about 7% from January 2021 to March 2023. (Oct 2023)
The Department of Energy announced a $3.46 billion investment for 58 projects in 44 states to strengthen electric grid resilience and reliability (the first round under the broader $10.5 billion Grid Resilience and Innovation Partnerships (GRIP) Program). Altogether these projects will leverage more than $8 billion in public and private investment and will invest in 400 microgrids and help bring more than 35 GW of new renewable energy online (a 10% increase in nationwide grid capacity). (October 2023)
The Department of Energy has selected seven Regional Clean Hydrogen Hubs (H2Hubs) that will collectively receive up to $7 billion in federal funds in coming years. These include hubs around the country: in Appalachia, California, the Gulf Coast, the Dakotas, the Mid-Atlantic, the Midwest, and the Pacific Northwest. The H2Hubs are expected to produce 3 million metric tons of hydrogen per year, for industrial use, transportation, heating, and electric generation. (October 2023)
The Federal Aviation Administration (FAA) announced nearly $300 million in funding for projects to reduce carbon emissions from aviation. This includes $245 million for Sustainable Aviation Fuel (SAF) infrastructure projects, which aim to build up regional SAF supply chains, and $47 million for low-emission aviation technology projects, which aim to reduce emissions, improve fuel efficiency, and increase the use of SAF. The Notice of Funding Opportunity can be read here and the FAA’s target for the first round of awards is mid-2024. (October 2023)
The Biden Administration released the
National Climate Resilience Framework, a vision for a climate resilient U.S., designed to guide and align climate resilience investments and activities by the federal government and its partners.
It identifies common principles and specific actions to expand progress toward
six objectives, including: 1) embedding resilience into planning and management; 2) increasing resilience of the built environment; 3) mobilizing investment and innovation to advance resilience at scale; 4) providing communities with resources to assess climate risks and develop climate resilience solutions; 5) sustainably managing land and waters to enhance resilience and advance other benefits; and 6) helping communities become more resilient, as well as safer, healthier, equitable, and economically strong. (October 2023)
The US Treasury Department issued Principles for Net-Zero Financing and Investment to promote consistency, credibility, and transparency in the net-zero pledges made by financial institutions. Among the nine principles, the Treasury prescribed that banks and asset managers align their net-zero financing commitments with 1.5°C goals, adopt credible metrics and targets, and engage in ”transition finance” that supports decarbonization in high-emitting, difficult-to-abate sectors. (Sept 2023)
The Securities and Exchange Commission adopted new rules requiring that 80% of an investment fund's portfolio aligns with the fund’s name.
The new rules are amendments to the Investment Company Act’s “Names Rule,” which aims to ensure that a portfolio’s name does not mislead investors regarding its contents. The amendments become effective 60 days after publication in the Federal Register. Fund groups with net assets of $1 billion or more will have 24 months to comply with the amendments; those with less than $1 billion of net assets will have 30 months to comply. (Sept 2023)
The Biden Administration is directing agencies to apply the "social cost of greenhouse gas emissions" (SC-GHG)
in procurement, budgeting, and environmental reviews — an expanded use of the metric. This will allow better comparisons to other costs and benefits of agency decisions as well as facilitate the comparison of alternative policies with different emissions profiles. (Sept 2023)
The Biden Administration launched the American Climate Corps, a workforce training and service initiative for young people. This aims to mobilize more than 20,000 Americans, conserving and restoring lands and waters, bolstering community resilience, deploying clean energy, implementing energy efficient technologies, and advancing environmental justice, while providing pathways to high-quality, good-paying clean energy and climate resilience jobs in the public and private sectors after completion of this paid training program. (Sept 2023)
The U.S. Environmental Protection Agency (EPA) announced $4.6 billion in competitive grants for state, local, and tribal governments to fund initiatives
that cut climate pollution, advance environmental justice, and deploy clean energy technologies.
(Sept 2023)
An interagency working group convened by the Interior Department recommended mining sector reforms as part of its roadmap for securing a domestic supply of minerals needed for the energy transition. The report makes 65 recommendations across broad issue categories including: (1) improving mineral exploration and development planning and permitting; (2) increasing engagement with stakeholders and potentially affected communities; (3) expanding consultation and engagement with Tribes; (4) obtaining fair compensation for taxpayers for minerals extracted from Federal lands; (5) protecting taxpayers from the cost of abandoned mine reclamation; and (6) revitalizing domestic mining and other issues. (Sept 2023)
The Department of the Interior cancelled the seven remaining oil and gas leases issued by the Trump Administration in the Arctic National Wildlife Refuge (on the Coastal Plain). It also proposed new regulations for the National Petroleum Reserve in Alaska that would protect the roughly 13 million acres of Special Areas in the reserve (prohibiting new oil and gas leasing in 10.6 million acres and strengthening protections for another 2.4 million acres). It would also support subsistence activities for Alaska Native communities. The proposed rules would not block ConocoPhillips’ Willow oil project. (Sept 2023)
The EPA and U.S. Department of the Army published a final rule amending the 2023 definition of “waters of the United States” to conform with the Supreme Court’s ruling (in Sackett v. EPA in May). The amendments issued are limited and only change the parts of the rule invalidated by the ruling. For example, the final rule removes the “significant nexus” test (i.e. physical, chemical, or biological connection) from consideration when identifying tributaries and other waters as federally protected. The agencies will host a webinar on 12 September to provide updates on the definition. (Sept 2023)
The Biden Administration announced $15.5 billion to support the transition to electric vehicles (EVs). This includes $2 billion in grants and up to $10 billion in loans to support automotive manufacturing conversion projects to retool existing factories to manufacture hybrids and EVs. It also includes a Notice of Intent for $3.5 billion in funding to expand domestic manufacturing of batteries for electric vehicles and the U.S. grid, as well for battery materials and components currently imported from other countries. (Sept 2023)
The Department of the Interior held the first-ever offshore wind energy auction for three areas in the Gulf of Mexico region, resulting in one lease area being auctioned off for $5.6 million (the other two did not receive bids). RWE won the Lake Charles Lease Area, which has the potential to generate approximately 1.24 GW of energy capacity. (Sept 2023)
The U.S. Department of the Treasury released proposed rules on tax credits and deductions available for satisfying prevailing wage and registered apprenticeship requirements established with the Inflation Reduction Act. These rules and additional FAQs provide more clarity and add new details, including the ability to waive penalties if companies correct wage errors within 30 days of becoming aware of them, and an exception on using registered apprenticeship programs if none are available in the project’s location. Public comments on the proposed rules can be made until 30 October and a public hearing is scheduled for 21 November at 10am ET. (Sept 2023)
The Biden Administration announced project selections for nearly $3 billion in climate resilience funding. The selections include $1.8 billion for critical resilience projects funded by the Building Resilient Infrastructure and Communities (BRIC) national competition and $642 million for Flood Mitigation Assistance (FMA) community-scale flood mitigation projects. The 124 selected BRIC projects reduce hazard risks to key infrastructure, including electric, water, and sewage, while the 64 FMA projects use nature-based solutions to help address wildfire, drought, flood, and extreme heat. (Sept 2023)
Renewable Energy Materials Properties Database (REMPD) (U.S. Department of Energy (DOE)) — The DOE released a first-of-its-kind database that catalogs specific materials, such as minerals and other basic components, used to build wind turbines and solar panels. The database also includes information about the availability, country of origin, physical properties, and significant uses of materials that make up wind and solar facilities. Along with the database, researchers at DOE’s National Renewable Energy Laboratory (NREL) released a report to help developers, utilities, and other stakeholders understand how current and future wind energy development might affect global material supply and demand. This contains analysis to support both a Current Policies scenario (incorporating the Inflation Reduction Act) as well as a High Deployment scenario consistent with a net-zero economy by 2050. (Aug 2023)
The U.S. Department of Commerce issued final determinations in circumvention inquiries of solar cells and modules from China. Commerce found that five Chinese solar panel companies (out of eight investigated) were completing minor processing and shipping products through Cambodia, Malaysia, Thailand and/or Vietnam to avoid paying antidumping and countervailing duties. However, these decisions will not have an immediate impact as duties are not being collected on solar module or cell imports until June 2024. (Aug 2023)
President Biden met with the leaders of Japan and South Korea for a first-ever trilateral meeting between the countries. Included in the discussion was the launch of a pilot Supply Chain Early Warning System, which will identify priority products and materials—such as critical minerals, and rechargeable batteries—and establish mechanisms to rapidly share information on disruptions to crucial supply chains. Also included was trilateral development finance cooperation to support financing of infrastructure, carbon neutrality, and resilient supply chains in the Indo-Pacific region and beyond. (Aug 2023)
The U.S. Environmental Protection Agency (EPA) announced its National Enforcement and Compliance Initiatives for 2024-2027, including, for the first time, initiatives to mitigate climate change, address exposure to PFAS contamination, and protect communities from cancer-causing coal ash. The EPA will also integrate environmental justice considerations into each of its Initiatives. Priorities will also include reducing toxic air pollution in overburdened communities, increasing compliance with drinking water standards, and reducing the likelihood of catastrophic chemical releases. For climate change, the EPA will focus on three contributors: 1) methane emissions from oil and gas facilities; 2) methane emissions from landfills; and 3) the use, importation, and production of hydrofluorocarbons (HFCs). Full details available in this EPA memorandum. (Aug 2023)
The Bureau of Ocean Energy Management (BOEM) under the U.S. Department of the Interior announced it has identified two draft Wind Energy Areas off the coast of southern Oregon and opened a 60-day public review and comment period. The areas, totaling 219,568 acres, could support up to 2.6 GW of offshore wind farms. (Aug 2023)
The U.S. Department of Energy (DOE) announced up to $1.2 billion to advance the development of two commercial-scale direct air capture (DAC) facilities in Texas and Louisiana. These projects, which are first of this scale in the U.S. and the world’s largest investment in engineered carbon removal, are expected to remove more than 2 million metric tons of CO2 emissions each year from the atmosphere once operational. These two projects are the first winners of a $3.5 billion competition by the DOE to accelerate DAC in the U.S. The DOE also published a notice of intent to fund efforts “supporting the advancement and maturation of a suite of carbon dioxide removal (CDR) technologies.” The aim of this “Carbon Negative Shot Pilots” opportunity is to achieve gigatons-scale deployment for less than $100/metric ton of CO2 equivalent within the decade. The notice includes $60 million to support pilots focused on biomass carbon removal, mineralization, marine, and multi-pathway CDR testbed facilities, as well as $35 million to support CDR purchasing contracts. (Aug 2023)
The Biden Administration proposed a new
Sustainable Products and Services procurement
rule (amending the Federal Acquisition Regulation) to require agencies to “procure sustainable products and services to the maximum extent practicable.” Included is direction to follow the Environmental Protection Agency’s (EPA) federal purchasing recommendations across 34 purchase categories to address energy and water efficiency, PFAS reduction or elimination, recycled content and more. The rule is open for public comment until 2 October 2023.
In connected news,
EPA also announced five product and service categories for expansion of its recommendations, including food service ware, healthcare, laboratories, professional services, and uniforms and clothing. (Aug 2023)
MORE »
MORE 2 »
The Office of Management and Budget (OMB) and the Office of Science and Technology Policy (OSTP) released
draft guidance on accounting for ecosystem services in cost-benefit analysis. This first-ever guidance will help agencies account more fully for costs and benefits linked to the environment, and help strengthen analyses of regulations and government investments. The guidance provides five steps for assessing ecosystem services. The draft is
open for public comment
until 18 September 2023.
(Aug 2023)
MORE »
MORE 2 »
The Environmental Protection Agency (EPA) and Department of Energy (DOE) released a notice of intent to fund opportunities to monitor and reduce methane emissions from the oil and gas sector and for environmental restoration of well sites. The agencies will provide up to $350 million in funding to states to assist industry in identifying and permanently reducing methane emissions from low-producing conventional wells. The EPA and DOE intend to offer one or more additional competitive solicitations to a broader range of applicants to monitor and mitigate methane emissions from the oil and gas sector. The Biden Administration also launched a Cabinet-level task force to establish a proactive approach to methane leak detection and data transparency, and to support state and local efforts to mitigate and enforce methane emissions regulations. (July 2023)
The Council on Environmental Quality (CEQ) released a proposed rule that would fully implement and build upon new permitting efficiencies directed by Congress under the Fiscal Responsibility Act of 2023. This rule would modernize and accelerate environmental reviews under the National Environmental Policy Act (NEPA), encourage early community engagement, accelerate the clean energy transition, and advance environmental justice. Specific reforms include:
- Clarifies that projects that only have “significant, long-lasting positive impacts do not require environmental impact statements.”
- Agencies can establish joint categorical exclusions (such as for specific contexts, geographies or project types).
- Clarifies that agencies should consider climate change effects in environmental reviews.
- Encourages early and meaningful engagement with communities to increase buy-in, improve project design, and reduce litigation risks.
- Reverses provisions of the 2020 NEPA rule that made public engagement onerous, increased litigation risks, and curtailed judicial review.
The proposed rule will be open for public comment through 29 September 2023 and CEQ will hold virtual public meetings on the 26 and 30 of August, and 11 and 21 of September. (July 2023)
The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) issued a notice of proposed rulemaking to update fuel economy standards for passenger cars and light trucks with the average light-duty vehicle estimated to reach 58 miles per gallon by 2032. These proposed standards would complement and align with the EPA’s recently proposed emission standards and would cut gasoline consumption by 88 billion gallons through 2050 according to the NHTSA. The proposal includes a 2%/year improvement in fuel efficiency for passenger cars, and a 4%/year improvement for light trucks, beginning in model year (MY) 2027 until MY2032. The rule includes a 10%/year improvement for commercial trucks and work vans beginning in MY2030 through MY2035. A 60-day public comment period will begin after the proposal is published in the Federal Register. (July 2023)
The EPA launched two Notices of Funding Opportunity for $20 billion across two grant competitions to create a National Clean Financing Network to provide capital for clean technology projects. The $14 billion National Clean Investment Fund will provide grants to support 2-3 national clean financing institutions, enabling them to partner with the private sector to provide accessible, affordable financing for tens of thousands of clean technology projects nationwide. These non-profit financial institutions will enable communities to deploy clean technology, with 40% of the funds dedicated to low-income and disadvantaged communities. The $6 billion Clean Communities Investment Accelerator will provide grants to support 2-7 hub nonprofit organizations, enabling them to provide funding and technical assistance to public, quasi-public, not-for-profit, and non-profit community lenders working in low-income and disadvantaged communities. 100% of these funds will be dedicated to low-income and disadvantaged communities. (July 2023)
The Environmental Protection Agency (EPA) announced new action to phase down the use of hydrofluorocarbons (HFCs). The EPA issued a final rule to implement a 40% reduction below historic levels from 2024 through 2028. This builds off the earlier phasedown of 10% began 1 January 2022. HFC allowances for calendar year 2024 will be allocated by 29 September 2023. (July 2023)
The U.S. Department of Energy (DOE) announced plans to invest $1 billion in a clean hydrogen demand side initiative to stimulate development of Regional Clean Hydrogen Hubs (H2Hubs). H2Hubs are regional networks of infrastructure-connected producers and consumers of clean hydrogen. The program is meant to build market confidence for hydrogen and attract private investment by using “demand-pull” tools like advance market commitments, prizes, and contract for differences agreements. The DOE has opened a request for information to gather feedback on the most effective measures to employ under the new initiative. (July 2023)
The Biden Administration announced that the Bipartisan Infrastructure Law will invest $2.3 billion in states, territories, tribes, and the District of Columbia over the next five years to bolster grid resilience across the country. This includes $67.4 million to California to modernize its electric grid to reduce impacts from natural disasters and wildfires. The National Oceanic and Atmospheric Administration (NOAA) will also launch a $575 million Climate Resilience Regional Challenge to help coastal and Great Lakes communities (including tribal communities) to become more resilient to extreme weather and other impacts of the climate crisis. The funding will support “innovative coastal resilience and adaptation solutions,” such as natural infrastructure and planning and preparing for community-led relocation. (June 2023)
The Biden Administration released the final version of the U.S. National Clean Hydrogen Strategy and Roadmap, a comprehensive framework for accelerating the production, processing, delivery, storage, and use of clean hydrogen. It provides a snapshot of the hydrogen sector today (10 million metric tons annually produced primarily from natural gas), and a vision for how clean hydrogen will contribute to national decarbonization goals across multiple sectors in the future. This includes a scenario with opportunities for domestic production of 10 million metric tons (MMT) of clean hydrogen annually by 2030, 20 MMT by 2040, and 50 MMT by 2050. It also identifies three key strategies to ensure clean hydrogen is developed and adopted as a decarbonization tool: 1) targeting strategic, high-impact uses for clean hydrogen (such as the industrial sector where limited alternatives exist); 2) reducing the cost of clean hydrogen by catalyzing innovation, scale and investment; and 3) focusing on regional networks with large-scale hydrogen production and end-use in close proximity. (June 2023)
The Bureau of Land Management (BLM) announced a Record of Decision for the SunZia Southwest Transmission Project, consisting of two transmission lines that will transport up to 4,500 MW of primarily renewable energy from New Mexico to Arizona and California. This approval is one of the final steps the BLM needs to take before the project (initiated 15 years ago) can break ground. (May 2023)
The Environmental Protection Agency proposed new carbon pollution standards for power plants fueled by coal and natural gas. The proposed standards include strengthening standards for newly built fossil fuel-fired combustion turbines; establishing emission guidelines for states in limiting carbon pollution from turbines; and establishing emission guidelines for large, frequently used existing turbines. States and power plant operators could comply with the rules in several ways, including using carbon capture technology, introducing low-emission hydrogen into a plant’s fuel mix, and adopting efficient generation technologies. Coal plants that close by 2032 and those that run infrequently and close by 2035 would not be subject to the rules. EPA said the proposal would avoid emissions of 617 million metric tons through 2042, equivalent to the emissions of roughly half the cars on U.S. roads. (May 2023)
The U.S. Treasury Department and the IRS released guidance regarding the domestic content bonus under the Inflation Reduction Act (IRA), worth up to 10% of project costs. The guidance clarifies for solar and onshore wind project developers the provision that developers must get 40% (share of cost) of their manufactured products from the U.S. To be eligible for the full bonus, projects must use domestically sourced steel and iron and have one or more of the following: 1) a maximum net output of less than 1 megawatt of energy; 2) a construction start date prior to 29 January 2023; or 3) a commitment to the wage and apprenticeship requirements of the IRA. (May 2023)
The Biden Administration announced the Environmental Protection Agency (EPA) is taking the next step to invest $3 billion to fund zero-emission port equipment technology and $1 billion to reduce emissions from heavy-duty commercial vehicles. EPA also announced a technical Request for Information (open until 5 June) on zero-emissions heavy-duty vehicles and port equipment to inform the development of these programs. (May 2023)
The Environmental Protection Agency (EPA) published its “Draft National Strategy to Prevent Plastic Pollution” for public comment. EPA identified three key objectives for the strategy: (i) Reduce pollution during plastic production, (ii) Improve post-use materials management, and (iii) Prevent trash and micro/nanoplastics from entering waterways and remove escaped trash from the environment. The EPA will accept public comments on the draft for 45 days after the proposal was published in the Federal Register and will hold an informational webinar on May 11 to review the draft strategy and answer questions. Released alongside the draft strategy was the announcement of a new White House Interagency Policy Committee (IPC) on Plastic Pollution and a Circular Economy to coordinate federal efforts on plastic pollution. (May 2023)
President Biden announced significant new steps the U.S. is taking to support developing countries in taking stronger climate action at the Major Economies Forum on Energy and Climate (MEF). These include:
- Providing $1 billion to the Green Climate Fund, bringing total U.S. contributions to $2 billion;
- Requesting $500 million over five years for the Amazon Fund and related activities and will request other leaders to pledge support as well;
- Launching a Methane Finance Sprint, asking nations to jointly raise at least $200 million in public and private donations before COP28 to cut methane emissions and accelerate hydrofluorocarbon phasedown under the Kigali Amendment;
- Advancing a Carbon Management Challenge to accelerate carbon capture, removal, use, and storage technologies, with countries releasing announcements and goals at COP28 to accelerate these.
The Biden Administration signed a new executive order to prioritize environmental justice. Specifically, the “Revitalizing Our Nation’s Commitment to Environmental Justice for All” order will:Make the pursuit of environmental justice “a duty of all executive branch agencies” that should be incorporated into their missions;
- Direct agencies to consider measures to address and prevent disproportionate and adverse environmental and health impacts on communities;
- Recognize that “racism is a fundamental driver of environmental injustice,” directing agencies to facilitate meaningful public participation and just treatment of all people in agency decision-making;
- Launch a new Office of Environmental Justice within the White House Council on Environmental Quality to further a comprehensive government strategy to address current and historic environmental injustice.
The Administration also published the first-ever Environmental Justice Scorecard, assessing federal agencies’ efforts to advance environmental justice. (April 2023)
The Environmental Protection Agency (EPA) proposed its strictest vehicle emission standards ever. The proposed standards would reduce fleet average greenhouse gas emission targets by 56% for model year (MY) 2032 light-duty vehicles and 44% for medium-duty vehicles compared to existing standards for MY 2026 (starting with MY 2027). The EPA also projects that EVs could account for 67% of new light-duty vehicles and 46% of medium-duty vehicles in MY 2032. New heavy-duty standards will complement the criteria pollutant standards that EPA finalized in December 2022 for MY 2027 and beyond. The proposed standards could avoid nearly 10 billion tons of CO2 emissions through 2055, equivalent to more than twice the U.S. total CO2 emissions in 2022. (April 2023)
The U.S. formally accepted the
Agreement on Fisheries Subsidies, aimed to cut billions of dollars of harmful fishing subsidies worldwide. This makes the U.S.
the fourth country, and first large fishing country, to do so. Two-thirds of WTO members must accept for the Agreement to come into effect. (April 2023)
The Biden Administration announced $450 million in new bonuses for clean energy projects built on existing or former coal mine sites. The bonuses are among a set of actions to revitalize communities with roots in energy provision. Other initiatives include (April 2023):
- Issuing of guidance by the Treasury Department and the IRS to help developers of clean energy projects and facilities claim billions of dollars in bonuses for locating projects in energy communities. The guidance includes a searchable mapping tool for identifying areas potentially eligible for the bonus. The bonus is offered on top of the investment and production tax credits provided through the Inflation Reduction Act.
The Environmental Protection Agency proposed strengthened standards to significantly reduce air pollutants from chemical plants, including ethylene oxide (EtO), chloroprene, benzene, and vinyl chloride. The new regulations would reduce emissions by more than 6,000 tons per year (including 58 tons of EtO and 14 tons of chloroprene), dramatically reducing cancer risks in surrounding communities (up to 96% in communities surrounding chemical plants). Facilities making, storing, using or emitting these chemicals would be required to monitor levels of these pollutants at the fenceline of their facilities and if above action level, would have to find the source of emissions and make repairs. The public can submit comments for 60 days after the proposal is published in the Federal Register. The EPA will also hold an informational webinar on April 13th to review the proposal and answer questions. (April 2023)
The Biden Administration released a new report on biotechnology and biomanufacturing (the use of biological systems to produce goods and services at a commercial scale). The report serves as a guide for public and private sector efforts to harness the potential of biotechnology and biomanufacturing in multiple sectors, including: climate change solutions; food and agriculture innovation; supply chain resilience; human health; and cross-cutting advances. Within climate change solutions, the report explores how these technologies can reduce emissions and remove carbon from the atmosphere including: more carbon-neutral fuels; alternative processes to produce chemicals and materials; developing climate-focused agricultural systems and plants; and biomass and landscape-based carbon removal and storage. (April 2023)
The Treasury Department and the IRS released proposed guidance on the new clean vehicle provisions of the Inflation Reduction Act (IRA), explaining how manufacturers may satisfy the critical mineral and battery component requirements under the IRA. To qualify for the critical mineral requirement (and the $3,750 credit) a certain percentage must be extracted or processed in the U.S. or a country with which the U.S. has a free trade agreement, or be recycled in North America. Specifically: 40% in 2023, growing 10% each year until reaching 80% in 2027. To qualify for battery component requirement (and the other $3,750 credit), the percentage of the value of battery components manufactured or assembled in North America must be 50% in 2023, growing to 60% in 2024 and 2025, and then growing 10% each year until reaching 100% in 2029. Twenty one countries (including Japan — see directly below) are specifically listed as being included in this proposed rulemaking. Comments and requests for public hearings can be made for 60 days after being entered in the federal register (currently scheduled for 17 April). (April 2023)
The Biden Administration announced the White House Challenge to End Hunger and Build Healthy Communities — ending hunger and reducing diet-related diseases by 2030, while reducing disparities. Building on its successful launch in 2022 (including $8 billion in private and public sector commitments), several organizations and companies announced new commitments, including: DoorDash, which will grow availability of produce in its marketplace and partner with grocers; and Instacart, which will work with five health care providers to create virtual food pharmacies, and create an industry-first online advertising capability to enable advertisements of fresh produce sold by weight (putting these front and center on the digital platform). (March 2023)
The Environmental Protection Agency (EPA) proposed rules to limit ‘forever chemicals’ (PFAS) in drinking water. This would require water utilities to detect and reduce contamination by two PFAS compounds (PFOA and PFOS) to 4 parts per trillion. For four other PFAS chemicals, these would be measured as a mixture to determine risk. An informational webinar is scheduled for 29 March at 2pm ET and a public hearing is scheduled for 4 May. (March 2023)
The EPA issued its final Good Neighbor Plan, which reduces ozone-forming emissions of nitrogen oxides (NOx) from power plants and industrial facilities, improving the air quality and health of people living in downwind communities. This will ensure 23 states covered under the rule reduce pollution, with the rule taking effect 1 May 2023. (March 2023)
The Department of Energy announced the availability of $750 million for research, development, and demonstration efforts to dramatically reduce the cost of clean hydrogen. Projects funded will address underlying technical barriers to cost reduction that cannot be overcome by scale alone. Concept papers are due 19 April 2023, and full applications are due 19 July 2023. (March 2023)
The Department of Energy announced $6.3 billion in funding to accelerate decarbonization projects in energy-intensive industries, including iron and steel, aluminum, cement and concrete, chemicals, and pulp and paper. DOE’s Industrial Demonstrations Program will provide grants of up to 50% of the cost of projects, and is seeking first-of-a-kind or early-stage commercial-scale projects from the highest emitting industries involving cross-cutting technologies that have the greatest potential, directly or indirectly, to achieve significant decarbonization domestically and globally. Interested applicants must submit a concept paper on April 21, and full applications are due August 4. All applicants will also be required to submit a community benefits plan to ensure they are benefiting surrounding communities. (March 2023)
The Biden administration announced measures to reduce child labor among migrant minors in the U.S. after repeated investigations by journalists. Department of Labor officials have seen a nearly 70% increase in child labor violations since 2018, including hazardous occupations, with 835 companies found to have violated child labor laws last year. The administration has created an interagency task force on child labor and plans to investigate industries where violations are most likely to occur. The administration is also pushing for heavier penalties for violators and increased funding for enforcement and oversight, including of larger companies that have child labor in their supply chains. (March 2023)
The Biden administration launched its first CHIPS for America funding opportunity, which focuses on projects to construct, expand, or modernize commercial facilities for the production of leading-edge, current-generation, and mature-node semiconductors. Of note: applicants requesting over $150 million in direct funding will be required to share with the U.S. government a portion of any profits that exceed the applicant’s projections and to submit plans to provide affordable, accessible, reliable, and high-quality child care for both facility workers and construction workers. (March 2023)
The U.S. State Department made 77 announcements at the 2023 Our Ocean Conference in Panama, valued at nearly $6 billion, focusing on climate change, marine protected areas, sustainable fisheries, marine pollution, sustainable blue economies and maritime security. Nearly $5 billion of the initiatives focused on climate change, including promoting green shipping, offshore renewable energy, and climate modeling. $665 million focused on sustainable fisheries, including improving climate resilience and fighting illegal and unregulated fishing. $200 million focused on combating marine pollution. And $73 million focused on promoting blue economic development, including technology innovation and circular economy. The 77 announcements included some earlier initiatives, including $3 billion in climate commitments under the Inflation Reduction Act. (March 2023)
The Biden Administration proposed the first-ever offshore wind lease sale in the Gulf of Mexico. These include three areas that could generate roughly 3.6 GW of electricity, enough to power almost 1.3 million homes. The public has 60 days to comment. The Biden Administration also announced that California and Louisiana will join 11 East Coast states as part of the Federal-State Offshore Wind Implementation Partnership (launched last June). (Feb 2023)
The Securities and Exchange Commission’s Division of Examinations announced that in 2023 it will continue its focus on ESG-related advisory services and fund offerings, including whether funds are operating in the manner set forth in their disclosures. In addition, the Division will assess whether ESG products are appropriately labeled and whether recommendations of such products for retail investors are made in the investors’ best interests. (Feb 2023)
The Department of Energy (DOE) published a new R&D strategy, Strategy for Plastics Innovation, on how to improve DOE’s efforts to address plastic waste—a concern as plastic accounts for 2% of total energy consumption in the U.S. and globally accounts for 3.8% of greenhouse gas emissions. The four strategic goals of this new strategy include: new chemical, thermal, and biological/hybrid pathways to deconstruct plastics into useful chemical intermediates; upcycling these intermediates into high value products; making new plastics easily recyclable or upcyclable by design; and supporting an energy- and material-efficient plastics supply chain in the U.S. (Feb 2023)
The U.S. Department of Energy announced $118 million in funding for 17 projects to accelerate the production of sustainable biofuels for the country’s transportation and manufacturing needs. The recipients, which include pre-pilot, pilot, and demonstration stage projects, will drive the domestic production of biofuels and bioproducts by advancing biorefinery development. The list of 17 projects is available here. (Jan 2023)
The Biden Administration launched a National Strategy to Develop Statistics for Environmental-Economic Decisions to more accurately count the country’s natural capital in official economic statistics. This will help track the value of land, air, water, and other natural assets in relation to the economic activity they support and help guide investments and address climate risks. (Jan 2023)
The USDA updated its organic regulations to strengthen oversight and enforcement of the production, handling, and sale of organic products. Some key updates include:Requiring certification of more businesses at critical links in the supply chain (e.g. brokers and traders);
- Requiring import certificates for organic imports;
- Increasing authority for more rigorous on-site inspections;
- Requiring standardized certificates of organic operation;
- Creating authority for more robust recordkeeping, traceability practices, and fraud prevention procedures.
Organic operators and other stakeholders affected by the rule have one year from the effective date (March 20, 2023) to comply with the changes. (Jan 2023)
The U.S. Department of State, The Rockefeller Foundation, and the Bezos Earth Fund announced a set of broad principles that will guide the development of the Energy Transition Accelerator (ETA), a joint initiative to catalyze private capital to accelerate the transition from dirty to clean power in developing countries by supporting a high-integrity voluntary carbon market. These six guiding principles promote rapid emissions reduction, expanded energy access and poverty alleviation, ambitious sector-wide goals, and finance that both augments existing investments and rewards accelerated power sector decarbonization. The ETA will be supported by a consultative group made up of leading experts. (Jan 2023)
The EPA announced a proposal to strengthen a key national ambient air quality standard for fine particle pollution (soot or PM2.5) to better protect communities, including those most overburdened by pollution. This would strengthen the standard from 12 micrograms per cubic meter to between 9 and 10 micrograms per cubic meter. The EPA estimates that a strengthened standard could result in as much as $43 billion in net health benefits by 2033. The proposal is open for public comment for 60 days. (Jan 2023)
The Biden Administration released the U.S. National Blueprint for Transportation Decarbonization, a strategy for cutting all greenhouse emissions from the transportation sector by 2050, developed by the Departments of Energy, Transportation, and Housing and Urban Development, and the EPA. The Blueprint offers a whole-of-government approach to addressing the climate crisis and meeting the administration’s goal of a 100% clean electrical grid by 2035 and net-zero carbon emissions by 2050. It will be followed by more detailed sector-specific action plans, to be developed with state, local and Tribal governments, philanthropic organizations, and the private sector. (Jan 2023)
The U.S. Bureau of Ocean Energy Management (BOEM) will publish a proposed rule to update regulations for clean energy development on the U.S. Outer Continental Shelf. The proposed regulations would modernize regulations, streamline overly complex and burdensome processes, clarify ambiguous provisions, and enhance compliance provisions to decrease costs and uncertainty associated with the deployment of offshore wind facilities. The proposed reforms are estimated to save developers approximately $1 billion over a 20-year period. (Jan 2023)
The U.S. Treasury Department and the IRS released information clarifying certain clean vehicle provisions of the Inflation Reduction Act. These include a FAQs document that lists which vehicles meet the requirements for tax incentives; a notice on the incremental cost of vehicles eligible for the commercial clean vehicle credit; and a notice to propose regulations on the tax credit for new clean vehicles. Treasury also released a white paper on upcoming proposed guidance on the critical minerals and battery components requirements and the process for determining whether vehicles qualify under these requirements. Also, as reported in Reuters, electric vehicles manufactured outside North America can still qualify for the commercial clean vehicle credit if leased, but not purchased. (Jan 2023)
The EPA and Department of the Army announced a final rule establishing a durable definition of “waters of the United States” (WOTUS) to reduce uncertainty from changing regulatory definitions. The rule restores essential water protections that were in place prior to 2015 under the Clean Water Act for traditional navigable waters, the territorial seas, and interstate waters, as well as upstream water resources (e.g. wetlands) that significantly affect those waters. The agencies also released several resources, including a synthesis of key actions, a joint coordination memo, and a memo with the USDA, to support clear and effective implementation in communities across the U.S. (Jan 2023)
The Biden Administration released Building a Clean Energy Economy: A Guidebook to the Inflation Reduction Act’s Investments in Clean Energy and Climate Action, a new resource that provides clear descriptions of the law’s tax incentives and funding programs to build a clean energy economy. The Guidebook goes through the law program-by-program, explaining each program’s purpose, eligibility requirements, period of availability, and other key details. (Dec 2022)
The Department of Energy announced the launch of four programs that will help develop the U.S. carbon dioxide removal (CDR) industry. The programs, funded with $3.7 billion, will help accelerate private-sector investment and spur CDR technological advancements. The largest program is four Regional Direct Air Capture Hubs (funded by $3.5 billion), each of which will demonstrate a different technology or technologies at commercial scale to capture at least one million metric tons of CO2 annually, and either permanently store it or convert it to products. (Dec 2022)
The U.S. Trade Representative’s Office is proposing to levy tariffs on steel and aluminum, based on how much CO2 the producing country’s industries emit. The plan, being discussed by the U.S. and EU, would create a “club” of market-oriented countries, thus excluding China, and set emissions intensity standards for the production of specific steel and aluminum products, as reported by Reuters. Countries with emissions exceeding those standards would pay higher tariffs when exporting steel and aluminum to countries with lower emissions. (Dec 2022)
The Biden Administration announced the first-ever Federal Building Performance Standard, which sets the goal of cutting energy use and electrifying equipment and appliances to zero Scope 1 emissions in 30% of the building space owned by the Federal government by 2030. This will be achieving through energy efficiency and building systems like heat pumps and electric water heaters. The Department of Energy also announced a proposed rulemaking to set emissions reduction targets and require equipment and appliance electrification in new federal buildings as well as those undertaking major renovations. (Dec 2022)
The Bureau of Land Management (BLM) announced it will develop an updated plan to guide responsible solar energy development on public lands through a Solar Programmatic Environmental Impact Statement (PEIS) that updates the Solar PEIS issued in 2012. There will be a 60-day period for public comment. The BLM is also initiating reviews of three proposed solar projects in Arizona that could add one gigawatt of clean energy to the grid. (Dec 2022)
The Department of the Interior’s Bureau of Ocean Energy Management auctioned off leases for five areas on the Outer Continental Shelf off California for the development of new deep water (floating) wind projects. This represents two firsts: the first wind lease sale on the U.S. west coast, and the first-ever U.S. sale to support commercial scale floating offshore wind energy development. The five areas, totaling 373,267 acres, could generate enough power for 1.5 million homes. The five provisional winners of the lease areas, which can be found here, bid $757.1 million in total. (Dec 2022)
NOAA released a new strategy that will guide the agency’s potential role in carbon dioxide removal (CDR) and invited the public to respond. NOAA has summarized some of the current science on CDR in a new report, identifying 11 removal strategies and outlining the relative strengths and weaknesses of these. The public is invited both to comment on the agency’s potential future role in CDR research and to join listening sessions coming up next week. (Dec 2022)
EPA proposed an expansion of the Renewable Fuel Standard (RFS) Program for 2023 to 2025, including a steady growth of biofuels in the U.S. fuel supply for those years. EPA is considering numerous factors to determine the amount and is seeking comment on how to appropriately balance these volumes. EPA is also proposing new regulations governing the generation of qualifying renewable electricity made from renewable biomass that is used for transportation fuel in electric vehicles, a new component of the RFS program. EPA will hold a public hearing in January. (Dec 2022)
The White House Council on Environmental Quality launched version 1.0 of the Climate and Economic Justice Screening Tool (CEJST), an interactive map that will assist federal agencies in directing funds to communities that are overburdened by pollution and historic underinvestment. This tool will help in implementing President Biden’s Justice40 Initiative, delivering 40% of the overall benefits of federal climate, clean energy, affordable and sustainable housing, clean water, and other investments to disadvantaged communities. Version 1.0 identifies 27,251 disadvantaged or partially disadvantaged communities, including tribal nations and U.S. territories, and incorporates a variety of data on risks, burdens, and legacy pollution. (Nov 2022)
The U.S. Food & Drug Administration (FDA) announced it had cleared a meat product grown from animal cells for human consumption. UPSIDE Foods will be permitted to bring its food made from cultured chicken cells to market once the manufacturing facility meets U.S. Department of Agriculture and FDA requirements. The FDA also announced it plans to issue guidance to assist firms that intend to produce human foods from cultured animal cells to prepare for pre-market consultations. (Nov 2022)
The Department of Energy secretary Jennifer Granholm signed a non-binding MOU setting a target for 30% of medium- and heavy-duty vehicles to be zero-emission by 2030 and 100% to be zero-emission by 2040. This MOU had already been signed by 16 countries and endorsed by over 60 state and local governments, financial institutions, and manufacturers. The secretary also announced that the U.S. joined Mission Innovation’s Net-Zero Industries Mission, which focuses on developing and demonstrating cost-competitive solutions for decarbonizing hard-to-abate energy intensive industries worldwide by 2030. Granholm also announced that a coalition of countries, including the U.S., is launching the Mission Innovation Carbon Dioxide Removal (CDR) Launchpad, a global effort to advance CDR projects. In a separate announcement, the DOE announced first-round applications are open for competitive grants under the Grid Resilience and Innovation Partnership Programs, which total $10.5 billion in available funding, as well as the $2.5 billion Transmission Facilitation Program. Together these will help catalyze the development of thousands of miles of new and upgraded transmission lines that will reduce electricity costs, prevent power outages in the face of extreme weather, and create jobs. (Nov 2022)
The U.S. General Services Administration and Entergy Arkansas signed an MOU to work toward achieving 100% carbon pollution-free electricity (CFE), at least 50% of which would be provided on a 24/7 basis. Under the MOU, Entergy Arkansas will allow its public and private sector customers to utilize regionally-sourced nuclear and renewables, providing a cost-competitive and reliable option for CFE that matches their electricity consumption for all hours of the day. (Nov 2022)
The Biden Administration announced several new initiatives to strengthen U.S. leadership tackling the climate crisis and galvanize global action and commitments, including:
- Doubling the U.S. pledge to the Adaptation Fund to $100 million and announcing over $150 million in new support to accelerate the President’s Emergency Plan for Adaptation and Resilience (PREPARE) efforts across Africa;
- Launching a new initiative to support Egypt in deploying 10 GW of new wind and solar energy while decommissioning 5 GW of inefficient natural gas generation;
- Strengthening proposed domestic methane regulations in the oil and gas sector that would reduce U.S. methane from covered sources by 87 percent below 2005 levels;
- Launching the Sustainable Banking Alliance to deepen developing countries’ sustainable financial markets;
For the comprehensive list, visit here. (Nov 2022)
The Biden Administration released “Opportunities to Accelerate Nature-Based Solutions,” an outline of strategic recommendations to unlock the full potential of nature-based solutions to address climate change, nature loss, and inequity. The report provides a roadmap with five strategic recommendations for federal agencies to utilize nature-based solutions, including updating policies, providing funding, and increasing workforce training. A companion resource guide includes 30 Federal examples of nature-based solutions and over 150 resources for those wanting to take action. The administration also announced a number of aligned actions that Federal agencies are taking to scale up nature-based solutions, including ensuring over $25 billion in infrastructure and climate funding can support these. (Nov 2022)
The Biden Administration is proposing the Federal Supplier Climate Risks and Resilience Rule, which would require major Federal contractors (with more than $7.5 million in annual contracts) to publicly disclose their greenhouse gas emissions and climate-related financial risks through CDP and to set science-based emissions reduction targets. Through this action, the U.S. would become the first national government to strengthen its supply chain by requiring major suppliers to set Paris Agreement-aligned emissions reduction goals. The rule covers approximately 85% of the emissions associated with the Federal supply chain. (Nov 2022)
The Environmental Protection Agency (EPA) announced it plans to issue tougher greenhouse gas emissions rules for heavy duty trucks and other larger vehicles through at least the 2030 model year by the end of 2023. The agency plans to issue proposed rules in March and final rules by the end of 2023. (Nov 2022)
The U.S., The Rockefeller Foundation, and the Bezos Earth Fund announced a partnership to create an Energy Transition Accelerator (ETA), a carbon credit system to increase private finance to accelerate the clean energy transition in developing countries. Operating at the scale of national or subnational jurisdictions, the ETA will produce verified greenhouse gas emission reductions, which participating jurisdictions will have the option of issuing as marketable carbon credits. CEF members Bank of America, Microsoft, and PepsiCo, and Standard Chartered Bank have expressed interest in informing the ETA’s development, with decisions on whether to formally participate pending the completion of its design. (Nov 2022)
The Biden Administration announced $1.5 billion under the Inflation Reduction Act to build and upgrade U.S. national laboratories and advance American leadership in science, research, and innovation. It also issued a new report that identifies five initial priorities to help enable the U.S. to cut greenhouse gases by 50-52% in 2030 and get to net-zero emissions by no later than 2050. These include efficient building heating and cooling; net-zero aviation; net-zero power grid and electrification; industrial products and fuels for a net-zero circular economy; and fusion energy at scale. (Nov 2022)
The Federal Insurance Office (FIO) of the U.S. Treasury proposed a new rule to collect data on climate-related risks from property and casualty insurers. This data would provide the insurance data to help FIO assess “the potential for major disruptions of private insurance coverage in regions of the country particularly vulnerable to climate change impacts.” FIO is seeking public comment by November 14th, 2022. (Oct 2022)
The Department of Energy (DOE) launched the American Battery Materials Initiative, a new effort to mobilize the government in securing a reliable and sustainable supply of critical minerals used for power, electricity, and electric vehicles (EVs). The DOE also announced it is awarding $2.8 billion from the Bipartisan Infrastructure Law to 20 manufacturing and processing companies for projects across 12 states to expand domestic manufacturing of batteries for EVs and the electric grid. The projects include support for developing battery-grade lithium, graphite, and nickel supplies, and installing the first commercial lithium electrolyte salt production facility in the U.S. (Oct 2022)
The Environmental Protection Agency (EPA) announced a coordinated stakeholder engagement strategy to help shape the implementation of the $27 billion Greenhouse Gas Reduction Fund created by the Inflation Reduction Act. This fund will offer grants to low-income and disadvantaged communities around the U.S. to deploy low- or zero-emissions projects. The EPA is also seeking comment on core design aspects of the fund. The EPA also issued a proposed rule to reduce emissions of hydrofluorocarbons (HFCs) by 40% below historic levels starting in 2024 and established the methodology for allocating HFC production and consumption allowances for 2024 and later years. (Oct 2022)
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The Biden Administration released its new National Security Strategy, acknowledging climate change as “the existential challenge of our time.” The strategy warns of the climate emergencies that will worsen in the years ahead and the tensions these will intensify. It also acknowledges the need for further cooperation, including “$11 billion in annual climate funding,” and a need to move away from fossil fuels, access to which can be weaponized. (Oct 2022)
The Biden Administration released a series of Climate Adaptation and Resilience Progress reports across more than 20 federal agencies. The reports detail actions taken and progress made since the Administration developed Climate Adaptation and Resilience Plans in October 2021 to strengthen the resilience of federal programs, assets, and supply chains. (Oct 2022)
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued six notices requesting public input by November 4, 2022 on different aspects of key climate and clean energy tax incentives in the Inflation Reduction Act. The six notices cover: energy generation incentives; credit enhancements; incentives for homes and buildings; consumer vehicle credits; manufacturing credits; and credit monetization. A fact sheet with links to the notices is here. (Oct 2022)
The U.S. Financial Stability Oversight Council (FSOC) launched the Climate-related Financial Risk Advisory Committee (CFRAC). This 20-person committee, made up of industry, research institutions, data providers, and NGOs, will help the Council with identifying, assessing, and responding to risks that climate change poses to the financial system. (Oct 2022)
The Department of Energy (DOE) announced several new initiatives this week, including (Sept 2022):
- The Industrial Heat Shot, a new effort aimed at dramatically reducing the cost, energy use, and carbon emissions associated with industrial heating processes. This latest DOE Energy Earthshots Initiative seeks to develop cost-competitive solutions for industrial heat with at least 85% lower greenhouse gas emissions by 2035, through electrifying heating processes, integrating low-emissions heat sources, and innovating low-or no-heat process technologies.
- Funding of up to $7 billion to establish 6 to 10 regional hydrogen hubs. These hubs will produce hydrogen from a variety of sources (including renewables, natural gas, and nuclear), and will be one of the largest investments in DOE history. The DOE also released a draft of the DOE National Clean Hydrogen Strategy and Roadmap for public feedback.
- A $4.9 billion set of three funding opportunities to bolster investments in the carbon management industry and to reduce CO2 emissions released into the atmosphere through power generation and industrial operations. These include carbon storage validation and testing (up to $2.25 billion); a carbon capture demonstration projects program (up to $2.54 billion); and CO2 transport engineering and design (up to $100 million).
- The Sustainable Aviation Fuel Grand Challenge Roadmap, a comprehensive plan that outlines a government-wide strategy for scaling up new technologies to produce sustainable aviation fuels (SAFs) across the U.S. airline industry. The roadmap outlines steps to meet 100% of domestic aviation fuel demand with SAFs by 2050.
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The U.S. Department of Commerce and the Office of the U.S. Trade Representative launched the Indo-Pacific Economic Framework for Prosperity (IPEF) Upskilling Initiative, a public-private endeavor to support training and education in digital skills for women and girls in 8 countries, including Brunei, Fiji, India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. Fourteen U.S. companies, including CEF members Amazon, Apple, Cisco, Dell Technologies, Google, HP, Mastercard, Microsoft, and Visa, will each provide 500,000 or more digital upskilling opportunities by 2032, such as providing training in data science, cyber-security, AI, and robotics; providing female small business owners with toolkits to help with website planning, social media, and marketing; and supporting digital leadership and entrepreneurship training in rural areas. (Sept 2022)
President Biden signed an Executive Order to launch a National Biotechnology and Biomanufacturing Initiative in order to strengthen the U.S. biotech industry. This initiative, backed by funding of over $2 billion, could increase jobs, bolster supply chains, and reduce costs of products. Biomanufacturing—using microbes to make specialty chemicals—could also serve as an alternative to petrochemical-based production. The initiative could enhance several sectors, including medicine, agriculture, and energy. (Sept 2022)
The U.S. Department of Agriculture (USDA) will invest up to $2.8 billion in 70 projects under the first pool of the Partnerships for Climate-Smart Commodities funding opportunity. This was nearly three times the amount the USDA initially announced. These projects will support farmers in cutting emissions in various ways, such as planting cover crops and improving manure management to reduce methane emissions. The private sector has pledged an additional $1.4 billion for the projects. (Sept 2022)
The U.S. Office of the Comptroller of the Currency (OCC) announced the appointment of Dr. Yue (Nina) Chen as Chief Climate Risk Officer. Chen will oversee the OCC’s Office of Climate Risk and will continue to develop and implement climate risk management frameworks for the federal banking system in order to assess, monitor, and manage climate-driven risks to banks. (Sept 2022)
The Biden Administration announced that the federal government will prioritize the purchase of key low carbon construction materials, covering 98% of construction materials purchased. Through new commitments of the “Federal Buy Clean Initiative,” the administration will (Sept 2022):
- Prioritize the purchase of steel, concrete, asphalt and flat glass that have lower levels of emissions;
- Expand lower-carbon construction materials used in federally-funded projects.
- Convene states to partner on "Buy Clean”;
- Increase data transparency through supplier reporting;
- And launch pilot programs to advance federal procurement of clean construction materials.
The Biden Administration announced approval of 35 Electric Vehicle Infrastructure Deployment Plans, from 33 states, Washington, DC, and Puerto Rico. This approval, which comes ahead of schedule, unlocks more than $900 million in National Electric Vehicle Infrastructure formula funding to help build EV chargers across approximately 53,000 miles of highways in the U.S. (Sept 2022)
The Biden Administration announced a new goal of deploying 15 gigawatts (GW) of floating offshore wind and reduce their cost by 70% by 2035. This builds on the existing goal of deploying 30 GW of offshore wind by 2030. Only 0.1 GW of floating offshore wind has been deployed to date globally. To support this, the administration launched a new prize competition for floating offshore wind platform technologies; initiatives to develop modeling tools for project design, and other R&D funding. A lease auction off the coast of California is planned by the end of 2022. (Sept 2022)
The Biden Administration launched a new website to help communities understand the real-time climate related hazards in their area, including extreme heat, drought, wildfire, inland flooding, and coastal flooding. This Climate Mapping for Resilience and Adaptation website maps out current threat levels for the whole of the U.S., and will also provide maps projecting future impacts to help in planning. (Sept 2022)
The U.S. Department of Energy (DOE) announced a goal of making Enhanced Geothermal Systems (EGS) widespread by cutting costs by 90% to $45 per megawatt hour by 2035. To do so, DOE is investing in research and development to expand EGS. Capturing even a small fraction of the U.S.’s geothermal resources could affordably power more than 40 million homes. (Sept 2022)
President Biden has appointed John Podesta as Senior Advisor to the President for Clean Energy Innovation and Implementation. Podesta will oversee implementation of the Inflation Reduction Act’s clean energy and climate provisions. Podesta will also chair the President’s National Climate Task Force. Ali Zaidi has also been promoted to Assistant to the President and National Climate Advisor. (Sept 2022)
The U.S. Department of Energy (DOE) published a fact sheet analyzing the Inflation Reduction Act’s contribution to reducing greenhouse gas emissions. DOE found that the Inflation Reduction Act, in combination with the Bipartisan Infrastructure Law, “could reduce emissions by approximately 1,000 million metric tons” by 2030, bringing economy-wide emissions to 40% below 2005 levels. (Aug 2022)
The Treasury Department’s Office of Financial Research is set to pilot an online “Climate Data and Analytics Hub” to help regulators track and investigate climate-related financial threats. The hub will provide not only data from across government agencies, but also analytics and visualization software applications that allow for a deeper understanding of the relationships between climate and finance. (Aug 2021)
The Biden Administration's National Integrated Heat Health Information System (NIHHIS) has launched Heat.gov, a new website to provide actionable information for policy-makers and the general public regarding extreme heat—the greatest weather-related cause of death in the U.S. for the past 3 decades. The site includes trend information, forecasts, tools, and planning strategies to help "reduce the health, economic, and infrastructural impacts of extreme heat," with a special focus on disproportionately impacted communities. (Aug 2021)
President Biden has announced a set of executive actions to accelerate US offshore wind power and immediately help communities nationwide respond to extreme weather events.
- The Federal Emergency Management Agency (FEMA) will allocate $2.3 billion toward its Building Resilient Infrastructure and Communities (BRIC) program for FY ‘22. This funding will help communities—and disadvantaged communities in particular—prepare in advance for heat waves, drought, wildfires, flood, hurricanes, and other eventsmade worse by climate change.
- The Department of Health and Human Services (HHS) issued new guidance on how the Low Income Home Energy Assistance Program (LIHEAP) can promote the delivery of efficient air conditioning equipment, community cooling centers, and more to help protect vulnerable Americans from extreme heat.
- The Department of the Interior (DOI) is proposing the first wind power development areas in the Gulf of Mexico. In addition, President Biden is directing the agency to advance wind energy development in federal waters off the coasts of Florida, Georgia, and the Carolinas.
Biden said that he is weighing whether to formally declare a climate emergency, which would enable the use of the Defense Production Act to quickly ramp up production of renewable energy products and systems without the need for congressional approval. (July 2022)
The Department of Transportation’s Federal Highway Administration (FHWA) announced a new proposed rule that would require states and municipalities to add tailpipe CO2 emissions to the list of metrics for which they must submit tracking reports, reduction targets, and mitigation plans. The proposed rule is grounded in the FHWA's mandate to maintain the country's major roadways, and extreme weather events resulting from CO2-driven climate change will contribute to the degradation of those roadways. While the rule would have little enforcement power, the Biden administration is incentivizing compliance with $27 billion in funding to help state and municipal transportation departments meet their reduction targets. (July 2022)
The White House claims that its historic investment of $7.5 billion in electric vehicle charging infrastructure through the Bipartisan Infrastructure Bill has spurred additional record-breaking investment—about $700 million—from the private sector. Prominent among those investors is CEF member Siemens, which has invested $250 million in the last six months. Siemens and Volkswagen Group also has just announced a combined $450 million investment in Electrify America, the largest public ultra-fast EV charging network in North America, to help double its charging infrastructure to 1,800 locations and 10,000 fast chargers by 2026. (July 2022)
The Federal Energy Regulatory Commission (FERC) issued a proposed rule to streamline the process by which new energy projects—many of which harness renewable sources like wind and solar—apply to be connected to electrical grids. The measure is intended to clear a backlog of requests and an average waiting time of about three years for clearance to connect. In addition to helping level the playing field for renewable developers, the addition of diversified sources to the grid would, according to FERC, also stabilize the grid against disruptions and overload, and potentially lower prices for consumers. (June 2022)
The Biden Administration and eleven East Coast states launched the “Federal-State Offshore Wind Implementation Partnership” to accelerate the development of offshore wind facilities. As the first course of action, the Partnership announced commitments to help strengthen the U.S. offshore wind supply chain by expanding key elements such as manufacturing facilities, port capabilities, and workforce development. The Biden Administration also announced steps to advance a National Offshore Wind Supply Chain Roadmap and designate offshore wind vessels as “Vessels of National Interest” to facilitate more offshore wind construction. (June 2022)
The Federal Aviation Administration (FAA) proposed a new rule to impose fuel efficiency requirements on most civilian aircraft certified for service after January 1, 2028. The intent of the increased efficiency—to be attained largely through improved aerodynamics and engine design—is to reduce total in-flight greenhouse gas emissions by burning less fuel. According to the EPA, the types of aircraft that would fall under the new rule contribute about 10% of US transportation emissions, but the aviation industry is not currently subject to Clean Air Act regulations or other statutes. The proposed regulations would align with rules developed under the International Civil Aviation Organization (ICAO), of which the U.S. is a member. (June 2022)
The U.S. Department of Agriculture (USDA) has released details of its new Food System Transformation (FTS) framework. The FTS framework, backed by 2.2 billion, integrates lessons learned from U.S. food system disruptions during the Covid-19 pandemic and the Russia–Ukraine war, “providing more options, increasing access, and creating new, more, and better markets for small and mid-size producers.” Key initiatives and allocations include (June 2022):
- $300 million for an Organic Transition Initiative, providing multi-faceted support to would-be organic farmers. This represents the largest single federal investment in organic agriculture to date.
- $75 million for urban agriculture, expanding access to nutritious, local foods and agriculture jobs in underserved areas.
- $550 million for regional food business centers, local farm-to-school commodity purchases, and food loss and waste prevention.
- $370 million for healthy food access and SNAP technology improvements.
Vice President Kamala Harris announced the U.S.-Caribbean Partnership to Address the Climate Crisis 2030 (PACC 2030), a new initiative to address climate adaptation & resilience and energy security needs across the Caribbean—a region particularly vulnerable to climate change. The partnership will focus on four pillars of work (June 2022):
- Access to development financing
- Clean energy project development and investment
- Local capacity building
- Collaboration with Caribbean partners
The Biden Administration released new proposed standards for EV charging stations funded with federal money from the 2021 bipartisan infrastructure law. Key provisions stipulate those stations must (June 2022):
- Be positioned along Interstates every 50 miles and be located no more than a mile from the highway.
- Include a minimum number and type of chargers capable of supporting the most common fast charging needs.
- Be connected to mobile apps providing real-time information about pricing and port availability.
- Have consistency in their installation, operation, and maintenance.
- Be available for use by anyone, with no membership or other affiliation required.
President Biden has set a goal of building 500,000 charging stations across the country by 2030.
President Biden has declared a state of emergency "with respect to the threats to the availability of sufficient electricity generation capacity to meet expected customer demand." The declaration comes in response to recent factors like extreme weather events, the Russia-Ukraine war, and trade barriers which have destabilized the sector. The state of emergency creates the conditions necessary for related executive actions, also announced by the White House last week (June 2022):
- Suspend, for 2-years, pending tariffs on solar modules from Malaysia, Vietnam, Cambodia, and Thailand, which collectively supply about 75% of solar modules to the U.S. The threat of retroactive tariffs, tied to an ongoing Commerce Department investigation, effectively halted imports and prompted the largest solar trade group to cut its 2022–2023 installation forecasts by 46%. The 2-year suspension is intended to revive solar development projects in the U.S. as domestic manufacturers scale to meet more of the demand.
- Invoke the Defense Production Act, which gives the president expanded influence over private business. In this case, President Biden has directed the Energy Department to boost domestic production of the following critical clean energy technologies: 1) solar; 2) transformers and electric grid components; 3) heat pumps; 4) insulation; and 5) electrolyzers, fuel cells, and platinum group metals.
- Leverage the government procurement process. President Biden has directed the development of two new procurement initiatives: 1) Master Supply Agreements making it easier for domestic suppliers to sell their products to the government; 2) “Super Preferences” that stipulate domestic content standards for solar systems (e.g., U.S.-manufactured photovoltaic components) purchased by the government.
Secretary of the Interior Deb Haaland announced that the Department will begin implementation of a new policy to reduce rents and fees charged for wind and solar projects on public lands by about 50%. Renewable Energy Coordination Offices are being established in Bureau of Land Management (BLM) offices throughout the west to improve permitting processes. The Energy Act of 2020 provided authority for the BLM to reduce rents and fees if necessary to promote the greatest use of wind and solar resources. The changes will enable permitting of 25 gigawatts of renewable energy on federal lands by 2025, helping to meet the Biden-Harris administration’s goal of a net-zero economy by 2050. (June 2022)
Vice President Kamala Harris announced a new White House Action Plan on Global Water Security, emphasizing the national security implications of water scarcity. The plan has three pillars (June 2022):
- Advance U.S. leadership to drive “universal and equitable access to sustainable, climate-resilient, safe and effectively managed WASH [Water, Sanitation, and Hygiene] services” without increasing GHG emissions.
- Promote “sustainable management and protection of water resources and associated ecosystems to support economic growth, build resilience, mitigate the risk of instability or conflict, and increase cooperation.”
- Ensure that "multilateral action mobilizes cooperation and promotes water security.”
Concurrently, the administration released a one-year report of its Drought Resilience Interagency Working Group, created to address worsening drought conditions and water shortages, documenting implementation of the bipartisan infrastructure law’s water investments. (June 2022)
The Biden Administration and the US Department of Energy (DOE) released a notice of intent to fund four regional direct air capture (DAC) hubs using $3.5 billion from the Bipartisan Infrastructure Law. With planned capability of capturing and permanently storing over a million tons of CO2 per year, each hub would be orders of magnitude larger than the world’s current largest DAC plant, which collects around 4,000 tons of CO2 per year. The program is part of President Biden’s net-zero by 2050 target, which some experts say is only achievable if emissions reductions are combined with active removal of CO2 from the atmosphere. (May 2022)
The U.S. Department of Energy (DOE) is launching a new $2.5 billion revolving fund to stimulate construction of major electric power transmission projects as part of the Infrastructure Investment and Jobs Act. DOE issued a formal “Notice of Intent and Request for Information regarding establishment of a Transmission Facilitation Program (TFP)” to gather input from key stakeholders that will inform the request for project proposals. The TFP offers three forms of facilitation to assist with the construction of new, replacement, and upgraded high-capacity transmission lines: capacity contracts, loans, and public-private partnerships. Community engagement is a key component of the TFP and funded projects will include Equity, Environmental and Energy Justice principles and priorities. The comment period opened on May 10, 2022 and ends after 30 days. (May 2022)
The U.S. Department of Justice (DOJ) announced that it will be opening a new Office of Environmental Justice (OEJ). The OEJ is tasked with supporting all DOJ offices and U.S. Attorneys’ offices in the equitable enforcement of federal environmental laws and coordinating dialogue with affected communities. Attorney General Merrick Garland, during the announcement, noted “Although violations of our environmental laws can happen anywhere, communities of color, indigenous communities, and low-income communities often bear the brunt of the harm caused by environmental crime, pollution, and climate change. For far too long, these communities have faced barriers to accessing the justice they deserve… We will prioritize the cases that will have the greatest impact on the communities most overburdened by environmental harm.” Concurrent with the OEJ announcement, Associate Attorney General Vanita Gupta issued a comprehensive environmental justice enforcement strategy to guide the DOJ’s work. (May 2022)
The U.S. Department of Energy (DOE) announced just over $2.34 billion in new funding opportunities to advance the country’s carbon management goals. The bulk of the funding, $2.25 billion will be allocated to the development—including feasibility studies, permitting, and construction—of geologic carbon storage sites (offshore or onshore) capable of holding at least 50 million metric tons of captured CO2 each. Of the remaining $91 million: $45 million will go toward procedural improvements for assessing potential carbon storage sites; $45 million will go to advancing technologies for removing carbon from utility and industrial sources or from the atmosphere. (May 2022)
The U.S. Department of Energy (DOE) has released $3.16 billion in funding to establish or re-tool domestic battery manufacturing plants to keep up with increasing EV sales and energy storage demands—while reducing dependence on foreign sources. The department will also release an additional $60 million to develop second-life applications for EV batteries and new processes for producing and recycling critical minerals without new extraction or mining. All funding aligns with President Biden’s Justice40 initiative, stipulating that 40% of the benefits of Federal investments in climate and clean energy flow to disadvantaged communities. (May 2022)
The U.S. Department of Energy (DOE) has adopted two new, interconnected rules for light bulbs, also known as general service lamps. The first rule establishes a revised definition of general service lamps that includes additional types. The second requires that general service lamps emit at least 45 lumens per watt, effectively phasing out most energy-intensive incandescent bulbs. “By raising energy efficiency standards for lightbulbs, we’re putting $3 billion back in the pockets of American consumers every year and substantially reducing domestic carbon emissions,” said U.S. Secretary of Energy Jennifer M. Granholm. Full enforcement will go into effect in July 2023. (May 2022)
The U.S. Department of Energy (DOE) has issued a conditional commitment to provide $504 million in debt financing toward the construction of The Advanced Clean Energy Storage Project—a first-of-its-kind, grid-scale green hydrogen production and storage facility in Utah. The facility will be able to convert renewably sourced energy into hydrogen, which will be placed in long-term storage caverns for deployment as needed for grid stabilization or commercial markets, available beginning in 2025. The initial storage capacity of the project will be 9 million barrels of hydrogen, capable of producing more than 300 gigawatt hours of energy per year. (May 2022)
U.S. Secretary of Commerce Gina M. Raimondo announced a Department Administrative Order (DAO) stating that it is the Department's policy to incorporate climate considerations—including mitigation, adaptation, and environmental justice measures—into its planning, policies, and programs. The DAO also established a Department of Commerce Climate Council to further develop strategic direction, identify deliverables, and oversee implementation. (May 2022)
The Environmental Protection Agency is seeking feedback on a draft white paper on ways to reduce greenhouse gas emissions from new stationary combustion turbines, which are expected to play a major role in U.S. power supply. The white paper discusses efficiency improvements such as firing or co-firing natural gas with alternative fuels such as hydrogen and using carbon capture, utilization, and storage, among other topics. EPA is asking for public comment through June 6. (April 2022)
The Federal Highway Administration, a branch of the U.S. Department of Transportation, announced it would award $6.4 billion over five years under the new Carbon Reduction Program to help states develop carbon-reduction strategies. “As the sector generating the most carbon emissions in the U.S. economy, transportation must play a leading role in solving the climate crisis,” said U.S. Transportation Secretary Pete Buttigieg.” (April 2022)
The Department of Energy will seek applications and sealed bids under the $6 billion Civil Nuclear Credit Program to support U.S. nuclear reactors, at least 12 of which have been shut down since 2013. “U.S. nuclear power plants contribute more than half of our carbon-free electricity, and President Biden is committed to keeping these plants active to reach our clean energy goals,” said Secretary of Energy Jennifer M. Granholm. (April 2022)
The White House Council on Environmental Quality (CEQ) this week restored key provisions of the National Environmental Policy Act (NEPA) regulations that had been modified by the Trump administration. The changes will require strict federal reviews of the environmental impacts of major infrastructure projects, like highways and pipelines—including an analysis of climate impacts. (April 2022)
President Biden signed an executive order to protect forests and fight climate change. The White House said the order will (April 2022):
- Safeguard mature and old-growth forests on federal lands, as part of a science-based approach to reduce wildfire risk.
- Strengthen reforestation partnerships across the country to support local economies and ensure we retain forest ecosystems and sustainable supplies of forest products for years to come.
- Combat global deforestation to deliver on key COP26 commitments.
- Enlist nature to address the climate crisis with comprehensive efforts to deploy nature-based solutions that reduce emissions and build resilience.
The U.S. Department of Transportation’s National Highway Traffic Safety Administration announced sharp increases in fuel efficiency requirements for automakers for production years 2024–2026. The new Corporate Average Fuel Economy (CAFÉ) standards would translate into an industry-wide fleet average of approximately 49 mpg for passenger cars and light trucks in model year 2026—a record high that the EPA estimates will result in 3.1 billion tons of avoided CO2 emissions through 2050 (compared with the trajectory of the Trump administration’s rules). (April 2022)
The White House Office of Management and Budget (OMB) has published, for the first time and at President Biden’s direction, a formal accounting of climate-related risk exposure in the federal budget. The assessment found current policy pathways could lead to economic damages resulting in a 7.1% decrease in annual federal revenue (about $2 trillion in today’s dollars) by 2100. At the same time, annual federal spending on climate-related mitigation could increase by anywhere from $28 billion to $128 billion (in today’s dollars) just in the assessment’s six areas of focus—disaster relief, flood insurance, crop insurance, healthcare expenditures, wildland fire suppression spending, and flood risk at federal facilities. (April 2022)
The Federal Deposit Insurance Commission (FDIC) has released a new set of draft principles, intended for financial institutions with over $100 billion in total consolidated assets, that would “provide a high-level framework for the safe and sound management of exposures to climate-related financial risks.” The draft principles are similar in nature to those released by the Office of the Comptroller of the Currency (OCC) last December. There will be a 60-day public comment period following its date of publication in the Federal Register. (April 2022)
The U.S. Commerce Department will investigate whether Chinese manufacturers are bypassing a US trade tariff on direct sales of their solar cells and modules. Some US manufacturers allege that China is routing those products through assembly plants in other Asian countries like Malaysia, Vietnam, Thailand, and Cambodia—countries that collectively supply about 80% of the modules for US solar projects. (April 2022)
The Biden administration’s climate-related requests in its new fiscal 2023 federal budget proposal include (April 2022):
- $44.9 billion for clean energy programs and other climate-related initiatives across government—a $16.7 billion increase over fiscal 2021 enacted levels.
- More than $11 billion to help other countries cut GHG emissions and adapt to warming.
- The repeal of certain credits, deductions, and other special provisions for the fossil fuel industry, estimated to save $43.5 billion over 10 years.
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The Department of Transportation is leading a new public-private initiative called Freight Logistics Optimization Works (FLOW) to pilot freight data exchange along the goods movement supply chain and “support a more resilient and fluid supply chain.” FLOW has 18 initial participants including companies (CEF member UPS among them), ports, and ocean carriers. (March 2022)
The Biden administration announced new steps to advance pay equity and close gender and racial wage gaps for federal workers. President Biden also signed an executive order to limit federal contractors’ use of job applicants’ salary history in employment decisions. (March 2022)
The EPA proposed tighter rules to reduce heavy-duty vehicles’ smog pollution (starting with model year 2027) and carbon dioxide pollution (starting with model year 2024). The rules would also update existing GHG standards for certain commercial vehicles. Public comments are being accepted until mid-April. (March 2022)
The Environmental Protection Agency (EPA) proposed a new plan to implement the Clean Air Act “good neighbor” provision and combat interstate smog pollution from power plants and industrial sources across the country. Power plants in 25 states would have stricter emission “budgets” for nitrogen oxides (NOx) under a cap-and-trade program starting next year, and larger generating units with existing controls would have daily emission limits starting in 2024. NOx standards for industrial sources (e.g., cement kilns, boilers) would be implemented in 23 states starting in 2026. (March 2022)
The Biden administration announced new actions federal agencies will take this year to make critical US supply chains more resilient. The actions are built upon the findings in new supply-chain political strategy reports from seven agencies (the Departments of Defense, Homeland Security, Commerce, Energy, Agriculture, Transportation, and Health and Human Services). Key actions include (Feb 2022):
- The Department of Energy (DOE) released its strategy report as the first-ever US government plan to build an energy sector industrial base, which includes assessments on 11 clean energy technologies MORE »
- The DOE will release $44 million of funding for the Mining Innovations for Negative Emissions Resources (MINER) Program to develop commercially scalable technologies that enhance domestic supplies of critical elements
- The DOE is creating a Manufacturing and Energy Supply Chains Office to strengthen and secure US energy supply chains and support the clean energy transition
- The Export-Import Bank will vote this spring on a new initiative that would provide financing priority to “environmentally beneficial” export transactions
The Biden administration announced new federal investments geared toward expanding the domestic critical minerals supply chain, “breaking dependence on China,” and “boosting sustainable practices”
(Feb 2022):
- The Department of Energy will allocate nearly $3 billion to boost advanced battery production MORE »
- The Department of Defense awarded MP Materials $35 million to process rare earths and establish a domestic, end-to-end permanent-magnet supply chain. MP Materials will invest another $700 million and expects to produce enough rare earth products to build 500,000 EVs domestically by 2025 MORE »
- The Department of Energy awarded Berkshire Hathaway Energy Renewables about $15 million to create a new facility to demonstrate the commercial viability of its sustainable lithium extraction process MORE »
- The Interior Department established an Interagency Working Group for the legislative and regulatory reform of mine permitting and oversight. The group released a set of Biden administration principles to promote responsible mining
- The US Geological Survey released a new list of 50 minerals it says are critical to US economic and national security, including nickel and zinc MORE »
- The Departments of Energy, Defense, and State signed a memorandum of agreement to better coordinate critical-mineral stockpiling activities
The Biden administration unveiled a draft screening tool created to help ensure that 40% of federal investments in climate, clean energy, and other areas flow to disadvantaged communities—a focus of President Biden's Justice40 initiative. (Feb 2022)
The Department of Energy issued a Request for Information on the design, construction, and operation of America’s first large-scale demonstration facility to convert fossil fuel waste into rare earth elements and critical minerals. It plans to invest $140 million in the facility and aims for it to be operational by 2028 and process 20,000 metric tons of mixed rare earth oxides annually by 2040. (Feb 2022)
New federal initiatives to “reward clean, American-made materials” and advance a clean industrial sector (Feb 2022):
- The Department of Energy issued Requests for Information on how to utilize $9.5 billion of bipartisan infrastructure law funds to develop clean hydrogen: $8 billion for Regional Clean Hydrogen Hubs, $1 billion for a Clean Hydrogen Electrolysis Program (to reduce the costs of hydrogen produced from clean electricity), and $500 million for Clean Hydrogen Manufacturing and Recycling Initiatives.
- The Council on Environmental Quality and the White House Office of Domestic Climate Policy are launching the first-ever, multi-agency Buy Clean Task Force to help create markets for low-carbon construction materials. It will develop recommendations for 1) pilot programs to boost federal purchases of clean building materials, 2) identifying materials and pollutants to prioritize for federal purchases, and 3) increasing the transparency of embodied emissions through supplier reporting.
- The First Movers Coalition, a public-private partnership between the US State Department, World Economic Forum, and US Department of Commerce, is partnering with the Breakthrough Energy Catalyst program to “recruit additional companies” and launch challenge competitions for suppliers that provide the program’s target clean energy technologies.
- The Council on Environmental Quality issued new guidance on responsible deployment of CCUS technologies to reduce emissions from heavy industry.
- The General Services Administration issued Requests for Information to help shape national standards for low-carbon concrete and sustainable asphalt for certain Land Port of Entry projects.
- The EPA is expanding ENERGY STAR to include carbon intensity metrics for certain industries.
- The Department of Energy is establishing an Industrial Technology Innovation Advisory Committee to bring together industry stakeholders and identify industrial decarbonization pathways.
The US Army became the first service to release a climate strategy outlining decarbonization and renewable energy goals. Notable commitments (Feb 2022):
- Reducing GHG emissions by 50% by 2030 (2005 baseline), reaching net zero at every installation by 2045, and reaching net zero across its procurement by 2050
- Providing 100% carbon pollution-free electricity for Army installations by 2030 and installing a microgrid at every installation worldwide by 2035
- Fielding an all-electric, non-tactical vehicle fleet by 2035
- Incorporating climate change topics into leader development and workforce training programs by 2028
The US Departments of Transportation and Energy announced that nearly $5 billion of funds from President Biden’s bipartisan infrastructure law will be allocated over five years for the new National Electric Vehicle Infrastructure (NEVI) Formula Program. The program will help states deploy EV charging infrastructure and create a national EV charging network along Alternative Fuel Corridors, particularly the Interstate Highway System. States will receive $615 million of funding in FY22. (Feb 2022)
The General Services Administration and the Defense Department announced a formal request for information (RFI) to understand the energy industry’s ability to supply 24/7 carbon pollution-free electricity (CFE) to the US government, including costs involved, hourly matching, key considerations, and potential approaches. The RFI follows President Biden’s executive order calling for 50% of federal power to be emissions-free 24/7 by 2030. (Feb 2022)
President Biden extended former President Trump's Section 201 tariffs on solar cells and panels by four years, and loosened some restrictions on supplies imported from Asia. The new rules exclude bifacial solar panels (used in big-utility projects) and double the amount of solar cells that can be imported duty-free to 5 gigawatts. (Feb 2022)
The EPA is developing a proposal to reinstate a rule that limits the amount of mercury and other hazardous pollutants that power plants are permitted to release, which former President Trump reversed in 2020. The agency will open a 60-day period to collect comments on the proposal (expected to be finalized this year), as well as gather public health information and take public comments on whether it should tighten the regulation. (Feb 2022)
The Biden administration will invest over $14 billion in FY22 to strengthen US port and waterway supply chains, increase climate resilience, and improve drinking water sources. Investments will be made in over 500 projects across 52 states and territories and include:
- Over $5.7 billion to support disaster-mitigation and -recovery efforts in US communities that have experienced extreme weather events. Funds will also help businesses and homes reduce their climate-related risks.
- $4 billion to expand capacity at key ports and enhance the country’s ability to move goods.
- $1.7 billion to reduce inland flood risk.
- $1.1 billion to restore and protect the South Florida ecosystem.
- Over $350 million for environmental justice projects that deliver on the Justice40 initiative.
MORE » (Jan 2022)
The Interior Department announced three new funding opportunities for water infrastructure projects that help water providers deliver “clean, new water sources” to drought-prone Western communities.
Certain desalination, water reclamation, and water reuse
projects are eligible, and project sponsors are invited to apply for up to 25% of design, planning, and construction costs scheduled for the next three years. (Jan 2022)
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The Department of Energy (DOE) launched the “Building a Better Grid” Initiative to modernize the national electric grid, make it more resilient to climate change impacts, and deliver clean energy. It will deploy $20 billion in federal financing for the initiative. (Jan 2022)
New offshore wind initiatives (Jan 2022):
- The Interior Department’s Bureau of Ocean Energy Management (BOEM) will hold an offshore wind lease sale for a record 480,000 acres next month, in the “New York Bight” area off the coasts of New York and New Jersey. The sale is projected to generate 5.6-7 gigawatts of clean energy and power 2 million homes. Notably, lease provisions will require lessees to identify any ocean users, tribes, and underserved communities affected by projects, and will financially incentivize lessees to source offshore wind components domestically. MORE »
- The BOEM and the states of New York and New Jersey released a “shared vision” for their new collaboration to develop a domestic offshore wind supply chain that benefits state and regional residents, including disadvantaged and overburdened communities. MORE »
- The National Oceanic and Atmospheric Administration (NOAA) and BOEM are forming an interagency agreement to advance offshore wind energy “while protecting biodiversity and promoting cooperative ocean use.” MORE »
- The National Offshore Wind Research and Development Consortium is awarding over $3 million to six offshore wind R&D projects, including GE Renewable Energy and GE Research. MORE »
Five government agencies—the Environmental Protection Agency and the Departments of Interior, Agriculture, Defense, and Energy—issued a memorandum of understanding for joint collaboration “to improve the efficiency and effectiveness of reviews of clean energy projects on public lands.” (Jan 2022)
The Department of Agriculture will launch a Rural Energy Pilot Program to give rural communities $10 million in grants so they can deploy clean energy technologies and solutions, and conduct community energy planning. (Jan 2022)
The Department of Energy will invest over $20 billion to establish an
Office of Clean Energy Demonstrations,
which will support demonstration projects for clean energy technologies such as carbon capture, clean hydrogen, grid-scale energy storage, and small modular reactors. The office will also engage environmental justice groups and invest billions in demonstration projects in economically challenged communities and rural areas—a focus of President Biden's Justice40 initiative. (Jan 2022)
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List of US Federal: Executive Branch News, 2021-2019 (PDF)
US Fed: Legislative Branch
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Ranking Republican member of the Senate Committee on Energy and Natural Resources and chair of the House Committee on Energy and Commerce (also Republican) wrote a letter to the director of the International Energy Agency (IEA), urging him to return the Agency to its "core mission of promoting energy security." They argue that the IEA has become an “energy transition cheerleader” and asked over 30 questions regarding the Agency’s analyses, recommendations, and expenditures. (March 2024)
The California Air Resources Board (CARB) approved the Advanced Clean Fleets rule, which will phase in a transition toward zero-emission medium- and heavy-duty vehicles. The rule includes an end to combustion truck sales in 2036 and establishes a phased transition of existing vehicles to zero-emissions, depending on the type (drayage trucks, yard trucks, and last mile delivery trucks by 2035, work trucks and day cab tractors by 2039, and sleeper cab tractors and specialty vehicles by 2042). In a separate announcement, CARB will require industrial and passenger locomotives built in 2030 or after to operate in zero-emissions configurations while in California, and in 2035 for freight line haul. (May 2023)
Florida Governor Ron DeSantis signed a law barring state officials from investing public money based on ESG factors, and prohibiting bonds tied to ESG projects or that impose restrictions tied to ESG ratings. (May 2023)
Under its new state budget deal, New York is set to ban the use of natural gas and other fossil fuels (including furnaces, water heaters, and gas stoves) in new construction. For buildings under seven stories, this ban would go into effect in 2026, for larger buildings, 2029. The rule does not apply to existing buildings or retrofits. (May 2023)
A group of 25 Republican-led states filed a motion with a federal judge in Texas to block a Biden administration rule allowing retirement plans to consider ESG factors in selecting investments until its legal challenge’s outcome is decided (filed last month). The lawsuit claims the rule violates federal law regulating employee benefit plans by redirecting focus to nonfinancial factors. The rule covers plans that together manage $12 trillion on behalf of more than 150 million people. (Feb 2023)
Two members of Congress, Juan Vargas from California and Sean Casten from Illinois, announced the launch of the Congressional Sustainable Investment Caucus (CSIC). CSIC will bring together members of Congress with experts to better understand ESG investing and inform policymaking that provides investor protections and transparency of information to market participants. (Jan 2023)
The U.S. Senate ratified the Kigali amendment to the Montreal Protocol, joining 137 countries in pledging to phase out the use of super-polluting greenhouse gases found in refrigerators and air conditioners. If successfully implemented, scientists estimate the treaty will prevent up to 0.5°C warming by the end of the century. (Sept 2022)
The House of Representatives passed the Inflation Reduction Act of 2022 on a party line 220-207 vote. President Joe Biden said he will sign the bill this week. The final bill appropriates $437 billion for climate, health subsidies, and drought relief and is estimated to generate $739 billion in revenue over ten years. (Aug 2022)
The Senate passed the Inflation Reduction Act of 2022, paving the way for $739 billion in funding focused primarily on efforts to decarbonize the US economy, lower healthcare costs, revise the tax code, and reduce the federal deficit. According to independent modeling analyses from Energy Innovation and Evolved Energy Research, the bill’s $369 billion in climate-related provisions could:
- Reduce greenhouse gas emissions by up to 42% by 2030 (2005 baseline), compared to a projected 24–27% reduction under current policies.
- Avoid at least 24 tons of emissions for every ton of emissions it allows with new land use provisions for fossil fuel development.
- Increase carbon capture 13-fold by 2030 compared to the current trajectory (with carbon capture accounting for up to 20% of CO2 cuts resulting from the bill).
- Lower annual U.S. energy expenditures by at least 4% in 2030—an annual savings of nearly $50 billion dollars—and drive more than $3 trillion in cumulative capital investment in clean energy infrastructure over the next decade.
The House of Representatives is expected to reconvene on Friday, August 12 to consider approving the bill. (Aug 2022)
Senate Majority Leader Chuck Schumer and Senator Joe Manchin reached an agreement on a draft revenue and spending bill—the Inflation Reduction Act of 2022—that allocates an unprecedented $369 billion over ten years to tackling energy security and the climate crisis. The funds, if approved, could put President Biden’s ambitions to reduce US emissions 50% by 2030 (2005 baseline) back in play. The bill’s authors, and independent analyses like this one from Rhodium Group, say the provisions of the plan could reduce emissions by up to 44% by 2030, and that additional action by the Biden administration, subnational governments, and businesses could put reductions over the 50% goal. Key climate-related provisions in the bill include (Aug 2021):
- $60 billion to accelerate US manufacturing of clean energy components like solar panels, wind turbines, batteries, and the processing of essential minerals.
- Creation of a new Methane Emissions Reduction Plan, which includes financial incentives for oil & gas companies to monitor and trap methane in their operations. It also includes a new fee on excess emissions.
- Continuation of a tax credit of up to $7,500 for new clean vehicle purchases and, for the first time, up to $4,000 for used clean vehicle purchases. The bill also creates a 30% tax credit for commercial electric vehicles.
- Creation of a $27 billion Greenhouse Gas Reduction Fund intended to catalyze the development of decarbonization technologies and processes through direct investment and leveraging private capital.
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West Virginia Senator Joe Manchin, citing concerns about exacerbating inflation, has indicated that he will vote against spending and tax legislation that contains climate mitigation measures. The move effectively kills those provisions—which had included hundreds of billions of dollars for funding and incentives to speed the transition to EVs, renewable energy, and more—in democrats’ pending bill. Without that funding, the Biden administration’s climate goals like halving GHG emissions by 2030 (2005 baseline) will be far more challenging to achieve and would rely heavily on increased executive action, especially if democrats lose the House this fall. (July 2022)
US Fed: Judicial Branch
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A U.S. appeals court upheld the Environmental Protection Agency’s decision to grant California a waiver to set its own vehicle emissions standards. The court rejected a challenge by 17 Republican-led states and fossil fuel companies to revoke California’s authority, arguing they failed to prove how California’s emission standards would drive up costs for gas-powered vehicles in their states. (April 2024)
A U.S. District Court in Texas struck down a Department of Transportation rule that would have required states and cities to set targets for reducing GHG emissions from vehicles using the national highway system. The judge ruled that the DOT was not authorized to include environmental benchmarks in states’ assessments of highway performance. (April 2024)
A federal judge in Texas declined to block a Biden administration rule allowing employee retirement plans to consider ESG issues in investment decisions. The request of the court was brought by 25 states, who claimed that the rule creates a regulatory bias in favor of ESG strategies. (Sept 2023)
A legal settlement in federal court commits the Environmental Protection Agency (EPA) to several reforms to better protect endangered species from pesticides. The agreement requires the EPA to develop a strategy to better protect endangered species from herbicides by 2024 and insecticides by 2025. (Sept 2023)
The Supreme Court ruled that businesses can refuse to serve same-sex couples if doing so would violate the owners’ religious beliefs. The Court concluded that the plaintiff in the case had a First Amendment right to refuse designing custom wedding websites for same-sex couples. (July 2023)
A federal judge in North Dakota temporarily blocked the EPA’s Waters of the United States rule (finalized in December) in 24 states, pending the outcome of a lawsuit filed by those states. The rule established protections for wetlands and seasonal streams and came into effect March 20. The judge argued that the rule “poses a threat to [states’] sovereign rights” and states would “expend unrecoverable resources complying with a rule unlikely to withstand judicial scrutiny.” The EPA responded, stating that the regulations were “the best interpretation” of the Clean Water Act, and that the agency is reviewing the decision and its options. (April 2023)
The U.S. Court of Appeals for the Eighth Circuit affirmed the Fifth Circuit’s ruling, dismissing Missouri v. Biden, in which several states attempted to prohibit the Biden Administration’s use of interim estimates of the Social Cost of Carbon in agency proceedings. The court explained that the states cannot preemptively challenge the Social Cost of Carbon outside of the context of a specific agency action. The court also noted that the estimate does not cause harm in itself and that the determining of the cost is a “sensible exercise of the President’s executive power” and should not be prohibited. Full ruling is here. (Oct 2022)
The Supreme Court has ruled in West Virginia v. EPA that the agency can't legally try to shift power generation away from fossil-fuels to cleaner sources. The 6–3 ruling established that the 1970 Clean Air Act's provision that the EPA enact "the best system of emission reduction" does not empower it to make decisions with sweeping economic and political impact and suggests that such decisions must be made by Congress. It is a development that presents new challenges to the Biden Administration's decarbonization goals; But, since the EPA's ability to regulate power plant emissions remain intact, the agency has said it will likely enact a suite of additional emission regulations—and fines for non-compliance—on fossil fuel plants. Doing so would reduce GHG emissions, with a likely side effect of making clean alternatives with falling costs, like solar and wind, more attractive. (July 2022)
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The US Supreme Court overturned Roe v. Wade, ending federal constitutional abortion rights and giving states authority to regulate abortions. Nearly half of US states have or are likely to pass laws banning or enacting strict measures regulating abortions. In response to the ruling, dozens of US companies have committed or reaffirmed their position to help employees access abortion services if denied in their state. The following outlets cover corporate responses and benefits: Bloomberg, NY Times, and Forbes. (June 2022)
The Supreme Court denied an emergency application by several Republican-led states to
prevent the Biden administration from factoring the social costs of GHG into government decisions. In April, the Federal District Court in Louisiana sided with the states and issued a preliminary injunction blocking the administration’s use of its estimate of harms from carbon emissions, but the Fifth Circuit stayed the injunction. The emergency application by the states sought to reverse the appellate court’s stay. (May 2022)
A federal appeals court lifted a ban that blocked the Biden administration from using the “social cost of greenhouse gasses”
(based on a dollar estimate of the damage caused by emitting 1 metric ton of GHGs into the air) it put into place in January 2021 for federal permitting, investment, and regulatory decisions. (March 2022)
A federal judge blocked the Biden administration from using the “social cost of greenhouse gases”
(an estimate of the damage caused by emitting 1 metric ton of GHGs into the air)
it
put into place in January 2021 for federal permitting, investment, and regulatory decisions. The amount will revert from $50 per ton to the $10 or less per ton imposed by the Trump administration. (Feb 2022)
A federal judge struck down a 2020 environmental rule implemented by former President Donald Trump that allowed pollutants such as pesticides, fertilizers, and industrial chemicals to be discharged into streams and wetlands.
(Sept 2021)
A federal judge ordered ExxonMobil, BP, Hess Corporation, and Shell to help cover $7.2 billion’ worth of costs for capping and abandoning hundreds of wells in the Gulf of Mexico they previously owned. (July 2021)
A federal judge in Louisiana issued a
preliminary injunction blocking the Biden administration from pausing new oil and gas leases on federal land. (June 2021)
The Supreme Court ruled in favor of energy companies—including BP, Chevron, ExxonMobil, and Royal Dutch Shell—contesting a lawsuit filed by the city of Baltimore seeking monetary damages from the companies for costs caused by climate change.
(May 2021)
A federal appeals court rejected New York City’s effort to hold oil companies—including BP Plc, Chevron Corp, ConocoPhillips, Exxon Mobil Corp, and Royal Dutch Shell—liable to help pay the public costs of climate change. The three-judge panel remarked, “global warming presents a uniquely international problem of national concern. It is therefore not well-suited to the application of state law.” (April 2021)
The U.S. Court of Appeals for the District of Columbia Circuit
struck down the Trump administration’s approach to regulating carbon emissions from power plants (the “Affordable Clean Energy rule”), opening up avenues for the Biden administration to pursue tougher power plant regulations. (January 2021)
A
U.S. appeals court ruled that the Dakota Access Pipeline can continue operations, overriding a prior ruling made by the U.S. District Court for the District of Columbia requiring the pipeline to temporarily shut down until an environmental impact assessment is conducted. However, the appeals court did not halt the prior ruling requiring the Army Corps of Engineers to
conduct an environmental impact assessment. (August 2020)
The
U.S. Supreme Court
upheld a lower court decision to
suspend construction on parts of the
Keystone XL pipeline. (July 2020)
Bayer has agreed to pay around $10 billion to settle around 125,000 claims that its Roundup product causes cancer. The settlement will also resolve potential future litigation. (June 2020)
US States & Cities
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West Virginia added four banks to a list of financial institutions barred from providing “banking services to the State” due to their “boycotts of fossil fuel companies,” based on a review of each institution’s ESG policies and other publicly available statements. This brings the total to nine banks. (April 2024)
Texas banned Barclays from participating as an underwriter in the state’s municipal bond market after failing to respond to requests for more information regarding its ESG policies. (Feb 2024)
The New Jersey Legislature passed the Electric and Hybrid Vehicle Battery Management Act, which provides a framework for the collection, transportation, remanufacturing, reuse, and recycling of “propulsion batteries” (batteries used to propel electric and hybrid cars and trucks, as opposed to starter batteries). This makes New Jersey the first in the U.S. to pass a law providing industry guidance on recycling propulsion batteries and aims to support the creation of a circular economy in the state around EV batteries, according to Recycling Today. (Jan 2024)
Michigan Governor Gretchen Whitmer signed legislation that mandates 100% carbon-free energy generation by 2040. The state also set a goal for utilities to generate 50% of their energy from renewable sources by 2030 and 60% by 2035, up from 12% currently. (Dec 2023)
New York State filed a lawsuit alleging PepsiCo has harmed the public and the environment with its single-use plastic packaging, one of the first lawsuits of its kind brought on by a state. The lawsuit seeks to force the company to clean up contamination, pay civil penalties and restitution, among other things. (Nov 2023)
The California Public Employees’ Retirement System (CalPERS) announced its new Sustainable Investments 2030 Strategy to reduce carbon emissions intensity of CalPERS’ investments by 50% by 2030. CalPERS will commit over $100 billion toward climate solutions by 2030 (more than twice its current $47 billion in low-carbon assets), and sell off investments that do not have credible plans to reduce carbon emissions. (Nov 2023)
New York Governor Kathy Hochul announced “the largest investment in clean energy in U.S. history”: three offshore wind projects and 22 land-based renewable energy projects totaling 6.4 GW — enough to cover 12% of New York’s electricity needs. Hochul also announced a $300 million state investment in wind turbine blade and nacelle manufacturing. The energy and manufacturing projects are estimated to generate $20 billion in economic investment and 8,300 jobs in New York. (Oct 2023)
The U.S. Climate Alliance, a bipartisan coalition of 25 governors, announced a series of commitments to quadruple heat pump installations by the end of the decade as part of its effort to decarbonize buildings. At least 40% of benefits from the heat pump initiative would flow to disadvantaged communities. The heat pump installations will advance Alliance members’ goal of achieving zero-emission new construction as soon as practicable and eliminating emissions from existing buildings at a pace consistent with the Paris Agreement. (Sept 2023)
California’s Attorney General filed a
lawsuit against five oil companies and the American Petroleum Institute (API), alleging a decades-long campaign of deception that led to tens of billions of dollars in damages from climate change. The suit asks the court to order the companies to pay the cost of the impacts of fossil fuels; prohibit oil companies from engaging in further pollution; levy financial penalties on the companies for lying to the public and order the industry to end their deceptive statements about their impacts; and award punitive damages to the state. (Sept 2023)
The California Legislature passed a bill requiring businesses operating in California and with annual revenue of over $1 billion to publicly disclose their direct and indirect greenhouse gas emissions (Scopes 1, 2, and 3). Companies would have to start disclosing Scope 1 and 2 emissions annually in 2026, and Scope 3 emissions in 2027. The governor has until October 14 to sign or veto the bill, or it automatically becomes law. (Sept 2023)
A group of 22 U.S. states and territories have dropped their effort to block a proposed $10.3 billion settlement between 3M and U.S. public water providers over water pollution tied to “forever chemicals” (PFAS). The states withdrew their objections after negotiating changes with 3M and the water providers to the proposed deal, which would settle hundreds of lawsuits over PFAS contamination. The U.S. court hearing the case then gave preliminary approval to move forward to a “fairness hearing” in February. (Sept 2023)
A Montana state court ruled that the state’s failure to consider climate change when approving fossil fuel projects was unconstitutional. (The Minnesota Constitution guarantees residents “the right to a clean and healthful environment.”) The suit, brought by 16 young people in 2020, is the first of its kind in the U.S., and could influence other pending climate lawsuits in the country. Montana — a significant producer of oil, gas, and coal — will now have to consider climate change when deciding whether to approve new fossil fuel projects. The state attorney general’s office said the state would appeal. (Aug 2023)
California Governor Gavin Newsom directed the Governor’s Office of Business and Economic Development to develop California’s Hydrogen Market Development Strategy. This all-of-government approach aims to build up California’s “clean, renewable hydrogen market” and decarbonize transportation and industrial sectors, working to identify shared strategies, coordinate multiple state agencies, and engage with relevant stakeholders. (Aug 2023)
Wyoming and Colorado signed a Memorandum of Understanding to partner on direct air capture (DAC) development and activity. The two states will collaborate on activities such as applying for grants, analyzing carbon dioxide removal markets, identifying a process for resolving issues with cross-border CO2 sequestration, developing a commercialization pipeline for nascent technologies, and engaging local, tribal, and state stakeholders. (July 2023)
Eighteen state governors, led by Florida governor Ron Desantis, launched an alliance aimed at coordinating actions to “protect individuals from the ESG movement.” The alliance agreed to work together to protect taxpayers from ESG influences across state systems and protect citizens from ESG influences in the financial sector. (March 2023)
New Jersey passed a new law that incentivizes the decarbonization of the concrete industry. Specifically, the law provides tax credits both for the cost of preparing environmental product declarations that assess the global warming potential of various concrete mixes as well as for the delivery of concrete for use in state projects that has lower emissions associated with its production or that utilizes carbon capture and storage to remove or recycle CO2 generated through the manufacturing process. New Jersey is the first U.S. state to pass a law like this and the NJ environmental commissioner said he will try to encourage other states to adopt similar laws, using his role as infrastructure work group chair at the Environmental Council of the States. (Feb 2023)
The New York state governor, Kathy Hochul, announced a Cap-and-Invest Program that establishes a declining cap on greenhouse gas emissions, invests in programs that drive emissions reductions, limits costs to economically vulnerable households, and maintains the competitiveness of New York industries. The cap will be reduced every year, with a 40% emissions reduction by 2030 and at least an 85% reduction by 2050 (from 1990 levels). In addition, Governor Hochul will propose legislation to create a universal Climate Action Rebate that is expected to drive more than $1 billion in future cap-and-invest proceeds to New Yorkers every year. (Jan 2023)
A group of U.S. state attorneys general have sent civil investigative demands to the six largest banks in the U.S., alleging that their ESG practices hurt the American energy industry. The attorneys general are seeking documents from the banks, which include JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup, Wells Fargo, and Morgan Stanley, about their involvement in the Net-Zero Banking Alliance. (Oct 2022)
Louisiana announced it is divesting $794 million by the end of the year from the company to “protect” the state’s Treasury funds from BlackRock’s “support of ESG investing.” In a letter to BlackRock CEO, state Treasurer John Schroder said BlackRock’s “blatantly anti-fossil fuel policies would destroy Louisiana’s economy.” The state has already divested $560 million of this total. (Oct 2022)
California will ban the sale of all new natural gas-fired space heaters and water heating appliances by 2030, the first U.S. state to do so, under a proposal unanimously approved the California Air Resources Board. The proposal does not include gas stoves, but about 50 cities and towns in California have adopted regulations that ban or discourage the use of gas-fueled stoves in new buildings. (Sept 2022)
The Texas comptroller, Glenn Hegar, released
a list of 10 companies and 348 investment funds that will be barred from entering into most contracts with Texas state and local entities because they all allegedly “boycott energy companies.”
State pension funds and local governments issuing municipal bonds will also have to divest from companies on the list, which include
BlackRock, Credit Suisse, and UBS.
As Axios
reports, several targeted companies pushed back on the decision citing facts that counter the claims.
West Virginia took a similar action last month, banning fiver major financial firms. (Aug 2022)
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The California Air Resources Board voted to require all new vehicles to be zero-emissions by 2035, with milestones of 35% zero-emissions by 2026 and 68% in 2030.
Electric vehicles currently make up 16% of California’s new-vehicle sales. The rule would allow people to continue driving and purchasing used gas-fueled vehicles after 2035 as well as allowing one-fifth of sales to be plug-in hybrids. (Aug 2022)
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The attorneys general of West Virginia and Arizona, joined by 22 others, wrote to the SEC arguing that its Enhancement and Standardization of Climate-Related Disclosures for Investors proposed in April of this year is an agency overreach and should be abandoned. They cited last week's SCOTUS ruling limiting the EPA's regulatory authority over power plants as a parallel, arguing that both cases represent the kind of sweeping change that would require legislation from Congress. The challenge to the proposed rule may be the first of many looking to reverse agency-led climate-related rules, based on the West Virginia vs. EPA precedent. (July 2022)
California Governor Gavin Newson has signed a new law that will “cut plastic pollution and hold the plastics industry accountable for their waste.” The Plastic Pollution Prevention and Packaging Producer Responsibility Act mandates a 65% rate of recycling for plastic packaging and plastic food service ware by 2032 (with interim targets of 30% and 40% in 2028 and 2030, respectively) and a 25% cut in the production of those goods over the same period. The new law also levies a $500 million (total) per year annual surcharge on producers of the plastics in question, to be allocated the California Plastic Pollution Mitigation Fund. (July 2022)
The Biden Administration and eleven East Coast states launched the “Federal-State Offshore Wind Implementation Partnership” to accelerate the development of offshore wind facilities. As the first course of action, the Partnership announced commitments to help strengthen the U.S. offshore wind supply chain by expanding key elements such as manufacturing facilities, port capabilities, and workforce development. The Biden Administration also announced steps to advance a National Offshore Wind Supply Chain Roadmap and designate offshore wind vessels as “Vessels of National Interest” to facilitate more offshore wind construction. (June 2022)
Sixteen states, four environmental groups and the United Auto Workers have filed three separate lawsuits against the United States Postal Service (USPS) and Postmaster General Louis DeJoy over their decision to purchase roughly 40,000 internal combustion vehicles for their delivery fleet. The lawsuits contend that the defendants signed the contracts before conducting a thorough and accurate environmental assessment. The White House and the EPA have also asked that the purchase be reconsidered and that a greater emphasis be placed on cutting emissions. (May 2022)
New offshore wind initiatives (Jan 2022):
- The Interior Department’s Bureau of Ocean Energy Management (BOEM) will hold an offshore wind lease sale for a record 480,000 acres next month, in the “New York Bight” area off the coasts of New York and New Jersey. The sale is projected to generate 5.6-7 gigawatts of clean energy and power 2 million homes. Notably, lease provisions will require lessees to identify any ocean users, tribes, and underserved communities affected by projects, and will financially incentivize lessees to source offshore wind components domestically. MORE »
- The BOEM and the states of New York and New Jersey released a “shared vision” for their new collaboration to develop a domestic offshore wind supply chain that benefits state and regional residents, including disadvantaged and overburdened communities. MORE »
- The National Oceanic and Atmospheric Administration (NOAA) and BOEM are forming an interagency agreement to advance offshore wind energy “while protecting biodiversity and promoting cooperative ocean use.” MORE »
- The National Offshore Wind Research and Development Consortium is awarding over $3 million to six offshore wind R&D projects, including GE Renewable Energy and GE Research. MORE »
New York unveiled the Fashion Sustainability and Social Accountability Act, which would be the first state legislation to hold fashion retailers accountable for their environmental impact. The bill would require apparel and footwear brands selling in the state and generating over $100 million in revenue to map at least 50% of their supply chain, disclose areas in the chain where they have the most social/environmental impact, and make clear plans to reduce the impact. Noncompliant companies would be fined up to 2% of their annual revenue, with their names published on an annual list by the state attorney general. (Jan 2022)
List of US States and Cities News, 2021-2019 (PDF)
International Institutions, Collaborations & Rankings
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The Global Environment Facility agreed to invest $1.1 billion for international action on biodiversity, climate change, nature renewal, and pollution control. Meeting as Council of the new Global Biodiversity Framework Fund (GBFF) for the first time, the Council approved over 60 projects and programs, including four blended finance initiatives involving the private sector. These four initiatives, funded with $81 million, are set to mobilize $1.36 billion in outside investment. (Feb 2024)
Nearly 200 countries adopted the final COP28 agreement, deemed the “UAE Consensus,” calling for “transitioning away” from fossil fuels for the first time. As the key passage (28(d)) notes, the agreement calls on Parties to contribute to: “Transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050 in keeping with the science.” Also included in that list of global efforts is: the tripling of renewable energy capacity and the doubling of the global average annual rate of energy efficiency improvements by 2030; accelerating efforts towards the phase-down of unabated coal power; and phasing out inefficient fossil fuel subsidies that do not address energy poverty or just transitions as soon as possible, among other commitments. (Dec 2023)
Countries rejected the latest guidance on operationalizing Articles 6.2 and 6.4 of the Paris Agreement at COP28. These articles cover bilateral and multilateral agreements (Article 6.2) and providing a centralized U.N.-administered mechanism (Article 6.4) to manage international carbon trading. However, Article 6.2 is mentioned in the Global Stocktake, suggesting Article 6.2 pilot deals can continue, according to reporting by Ecosystem Marketplace. (Dec 2023)
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The UN Food and Agriculture Organization (FAO) launched a three-year roadmap to transform land use and food systems to eliminate global hunger while aligning agriculture with the 1.5°C climate pathway. Volume 1 of the Roadmap outlines more than 120 actions across ten domains to transform global food production. In 2024, Volume 2 will move to a regional view and provide a vision for financing; and in 2025, Volume 3 will establish country action plans, monitoring, and accountability. (Dec 2023)
U.S. special climate envoy John Kerry launched at COP28 an international engagement plan to boost nuclear fusion as a tool to fight climate change. Kerry said the plan involved 35 nations and would focus on research and development, supply chain issues, and regulation and safety. (Dec 2023)
Some 116 countries have signed the Global Renewables and Energy Efficiency Pledge, which aims to triple global renewable generation capacity to at least 11,000 gigawatts. It also seeks to double the rate of energy efficiency improvements from around 2% to more than 4% annually through 2030. (Dec 2023)
22 countries including the U.S., France, Japan, and the UK, launched the Declaration to Triple Nuclear Energy, pledging to triple nuclear energy capacity by 2050. The Declaration also invites shareholders of international financial institutions to encourage the inclusion of nuclear energy in energy lending policies. (Dec 2023)
Three food-related commitments were made by governments and civil society organizations at COP28 that aim to ensure that food and agriculture emissions will be Paris-aligned (Dec 2023):
- 134 countries accounting for 70% of global food consumption and 76% of food system emissions signed the Emirates Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action, which requires that countries include food and land-use emissions in their nationally determined contributions (NDCs) and national adaptation plans by 2025.
- 128 countries signed the COP28 UAE Declaration on Climate and Health, which notes the need to adopt dietary shifts to benefit human health and the climate.
- Over 150 entities signed a Call to Action for Transforming Food Systems for People, Nature, and Climate, which brings together actors from all levels of society to transform food systems. In addition, more than $2.5 billion in funding was pledged to support food security, while combatting climate change. GreenBiz offers a breakdown of other notable sustainable food system announcements from COP28.
The Climate Club, a high-level political forum consisting of 35 countries and the EU representing more than 55% of the global economy, was launched at COP28. The Club will focus on accelerating the decarbonization of heavy industry (starting with steel and cement) through stronger collaboration on policies as well as technical and financial assistance. (Dec 2023)
The governments of France and Morocco, and the UN Environment Programme (UNEP), launched the Buildings Breakthrough at COP28, under which countries will collaborate to make climate-resilient, near-zero emission buildings commonplace by 2030. Twenty-seven countries have pledged their commitment to Buildings Breakthrough. Under the initiative, the Global Alliance for Buildings and Construction (GlobalABC) secretariat, the International Energy Agency, and the International Renewable Energy Agency, together with the UN Climate Change High-level Champions, will undertake an annual assessment of global progress in the building sector. (Dec 2023)
On the first day of COP28, delegates agreed on the operationalization of a “Climate Impact and Response Fund” to help compensate vulnerable countries coping with loss and damage caused by climate change. Initial pledges for the fund included €200 million ($218 million) from the European Union, $100 million from the United Arab Emirates, $17.5 million from the U.S., and $10 million from Japan. (Dec 2023)
National climate action plans remain insufficient to limit global temperature rise to 1.5°C,according to a new UN Climate Change report. If current Nationally Determined Contributions (NDCs) are implemented emissions will increase by about 8.8% compared to 2010 levels by 2030. 2030 emissions are projected to be 2% below 2019 levels, indicating the world will reach peak emissions this decade. However, to stay within the 1.5°C target a 43% reduction of GHG emissions by 2030 (compared to 2019 levels) is needed. A second report, exploring long-term low-emission development strategies, found that countries that plan to transition to net-zero could reduce GHG emissions by 63% in 2050 compared to 2019 if all strategies are fully implemented on time. (Nov 2023)
More than a dozen countries, including the U.S., formed an international working group to track GHG emissions across the natural gas supply chain. This MMRV Working Group will develop a shared and credible framework for the Measurement, Monitoring, Reporting, and Verification of methane, CO2, and other GHG emissions during the lifecycle of natural gas (from production to distribution). (Nov 2023)
The U.S. and China reaffirmed their commitment to work jointly and with other countries to address the climate crisis, according to a statement by the U.S. Department of State. The statement includes 25 points of cooperation, including around: accelerating renewable energy deployment; addressing GHG emissions beyond CO2 (methane, nitrous oxide, and HFCs); advancing large-scale carbon capture, utilization, and storage projects; reversing forest loss; and ending plastic pollution. (Nov 2023)
The United Nations Environment Programme (UNEP) published a Handbook for Delegates to the United Nations Environment Assembly. This handbook, aimed at member state representatives, observers, and stakeholders participating in the assembly, provides essential information on the rules of procedure at the Assembly as well as practical guidance related to logistics and visiting Nairobi. (Nov 2023)
The UN Transitional Committee reached agreement on a new proposal for a “loss and damage” fund to support developing countries to respond to climate change. This proposal establishes new guidelines for funding, including allowing for philanthropic donations and revenue from carbon pricing mechanisms. It also sets the World Bank as interim host for this fund. Negotiations will continue at the COP28 meetings. (Nov 2023)
The World Trade Organization is establishing a multilateral task force to create a global methodology for carbon pricing, according to reporting from Reuters. This is to ensure that efforts to tax imports based on carbon emissions do not unfairly penalize developing countries. (October 2023)
COP28 President-Designate Sultan Ahmed Al Jaber wrote a letter offering an agenda for the COP28 gathering. The letter provides discussion on key issues, including the Global Stocktake; adaptation; mitigation; loss and damage; and the means of implementation.
It also lays out specific commitments around: global renewable capacity; hydrogen; heavy-industry decarbonization; innovative solutions and policy incentives; and international finance institutions. (October 2023)
The World Bank’s Development Committee agreed to “ambitious reforms” that would increase the bank’s investments in climate action and sustainable development, according to German Development Minister Svenja Schulze, as reported by Reuters. This will allow the bank to offer stronger financing incentives for climate, biodiversity, pandemic prevention and other projects that have global rather than just country-specific benefits.(October 2023)
Leaders meeting at the Group of 20 (G20) summit released the New Delhi Leaders Declaration agreeing to “pursue and encourage efforts to triple renewable energy capacity globally” and a “phasedown of unabated coal power.” Leaders also committed to working “towards facilitating access to low-cost financing for developing countries, for existing as well as new and emerging clean and sustainable energy technologies and for supporting the energy transitions.” (Sept 2023)
A new Global Biofuels Alliance was announced at the G20 Summit by the leaders of India, Singapore, Bangladesh, Italy, the U.S., Brazil, Argentina, Mauritius and the United Arab Emirates. The Alliance intends to expedite biofuels use globally in part by facilitating technology advancements and shaping robust standard setting and certification. The alliance will also act as a central repository of knowledge and an expert hub. (Sept 2023)
The chair of the Intergovernmental Negotiating Committee on Plastic Pollution released a ”zero draft” of the global plastics treaty, the starting point for treaty negotiations. The draft includes two objective options: 1) to end plastic pollution and protect human health and the environment and 2) to protect human health and the environment from plastic pollution (with four sub-options on how to achieve this, including ending pollution; a lifecycle approach; prevention and progressive elimination; or better managing plastics and plastic waste. The draft does not include time-bound, numerical targets but proposes that harmful chemicals and the hardest-to-recycle plastics should be phased out more quickly. The draft also states that countries should development and implement national plans for contribution to the treaty, reporting publicly and regularly on progress. (Sept 2023)
The United Nations’ Committee on the Rights of the Child released a document stating all countries have a legal obligation to protect children from environmental degradation (including climate change). This includes “regulating business enterprises” and allowing children to seek legal recourse. While not legally binding, it is based on the Convention on the Rights of the Child, which every country but the U.S. has ratified. (Sept 2023)
Representatives of 185 countries agreed to launch the Global Biodiversity Framework Fund (GBFF), a new fund for biodiversity to attract funding from governments, philanthropy, and the private sector. GBFF is designed to mobilize and accelerate investment in the conservation and sustainability of wild species and ecosystems. So far, Canada has committed CAD$200 million ($147 million) and the UK £10 million ($13 million). However, the fund will not launch in December unless it reaches a minimum of $200 million, as required by the World Bank as a trustee, according to Reuters. (Aug 2023)
Leaders of the eight countries that share the Amazon basin gathered for a 2-day summit and issued a joint statement, The Belem Declaration, to bolster regional cooperation. The declaration did not include a clear commitment to end deforestation by 2030 but included an agreement to combat environmental crime and illegal activities in the Amazon, including plans to exchange information to combat illegal mining and logging. The declaration also asserted Indigenous rights, and agreements to cooperate on water, health, and sustainable development. Twelve rainforest countries also issued a communiqué calling on “developed countries to fulfill their climate financing obligations and to contribute to the mobilization of $200 billion per year by 2030.” (Aug 2023)
G20 environment and climate ministers met in India to accelerate action on climate change and other key environmental challenges and released an outcome document. However, the ministers failed to reach consensus on curbing emissions or scaling up renewable energy. Some members advocated for peak emissions by 2025 and reducing emissions 60% by 2035 (2019 baseline). No agreement was reached on depleting carbon budgets, historical emissions, net-zero goals and developing country financing, as Reuter reports. (July 2023)
The Council of the International Seabed Authority (ISA) met to negotiate draft regulations on deep sea mining. It expressed its aim to adopt these in 2025, with 2023 focused on adopting a roadmap and 2024 creating a consolidated negotiating text. As of now, no entity has filed any plan of work to mine, which would have triggered the “two-year rule” in which the ISA would consider and provisionally approve applications within two years, even without finalized regulations. (July 2023)
Member States of the International Maritime Organization (IMO) adopted a revised GHG reduction strategy for shipping that set a net zero emissions target "close to 2050." Additional targets include a commitment to having 5%-10% of shipping fuel and energy sources come from “alternative zero and near-zero” GHG fuels by 2030 and reducing emissions by at least 20% by 2030 and 70% by 2040 relative to 2008 levels. (July 2023)
45 countries signed a new ministerial statement at the conclusion of the International Energy Agency’s global conference on energy efficiency. This Versailles Statement recognizes the need for increased efficiency in all sectors and acknowledges these countries’ aim to “strengthen energy efficiency action through implementation of effective policy,” as well as supporting investment, measures to shift consumer preferences, and technological improvements. (June 2023)
The United Nations formally adopted the High Seas Treaty, a landmark legally binding marine biodiversity agreement covering international waters. The treaty contains 75 articles aimed at protecting, caring for, and ensuring the responsible use of the marine environment, maintaining the integrity of ocean ecosystems, and conserving the inherent value of marine biological diversity. It is now open for ratification by UN member states and will enter into force when 60 countries have ratified it. (June 2023)
The UK and France launched the Global Biodiversity Credits Roadmap. This initiative sets out a plan for scaling up global efforts to support companies buying credits that contribute to the recovery of nature in a credible way. The Global Roadmap will facilitate: the sharing of best practice on the governance mechanisms for credit funding; monitoring regimes to ensure biodiversity improvements; and the fair distribution of income to Indigenous peoples and local communities. (June 2023)
The G7 released its Clean Energy Economy Action Plan, outlining seven commitments to enhance cooperation to address the climate crisis, accelerate the clean energy transition and reach net zero emissions by 2050. These include (May 2023):
- Reaffirming commitment to the Paris Agreement and moving forward united;
- Maximizing the impact of incentives, industrial policies, and public and private investments;
- Reducing emissions through trade policies that drive decarbonization and emissions reductions;
- Establishing global supply chains that are both resilient and in line with high ESG standards;
- Promoting clean energy technologies, including their research, wide use, and import and export;
- Promoting trade and investment in clean energy goods and services, including critical minerals;
- Supporting global partners as they address poverty and reorient their economies to deliver inclusive and sustainable growth and decent work for all.
The US- and UAE-led Agriculture Innovation Mission for Climate (AIM for Climate) Summit announced that its partners would increase investment by $13 billion in “climate-smart” innovations in agriculture and food systems (over a 2020 baseline). AIM for Climate partners also agreed to an additional $1.8 billion in 21 new innovation sprints for the same purposes, for a total of 51 innovation sprints and $3 billion in investment. The Summit also welcomed new partner governments, including from Argentina, Fiji, Guatemala, India, Panama, Paraguay, and Sri Lanka. (May 2023)
The World Bank elected former Mastercard CEO Ajay Banga as president, after his nomination in February by U.S. President Joe Biden. (May 2023)
G7 energy and environment ministers released a new communiqué after meeting in Japan that will support main G7 talks in May. The 36-page document includes 92 subtopics, ranging from Sustainable Value Chains and Finance, to Water and Nature-based Solutions. As reported in Edie, commitments to renewables collectively reach 150GW of wind capacity and 1TW of solar by 2030 (see subtopic 64), higher than previous communiqués. Also included was a commitment to collaborate more closely on energy efficiency policies (#63), recognizing that this is “a key pillar in the global energy transition toward net-zero GHG emissions.” (April 2023)
The United Nations General Assembly passed a resolution asking the International Court of Justice (ICJ) to define countries’ legal obligations to address climate change. The resolution, proposed by Vanatu and supported by 17 countries, could provide a (non-binding) advisory opinion from the ICJ that could strengthen global climate cooperation and clarify international law. The opinion, which may take 18 to 24 months, could help shape national climate plans, clarify countries’ financial obligations, and strengthen domestic policy, and could help guide courts around the world facing a growing number of climate change cases. (April 2023)
The U.S. and Japan signed an agreement to strengthen critical minerals supply chains, establishing several new commitments and areas for joint cooperation, including the “non-imposition of export duties on critical minerals,” and the encouragement of higher labor and environmental standards. This is expected to help electric vehicles using metals processed in Japan qualify for tax incentives under the Inflation Reduction Act, as reported by the AP. (April 2023)
A coalition of governments (led by Columbia, the Democratic Republic of Congo, Ecuador, Gabon, Mexico, and Zambia) launched the Freshwater Challenge, the largest ever initiative to restore degraded rivers, lakes and wetlands, at the UN Water Conference. The Challenge calls on governments to commit to clear targets in their biodiversity, climate, and SDG (Sustainable Development Goals) plans to restore freshwater ecosystems, and aims to restore 300,000 km of rivers and 350 million hectares of wetlands by 2030. (March 2023)
After nearly two decades of negotiations, UN member states have agreed on a legal framework to protect the high seas (ocean areas outside national boundaries that make up 60% of the world’s oceans and span almost half the planet). The High Seas Treaty will protect ocean species and ecosystems, providing the ability to designate marine protected areas (by vote) that limit activities that harm marine life (such as fishing, mining, or geoengineering). The treaty will be critical to achieve the pledge to protect 30% of the ocean by 2030 that many countries made at the UN biodiversity conference in December 2022. Delegates have yet to formally adopt the text but will reconvene later to do so. Once approved by the UN General Assembly, the agreement will go into effect once 60 nations ratify it. (March 2023)
The U.S. and United Arab Emirates announced that the first $20 billion of their $100 billion Partnership for Accelerating Clean Energy will fund 15 gigawatts of renewable energy projects before 2035. This will be financed through $7 billion in private sector cash equity and $13 billion in U.S. debt financing and other instruments. (Jan 2023)
The Coalition of Trade Ministers on Climate launched at the World Economic Forum. Officials from more than 50 countries aim to promote trade, trade policies, and investment that support climate action, including “the uptake of goods, services and technologies that support climate mitigation and adaptation,” as well as the development of partnerships with finance communities and relevant stakeholders to foster climate-resilient development. (Jan 2023)
The U.S., Mexico, and Canada announced at the North American Leaders’ Summit that they will strengthen development of clean energy economies and respond to the climate crisis. Notable outcomes include:
- Committing to reduce methane emissions from the solid waste and wastewater sector by at least 15% by 2030 (from 2020 levels), and deepen collaboration on mitigating agriculture methane;
- Committing to trilateral cooperation to meet a joint commitment to conserve 30% of the world’s land and ocean area by 2030;
- Developing a North American clean hydrogen market;
- Coordinating the mapping of both the semiconductor supply chain and critical mineral resources and reserves;
- Developing operating standards for EV charging to ensure a seamless EV charging transition across North America;
- Developing a Food Loss and Waste Reduction Action Plan by 2025 to outline efforts to cut food loss and waste in half by 2030.
The U.S. and Japan signed a Memorandum of Cooperation to launch a Task Force on the Promotion of Human Rights and International Labor Standards in Supply Chains.
Through this task force, the two countries will exchange information on relevant laws, policies, and guidance; facilitate stakeholder dialogues with businesses and worker organizations; and promote best practices for human rights and internally recognized labor rights due diligence, in order to help protect workers and enhance predictability and clarity for businesses. (Jan 2023)
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195 nations agreed at COP 15 in Montreal to protect and restore at least 30% of Earth’s land and water by 2030. Countries also agreed on the importance of reforming environmentally harmful subsidies.
Rich countries also committed to pay $30 billion by 2030 to poorer countries to help protect nature. Some of this will be channeled through development aid, and some through a new biodiversity fund under the Global Environmental Facility.
In the discussion of whether it should be mandatory for businesses to disclose “their risks, dependencies and impacts on biodiversity,” while negotiators agreed companies should be transparent with regulators, mandatory was not included in the document.
(Jan 2023)
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G7 nations will provide $15.5 billion in public and private funding to Vietnam to help the country transition away from coal, making Vietnam the third recipient of a Just Energy Transition Partnership. Vietnam will set a target of getting 47% of its electricity from renewables by 2030, up from its current target of 36%, and limit its peak coal capacity to 30.2 GW, down from its earlier planned 37 GW. (Dec 2022)
The international donor community committed billions of dollars to support the protection and restoration of the natural world through a Donor Joint Statement at COP15. Notable commitments include (Dec 2022):
- The European Commission pledged €7 billion for biodiversity over 2021-2027;
- France doubled its international finance for biodiversity to reach €1 billion by 2025;
- Germany will increase its funding to €1.5 billion by 2025;
- And Spain will double its international funding for biodiversity, dedicating at least €550 million of its Official Development Aid for biodiversity between 2021-2025.
COP27 negotiators came to an agreement Sunday morning to create a climate “loss and damage” fund to help poor countries cope with climate disasters made worse by wealthy countries’ emissions. Representatives from 24 countries will work over the next year to determine what form the fund should take, such as direct payments or insurance payments, and which and how much countries and institutions (such as the World Bank and International Monetary Fund) will contribute to the fund. The agreement also stipulates that countries cannot be held legally liable for payments. Negotiators did not create a new consensus position on moving away from fossil fuels and the text simply reiterates COP26’s call for phasing down coal. The final text also failed to incorporate language calling for a peak in global greenhouse gases by 2025, which would be needed to keep warming to 1.5°C. (Nov 2022)
The U.S. and EU convened a Methane Ministerial at COP27 to highlight progress achieving the Global Methane Pledge (GMP) of cutting anthropogenic methane emissions by at least 30% by 2030 from 2020 levels, and to discuss further implementation steps. In the past year, country endorsements have grown from just over 100 to 150; more than 50 countries have developed national methane action plans or are in the process of doing so; substantial new financial resources are being directed to methane action; and partners have launched “pathways” of policies and initiatives to drive methane reductions in key methane-emitting sectors. Also launched at the Ministerial were the GMP Food and Agriculture Pathway and the GMP Waste Pathway, which will address methane emissions in the agriculture and in the waste sectors. (Nov 2022)
The Government of Indonesia and the World Economic Forum launched Ocean 20 (O20), a public-private initiative to ensure the long-term sustainability of the ocean economy. O20 is being proposed as an official Engagement Group of the G20, which represents 45% of the world’s coastlines, to develop policy recommendations for G20 leaders. O20 will engage leaders in working groups, focusing on blue carbon, plastic pollution, climate change, finance, and other key action areas. (Nov 2022)
The Egyptian COP27 Presidency, Germany, and IUCN launched the ENACT initiative, which will coordinate global efforts to address climate change, land and ecosystem degradation, and biodiversity loss through Nature-based Solutions (NbS). ENACT will serve as a hub for government and non-state actors to foster collaboration, accelerate action, facilitate policy dialogue and bring global coherence to activities. The initiative will also produce an annual State of Nature-based Solutions report to update COP28 and subsequent meetings on progress in implementing NbS commitments. (Nov 2022)
The UK’s COP26 Presidency and partners have launched the Accelerating To Zero (A2Z) Coalition, a platform for leading initiatives to work together to accelerate the transition to all new cars and vans being zero emissions by 2035 at the latest in leading markets and by 2040 globally. A2Z will now host last year’s Zero Emissions Vehicles Declaration, which has grown to 214 signatories — including governments, manufacturers, businesses, NGOs, and fleet owners — up from 130 at COP26. (Nov 2022)
The Biden Administration announced 13 new initiatives with Indonesia, including supporting sustainable development in Indonesia’s new capital, preserving biodiversity, supporting ports and fisheries, investing in green hydrogen, supporting climate-conscious transportation infrastructure, reducing plastic pollution, and investing in carbon capture. CEF member ExxonMobil and state-owned energy company Pertamina have signed a $2.5 billion agreement to further assess the development of a regional Carbon Capture and Sequestration Hub in Indonesia, enabling key industry sectors to decarbonize. (Nov 2022)
The International Partners Group (IPG), a group of countries co-led by the U.S. and Japan, launched the Just Energy Transition Partnership (JETP), developed with Indonesia to develop a comprehensive investment plan to shift Indonesia away from coal, capping power sector emissions by 2030 at 290 megatons (MT) of CO2, down from the baseline value of 357 MT, and deploying renewable energy to comprise at least 34% of power generation by 2030. To do this, IPG will mobilize $20 billion in private and public financing over a 3-5 year period, with $10 billion coming from public sector pledges and $10 billion from private financial institutions coordinated by the Glasgow Financial Alliance for Net Zero. A successful partnership would mean a reduction of over 2 gigatons of GHG emissions through 2060 from Indonesia’s current trajectory. (Nov 2022)
The World Business Council for Sustainable Development, the U.S., and the UK launched a new initiative to step up cooperation between companies and governments in emerging markets to transition to zero-emission vehicles. This one-year initiative will encourage and organize dialogue between governments in emerging markets and major companies to accelerate private investment and support public policies, enabling companies and governments to achieve their ambitious zero-emission vehicles deployment goals. (Nov 2022)
The COP27 Presidency launched the Sharm-El-Sheikh Adaptation Agenda, a new global plan that aims to mobilize state and non-state actors behind a shared set of climate adaptation outcomes for 2030. These 30 outcomes span food security and agriculture, water and nature, coasts and oceans, infrastructure, and human settlements, and could enhance the resilience of 4 billion people living in the most climate vulnerable communities. (Nov 2022)
Countries representing more than 50% of global GDP launched a package of 25 new collaborative actions to be delivered by COP28 to speed up decarbonization under five key breakthroughs of power, road transport, steel, hydrogen and agriculture. These build on the leader-level commitment at COP26 by 45 countries and include: developing common definitions for near-zero emission steel, hydrogen and sustainable batteries; setting a common target date to phase out polluting vehicles; strengthening technological and financial assistance to developing countries; and driving investment in R&D. (Nov 2022)
Leaders from 26 countries and the EU launched the Forest and Climate Leaders’ Partnership at COP27. Co-chaired by the U.S. and Ghana, the partnership will help to deliver the commitment made at COP26 by over 140 world leaders (representing over 90% of the world’s forests) to halt and reverse forest loss and land degradation by 2030 while delivering sustainable development and promoting an inclusive rural transformation. (Nov 2022)
The Green Shipping Challenge launched during the World Leaders Summit of COP27. Countries, ports, and companies made more than 40 announcements on issues such as innovations for ships, expansion in low- or zero-emission fuels, and policies to help promote the uptake of next-generation vessels. Announcements included:
- CEF Member Amazon signaled its demand for zero emissions ocean shipping by 2040 and reviewed its several initiatives supporting this transition, including investments, partnerships, and fuel purchases;
- The U.S. is launching a Green Shipping Corridors initiation project to support green shipping corridors involving developing countries, and is also launching a Green Shipping Corridor Hub, an online platform with tools to streamline green shipping corridors globally;
- The U.S. is facilitating green shipping corridors with Canada, Korea, and the UK.
- The U.S. will develop a national action plan for maritime decarbonization beginning in 2023.
In a parallel announcement, the UK pledged to roll out green maritime links with the U.S., Norway, and the Netherlands, and agreed to launch a special Green Shipping Corridor Task Force with the U.S. to bring sector experts together and encourage R&D. (Nov 2022)
The U.S. and the United Arab Emirates signed a new clean energy framework, the U.S.-UAE Partnership for Accelerating Clean Energy (PACE). PACE is set to catalyze $100 billion in financing, investment, and other support and to deploy globally 100 gigawatts of clean energy by 2035 to advance the energy transition. It will focus on clean energy innovation and development, carbon and methane management, nuclear energy, and industrial and transport decarbonization. (Nov 2022)
The World Bank will launch Scaling Climate Action by Lowering Emissions (SCALE) — a trust fund that will pool public funds to provide grants to developing countries as they successfully complete projects that reduce carbon emissions — at COP27 in November. SCALE will focus on three areas that are aligned with results-based grants: natural climate solutions, e.g. agriculture or forest based; sustainable infrastructure; and financial solutions that indirectly mobilize resources for climate actions. (Oct 2022)
The International Civil Aviation Organization (ICAO) agreed to a long-term but non-binding goal for net-zero aviation emissions by 2050. ICAO also agreed that airlines will use the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) setting the threshold to offset at 85% of 2019 carbon emissions. (Oct 2022)
More than 20 countries, led by Japan, have agreed to boost output of low-emission hydrogen to at least 90 million metric tons a year by 2030 from the 1 million tons today.
This is almost in line with the International Energy Agency’s target of 95 million tons required to help achieve its 2050 net zero scenario. (Oct 2022)
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The Governments of Rwanda and Norway launched “The High Ambition Coalition to End Plastic Pollution,” a coalition of 20 countries.
This coalition was initiated following the UN Environment Agency resolution in March 2022 to start negotiations on a legally binding instrument to end plastic pollution. The coalition will work to inform negotiations in order to develop a treaty by 2024. Its first formal meeting will be in November. (Aug 2022)
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The UN General Assembly has adopted a resolution declaring access to a “clean, healthy, and sustainable environment” a universal human right. While not technically legally binding, the resolution “emphasizes the underpinning of legal obligations to act, rather than simply of discretionary policy,” according to UN High Commissioner for Human Rights Michelle Bachelet, adding, "The General Assembly resolution is very clear: States must implement their international commitments and scale up their efforts to realize it." There were no votes against the resolution and eight abstentions. (Aug 2021)
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Twenty-one new governments announced they will join the New Plastics Economy Global Commitment, spearheaded in 2018 by the Ellen MacArthur Foundation and UNEP. The Global Commitment engages and coordinates stakeholders across the plastics value chain to drive the transition towards a circular economy for plastic. Business and government signatories must set ambitious actions and targets across the life cycle to address plastic pollution and report annually on progress. (July 2022)
Leaders of the G-7 announced a new Climate Club through which members, who must commit to full implementation of the Paris Agreement, aim to help eliminate a “chaotic patchwork of national regulations that could increase the risk of new trade conflicts as countries slap levies or tariffs on imports deemed less sustainable.” The club hopes to help mitigate disadvantages faced by companies doing business in regions with more ambitious carbon-reduction goals and put pressure on non-members to adopt stricter climate protection measures. (July 2022)
The Bonn Climate Change Conference concluded last week without significant progress on a so-called “loss and damage” process pursued by some developing countries’ representatives. The term refers to compensation sought for climate-caused damages to poorer countries caused primarily by decades of emissions from richer ones—primarily the U.S. and European countries. Without loss and damage compensation, representatives argued, developing countries must spend their limited capital reactively on emergency repair rather than proactively on resilient infrastructure, leaving them vulnerable to a downward economic spiral. Ultimately, efforts to have loss and damage measures placed on the official agenda for COP27 in Egypt later this year were effectively blocked. (June 2022)
The Biden administration, in partnership with 12 Indo-Pacific countries, announced plans to establish the Indo-Pacific Economic Framework for Prosperity (“the Framework”), an economic alliance the administration hopes will lead to improved environmental and labor practices in the region. The Framework is intended to reassert U.S. economic influence in the region that was eroded when the Trump administration pulled the U.S. out of the Trans-Pacific Partnership. In addition to trade, tax, and anti-corruption measures, the Framework will endeavor to (May 2022):
- Improve transparency, diversity, security, and sustainability in supply chains to minimize business disruptions and ensure access to critical materials.
- Accelerate and broaden the adoption of technologies for clean energy, decarbonization, and climate-resilient infrastructure
Details of how its goals will be achieved have yet to be worked out. Negotiations will begin this summer, and the administration hopes to finalize agreements within 18 months.
A newly formed Climate Overshoot Commission will conduct a comprehensive assessment of the risks and response options associated with global temperature rise in excess of 1.5C. The Commission, an offshoot of the Paris Peace Forum, is composed of 15 members including former heads of state, organization directors, environmental leaders, and academics—each acting in an independent capacity. With an emphasis on ethics and equity, they will consider a range of options to limit the severity of global warming, including accelerated adaptation measures, carbon dioxide removal, and sunlight reflection. The group will present its mitigation strategy at the UN Climate Change Conference next year. (May 2022)
Twenty-nine countries jointly pledged a record $5.25 billion to the Global Environment Facility (GEF), a 30% increase of funding to the multilateral global fund that supports developing countries’ efforts to address all aspects of environmental health. Biodiversity protection is the top priority for this latest GEF programming period (GEF-8), in addition to “addressing threats from climate change, land degradation, and chemicals and waste, and alleviating pressures on the ocean and international waterways.” (April 2022)
The International Monetary Fund announced a goal of raising at least $45 billion for a new financial assistance program to help low-and-middle-income countries adapt to climate change and other longer-term challenges. The new facility, “Resilience and Sustainability Trust,” will take effect on May 1. (April 2022)
“G20 Zero-Carbon Policy Scoreboard 2022” (BloombergNEF) — Ranks G20 nations based on their governments’ current decarbonization policies against the 2015 Paris Agreement goal of limiting global temperature rise to 1.5°C. Each country is scored out of 100% based on over 120 metrics covering (April 2022):
- What types of low-carbon policy have been implemented.
- BloombergNEF's assessment of the robustness and effectiveness of these programs and the overall policy-making process.
- Whether these policies are driving change in practice.
BNEF’s main takeaway: Despite some examples of progress, none of the countries are currently on target to fully support the Paris Agreement goal. Scores for the EU, U.K., and U.S. are 76%, 72%, and 57%, respectively. The average score for all countries is 52%, up one point from last year’s figure. (April 2022)
Recent in-person negotiations to establish a broad international framework for preventing biodiversity loss made only modest progress before concluding. Delegates from 164 countries met in Geneva hoping to finalize a draft of the framework that would then be reviewed at the fall 2022 U.N. Convention on Biodiversity summit in China. Financing and timelines are key areas of disagreement. Talks are scheduled to resume in Kenya in June. (April 2022)
The European Council agreed to support the creation of the world's first carbon border adjustment mechanism (CBAM), as part of the “Fit for 55” legislation package to reduce the EU’s GHG emissions by 55% by 2030. The mechanism would apply to products in the cement, aluminum, fertilizer, electric energy production, iron, and steel sectors, with a three-year transition phase starting in 2023 and the mechanism starting in 2026. (March 2022)
175 nations passed a resolution to develop the first-ever global, legally binding treaty to “end plastic pollution.” A new Intergovernmental Negotiating Committee will work to complete a draft treaty by year-end 2024, and UNEP will partner with governments and businesses to shift away from single-use plastics, mobilize private finance, and remove circular economy investment barriers. (March 2022)
The International Monetary Fund outlined plans proposing a $50 billion Resilience and Sustainability Trust (RST) to help low-income and vulnerable middle-income countries build resilience for longer-term challenges, including climate change, digitalization, and pandemic preparedness. If approved by its executive board in April, the lending trust could be operational by year-end. (Jan 2022)
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Canada released an updated on design options being considered for the final Clean Electricity Regulations, based on feedback received during consultations. Four changes are being considered including: how to measure emissions performance of utilities (aggregated or applied to each unit); the underlying performance standard; whether emissions limits can be pooled in the same jurisdiction; and whether emissions overages are allowed if offsets are applied. The public can comment until 15 March 2024. (Feb 2024)
Canada finalized its regulation requiring 100% zero emissions light duty vehicles sales targets by 2035. For the 2026 model year, the percentage of ZEVs is at least 20%, and grows to 60% for 2030. (Jan 2024)
Canada launched a consultation on the creation of a Federal Plastics Registry, which will be used to monitor plastic from its creation to its end of life. The Registry would require producers to report annually on the quantity and types of plastic they place on the Canadian market, how that plastic moves through the economy, and how it is managed at end of life. The Registry would use that information to measure progress toward zero plastic waste and accelerate the transition to a circular economy.
This consultation
is open until 13 February 2024.
(Jan 2024)
The Canada Growth Fund (a federal investment arm) committed to buy as many as one million metric tons of carbon credits from Entropy, a carbon capture and storage developer, helping to guarantee the future price of carbon in a
first-of-its-kind deal, according to reporting from Bloomberg and Reuters. The Fund will initially purchase
185,000 metric tons annually at C$86.50 ($64.93) per ton and has set aside C$1 billion to fulfill the first and second phase of the commitment.
The Fund aims to sell these credits to companies that cannot decarbonize as efficiently. (Jan 2024)
Brazil’s Securities and Exchange Commission (CVM) and Ministry of Finance announced a new resolution (CVM Resolution 193) that aims to make sustainability reporting mandatory in 2026. Initially this resolution will allow public companies and investment funds to disclose sustainability reports (based on IFRS S1 and S2) on a voluntary basis starting in 2024. (Oct 2023)
Ecuador inked the largest debt for nature swap on record, a deal that will channel $12 million annually into environmental protection of the Galapagos Islands. The swap, with support from the U.S. International Development Finance Corporation, Inter-American Development Bank, and Credit Suisse, creates a $656 million Galapagos Marine Bond that will finance conservation measures on the islands, while providing investors in this “blue bond” 5.645% interest. The deal cuts Ecuador’s debt by more than $1 billion. (May 2023)
Canada proposed new regulation to reduce plastic waste. These include: recycled content requirements mandating minimum levels of post-consumer plastics in packaging; labelling rules that would require more accurate information on recyclability; and compostability labelling rules that would prohibit “biodegradable or “degradable” on plastic packaging and single-use plastics (SUPs) and put limits on the use of the term “compostable.” The regulation would also expand collection programs in provinces, increase consistency in collection and recycling programs in Canada, and improve recycling infrastructure for packaging and SUPs. Stakeholders are invited to view the full framework and provide feedback before 18 May 2023. (April 2023)
Canada announced C$83 billion ($61 billion) in sustainable investment tax credits over the next decade in its 2023 budget. These include a C$25.7 billion through the Clean Energy Investment Tax Credit — a 15% refundable tax on investments in non-emitting electricity generating systems, abated natural gas-fired electricity, and electricity storage; C$11.1 billion on a 30% refundable clean technology manufacturing credit; as well as tax credits on clean hydrogen (C$17.6 billion), clean technology (C$15.8 billion), and carbon-capture (C$516 million), which were previously announced. (April 2023)
Canada’s Office of the Superintendent of Financial Institutions (OSFI) published new guidelines on climate risk management. These will set out requirements for banks and insurance companies to manage and disclose climate-related risks, including governance, strategy, risk management, and metrics and targets. Also required will be the reporting of scope 1, 2, and 3 emissions, including financed, facilitated, and insured emissions. The banks and insurers are also directed to maintain capital and liquidity buffers for climate-related risks. (March 2023)
New standards released by the Canadian government will require large government suppliers (procurements greater than $25 million) to measure and disclose greenhouse gas emissions and set targets to reduce them. The measure takes effect on April 1, 2023 and will require suppliers to participate either in a federal program that tracks and verifies climate plans or an internationally recognized equivalent. The government also announced a new construction standard that will require all new major government construction projects to report and reduce their embodied carbon footprint. (March 2023)
Canada will require all new cars, SUVs, and pick-up trucks sold in the country to be zero emission vehicles (ZEVs) by 2035, according to proposed regulations in December. Canada also introduced a series of interim sales mandates, requiring ZEVs to make up 20% of new vehicle sales by 2026 and 60% by 2030. There is a 75-day consultation period for these regulations with public comment possible here. (Jan 2023)
The Business Development Bank of Canada (BDC) announced the launch of its Climate Tech Fund II, a new $400 million fund aimed at investing in and supporting Canadian climate teach and clean tech firms. This follows the $600 million Climate Tech Fund I launched in 2018, and brings commitments to $1 billion. (Nov 2022)
Former president Luiz Inácio Lula da Silva defeated incumbent Jair Bolsonaro in Brazil's presidential runoff election. Lula has a history of empowering enforcement and monitoring agencies to stop illegal deforestation activities, with deforestation declining 43.7% during in his first term (from 2003 to 2006) and another 52.3% during his second term (until 2010). Under president Bolsonaro, deforestation surged 72%. (Nov 2022)
Canada released draft guidance on how new oil and gas projects should demonstrate "best-in-class" greenhouse gas emissions performance, following up on a government announcement first made in April. Companies are expected to identify best emissions performance on similar projects globally and show how their projects will match this performance, and how they will aim to get projects toward net-zero emissions. (Oct 2022)
Canada has released a discussion paper outlining proposals to sharply reduce greenhouse gas emissions from its oil and gas sector, which accounts for 27% of the country's total emissions. The paper puts forward two options to bring the sector's emissions into alignment with Canada's goal of net zero emissions by 2050 and 2030 interim targets: 1) Implement a cap-and-trade system that sets regulated limits on emissions from the sector, and 2) Adjust carbon pricing for heavy industry to create a cost incentive to reduce emissions. Alberta's provincial government has already raised objections, saying the proposals challenge the province's "constitutionally protected ability to develop [its] resources." The consultation period will run through September 30, 2022. (July 2022)
The Government of Canada launched the country’s Greenhouse Gas Offset Credit System, a key part of its 2030 Emissions Reduction Plan that will give municipalities, foresters, farmers, Indigenous communities and others that register with the system a market-based incentive to undertake innovative projects that prevent greenhouse gas (GHG) emissions and remove GHGs from the atmosphere. Projects that meet specific criteria and follow a federal offset protocol for measuring GHG emissions reductions or removals, can then generate one offset credit for every ton of emissions they reduce or remove from the atmosphere, and can be sold to others to meet compliance obligations or emissions reduction goals. The first of five planned protocols was announced: the Landfill Methane Recovery and Destruction protocol, which will permit municipalities and other landfill operators to generate offset credits for recovering landfill gas and destroying it or repurposing it into energy. Future protocols under development will cover activities such as advanced refrigeration, agriculture, and forest management. (June 2022)
The Bahamas is developing a plan to be one of the first countries to monetize its natural ocean-based carbon sinks—primarily mangroves and seagrass meadows—on the voluntary carbon market. Officials there have identified about $300 million in assets and are still counting. They would be offered as “blue” carbon credits starting later this year, with revenue channeled into projects that would improve the nation’s readiness for climate change. Officials will be holding a regional meeting in coming weeks to try to bring other Caribbean nations into the initiative. (May 2022)
Canadian Prime Minister Justin Trudeau’s new budget includes significant tax incentives to encourage oil and gas companies to accelerate their efforts to lower emissions. The proposals for years 2022–2030 include refundable tax credits of (April 2022):
- 60% for investments in direct air capture (DAC) equipment.
- 50% for investments in all other carbon capture, utilization, and storage (CCUS) equipment.
Those rates will be cut in half for the period from 2031–2040, in a move meant to drive as much investment in this decade as possible. The budget also proposes a 30% tax credit for mineral exploration expenses, and specifically for many minerals essential to renewable energy generation and storage. (April 2022)
Canada has introduced its new “2030 Emissions Reduction Plan (ERP),” laying out its roadmap to achieve 40–45% GHG emissions reduction by 2030 (2005 baseline). It is the first ERP to be issued since Canada’s 2021 adoption of the Canadian Net-Zero Emissions Accountability Act, which enshrined Canada’s commitment to reaching net-zero emissions by 2050. (April 2022)
List of Americas News, 2021-2019 (PDF)
Asia Pacific
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China set a stronger energy intensity target for 2024, aiming for a 2.5% reduction in the amount of energy per unit of economic growth, according to Reuters. This comes after missing its 2023 goal of a 2% reduction, having only cut energy intensity 0.5% that year. (March 2024)
Singapore announced it will require all departing flights to use sustainable aviation fuel (SAF) starting in 2026. Singapore is aiming for a 1% SAF target from 2026, increasing to 3-5% by 2030. It will introduce a SAF levy to provide cost certainty for airlines and passengers, based on the current SAF target and price. (March 2024)
China announced it would compile an annual greenhouse gas inventory for the country as part of an effort to halt emissions growth before 2030 and to achieve carbon neutrality by 2060, according to reporting from Reuters. Its last official inventory, submitted in 2023, covered 2017. (Jan 2024)
The Australian Competition and Consumer Commission (ACCC) published final guidance on environmental claims, laying out eight principles to help businesses ensure any environmental marketing claims they make do not mislead customers. The principles include: Make accurate claims; Have evidence to support your claims; Don’t omit important information; Explain any conditions on claims; Avoid unqualified claims; Use easy-to-understand language; Visual elements should not mislead; and Be direct about your sustainability transition. In early 2024, the ACCC will release further guidance on emission and offset claims. (Dec 2023)
China will increase monitoring, reporting and data transparency of methane releases, according to a Ministry of Ecology and Environment document as reported by Bloomberg. China will deploy new technologies to identify and reduce methane emissions in power generation, industry, and agriculture, though specific targets were not set. (Nov 2023)
The Chinese government announced it will impose export controls starting 1 December 2023 on certain graphite materials and related products, including both natural graphite, and artificial graphite materials and related products with high purity, strength, and density, unless permission is granted. (Oct 2023)
The Asian Infrastructure Investment Bank (AIIB) announced it will triple its financing for climate-related projects by 2030 (compared to 2022 levels). This adds up to at least $7 billion in annual climate finance approvals by 2030.
India will set carbon emission reduction targets for four fossil fuel dependent sectors, said two unnamed government officials, according to reporting by Reuters. These include petrochemicals, iron and steel, cement, and pulp and paper and will set both reduction targets and emission intensity benchmarks for three years. They will also likely be the first sectors to trade on the country’s carbon trading market starting in April 2025.
Indonesia delayed its plan to announce investments from a fund of $20 billion pledged by wealthy countries and global lenders to speed its energy transition until later this year. The delay of Indonesia’s Just Energy Transition Partnership (JETP) will provide more time for public feedback, and allow technical experts additional time to prepare a credible pathway, according to reporting from Reuters. (Aug 2023)
The Securities and Exchange Board of India (SEBI) announced new investment and disclosure rules for ESG funds to “facilitate green financing” and mitigate greenwashing risks. ESG funds will be required to have at least 80% of their assets invested in securities aligned with their specific strategies (such as exclusion, best-in-class, and transition-related investments). Asset managers will also be required to provide monthly ESG scores for their holdings and provide explanations supporting their voting decisions, including whether the vote was made for ESG reasons. (July 2023)
The Australian government is planning to implement mandatory climate-related financial disclosure and is seeking feedback on these rules. Requirements would apply as soon as 2024 for large businesses, with a phased-in approach for smaller businesses. Views are especially being sought on whether the proposed positions relating to coverage, content, framework and liability are workable. This is the second consultation period and runs until 21 July 2023. The consultation paper and information on how to submit views is available here. (July 2023)
The Indian government will not consider new proposals for coal-fired power plants for the next five years, focusing instead on developing renewable energy. This is different than its draft national electricity plan released in September, which projected the country required nearly 8,000 MW of coal capacity by 2027. Instead the new strategy proposes building out more than 8,600 MW of battery energy storage. Building of new coal-fired plants could resume in 2027. Currently coal supplies around 75% of India’s electricity. (June 2023)
India’s Ministry of Electronics and Information Technology launched a pilot project to capture a larger share of the global electronics repair industry, promoting India as a global repair hub. This Electronics Repair Services Outsourcing (ERSO) program will do so by relaxing customs and e-waste rules and allow companies to repair consumer electronics and telecom equipment imported from other regions. Repaired products will then be exported, not sold on domestic markets. The project will run for two months (from 1 June) before being assessed for setting a wider policy. (June 2023)
India announced it plans to mandate the use of 1% sustainable aviation fuel (SAF) for domestic airlines by 2025 (subject to approval by the cabinet), as reported by Reuters. This would total about 140 million liters of biofuels. The mandate could rise to 4-5% if biofuel supplies are available. (May 2023)
China announced it would enforce stricter emissions standards for vehicles starting 1 July. After that date, vehicles that do not meet the new standards (VI-b) will be banned from being produced, imported, or sold. The standards include stricter requirements on pollutants, including carbon monoxide, and require Real-Driving Emission (RDE) tests. For cars that have yet to meet the requirements of the RDE test, distributors will have until 31 December to sell these. (May 2023)
The Reserve Bank of India released a report that found India will need to spend about $1.05 trillion by 2030 to adapt its industries to be compliant with climate change norms. The bank recommended sector-specific approaches to climate risk mitigation, and, according to Reuters, is expected to set a disclosure framework on climate-related financial risks and guidance on climate scenario analysis soon. (May 2023)
The Asian Development Bank (ADB) launched the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP), a program that could significantly ramp up support for addressing climate change in the region. IF-CAP would raise funding from its partners (currently Denmark, Japan, the Republic of Korea, Sweden, the U.S., and the UK) to provide loans for climate projects. The program would provide $5 in loans for every $1 made in guarantees, with an initial ambition of $3 billion in guarantees (and $15 billion in loans). According to the ADB, this is the first time a multinational development bank is using a leveraged guarantee mechanism for climate finance. (May 2023)
The central banks of Singapore and China launched the “China-Singapore Green Finance Taskforce (GFTF)” to deepen bilateral cooperation in green and transition finance and facilitate public-private collaboration required to finance Asia’s low carbon transition. GFTF’s priority areas include achieving interoperability between the Singapore and China taxonomies and piloting digital green bonds with carbon credits. (May 2023)
The Monetary Authority of Singapore (MAS) launched its Finance for Net Zero (FiNZ) Action Plan. This sets out MAS’ strategies to mobilize financing to catalyze Asia’s net zero transition and decarbonization activities in Singapore and the region. The plan has four strategic goals: to promote consistent and reliable climate data; foster sound environmental risk management practices and climate stress testing; support the development of credible transition plans; and promote innovative transition financing solutions. (April 2023)
South Korea weakened its 2030 target for reducing greenhouse gas emissions in the industrial sector from 14.5% to 11.4% but maintained its goal of reducing emissions 40% by 2030 (from 2018 levels). The country eased targets in light of “domestic conditions including raw material supply and technology prospects.” South Korea also aims to increase nuclear energy from 27.4% (in 2021) of total power generation to 32.4% in 2030 and renewables to at least 21.6%, up from 7.5%. (March 2023)
Japan’s ministry of industry set a target for annual CO2 storage capacity of 6-12 million metric tons (MT) by 2030 as part of its long-term roadmap for carbon capture and storage. It aims to increase annual CO2 storage by 6-12 million MT every year from 2030, storing 120-240 million MT annually in 2050. The ministry also wants to have legislative frameworks in place to allow companies to launch full-scale CCS operations from 2030, according to reporting from Reuters. (Jan 2023)
The government of India announced cabinet approval of its National Green Hydrogen Mission, a strategy to establish the country as a leading green hydrogen production hub. India expects to produce five million metric tons of green hydrogen and generate $97 billion in investment and 600,000 jobs by 2030. The plan is also expected to reduce fossil fuel imports by more than $12 billion by 2030. The cabinet also approved more than $2 billion in incentives for the green hydrogen transition. (Jan 2023)
The Australian government published a consultation paper on the development of mandatory climate-related financial disclosures for large listed companies and financial institutions. Questions included whether ISSB standards are most appropriate, and what reporting requirements for Scope 3 emissions should entail. Responses can be submitted until February 17, 2023. (Dec 2022)
China announced it will build a “green technology innovation system” between 2021 and 2025 to tackle air, soil, and groundwater pollution, reduce waste, protect ecosystems, and achieve carbon neutrality by 2060. This system, which will based in high-tech solutions using innovations in big data, biotech and artificial intelligence, will be backed by tax incentives and new “green technology banks.” (Nov 2022)
Australia joined over 120 countries committing to collectively reduce global methane emissions by at least 30% below 2020 levels by 2030 across energy and resources, agriculture, and waste sectors. The Australian government will invest up to $3 billion for low emissions technologies and agricultural methane reduction. It will also make smaller investments in low-emissions livestock feed supplements, and capturing methane from landfills, coal mines, and gas infrastructure. (Oct 2022)
President Xi Jinping said China will prioritize environmental protection, vowing to “basically eliminate” heavy air and water pollution and bring soil contamination under control. He said China will promote green lifestyles, support low-carbon industries, and build a new energy system while continuing to promote the “clean and efficient use of coal.” (Oct 2022)
Indonesia will start subsidizing electric vehicle (EV) purchases in 2023 to achieve its goal of having 2.5 million EV users by 2025 to stimulate demand and reduce air pollution. This is a ninety-fold increase from its current total of 28,000 EVs, most of which are motorcycles. It is also considering subsidizing the conversion of internal combustion vehicles. (Oct 2022)
Australia’s Minister for the Environment and Water released the Threatened Species Action Plan: Towards Zero Extinctions, which sets a path for threatened species conservation and recovery over the next 10 years. The plan sets objectives to prevent any new extinctions of plants and animals, and to protect and conserve at least 30% of Australia’s land mass. It prioritizes 110 species and 20 places, identified by independent scientists, to focus action where most needed. (Oct 2022)
Indonesia has issued new regulation to increase renewable energy use. The country aims to increase the proportion of renewables in its energy mix to 23% by 2025, up from its current 12%, and has set a new pricing system for renewables. It also plans to retire 15 gigawatts of coal power generation early, with the government helping to absorb losses. No new coal power plants can be built, other than those that service natural resources processing and are already in the pipeline. Coal currently makes up 60% of Indonesia’s energy mix. (Sept 2022)
The Australian Senate passed a new climate law that will make legally binding a 43% CO2 emissions cut from 2005 levels by 2030. This law marks the first time Australia has mandated climate targets. (Sept 2022)
GAIL, India’s state-owned natural gas utility, has set a target to achieve net zero carbon emissions from its operations by 2040.
Specifically it intends to achieve a 100% reduction in Scope 1 and Scope 2 emissions and a 35% reduction in Scope 3 emissions. GAIL aims to produce green hydrogen and install 3 GW of renewable energy capacity by 2030. (Aug 2022)
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Recently elected Australian Prime Minister Anthony Albanese announced new, more ambitious climate targets for Australia, in recognition of the fact that the country is one the world’s highest per-capita carbon emitters. To bring them more in line with the commitments of other developed economies, he pledged to cut carbon emissions by 43% (2005 baseline) by 2030, approximately 15% more than the previous government’s target. (June 2022)
China’s state planning agency announced a new five-year plan for its renewable sector, aiming for grids to generate 33% of power from renewable sources by 2025, up from 28.8% in 2020. The country pledged to nearly double current wind and solar capacity, increasing the combined capacity to 1,200 gigawatts by 2030. The plan also states an intention to raise the share of non-fossil fuels in total energy use to 20%, up from 15.4% in 2020. (June 2022)
China has announced plans to plant and conserve 70 billion trees by 2030. The commitment is a response to the World Economic Forum’s 1t.org initiative, which has a mission of conserving, restoring, and growing 1 trillion trees by 2030 in support of the UN Decade on Ecosystem Restoration. (May 2022)
China’s Shandong province, an industrial hub south of Beijing, issued a call for bids to construct 10 offshore solar farms in its shallow coastal waters. The capacity planned is 11.25 gigawatts—more than peak consumption in New Zealand—and is part of the province’s broader plans to build 42 gigawatts of solar and 35 gigawatts of wind power in its offshore areas, and China’s target of 1,200 gigawatts of wind ad solar by 2030. (May 2022)
Japan intends to help companies store carbon dioxide underground or under the seabed by 2030 to help the country achieve its 2050 carbon neutral goal. Japan also said it would store 120-240 million tons of CO2 a year in 2050. A new legal framework will be created to improve predictability for companies. (April 2022)
Taiwan announced plan to spend about NT$900 billion ($32 billion) between 2022 and 2030 to accelerate its use of renewable technologies, grid infrastructure, and energy storage. The announcement follows news that Taiwan will likely be 1–2 years behind on its goal of 20% renewable-sourced power by 2025—a milestone on its path to reach 60–70% renewable-sourced power by 2050. (April 2022)
China’s National Development and Reform Commission (NDRC) announced that China aims to produce 100,000 to 200,000 tons of green hydrogen per year and have about 50,000 hydrogen-fueled vehicles by 2025. The statement also described ambitions to establish a comprehensive hydrogen industry spanning transportation, energy storage and industrial sectors and to "significantly improve" the portion of green hydrogen in China's energy consumption by 2035. (March 2022)
India unveiled the first phase of its new National Hydrogen Policy and announced plans to manufacture 5 million tons of “green hydrogen” (hydrogen produced using renewable energy) by 2030. It plans to mandate power plant use of green hydrogen and green ammonia in the second phase. (Feb 2022)
China released its five-year agricultural plan, which for the first time includes cultivated meats and other “future foods” as part of its strategy for food security. (Feb 2022)
Japanese Prime Minister Kishida Fumio outlined a new vision to transform Japan by implementing “liberal democratic capitalism” and investing in green technology, human capital, and digitization. He plans to more than double investment in green technology, introduce a carbon-pricing system, transition to clean energy, increase corporate disclosure, and utilize public-private partnerships to drive the development of new policies. (Jan 2022)
Taiwan's largest pension fund—the Bureau of Labor Funds, which has $199 billion worth of assets—will issue what a fund official says is Asia's first climate change-focused stock mandate, worth $2.3 billion.
Selected asset managers are expected to deliver an additional 0.5% annualized return “on top of the performance of a climate index,” according to
Reuters, and all portfolio companies that the managers choose must be “index constituents.” (Jan 2022)
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List of Asia Pacific News, 2021-2020 (PDF)
European Union
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Europe’s highest human rights court ruled in favor of the Association of Senior Women for Climate Protection Switzerland in a landmark climate ruling. This group, representing more than 2,000 Swiss women over 64 years old (and thus particularly vulnerable to heat-related illnesses) argued that the Swiss government was not doing enough to combat climate change, which increases heat risks. The court found the government had failed to quantify greenhouse gas emissions limitations and meet its past emission reduction targets and ordered the country to address these shortcomings. The ruling is binding and may affect the law in Europe and the outcomes of other pending court cases. The court dismissed two other climate cases, one by Portuguese youth, and one by a former French mayor. (April 2024)
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The European Council formally adopted the revised Energy Performance on Buildings Directive, which sets that by 2030 all new buildings should be zero-emissions, and that by 2050 EU’s building stock should be zero-emissions. New performance standards will set minimum energy performance standards for non-residential buildings and renovation targets for residential buildings, and provisions to phase out fossil fuel boilers by 2040. Once signed, member states will have two years to incorporate the rules into national legislation. (April 2024)
The European Parliament adopted a provisional agreement to establish a new voluntary certification framework for carbon removals
to boost their deployment and monitor their quantity and quality. The framework includes different types of removals including industrial removal, carbon farming, and carbon storage in long-lasting products.
The agreement now needs to be adopted by the Council.
(April 2024)
The European Council removed a vote on the Nature Restoration Law from its agenda after failing to get necessary support from EU members. Eight member states withdrew support for the legislation at this final stage of passing the law. (April 2024)
The European Parliament adopted the Green Claims Directive, which would require companies to submit evidence about their environmental marketing claims before advertising products such as “biodegradable,” or “less polluting.” Green claims based solely on carbon offsetting will remain banned. EU countries would assign verifiers to approve claims. Companies that break the rules could lose revenues or face fines of at least 4% of their annual turnover. Parliament will have to follow up on this after European elections in June. (March 2024)
The European Parliament adopted the Energy Performance of Buildings Directive
to help reduce energy consumption and emissions from the building sector.
All new buildings should be zero-emission as of 2030. Member states will have to
renovate the 16% worst-performing non-residential buildings by 2030, and the 26% worst-performing by 2033. Member states will also have to outline how they will adopt measures to
phase out fossil fuels in heating and cooling by 2040. The directive, already adopted by the Council, now needs to be formally endorsed by the Council of Ministers to become law. (March 2024)
The European Parliament adopted its proposed revision of the
Waste Framework Directive,
to prevent and reduce waste from food and textiles across the EU. The proposal establishes
2030
waste reduction targets of
at least 20% in food processing and manufacturing (up from 10%)
and 40% per capita in retail, restaurants, food services and households (up from 30%). It would also
extend producer responsibility schemes for textiles, with member states being required to establish these schemes 18 months after the directive enters into force. Parliament will have to follow up on this after the June elections. (March 2024)
The European Council approved the Corporate Sustainability Due Diligence Directive (CSDDD),
which would set obligations for companies to identify, prevent, and address impacts on human rights and the environment.
This comes after a compromise that raises the threshold of companies covered
to those with 1,000+ employees (up from 500), and those with revenue greater than €450 million ($490 million), up from €150 million.
This cuts the scope of the CSDDD by about two-thirds. Other changes include a longer phase-in time (between 3-5 years depending on company size), and the exclusion of product disposal activities from the scope of the law. (March 2024)
The European Parliament and Council reached a provisional agreement on new rules to reduce, reuse, and recycle packaging. The rules set packaging reduction targets (5% by 2030, 10% by 2035, and 15% by 2040), and require reductions of the amount of plastic packaging waste. Certain single use plastic packaging would be banned from 2030. PFAS substances (forever chemicals) would also be banned in food contact packaging. And consumers would have more options for reusable packaging and bringing their own containers (both 10% targets). Parliament and Council now need to formally approve the agreement. (March 2024)
The European Parliament and Council reached a provisional agreement on new rules that ban products made with forced labor from the EU market. The regulation would create a
framework for enforcing this ban, through investigations, digital tools, and cooperation with other countries. If an investigation concludes forced labor was used,
goods can be removed from the EU market
(with banned products being allowed back on the market if forced labor is eliminated). Parliament and Council now have to give final approval. Then EU countries would have three years to apply the new rules. (March 2024)
The European Parliament adopted a new landmark nature restoration law, setting a target to restore at least 20% of the EU’s land and sea areas by 2030, and all ecosystems in need of restoration by 2050. Member states will be required to restore at least 30% of habitats covered by the law by 2030, increasing to 60% by 2040, and 90% by 2050, and will have to adopt national restoration plans detailing how they will achieve these targets. The law now needs to be adopted by the European Council. (March 2024)
The European Parliament approved strengthened rules on environmental crimes. It contains an
updated list of offenses, including illegal timber trade, depletion of water resources, serious breaches of EU chemicals legislation, and pollution caused by ships.
Penalties include imprisonment, requirements to reinstate or compensate for the damaged environment, and fines (potentially up 5% of annual worldwide turnover for companies).
The directive will enter into force 20 days following its publication in the EU Official Journal.
(March 2024)
The European Council failed to endorse the Corporate Sustainability Due Diligence Directive (CSDDD),
which would set obligations for companies to identify, prevent, and address impacts on human rights and the environment. Its status is now uncertain. (March 2024)
The European Council adopted new rules protecting consumers from misleading environmental claims and harmonizing sustainability labeling across the EU. Once signed, the directive will be published in the Official Journal and enter into force twenty days after, with member states having two years after that to integrate the rules into national law. (Feb 2024)
The European Parliament and Council reached a
provisional agreement to
establish the first
EU-level certification framework for carbon removal
to improve the EU’s capacity to quantify, monitor and verify carbon removal activities. This voluntary framework
covers permanent carbon removals, temporary carbon storage in products and from farming, and soil emission reduction from farming. Activities that do not result in carbon removals, such as avoided deforestation, are not included in the scope of the regulation.
Tailored certification methodologies for different types of removal activities will be developed. And an
EU registry will be established to create a high level of transparency about certified removals. The agreement will need to be formally adopted by both the Council and Parliament before it can enter into force. (Feb 2024)
The European Parliament and Council reached a
provisional agreement to strengthen air quality standards, setting stricter 2030 limits and target values for several pollutants, including
particulate matter (PM2.5 and PM10), nitrogen dioxide (NO2), and sulfur dioxide (SO2).
For NO2 and PM2.5, the annual limits will be more than halved. Total air quality sampling points in cities will also be increased. Member states will have to create
air quality roadmaps
by 31 December 2028 setting out measures to comply with 2030 limits. The rules now need to be adopted by the Council and Parliament. (Feb 2024)
Germany will provide up to €3.53 billion ($3.8 billion) to procure green hydrogen and its derivatives from different import regions between 2027 and 2036. The funds will be used to compensate for the difference between global supply prices and prices hydrogen can be resold regionally and used economically. (Feb 2024)
The EU Commission approved €6.9 billion ($7.4 billion) in aid for hydrogen infrastructure projects. The project, the third Important Project of Common European Interest (IPCEI) Hy2Infra, is expected to unlock a further €5.4 billion ($5.8 billion) in private investments, with 32 companies participating in 33 projects. The project will support the deployment of 3.2 GW of large-scale electrolyzers, 2,700 km of transmission and distribution pipelines, as well as storage facilities and handling terminals. (Feb 2024)
The European Council and Parliament reached a provisional deal on a directive to postpone the sector-specific European Sustainability Reporting Standards (ESRS), standards for small and medium-enterprises, and standards for third country companies (with €150 million turnover in the EU) until 30 June 2026 (two years after the original date). The agreement now needs to be endorsed and formally adopted by the Council and Parliament. (Feb 2024)
The European Council and Parliament reached a provisional agreement on new rules to strengthen the reliability and comparability of ESG ratings.
ESG rating providers will need to be authorized and supervised by the Europeans Securities and Markets Authority and comply with transparency requirements. The agreement is subject to approval by the Council and Parliament before going through the formal adoption period. The regulation will start applying 18 months after entering into force. (Feb 2024)
The European Council and Parliament reached a provisional agreement on common rules to promote the repair of goods for consumers,
increasing consumers’ right to repair during a one year legal guarantee and increasing consumer options beyond that period. Once formally adopted, the rules will enter into force 20 days after publication in the Official Journal of the EU. (Feb 2024)
The European Commission recommended a 90% net greenhouse gas emissions reduction by 2040 compared to 1990 levels, based on
its impact assessment on pathways to reach climate neutrality by 2050. The announcement also noted several conditions needed to achieve this, including full implementation of the agreed 2030 framework and expanding the Green Deal into an “industrial decarbonisation deal.” A legislative proposal will be made by the next Commission (after elections).
The Commission also adopted
an
Industrial Carbon Management Communication,
providing details on how carbon capture technologies could contribute to this 90% target and net-zero by 2050. CO2 storage capacity would need to grow
from 50 million metric tons per year in 2030 to 280 million tons by 2040 and around 450 million tons by 2050.
(Feb 2024)
The European Council adopted two regulations to phase down fluorinated gases (F-gases) and other ozone-depleting substances (ODSs). Under the new rules, the consumption of hydrofluorocarbons (HFCs) will be completely phased out by 2050 and the production of HFCs will be phased down to a minimum (15%) as of 2036. ODSs will also be banned for almost all uses with exemption for the use of some ODSs as feedstocks. The laws will now be signed and enter into force 20 days after being published in the EU’s Official Journal. (Feb 2024)
The European Central Bank (ECB) announced it will expand its work on climate change, identifying three areas that will guide its activities in 2024 and 2025:
1) the impact and risks of the transition to a green economy; 2) the increasing physical impact of climate change; and 3) the risks stemming from nature loss and degradation. Specifically, the ECB will increase work on
green investment needs; deepen analysis of the
impact on extreme weather events on inflation and the financial system; and
explore the role of ecosystems for the financial system. It will also launch its eighth environmental management program to support achieving its 2030 carbon reduction targets.
Read more in the ECB’s
Climate and Nature Plan 2024-2025. (Feb 2024)
The Legal Affairs Committee of the European Parliament approved a proposal to delay full enactment of the Corporate Sustainable Reporting Directive (CSRD) by two years. Specifically this includes delaying: 1) sector-specific sustainability disclosures (until June 2026), and 2) the adoption of the general sustainability reporting standards for non-EU companies until 2026. The committee also suggested that the Commission publishes the eight sector standards as soon as they are ready to increase the transparency and flexibility of the process. This will now move to member state negotiations to shape the final legislation. (Jan 2024)
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The EU Parliament voted to adopt a new law banning greenwashing and misleading product information. The law bans use of general environmental claims like natural, environmentally friendly, climate neutral, biodegradable, and eco. It will also regulate sustainability labels based on official certification schemes, and ban claims that products have a reduced, neutral or positive impact on the environment because of offsetting schemes. The law will also ban unfounded product durability claims. (Jan 2024)
The EU Council and Parliament reached a provisional deal to reduce CO2 emissions from heavy-duty vehicles, including most smaller trucks, buses, and trailers. New targets include a 45% reduction by 2030, a 65% reduction by 2035, and a 90% reduction by 2040. It also includes a 100% zero-emission target for urban buses by 2035. The proposal will now go to member states. (Jan 2024)
The Norwegian Parliament voted to authorize seabed mining exploration, a first step in commercial-scale deep sea mining. This will open up 280,000 km2 of its national waters for exploration. The government said it would only begin issuing licenses once further environmental studies were carried out, according to reporting by the BBC. (Jan 2024)
The European Securities and Markets Authority (ESMA) released an update of its guidelines on ESG and sustainability-related terms in fund names, including details on the timing of their publication. The Guidelines are expected to be approved and published in Q2 2024, after publication of two revised texts initiated during reviews, with the Guidelines applying three months after publication. (Jan 2024)
The European Parliament and Council reached a provisional agreement on new rules obliging firms to integrate their human rights and environmental impact into their management systems. The new directive (the Corporate Sustainability Due Diligence Directive (CSDDD)) sets obligations for companies to mitigate their negative impact on human rights and the environment such as child labor, pollution, deforestation, excessive water consumption or damage to ecosystems. Companies will have to integrate “due diligence” into their policies and risk-management systems, as well as adopt a plan ensuring their business model complies with limiting global warming to 1.5°C. The legislation will apply to EU companies over 500 employees and a worldwide turnover higher than €150 million, as well as smaller companies in certain sectors, and non-EU companies with equivalent turnover in the EU. The draft requires formal approval by Parliament and the Council before it can enter into force. (Dec 2023)
The European Parliament and Council announced provisional agreement on proposed regulations to establish sustainability requirements for nearly all products across the EU. The regulations would require that products be more energy-efficient, durable, reusable, repairable, recyclable and increasingly made of recycled materials. Prioritized products would include iron, steel, aluminum, textiles, furniture, tires, detergents, paints, lubricants and chemicals. A “Digital Product Passport” would be created to help consumers and businesses make sustainability-driven choices when purchasing. It would prohibit the destruction of unsold products, and would address premature product obsolescence. (Dec 2023)
The European Commission opened a call for proposals for €4 billion ($4.4 billion) to support the deployment of innovative decarbonization technologies. This 2023 Innovation Fund, funded by revenues from the EU Emissions Trading System, devotes €1.7 billion to large–scale decarbonization projects, €500 million for medium-scale projects, and €200 million for small-scale projects, as well as €1.4 billion for cleantech manufacturing projects, and €200 million for deep carbonization pilot projects. Applicants can submit their proposals here until 9 April 2024. An online information session will occur on 7 December 2023. (Dec 2023)
The European Commission proposed an Action Plan for Grids to address the main challenges of expanding, digitalizing and better using EU electricity grids. Specifically, the plan will help develop new projects; improve the long-term planning of grids to accommodate more renewables; introduce regulatory incentives; improve network tariffs for smarter grids; improve access to finance for grid deployment; stimulate faster permitting for grids; and secure grid supply chains. (Dec 2023)
The European Council adopted new regulation creating a European green bond standard. The regulation lays down uniform requirements for issuers of bonds that wish to use the designation ‘European green bond’ or ‘EuGB’ for their environmentally sustainable bonds. It also establishes a registration system and supervisory framework for external reviewers of European green bonds and provides some voluntary disclosure requirements for other environmentally sustainable bonds and sustainability-linked bonds issued in the EU in order to prevent greenwashing. It will now be signed, enter into force 20 days later, and start applying 12 months after that. (Oct 2023)
The European Commission adopted its 2024 Work Programme, which aligns with President von der Leyen’s commitment to reduce reporting requirements by 25% in order to improve the EU’s long-term competitiveness and reduce reporting burdens on small and medium enterprises. The Programme proposes 26 new rationalization proposals (in addition to 15 proposals and initiatives initiated since March), including delaying the sector-specific European Sustainability Reporting Standards and for non-EU companies by two years. (October 2023)
The European Council reached an agreement on new rules to strengthen CO2 emission standards for heavy-duty vehicles, as well as increase the share of zero-emission vehicles in the EU-wide heavy-duty vehicle fleet. The rules expand emissions reduction targets to
45% from 2030 (up from 30%), 65% from 2035, and 90% from 2040. It also expands the regulation to include almost all new heavy-duty vehicles with certified CO2 emissions, including smaller trucks, urban buses, coaches, and trailers. (October 2023)
The European Banking Authority (EBA)
published a report on the role of environmental and social (ES) risks in the prudential framework of credit institutions and investment firms. It assesses how the current framework captures these risks and recommends targeted enhancements to accelerate the integration of ES risks to support the transition to a more sustainable economy while ensuring the banking sector remains resilient. Specific proposals include:
including environmental risks as part of stress testing programs; encouraging inclusion of ES factors as part of external credit assessments and as part of due diligence requirements; and requiring institutions to identify whether ES factors constitute triggers of operational risk losses. (October 2023)
The EU’s Carbon Border Adjustment Mechanism (CBAM) came into force on 1 October. This aims to equalize the price of carbon between domestic products and imports. In its first, “transitional,” phase, CBAM will only apply to imports of cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen. (Oct 2023)
The European Parliament and Commission reached a provisional agreement on strengthened rules to prevent 500 million metric tons of greenhouse gas emissions (CO2 equivalent) from fluorinated gases (F-gases) and Ozone-Depleting substances by 2050. Reinforced F-gases Regulation will
prevent the emission of around 300 million tons of CO2 equivalent by reducing hydrofluorocarbons by 95% by 2030 (2015 baseline), going to zero by 2050. A new regulation on Ozone-Depleting Substances will
prevent the release of 200 million tons of CO2 equivalent by 2050, primarily from recovering these substances from insulation foams when buildings are renovated or demolished. The agreement still requires formal adoption before entering into force. (Oct 2023)
European Union lawmakers adopted a new voluntary standard for the use of a “European Green Bond” (or EuGB) label, the first of its kind in the world. The regulation provides standards for issuers who want to use this designation for marketing their bonds. Issuers will be required to “disclose considerable information” about how the bond’s proceeds are used and how they feed into companies’ transition plans.
The regulation also establishes a registration system and supervisory framework for external reviewers. (Oct 2023)
The European Commission adopted measures to help prevent microplastic pollution, estimating that these new rules will prevent the release of half a million metric tons of microplastics into the environment. They will prohibit the sale of microplastics, and of products to which microplastics have been added on purpose, and that release those microplastics when used. (Products used at industrial sites and those that do not release microplastics to the environment are not in the scope of this restriction.) Microplastics includes all synthetic polymers that are below 5 millimeters, are organic, insoluble and resist degradation. The restriction starts in 20 days for some products, like microbeads and glitter, though a sales ban will apply after a longer period for some products (e.g. 4-12 years for cosmetics) to give affected stakeholders time to develop and switch to alternatives. A Q&A with more details is available here.
French President Emmanuel Macron announced a new goal to reduce the country’s greenhouse gas emissions by 55% by 2030 compared to 1990 levels. This translates to an annual reduction of 5% per year between 2022-2030, compared to the 2% reduction per year over the past five years. The strategy includes tripling heat pump production, producing one million electric vehicles, increasing commuter trains, and phasing out the two remaining coal power plants by 2027.
Lawmakers at the European Parliament and EU Council announced provisional agreement on rules to protect consumers from misleading sustainability claims and greenwashing practices. The rules would ban unverified generic environmental claims and claims based on emissions offsetting schemes. It would also prohibit the use of sustainability labels that are not based on approved certification schemes. The rules require formal adoption by the Council and Parliament before they take effect in 2026. (Sept 2023)
European Union lawmakers endorsed a deal to raise the share of renewables in the EU energy mix to 42.5% of total consumption by 2030, and to aim for 45%, up from the current goal of 32%. The bill requires that authorities grant permits for new renewable power plants within 12 or 24 months, depending on their location. The bill now needs formal approval by member countries to take effect. (Sept 2023)
The European Parliament adopted the Critical Raw Materials Act, agreeing to diversify sources of critical raw materials, and increasing domestic capacity for extraction, processing, and recycling of key minerals. It also sets a goal of recycling 45% of critical minerals found in EU waste. The law will now move to the Council for further negotiations. (Sept 2023)
The European Parliament set binding targets for use of sustainable aviation fuels (SAF) by airlines in Europe. Under the new rules, 2% of fuel supplied to EU airports must be SAF in 2025, rising to 6% in 2030, 20% in 2035 and 70% in 2050. From 2030, 1.2% of fuels must also be synthetic fuels, rising to 35% in 2050. The bill still needs approval by EU member countries. (Sept 2023)
Results of the European Central Bank’s (ECB) second economy-wide climate stress test show that a net-zero economy in the euro area is best achieved by accelerating the green transition. The test analyzed the resilience of firms, households and banks to three transition scenarios: an accelerated transition (achieving Paris Agreement goals), a “late-push” transition that achieves the goals but does not speed up until 2026, and a delayed transition, also starting in 2026 but failing to meet goals. The results show that frontloaded investments in renewable energy pay off earlier and ultimately reduce energy expenses. Delayed investment puts firms at higher risk, particularly in energy-intensive sectors such as manufacturing, mining, and electricity, with debt levels rising and profits falling around twice as much as for the average euro area firm. Banks’ credit risk could rise by more than 100% by 2030 if initiatives to hit global climate goals are pushed off to the second half of the decade. (Sept 2023)
The European Commission (EC) adopted rules governing the implementation of the Carbon Border Adjustment Mechanism (CBAM) during CBAM's transitional phase (1 October 2023 until the end of 2025). The Implementing Regulation details the transitional reporting obligations for EU importers of CBAM goods, as well as the transitional methodology for calculating embedded emissions released during the production process of CBAM goods. During the transitional phase, traders will only have to report on emissions, not pay any financial adjustments. The EC also published guidance for EU importers and non-EU installations on the practical implementation of the new rules, and IT tools to help importers with reporting are also under development. (Aug 2023)
The European Council adopted three new climate laws and rules, including (July 2023):
- New rules to reduce final energy consumption at the EU level by 11.7% by 2030. Annual energy savings targets will gradually increase, with an average annual rate of 1.49%.
- A new law increasing the number of recharging and refueling stations across Europe. This includes fast recharging stations of at least 150kW for cars and vans every 60km along the EU’s main transport corridors by 2025. Additional rules for heavy-duty vehicles, hydrogen refueling, ports, airports, and simplifying payment are also included.
- The FuelEU Maritime Initiative, which will increase the demand for and consistent use of renewable and low-carbon fuels and reduce shipping sector emissions. The law reduces greenhouse gas intensity of fuels by 2% in 2025 and as much as 80% by 2050, as well as rules on additional fuel types, using on-shore power supplies when moored, a ship pooling mechanism and other provisions.
The European Commission proposed measures to make freight transport more efficient and sustainable through three initiatives. (July 2023)
- Proposed regulation to optimize the use of rail tracks, improve cross-border coordination, and improve punctuality and reliability. This builds on the industry-led Timetable Redesign Project.
- A proposal revising maximum weight rules for heavy-duty vehicles to allow additional weight and length for vehicles using zero-emission technologies, as they tend to increase a vehicle's weight. The additional four metric tons of weight allowed will compensate the weight of zero-emission technologies, and as these become lighter over time will enable extra payload.
- A proposed methodological approach for companies to calculate their greenhouse gas emissions if they choose to publish this information, or if they are asked to share it for contractual reasons.
The European Parliament adopted its position on the EU nature restoration law, which proposes to restore damaged ecosystems across Europe and reduce the use of chemical pesticides by 50% by 2030. The draft law does not impose the creation of new protected areas in the EU nor block new renewable energy infrastructure as a new article was added underlining that such installations are overwhelmingly in the public interest. A proposal to restore agricultural ecosystems was removed and the law’s full implementation will be delayed until an assessment of Europe’s food security is completed. The Parliament will now negotiate with the Council on the final shape of the legislation. (July 2023)
The European Commission adopted a package of measures for sustainable use of key agricultural resources to strengthen the resilience of EU food systems and farming. A soil monitoring law will harmonize the definition of soil health, make soil data available to farmers, and promote sustainable soil management. Measures will also enable use of new genomic techniques (NGTs), to foster development of climate-resilient and pest-resistant crops, reduce the use of chemical pesticides, and increase the diversity of seeds and reproductive material for plants and forests. Two categories of NGT plants, one covering comparable to naturally occurring or conventional plants, the other encompassing plants with more complex modifications, will be created and will be regulated differently. The new measures also propose to reduce food and textile waste to increase efficiency in the use of natural resources. (July 2023)
The European Commission proposed rules to make producers responsible for the full lifecycle of textile products and to support the sustainable management of textile waste across the EU. The Commission proposes to introduce mandatory Extended Producer Responsibility (EPR) schemes for textiles in all EU Member States. Producers would cover the costs of managing textile waste, thereby incentivizing waste reduction and increasing the circularity of textile products. The proposal also addresses the issue of illegal exports of textile waste, in part by clarifying what constitutes waste and what is considered reusable. (July 2023)
The European Council reached an agreement on a proposal for a nature restoration law (used as a mandate for negotiations with the Parliament). The proposal aims to put in place recovery measures that will cover at least 20% of the EU’s land and 20% of sea areas by 2030, and all ecosystems in need of restoration by 2050. It sets specific legally binding targets and obligations for nature restoration in each of the listed ecosystems, including agricultural land, forest, marine, freshwater, and urban ecosystems. (June 2023)
The European Commission is seeking feedback on carbon capture, utilization and storage’s role in achieving carbon neutrality in the EU by 2050, including on what technologies, and measures are needed to optimize their potential. Feedback can be given here until 31 August 2023. (June 2023)
The European Commission is also seeking feedback until 7 July on an act setting out European Sustainability Reporting Standards under the Corporate Sustainability Reporting Directive. A good summary of the standards is available here. And feedback can be given here. (June 2023)
The European Commission has introduced new measures to strengthen the EU sustainable finance framework, including adding additional activities to the EU Taxonomy, and proposing new rules for ESG rating providers to increase transparency on the sustainable investments market. (June 2023)
The EU Parliament adopted new rules for the design, manufacture, and recycling of all types of batteries in the European Union, which were initially proposed in December. These include recycling requirements for battery materials, including incorporating a certain amount of these into new batteries. The Council must now endorse the text before it enters into force. (June 2023)
The German government will make tens of billions of euros available for firms facing substantial energy costs, in a bid to help its industrial sector shift towards carbon-neutral production. Program funding from the “Carbon Contracts for Difference” scheme could total about €50 billion ($54 billion) over 15 years and could save about 350 million metric tons of CO2 over its lifetime. Companies have two months to express interest in the program, aimed at fulfilling Germany's pledge to become carbon neutral by 2045, before an auction process starts, with funding going to the lowest bidders. Firms emitting 10,000 tons or more of CO2 annually would be eligible for the auction, opening the process to thousands of mid-sized companies. (June 2023)
The EU reached a provisional agreement on three proposals creating the European Single Access Point (ESAP). This will create a single point of access to public financial and sustainability-related information about EU companies and EU investment products, facilitating decision-making for a broad range of investors. The ESAP will not impose additional information reporting requirements. The ESAP is expected to be available starting summer 2027 and will be gradually phased in to allow “robust implementation.” Phase 1 will include data according to the short selling, prospectus, and transparency directives. Six months later, Phase 2 will include sustainability-related disclosures in the financial services sector regulation, the credit rating agencies regulation, and the benchmark regulation. Phase 3 (the final phase) will include information stemming from 20 additional pieces of legislation including the EU Green Bond standard. (June 2023)
The EU Parliament voted on rules to integrate human rights and environmental impact into companies’ governance. Key components of the Corporate Sustainability Due Diligence Directive include (June 2023):Companies will be required to identify, and where necessary prevent, end or mitigate the
negative impact of their activities on
human rights (such as child labor and slavery)
and the environment (such as pollution or biodiversity loss);
- Companies will also have to monitor and assess the impact of their value-chain partners including not only suppliers but also sale, distribution, transport, storage, waste-management and other areas;
- Companies will have to implement a transition plan to limit global warming to 1.5°C and, in the case of companies with over 1,000 employees, meeting the plan’s targets will have an impact on a director’s variable remuneration;
- Non-compliant companies will be held liable for damages and can be sanctioned, including fines and removing a company’s goods from the market;
- These new obligations would apply after 3 or 4 years depending on the company’s size.
Negotiations with member states on the final text will now begin.
The EU will not vote on phasing out forever chemicals (PFAS) before 2025, according to reporting from Reuters. The European Chemicals Agency opened a consultation on restricting PFAS after five countries submitted a proposal to reduce PFAS emissions and make products safer in January. The consultation is expected to take place this year and next. (May 2023)
The European Council has formally adopted the new regulation to minimize the risk of deforestation and forest degradation associated with products that are placed on or exported from the EU market. The regulation sets mandatory due diligence rules for a variety of forest commodities and derived products. It applies only to products produced on land after 31 December 2020. The regulation also sets a benchmarking system that assigns a level of deforestation risk for countries, which will determine the level of obligation operators and authorities have to carry out inspections and controls. It will now enter into force 20 days after being published in the EU’s Official Journal. (May 2023)
French President Emmanuel Macron announced the government will offer a tax credit for renewable investments, according to Reuters. These would cover capital expenditures of 25-40% of investments in wind and solar facilities, heat pumps, and batteries, and would also increase investment in training and expedite time needed to build new factories. An existing cash incentive of €5,000 ($5,425) for consumers buying new electric cars would also be made conditional on meeting low-carbon standards, favoring European carmakers. (May 2023)
The European Council adopted its position on new proposed rules to enhance consumers’ rights, protecting against unfair commercial practices, such as misleading green claims and products that break early or are difficult to repair. Specifically, the council proposal includes:
- Banning generic environmental claims such as “eco-friendly,” “green,” or “climate neutral.” Product claims would need to be substantiated by a publicly accessible certification scheme;
- Only sustainability labels based on official certification schemes would be allowed;
- An expansion of unfair commercial practices that are banned in all circumstances (the “blacklist”), including not warning consumers if products are designed with a limited lifespan or contains a feature introduced to limit its durability; and
- A harmonized graphic format (a logo) to clearly inform consumers about durability guarantees.
The proposal also shifts implementation from 18 to 24 months to allow for sufficient time to adapt. This will now move to negotiations with the European Parliament. (May 2023)
The European Council adopted five new laws as part of the “Fit for 55” strategy to reduce GHG emissions by 55% by 2030. Outcomes from the laws will include (May 2023):
- Establishing a new Carbon Border Adjustment Mechanism (CBAM) concerning imports of products in carbon-intensive industries. CBAM will only apply as a reporting obligation through 2025, then a gradual phase-out of free allowances will occur over nine years.
- Increasing emission reduction ambitions of the EU Emissions Trading System (EU ETS).
- Adding maritime transport emissions into the scope of EU ETS for the first time, with obligations for shipping companies to surrender allowances introduced gradually: 40% for verified emissions from 2024, 70% from 2025, and 100% from 2026.
- Establishing a new ETS for the buildings and road transport sectors as well as small industries.
- Phasing out free emission allowances for the aviation sector and implementing full auctioning from 2026, while holding 20 million allowances in reserve until December 2030 to disincentivize fossil fuel use.
The European Parliament adopted a new law obliging companies to ensure certain products sold in the EU have not led to deforestation and forest degradation. These include cattle, cocoa, coffee, palm-oil, soya and wood, rubber, charcoal, printed paper products and a number of palm oil derivatives (as well as products made from these). Companies will only be allowed to sell products in the EU if the supplier of the product has issued a due diligence statement confirming the product does not come from deforested land or has led to forest degradation. Companies will also have to verify these products comply with relevant legislation of the company of production. These regulations were agreed to in December 2022 and now only need formal adoption by EU Council before coming into force. (April 2023)
The European Parliament adopted the reform of the Emissions Trading System (ETS). This increases the ambition of the ETS, with greenhouse gas (GHG) emissions being reduced by 62% by 2030 compared to 2005 levels. The new reforms also (April 2023):
- Phase out free pollution allowances to companies from 2026 to 2034;
- Include the maritime sector for the first time
- Revise provisions governing aviation, including phasing out free allowances by 2026 and promoting the use of sustainable aviation fuels;
- Create a new ETS II to cover road transport and buildings from 2027;
- Establish a Social Climate Fund to combat energy and mobility poverty.
The European Council adopted regulation setting stricter CO2 emission performance standards for new cars and vans, including: 55% CO2 emissions reductions for new cars and 50% for new vans from 2030 to 2034 compared to 2021 levels, and 100% reductions for both cars and vans from 2035. Manufacturers will be able to receive less strict CO2 targets until the end of 2029 if they reach certain benchmarks for zero- and low- emissions vehicles (25% for cars, 17% for vans). The regulation will now go into force twenty days after being published in the EU’s Official Journal. (April 2023)
The European Council and Parliament reached a provisional agreement to ensure there is a sufficient infrastructure network for recharging or refueling road vehicles and ships with alternative fuels, and that these are easy to use and interoperable throughout the EU. The law sets specific requirements for publicly available charging infrastructure for cars and vans, including the deployment of fast-charging stations every 60 km along the trans-European transport network (TEN-T) by 2025, and stations dedicated to heavy-duty vehicles every 100 km (and 60 km in the TEN-T core network), and hydrogen refueling infrastructure every 200 km along the TEN-T core network by 2030. (April 2023)
The European Council and Parliament reached a provisional agreement to raise the share of renewable energy in the EU’s overall energy consumption to 42.5% by 2030 (with an additional 2.5% top up that would allow to reach 45%). The EU got 22% of its energy from renewables in 2021 and its current target for 2030 is 32%. Specific sector targets include (April 2023):Industry would increase their use of renewable energy annually by 1.6%;
- A 49% renewable energy share in buildings in 2030;
- Transport: Member states can choose between either a 14.5% reduction in greenhouse gas intensity in transport from the use of renewables or at least a 29% share of renewables within the final consumption of energy in the sector by 2030;
- The agreement also includes accelerated permitting procedures for renewable energy projects.
The European Commission adopted a new proposal to adopt common criteria against greenwashing and misleading environmental claims. These claims will need to be independently verified and proven with scientific evidence. They will also have to be relevant to the product and identify any possible trade-offs. This proposal would also regulate the more than 230 different environmental labels that currently exist and are a potential source of consumer confusion. (March 2023)
The European Commission adopted a new proposal on common rules promoting the repair of goods, making it easier and more cost-effective for consumers to repair rather than replace products, which include washing machines, vacuum cleaners, refrigerators and other goods deemed repairable under EU law (and negotiators could extend this to smartphones and tablets). Within the legal guarantee period (two years), sellers will be required to repair the product except when it is more expensive than replacement. Beyond the guarantee period, new rights and tools will be available to consumers to make repair easy and accessible, including (March 2023):
- A right for consumers to claim repair to producers for products that are technically repairable;
- An online matchmaking repair platform to facilitate repair locally;
- A European Repair Information Form that brings transparency to repair conditions and price;
- And a repair quality standard to help identify high quality repair services.
The European Parliament and Council reached a provisional agreement on cleaner maritime fuels, asking to cut ship emissions by 2% as of 2025, 6% as of 2030, 31% as of 2040, and by 80% as of 2050. This would apply to ships above a gross tonnage of 5,000. The agreement would also oblige containerships and passenger ships to use on-shore power supplies for all electricity needs while moored in major EU ports as of 2030 and all EU ports as of 2035. (March 2023)
The European Commission has extended support measures in sectors that are key for the transition to a net-zero economy. This allows member states to support renewable energy, energy storage and industrial decarbonization schemes until 31 December 2025. It also enables investment support for the manufacturing of strategic energy transition equipment, such as solar panels, wind turbines, batteries, heat-pumps, and electrolyzers. (March 2023)
The European Commission proposed the Net-Zero Industry Act to scale up manufacturing of clean technologies in the EU. It will create enabling conditions to set up net-zero projects in Europe and attract investments, with the aim of net-zero manufacturing capacity reaching at least 40% of the EU’s deployment needs by 2030. Most notably, the Act sets an EU objective to reach an annual 50 million metric ton (Mt) injection capacity of CO2 storage, with oil and gas companies having to contribute based on their production. (March 2023)
The European Commission proposed a comprehensive set of actions to ensure the EU’s access to a secure, diversified, affordable and sustainable supply of critical raw materials. The Critical Raw Materials Act sets benchmarks for domestic capacities by 2030, including: at least 10% of the EU’s annual consumption extracted, 15% recycled, and 40% processed domestically; and not more than 65% of the EU’s consumption of any key raw material being processed from a single third country. (March 2023)
The European Parliament adopted the Effort Sharing Regulation, which sets binding annual reductions for greenhouse gas emissions from transport, buildings, agriculture, small industrial installations, and waste management, and increases the overall EU emissions reduction goal from 30% to 40% by 2030, compared to 2005 levels. The new law, if accepted by the Council, will require all member states to reduce emissions by 2030 with targets ranging from 10-50% depending on GDP per capita and cost-effectiveness. (March 2023)
The European Parliament adopted measures to increase the rate of renovations and reduce energy consumption and greenhouse gas emissions in the building sector. Under the proposed revision of the Energy Performance of Buildings Directive, all new buildings would have to be zero-emission and equipped with solar technologies (where technically suitable and economically feasible) by 2028. All buildings would also have to meet a minimum energy performance rating over the next seven to ten years. (March 2023)
The European Commission agreed to cut final energy consumption by 11.7% by 2030, helping to fight climate change and reduce Europe’s use of Russian fossil fuels. Once formally adopted, the target will be legally binding, with countries setting their own goals to achieve new savings each year of 1.49% of final energy consumption on average from 2024 to 2030 (up from the current level of 0.8%). Companies that exceed 85 TJ of annual energy consumption will have to implement an energy management system or be subject to an energy audit. The agreement also strengthens provisions on energy efficiency financing and provides the first ever EU definition of energy poverty, with states having to implement energy efficiency measures for those affected by energy poverty. (March 2023)
European lawmakers announced a provisional agreement that establishes an EU voluntary high-quality standard for green bonds: The European green bond standard (EUGBS). To qualify, issuers of European green bonds (EuGB) would need to ensure 85% of the funds raised by the bond are allocated to economic activities that align with the Taxonomy Regulation (a classification setting four conditions for economic activities to meet to qualify as environmentally sustainable). This will allow investors to more easily assess, compare and trust these investments are sustainable, thus reducing risks posed by greenwashing. The agreement now needs to be confirmed and adopted by the European Council and the European Parliament, and will apply 12 months after it enters into force. (March 2023)
A new French law will require canopies of solar panels to be built on all parking lots larger than 16,000 square feet in France. This could generate between 6.75 GW to 11.25 GW of electricity, the equivalent electricity of 7 to 11 nuclear power plants. The law will go in effect in July with parking lot owners having between 3 and 5 years to comply. (Feb 2023)
The European Central Bank announced that corporate bond purchases will be tilted more strongly towards issuers with a better climate performance. This will reduce climate-related risks while supporting the gradual decarbonization of the Eurosystem’s €344 billion corporate bond portfolio. (Feb 2023)
The European Commission proposed A Green Deal Industrial Plan for the Net-Zero Age to enhance the competitiveness of Europe's net-zero industry and support a faster transition to climate neutrality. The Plan aims to provide a more supportive environment for the scaling up of the EU's manufacturing capacity for the net-zero transition. This includes (Feb 2023):
- A predictable and simplified regulatory environment; which will include a proposed Net-Zero Industry Act and a Critical Raw Materials Act to ensure sufficient access to key materials like rare earth minerals;
- Faster access to sufficient funding (including €250 billion for green measures made available from remaining pandemic recovery funding and €100 billion for green transition from cohesion policies including the Just Transition Fund);
- Developing up-skilling and re-skilling programs in strategic industries;
- And supporting open trade for resilient supply chains, including protecting the EU market and clean-tech sector from foreign subsidies that distort competition.
The European Central Bank (ECB) published a set of climate-related statistical indicators to better assess the impact of climate-related risks on the financial sector and to monitor the development of sustainable and green finance. These indicators are deemed “a work in progress” by the ECB, and the ECB will work to improve the methodology and data used, together with the national central banks, as new data sources become available. Currently, the indicators cover three areas: tracking the volume of debt instruments with some sort of sustainability label; carbon emissions financed by financial institutions; and climate-related physical risks. (Jan 2023)
European Commission president Ursula von der Leyen proposed plans for a “Green Deal Industrial Plan,” which would loosen state aid rules for EU member states to subsidize clean tech manufacturing in Europe in order to compete with subsidies coming from the US and China. This plan, which will be discussed by EU member states in February, would make it easier to set subsidies for green industries and simplify and fast-track permitting for new clean-tech production sites. (Jan 2023)
The EU has drafted measures to combat greenwashing, requiring EU countries to ensure that environmental assertions made by companies about their products are backed by scientific evidence, according to reporting from Bloomberg and Reuters. The plans would require firms that promote climate benefits of their products to also highlight detrimental effects. EU member states would be able to impose penalties on companies that fail to back up their claims. The draft rules would cover all products and services sold in the EU, unless covered by comparable EU rules. (Jan 2023)
The European Council and Parliament reached a provisional agreement on the Carbon Border Adjustment Mechanism (CBAM), which will impose a CO2 emissions tariff on imports of goods such as steel, cement, aluminum, electricity and hydrogen. Companies importing these goods into the EU will be required to buy certificates to pay for embedded CO2 emissions, “to incentivise non-EU countries to increase their climate ambition.” CBAM will start being phased in October 2023, beginning with reporting obligations only. (Dec 2022)
The European Parliament and Council came to a provisional agreement to make all batteries placed on the EU market more sustainable, circular, and safe. The law will gradually introduce sustainability requirements on carbon footprint, recycled content, and performance and durability, from 2024 on. A more comprehensive Extended Producer Responsibility framework will apply in 2025, which will include higher collection targets being introduced in 2027, 2030, and 2031. (Dec 2022)
Portugal will end mandatory environmental assessments for green hydrogen projects in March 2023, in order to accelerate investments in these projects. Mandatory assessments will also end for solar plants smaller than 100 hectares and wind farms with towers more than 2 km apart. (Dec 2022)
The European Council and Parliament reached a provisional agreement to revise the EU Emissions Trading System (EU ETS) rules applying to the aviation sector. Currently, flights within the EU have to submit permits to the EU’s carbon market but receive these for free. These free permits will be gradually phased out, with a 25% reduction in 2024, 50% in 2025, and 100% from 2026. Flights originating or ending outside of the European Economic Area will use the global market-based measure CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) if those countries participate. However, if CORSIA proves insufficient, the commission (after an assessment in 2025) will propose extending the scope of the EU ETS to all flights departing the European Economic Area. (Dec 2022)
The European Parliament and Council agreed on a new EU Regulation on deforestation-free supply chains. Once adopted and applied, all relevant companies will have to conduct strict due diligence, proving the products are both deforestation-free and legal if they place on the EU market, or export from it, the following commodities: palm oil, cattle, soy, coffee, cocoa, timber and rubber, as well as derived products (such as beef, furniture, or chocolate). (Dec 2022)
The European Union has agreed to add shipping to its carbon market for the first time, with the shipping sector now required to pay for its emissions, including CO2, methane, and nitrogen dioxide. This will start in 2024, when shipping companies will have to buy EU carbon permits to cover 40% of their emissions, and will rise to 70% in 2025, and 100% in 2026. (Dec 2022)
The European Commission adopted a proposal for a first EU-wide voluntary framework to reliably certify high-quality CO2 removals from the atmosphere. The proposed regulation will significantly improve the EU's capacity to quantify, monitor and verify carbon removals, increasing transparency and reducing greenwashing. The proposed regulation will set out rules for independent verification of carbon removals as well as rules to recognize certification schemes, and establishes criteria around quantification, additionality, long-term storable, and sustainability. The Commission plans to prioritize carbon removal activities that provide significant benefits for biodiversity. (Dec 2022)
The European Commission is proposing new EU-wide rules on packaging, including a target to reduce packaging waste by 15% by 2040, per member state per capita compared to 2018. The rules will restrict unnecessary packaging and promote reusable and refillable packaging solutions. It will also make all packaging on the EU market recyclable in an economically viable way by 2030. And it will increase the use of recycled plastics in packaging through mandatory rates of recycled content. The rules will also clarify what applications of biobased, compostable, and biodegradable plastics are environmentally beneficial. (Dec 2022)
The European Parliament adopted a new EU law requiring corporate boards of large companies in the European Union to have 40% of women among non-executive directors and 33% among all directors by 2026. Listed companies will have to report annually on gender representation on their boards and if they fall short of targets, explain how they plan to meet them. (Nov 2022)
The EU’s three primary financial regulatory agencies, the European Supervisory Authorities (ESAs), published a Call for Evidence on greenwashing to gather input from stakeholders on how to understand the key features, drivers and risks associated with greenwashing and to collect examples of potential greenwashing practices across the sustainable investment value chain. It is motivated by the need to better understand which areas may become more prone to greenwashing risks and to help inform policy making and supervision and foster the reliability of sustainability-related claims. Respondents can submit their responses here until January 10, 2023. (Nov 2022)
In a speech at COP27, EU president von der Leyen announced that the EU will double renewable energy deployment to 100 GW next year. This is after more than doubling deployment in 2022 to 50 GW. Von der Leyen also urged Global North countries to meet their obligations to provide $100 billion per year in climate finance to the Global South, pointing out that the EU gave €23 billion ($23.1 billion) for the second year in a row. (Nov 2022)
A new provisional agreement between the European Commission and Parliament will set stricter EU emissions reductions in five sectors that account for 60% of total EU emissions, bringing the reduction target from 29% to 40% by 2030. These sectors include building, agriculture, waste, small industry, and transport. The new law allows banking and borrowing emissions reductions between years, and trading emission reduction allocations among states. (Nov 2022)
The European Commission presented a proposal to reduce air pollution from new motor vehicles sold in the EU. The new Euro 7 standards will ensure that cars, vans, trucks and buses are much cleaner, and tackle emissions from tailpipes, as well as particulate emissions from brakes, and microplastic emissions tires. This will be the first worldwide standard addressing tire and brake emissions. (Nov 2022)
The EU adopted the Corporate Sustainability Reporting Directive (CSRD), which will make businesses more publicly accountable by obliging them to regularly disclose information on their societal and environmental impact. The CSRD introduces more detailed reporting requirements on companies’ impact on the environment, human rights and social standards, based on common criteria in line with EU’s climate goals. The CSRD will apply to all large companies, nearly 50,000, compared to the approximately 11,700 covered by the current rules. The rules will applying between 2024 and 2028 depending on the size of the business. (Nov 2022)
The European Commission launched its third call for large-scale clean tech projects under the EU Innovation Fund, with a total budget to €3 billion ($2.9 billion), significantly more than the first two rounds. This includes €1 billion budgeted for “general decarbonization,” such as renewable energy, energy storage, and CCS; €1 billion for electrification in industry and hydrogen production; €0.7 billion in clean tech manufacturing; and €0.3 billion for breakthrough technologies in deep decarbonization. (Nov 2022)
The Netherland’s highest court ruled that the “Porthos” carbon capture project — Europe’s largest — might have to be halted because it did not meet European environmental guidelines. Specifically, the project’s environmental impact failed to include nitrogen emissions, which is exempted by Dutch law, but the court said violated European law. This could have ramifications on many other projects that have used that exemption. (Nov 2022)
The European Council agreed on stricter rules for the energy performance of buildings. All new buildings should be zero-emissions by 2030 (with new buildings owned by public bodies becoming zero-emissions by 2028) and existing buildings should be transformed into zero-emission buildings by 2050. The agreement also includes requirements to deploy solar energy, for all new public and non-residential buildings with useful floor area over 250 m2 by the end of 2026, for existing public and non-residential buildings undergoing a major renovation and larger than 400m2 by the end of 2027, and for all new residential buildings by the end of 2029. (Oct 2022)
The European Council, Parliament, and EU countries reached an agreement that carmakers must achieve a 100% cut in CO2 emissions of new passenger cars and vans by 2035, effectively banning the sale of new petrol and diesel cars and vans from 2035 on. By 2030, emissions must be cut by 55% for new cars and 50% for vans from 2021 levels. (Oct 2022)
The European Council announced that its member states have agreed on the EU’s negotiating position for COP27. This includes: substantially increasing the global ambition of Nationally Determined Contributions to keep the 1.5°C Paris target within reach; that all countries should also enhance adaptation efforts; and scale up efforts to mobilize finance from all sources to support climate action and to “mainstream climate in all financial flows.” (Oct 2022)
France announced it planned to reduce overall energy consumption by 10% over the next two years (compared to 2019 levels) in order to prevent shortages in gas supplies and help achieve longer-term climate change goals. This “energy sobriety” is based on voluntary measures, such as lowering default heating temperatures, turning off unneeded lights, and reducing business travel. (Oct 2022)
Norway’s wealth fund will push companies it invests in to have a plan to cut their greenhouse gas emissions to net zero by 2050. The fund holds $1.2 trillion in wealth, on average, 1.3% of all listed global stocks. Rather than selling its most polluting stocks, the fund will prioritize dialogue with the 174 companies that are the biggest emitters and account for 70% of the fund’s emissions. (Sept 2022)
The European Central Bank (ECB) will tilt its corporate bond holdings towards issuers with better climate scores. These scores, created by the ECB, will measure past emissions, future emissions targets, and disclosures of greenhouse gas emissions. Scores will help shape bond purchases, to reduce the Eurosystem’s exposure to climate-related financial risk. However, ECB won’t exclude issuers if they receive low climate scores and won’t disclose the scores assigned. (Sept 2022)
The European Parliament voted to adopt and strengthen a European Commission proposal for regulation on deforestation-free products. The commission’s proposal required companies to ensure that products sold in Europe are not driving deforestation or human rights abuses, and covers “cattle, cocoa, coffee, palm-oil, soya and wood, including products that contain, have been fed with or have been made using these commodities (such as leather, chocolate and furniture).” Parliament expanded this to also include several additional commodities including maize, rubber, and charcoal. Parliament will now start negotiations on the final law with EU member states. (Sept 2022)
The European Parliament voted to increase the share of renewable energy in the EU’s final energy consumption to 45% by 2030. The legislation includes sector sub-targets, including annual renewables increases of 1.9% per year for industry. The law also included amendments to phase down the share of primary wood counted as renewable energy. It also included a more ambitious quota for renewable fuels of non-biological origin of at least 5.7% of all fuels by 2030, including hydrogen, and a target of 50% of industry transitioning to green hydrogen by 2030 and 70% by 2035. In a separate vote, Parliament also voted to raise the EU target for reducing final and primary energy consumption so collectively these are reduced by 40% and 42.5% respectively by 2030. (Sept 2022)
Ireland's updated Climate Action Plan calls for a 51% reduction in total greenhouse gas emissions by 2030, with sector-specific reductions of 75% in electricity, 50% in transport, 40% in residential buildings, 35% in industry, and 25% in agriculture (which represents 38% of the country's total emissions). The plan, which includes about 1,000 specific recommended or required measures in support of those reductions, is estimated to require about €125 billion ($128 billion) of private and public investment. (Aug 2021)
European Parliament has voted to back—and enhance—proposed new rules aimed at decarbonizing the airline industry. The updated proposal (July 2022):
- Lays out a trajectory for incorporating sustainable aviation fuel (SAF) into the overall fuel mix, moving from 2% in 2025 to 37% in 2040 to 85% in 2050 (up from 63% in the original proposal), and expands the definition of sustainable fuels to include electricity and hydrogen.
- Proposes the creation of a Sustainable Aviation Fund from 2023 to 2050 to support investment in the further development of SAF options, new propulsion technologies, fuselage design, and other efficiencies.
- Tasks the Commission with creating labelling system on the environmental performance of aircraft and airlines to inform the public as they select their carriers.
The European Commission has voted to classify natural gas and nuclear power as "green" in its taxonomy of sustainable activities. The vote paves the way for the European Union proposal to pass into law, barring opposition by an unlikely 20 of the bloc's 27 member states. Proponents of the new classification argue that the two energy sources are critical bridges to a clean energy future and the bloc's long-term climate goals. Critics counter that the decision will divert critical investment funds away from renewables and, in the case of natural gas, exacerbate GHG emissions. Legal challenges are expected from environmental groups and dissenting countries like Luxembourg and Austria. (July 2022)
EU environmental ministers have reached consensus on core elements of the European Commission’s proposed new environmental laws. They agreed that all cars sold in the EU as of 2035 must have zero CO2 emissions, effectively mandating a phase-out of internal combustion engines in the interim. Ministers also backed a new EU carbon market, with a request that it launch in 2027, that would impose CO2 costs on polluting fuels used in transport and buildings--and a related €59 billion ($59.3 billion) fund to shield low-income citizens from the pass-along costs through 2032. (July 2022)
Denmark adopted a new corporate carbon tax, the highest in Europe. For companies subject to the EU Emissions Trading System (ETS), the carbon tax will be 1,125 Danish crowns ($159) per ton by 2030, with the exception of mineralogical-based industries like cement which will pay a reduced price of 125 crowns ($17) per ton. Companies outside the boundaries of the ETS will pay a 750 crowns ($106) carbon tax. (June 2022)
The European Commission unveiled two landmark proposals to restore and support biodiversity across Europe:
- The Nature Restoration Law—the first-ever EU legislation to explicitly target nature restoration—seeks to “repair the 80% of European habitats that are in poor condition, and to bring back nature to all ecosystems, from forest and agricultural land to marine, freshwater and urban ecosystems” by 2050.
- Reduce the use and risk of chemical pesticides across Europe by 50% by 2030 through legally binding targets and restrictions at EU and national levels and banning all pesticides in sensitive areas, including ecologically sensitive areas to be preserved for threatened pollinators.
EU negotiators reached a provisional agreement on a bill for the bloc's first quota for women on corporate boards. The draft bill would require listed companies with 250 or more employees, in all 27 EU member countries, to have women take up at least 40% of non-executive board seats, or 33% of executive and non-executive roles combined. Pending final approval by the European Council and Parliament, the compliance date for companies will be June 30, 2026. Those that fail to meet the requirement will be subject to fines and possible annulment of selected board members by a judicial body. (June 2022)
Germany, Belgium, the Netherlands, and Denmark announced a joint pledge to build at least 150 gigawatts of offshore wind in the North Sea by 2050. The initiative would facilitate an almost tenfold increase in the EU’s offshore wind capacity, enough to power 230 million European homes. The partner countries also plan to use the wind power to make hydrogen and green fuel for hard-to-abate sectors. (May 2022)
The European Commission unveiled the REPowerEU Plan (“the Plan”), a €210 billion ($220.7 billion) plan for the EU to end its reliance on Russian fossil fuels by 2027 and accelerate its transition to green energy. The Plan’s three-pronged approach calls for the EU to import more non-Russian gas, speed up rollouts of renewable energy, and save energy through efficiency improvements and behavioral changes. The EU says the large investment required will be partially offset by cutting Russian fossil fuel imports, which will save the EU almost €100 billion per year. (May 2022)
The EU has published a “restrictions roadmap” that lays the groundwork for a potential ban on entire classes of chemicals for the first time. The plan is to use existing laws to outlaw chemicals known to cause serious health disorders, illnesses, and reproductive issues—while shutting down a common industry tactic known as “regrettable substitution,” by which companies simply replace banned chemicals with another chemical in the same class and with similar risks. The scale of the potential ban is unprecedented, with up to 12,000 toxic or potentially harmful chemicals—including those commonly found in fire retardants, textiles, single-use diapers, cosmetics, playground surfaces, and food containers, among other things—up for regulatory review by the European Chemicals Agency (ECHA). (May 2022)
EU lawmakers agreed on a legislative package, the Digital Services Act (DSA), that will “impose major new obligations on how Big Tech companies handle content on their platforms—and big fines if they fail to comply,” according to Axios. (April 2022)
The Dutch Advertising Code Committee ruled that a KLM Royal Dutch Airlines’ promotion claiming customers could fly carbon-emission free is misleading. The Dutch watchdog determined that the scheme, which allows customers to offset their flight emissions by paying for carbon credits certified through Golden Standard, resulted in a certain “level of emission offsetting” but is not “adequate” enough to claim absolute carbon neutrality. (April 2022)
The European Commission proposed updates to EU consumer rules to give consumers the right to know the durability and reparability of products and to strengthen consumer protection against false environmental claims and misleading practices. The proposed amendments would be made to the Consumer Rights Directive and the Unfair Commercial Practices Directive (UCPD). (April 2022)
The European Council agreed to support the creation of the world's first carbon border adjustment mechanism (CBAM), as part of the “Fit for 55” legislation package to reduce the EU’s GHG emissions by 55% by 2030. The mechanism would apply to products in the cement, aluminum, fertilizer, electric energy production, iron, and steel sectors, with a three-year transition phase starting in 2023 and the mechanism starting in 2026. (March 2022)
Germany plans to spend $220 billion on “industrial transformation” by 2026, including hydrogen technology, climate protection, and the expansion of its EV charging network. (March 2022)
The Platform on Sustainable Finance, a European Commission advisory body, published a report proposing a structure, social criteria, and indicators for an EU “social taxonomy,” which would define economic activities that can be considered socially sustainable. (March 2022)
Germany accelerated its goal to generate almost all of its electricity from renewable sources by 15 years to 2035. It proposed new legislation that aims to more than double offshore wind capacity and roughly triple annual additions of onshore wind and solar facilities. (March 2022)
The European Commission proposed a new Corporate Sustainability Due Diligence law that would require over 13,000 companies operating in the EU (large companies and certain companies in high-impact sectors) to ensure that their suppliers don’t have adverse impacts on human rights and the environment. Companies would have to assess their supply chains at least annually, take action to prevent or mitigate issues, and publicly communicate on due diligence, with non-compliant companies facing fines or potentially being liable for damages. Large companies would also have to align their business strategy with 1.5°C of warming. (Feb 2022)
The Clean Oceans Initiative—created by the European Investment Bank, the Agence Française de Développement (AFD), and KfW to finance projects to reduce ocean plastic pollution—doubled its 2023 finance commitment to $4.6 billion of financing by year-end 2025. The European Bank for Reconstruction and Development (EBRD) also joined the initiative. (Feb 2022)
The European Commission proposed new rules for labeling certain gas and nuclear energy investments as “green” under the EU taxonomy, which would go into effect in January 2023 if approved. Key provisions (Feb 2022):
- Nuclear and natural gas plants would be labeled “transitional” green energy sources if they meet certain conditions.
- Only natural gas plants that meet specific emissions criteria and replace coal facilities would be labeled green.
- Nuclear plants labeled green would have to have regular safety updates and be in a country whose national government guarantees safe disposal of radioactive waste by 2050.
- Newly built nuclear plants would only be labeled green until 2045.
Scotland awarded 25 gigawatts of offshore wind development rights in a record auction that more than doubles the U.K.’s current capacity. BloombergNEF notes that it is the first global auction for seabed sites that have gigawatt-scale floating wind projects. (Jan 2022)
Denmark plans to make domestic flights fossil fuel-free by 2030, as part of its goal to cut the country’s overall carbon emissions by 70% by 2030 (1990 baseline). (Jan 2022)
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Middle East/Africa
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Nigeria will require companies to disclose sustainability and climate-related financial information, according to Reuters. Reporting will be required from 2028 (2030 for small businesses), with voluntary compliance expected between 2024 and 2027. The standards will be based on the International Financial Reporting Standards, making Nigeria the first African country to adopt the standards. (March 2024)
The Abu Dhabi National Oil Company announced it would increase its allocation for decarbonization projects, technologies, and lower-carbon solutions to $23 billion (up from its earlier $15 billion target for 2030). These projects, which aim to meet its 25% reduction in carbon intensity by 2030 target, include using 100% clean energy for onshore grid electricity needs connecting its offshore operations to the grid, and planting 10 million mangrove trees by 2030. (Jan 2024)
The United Arab Emirates strengthened its emissions reduction target from 31% to 40% by 2030, compared to a business-as-usual level. The UAE already set a net zero goal for 2050, making it the first Middle Eastern country to do so. (July 2023)
Iran announced it discovered what may be the second-largest lithium deposit in the world, containing 8.5 million tons. (March 2023)
Saudi Arabia announced it will invest one trillion riyals ($266.5 billion) to generate cleaner energy and expand and modernize its power grid. This will include infrastructure to produce and export clean hydrogen as well as increased investment in carbon capture solutions. (Feb 2023)
Saudi Arabia announced it is seeking $170 billion of mining investment for energy-transition metals by 2030, auctioning exploration licenses to foreign investors for the first time. The country is also setting up a new firm to invest in mining assets internationally, with the sovereign wealth fund and state mining company Maaden forming a company that will be funded with as much as $3.2 billion. The company will invest in iron, copper, nickel, and lithium, to provide metals for development in the country. (Jan 2023)
The Indian government set green hydrogen consumption targets for some industries in order to increase demand for the fuel. This includes setting goals for its largest shipping fleet company to retrofit at least two ships to run on green hydrogen-based fuels by 2027. All state-run oil and gas companies that charter 40 vessels or more for fuel transport will have to hire at least one green hydrogen-powered ship each year from 2027 to 2030. (Jan 2023)
India Prime Minister Modi’s cabinet has approved plans to cut the emissions Intensity of the country’s GDP by 45% by 2030 (2005 baseline) and achieve “about 50 percent” non-fossil fuel-based energy capacity in the same timeframe. The announcement comes ahead of the next round of global climate talks scheduled for November and comes with the caveat that implementation will require financial support from developed countries in excess of what is currently planned. (Aug 2022)
The United Arab Emirates (UAE) Circular Economy Council, comprised of 17 representatives of relevant federal and local government entities, private sector businesses, and international organizations, has approved 22 policies to support the implementation of UAE’s circular economy model, focused on four main sectors: manufacturing, food, infrastructure, and transport. The Council also identified at least 16 circular economy activities designed to open business opportunities such as upcycling textile waste into new products, developing automated AI-enabled waste management solutions, and remanufacturing electronic waste. (July 2022)
Israel committed to
reducing carbon emissions to net-zero by 2050.
(Nov 2021)
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Bahrain committed to
reaching net-zero carbon emissions by 2060.
(Nov 2021)
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The United Arab Emirates committed to reaching net-zero by 2050 and plans to invest $163 billion in renewable energy. (Nov 2021)
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Saudi Arabia
committed to
net-zero GHG emissions by 2060
and
reducing 278 million metric tons of emissions annually by 2030.
Axios notes that the commitments “apply only to Saudi Arabia's internal emissions, which are roughly 2% of global CO2 emissions.” (Nov 2021)
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South Africa, the largest GHG emitter in Africa, started geological mapping at its first carbon capture and storage site
and said it plans to bring the project online in 2023. (Aug 2021)
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Oman announced plans to build one of the largest green hydrogen plants in the world, capable of producing 1.8 million tons of green hydrogen and up to 10 million tons of green ammonia annually. Construction for the $30 billion project is scheduled to begin in 2028. (May 2021)
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Bahrain, Egypt, Iraq, Kuwait, Qatar, Sudan, the UAE, and the U.S. released a joint statement pledging to accelerate climate action, mobilize investments in a new energy economy and help the world’s most vulnerable cope with climate change. (April 2021)
The U.S. and the United Arab Emirates (UAE) announced plans to work together to coordinate financing to accelerate economic decarbonization, with a focus on renewable energy, hydrogen, industrial decarbonization, carbon capture and storage, nature-based solutions, and low-carbon urban design. (April 2021)
Saudi Arabia signed PPAs with 7 new solar power projects, equivalent to 3,670 MW. Some projects set a new world record for the lowest cost of solar-produced electricity—1.04 US cents per kWh. (April 2021)
Saudi Arabia is building a $5 billion green hydrogen plant powered entirely by sun and wind energy to lessen its dependence on petrodollars. The plant is expected to be completed in 2025. (March 2021)
Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, plans to build 10 gigawatts of solar energy capacity by the end of 2030. It seeks to generate 20% of its total energy production from renewable sources. (March 2021)
A global alliance of world leaders and organizations — including the European Union, the UK, Norway, and Saudi Arabia — helped raise $8 billion to ensure the collaborative development and universal deployment of diagnostics, vaccines, and treatments against COVID-19. (May 2020)
United Kingdom
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The UK government will now require developers to deliver 10% Biodiversity Net Gain (providing a total biodiversity increase of at least 10%) when building new housing, industrial or commercial developments. This makes the UK the first country to make Biodiversity Net Gain a legal requirement, and will apply from April 2024 for small sites, and late 2025 for Nationally Significant Infrastructure Projects. (Feb 2024)
The UK government released a roadmap outlining the largest expansion of nuclear power for 70 years. This sets out how the UK will increase generation of nuclear energy by up to four times, to 24 GW by 2050, enough to provide a quarter of the UK’s electricity needs. The government will also invest up to £300 million ($381 million) to launch a high-tech nuclear fuel program. (Jan 2024)
The UK will implement a new import carbon pricing mechanism for goods with a lower or no carbon price by 2027, ensuring imported products face a comparable carbon price to those produced in the UK. This carbon border adjustment mechanism (CBAM) will apply to carbon-intensive products including iron, steel, aluminum, ceramics, hydrogen, and cement. The design and delivery of the CBAM is subject to further consultation in 2024, including the precise list of products included. (Jan 2024)
The UK announced companies that pollute the environment can be hit with unlimited financial penalties from the Environment Agency. The previous cap of £250,000 ($313,000) on Variable Monetary Penalties has been removed and the range of offences has been expanded, such as breach of permits, illegal discharges to water, and illegal waste offences. (Dec 2023)
The UK Financial Conduct Authority (FCA) released its Sustainability Disclosure Requirements and an investment labels regime (after extensive stakeholder engagement). Included in the measures are: an anti-greenwashing rule for all FCA authorized firms; naming and marketing rules for investment products; four labels to enhance consumer trust; naming and marketing requirements; and information for consumers and institutional investors. (Dec 2023)
The UK’s Environmental Principles Policy Statement has come into force, requiring ministers and policymakers to consider the environmental impacts of new policies. This includes considering five key environmental principles: 1) integrating environmental protection into policymaking; 2) aiming to prevent environmental harm of policymaking; 3) addressing environmental damage at the source; 4) the polluter pays principle; and 5) the precautionary principle. (Nov 2023)
The UK Competition and Markets Authority published guidance on the application of competition rules to agreements relating to environmental sustainability between competitors. It also sets guidance on agreements to address climate change, where a more permissive approach to assessing benefits is adopted. The guidance provides practical examples that businesses can use to shape their decisions working with competitors on environmental sustainability initiatives. (October 2023)
The UK government set the percentage of new zero emission cars manufacturers will be required to produce each year up to 2030. This will require 80% of new cars and 70% of new vans sold in the UK to be zero emissions by 2030, increasing to 100% by 2035. 22% of new cars sold in 2024 will be required to be zero emission.
The UK prime minister announced the UK will delay its ban on new petrol and diesel cars and vans to 2035 from 2030. Car companies and sustainable investment companies responded with statements that this would cause policy uncertainty and threaten climate investment. (Sept 2023)
The UK Emissions Trading Scheme (UK ETS) Authority announced tightened emissions limits and other reforms for the industrial, power, and aviation sectors from 2024. The new limits follow 2022 consultations by the Authority to keep UK ETS aligned with net-zero goals, which resulted in allowance levels 30% – 35% below the current legislated cap. To provide maximum flexibility, the new limits will 1) be set at the highest level of the range consulted on, with extra allowances to be made available to the market between 2024 and 2027; 2) guarantee current levels of free allocation of allowances for industry until 2026; and 3) allocate free allowances to support businesses that might otherwise relocate to places with looser emissions limits. The Authority also announced that (July 2023):
- the UK ETS will be extended to cover domestic maritime transport from 2026 and waste from 2028;
- free allocations to the aviation industry will be phased out in 2026; and
- greenhouse gas removal technologies such as Direct Air Capture (DAC) will be incorporated into the UK ETS.
The Advertising Standards Authority (ASA) of the UK banned several ads from energy companies Shell, PETRONAS, and Repsol, charging that the ads would likely mislead consumers regarding the environmental impact of the companies or their products. The ASA faulted the ads, which appeared on TV, in a poster, on YouTube, and online, for making misleading claims about reducing carbon emissions or promoting green energy and said the ads must not appear again in their current forms. (June 2023)
The UK released a series of strategies to address climate and environmental challenges and what steps the country is taking to move forward. These include (April 2023):
- The 2023 Green Finance Strategy, which updates the UK’s 2019 strategy, and sets out how the UK government will pursue its ambition to become the world’s first net-zero aligned financial center;
- Nature Markets, which provides a framework for scaling up private investment in nature recovery and sustainable farming;
- Powering Up Britain, which brings together the government’s energy security plan and net zero growth plan to provide a blueprint for the future of energy in the UK;
- UK International Climate Finance Strategy, on how the UK will spend the £11.6 billion pounds ($14.3 billion) to 2026 (with priority areas in clean energy, nature for climate and people, adaptation and resilience, and sustainable cities, infrastructure, and transport); and the
- 2030 Strategic Framework for International Climate and Nature Action, on how the UK will deliver on its climate and nature goals internationally in the next decade.
The UK-commissioned Parker Review Committee published results of a voluntary census of UK companies’ ethnic diversity progress. The review found 96 FTSE 100 companies met the target of at least one minority ethnic director on their boards, up from 89 last year (with 49 having more than one, for a total of 17.9% of all board positions). 67% of responding FTSE 250 companies had at least one minority ethnic director, up from 55% last year. The committee also announced new targets for December 2027, including each FTSE 350 company being asked to set a target for senior management positions that will be occupied by ethnic minority executives, and that 50 of the largest private UK companies have at least one ethnic minority director on the main board. (March 2023)
The UK will classify nuclear power as “environmentally sustainable” in its upcoming green taxonomy, allowing the same investment incentives provided for renewable energy. (March 2023)
The UK’s Competition and Markets Authority (CMA) has published draft guidance that exempts agreements between competitors or potential competitors to avoid impeding “legitimate collaboration between businesses that is necessary to the promotion or protection of environmental sustainability.” This draft sets out guidance in relation to environmental sustainability and to agreements that combat or mitigate climate change. Achieving net zero, as the CMA notes, will likely require industry collaboration. Specific examples of exemptions include firms acting collaboratively to prevent the first actor from sustaining a competitive disadvantage (such as switching to a more expensive input), or where firms acting individually would lack the resources or capabilities to achieve a more sustainable outcome but could achieve them collectively. To learn more, the CMA is hosting a webinar on March 13, 2023 at 2:30pm GMT and the public can comment on the guidance until April 11, 2023. (March 2023)
The UK’s Competition and Markets Authority (CMA) will scrutinize the ‘green’ claims in sales of fast moving consumer goods, such as food, drink, cleaning products, and personal care items, to ensure shoppers are not being misled. The CMA will analyze both online and in-store environmental claims to consider whether companies are complying with UK consumer protection law, including the use of broad or unsupported eco-statements and misleading claims about recyclability. The CMA also produced the Green Claims Code to help businesses understand how to communicate their green credentials without misleading shoppers. (Jan 2023)
The UK released new legally binding environmental targets, after extensive consultation. The targets require the UK to:
- Halt species decline by 2030 and increase to exceed current levels by at least 10% by 2042;
- Restore precious water bodies to their natural state;
- Increase tree cover to 16.5% of total land in England by 2050;
- Halve the waste per person sent to treatment by 2042;
- Cut exposure to PM2.5 air pollutants;
- Restore 70% of designated features in the UK’s Marine Protected Areas to a favorable condition by 2042, with the rest in a recovering condition.
The government will publish its Environmental Improvement Plan in January 2023, providing details on how to achieve these, including interim targets. (Dec 2022)
The UK’s Financial Conduct Authority announced the formation of an independent group to develop a voluntary Code of Conduct for ESG data and ratings providers. The group will be composed of stakeholders including investors, ESG data and ratings providers, and rated entities, and will aim to meet for the first time later this year. (Nov 2022)
The UK government has delayed publication of targets relating to the Environment Act 2021, due to the need to fully analyze the 180,000 responses to the consultation finishing June 27, 2022, according to a ministerial statement by the environment secretary. No new date of release was given. (Oct 2022)
The UK Advertising Standards Authority ruled that HSBC’s ads highlighting the bank’s climate actions were misleading as they omitted information about the bank’s continued financing of emissions-intensive companies. HSBC was ordered to not display the ads again (which were displayed in bus stops in two UK cities before COP26) and to provide context for its contribution to greenhouse gas emissions in future marketing communications featuring environmental claims. (Oct 2022)
The UK government has released its “Jet Zero Strategy” (JZS) to achieve net zero emissions in the aviation sector by 2050. It also sets 2040 net-zero targets for UK domestic aviation and airports in England. Based on a “high-ambition” scenario, the JZS places peak UK aviation emissions in 2019, at 39.6 megatons of CO2 equivalent (MtCO2e) and sets targets of 35.4 MtCO2e in 2030, 28.4 MtCO2e in 2040, and 19.3 MtCO2e in 2050. Key elements of the strategy include (July 2022):
- 2% annual increase in fuel efficiency, focusing initially on upgrades to airport operations and facilities.
- A requirement of at least 10% sustainable aviation fuel (SAF) use by 2030, supported by a new £165 million ($198 million) Advanced Fuels Fund.
- Near-term development of zero emission aircraft, with the aim of having zero-emission routes connecting places across the UK by 2030.
- Residual emissions will be covered by carbon credit offsets.
The UK’s High Court has ruled that the government’s Net Zero Strategy (NZS) is invalid in its current form because it lacks a quantified explanation of how policies would achieve climate targets. Environmental organizations that brought the case—Friends of the Earth, ClientEarth and the Good Law Project—successfully argued that the failure of the Department for Business, Energy and Industrial Strategy (BEIS) to require that information before signing the NZS was illegal under the 2008 Climate Change Act. The judge ordered BEIS to prepare a report explaining projected policy outcomes towards emissions reductions and present it to parliament by April 2023. (July 2022)
The UK Government announced that it will contribute £330 million ($412 million) to the 2022–2026 cycle of the Global Environment Facility (GEF), the largest global financial mechanism to help developing countries tackle their most serious environmental challenges and meet international commitments. Total contributions to the GEF for this cycle now stand at $5.25 billion, a real increase of 29% over the 2018 replenishment total. The UK’s announcement was made as leaders from government, business, and civil society came together last week for Stockholm +50, a UN-convened conference focused on creating a decisive action plan toward the goals of the 2030 Agenda for Sustainable Development, Paris Agreement, and Global Biodiversity Framework. (June 2022)
UK Transport Secretary Grant Shapps pledged to deliver the world's first transatlantic flight powered exclusively by sustainable aviation fuel (SAF) by the end of 2023. Shapps announced a £1 million ($1.25 million) competitive fund that will support testing, research, and personnel costs of companies pursuing the milestone flight. Made from waste materials such as used cooking oil, SAF can deliver a GHG emissions reduction of more than 70% compared to conventional fossil jet fuel. While current jet fuel specifications do not allow flights to use 100% SAF, development of the technology is seen as essential to the aviation industry’s decarbonization path. (May 2022)
The British finance ministry has created a new task force to establish requirements for financial firms and listed companies to publish plans, starting in 2023, for transitioning to a net-zero economy—including interim goals and specific measures that will be taken to meet them. The taskforce will also develop protocols to counter greenwashing and assist companies in creating “investable, accountable” plans upon request. (May 2022)
Britain’s financial watchdog, the UK Financial Conduct Authority, set diversity standards for London-listed companies. Among the targets: At least 40% of boards should be women and one director should be a person of color. Annual corporate statements must show compliance. (April 2022)
The U.K. Prime Minister’s Office has published its British Energy Security Strategy. Framed as a pathway to greater energy independence, dramatically lower carbon emissions, and lower energy costs for consumers, it includes proposals to (April 2022):
- Produce as much as 95% of electricity from low-carbon sources by 2030.
- Triple nuclear power capacity by 2050 (2020 baseline), with a goal of 24 gigawatts (GW).
- More than triple current offshore wind capacity, with a goal of 50GW, by 2030.
- Boost North Sea oil and gas production to allow for near-term self-reliance.
- Quintuple current solar capacity, with a goal of 70 GW, by 2035.
- Create investment and subsidy funds totaling £360 million ($469 million) to accelerate the production and use of hydrogen as a clean energy source.
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The UK Department for Transport released a vision and action plan for electric vehicle charging infrastructure within the United Kingdom. The strategy announced intentions to end the sale of new internal combustion engine vehicles by 2030 and for all new cars and vans to be “fully zero-emission at the tailpipe” by 2035. As part of the strategy, the UK government has committed £1.6 billion ($2.1B) to expand the UK charging network, with around 300,000 public chargers expected to be available by 2030. (March 2022)
UK Government | Vision and Action Plan
Policy Forecasts
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Inevitable Policy Response (IPR) 2021: Policy Forecast (Principles for Responsible Investing – PRI) (March 2021)
- Building on findings from a survey of 200 policy experts in 21 countries, makes 10 major climate policy-related forecasts for investors, including:
- Carbon Pricing: Carbon Border Adjustments Mechanisms (CBAMs) will become increasingly prominent; the U.S. will announce a national carbon pricing system by 2025; the EU will have an ETS carbon price of $75/tCO2 by 2030
- Coal: India and China will end construction of new coal-fired power production by 2025; the U.S. will end all coal-fired power generation by 2030
- Clean Power and Industrial Plants: The U.S. will implement a binding 100% clean power standard for 2040; all major industrial economies (including the US, Germany, Japan, and China) will require all new industrial plants, led by steel and cement, to be low-carbon by 2040
- Zero Emissions Vehicles: China, France, Germany, Italy, and Korea will end the sale of fossil fuel cars and vans in 2035
- Agriculture and Land Use: The U.S., Canada, Australia, and other major agricultural producers will have comprehensive mitigation policy in place by 2025 to reduce emissions from production of crops and livestock; major tropical forest countries will end deforestation by 2030
Research & Trends
Climate Action & Policy Research
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War Plans Red & Blue: The Post Election Outlook for US Climate, Energy & Transport Policy (TD Cowen Washington Research Group) — Explores post 2024 U.S. election policy opportunities and risks, depending on outcomes in both the Presidential and Congressional elections. The report finds that outright repeal of the Inflation Reduction Act (IRA) is “overstated,” with the possibility of repeal or revision of select tax credits narrowing. However, the risk of IRA guidance revision (i.e. a change to credit implementation language) is “understated,” and could limit access to IRA’s tax credits. Both parties could also increase trade protectionism. 2025 could bring “legislative catalysts,” including debt ceiling, FY26 budget, and tax cut expiration, that could elevate policy volatility risk around IRA repeal. Policy implications for specific sectors (e.g. renewables, oilfield services, hydrogen) are also analyzed depending on which party wins, as are the impacts on over 75 companies. (April 2024)
The Inflation Reduction Act is projected to cut annual GHG emissions by 710 million metric tons (MMT) by 2030, according to analysis by the International Monetary Fund. This comes primarily through renewables and electric vehicles, with fiscal costs amounting to $700 billion through 2030. However, emissions reductions could be reduced by about a third due to permitting delays. (April 2024)
Filling the climate governance gap: Do corporate decarbonization initiatives matter as much as state and local government policy? (Energy Research & Social Science) — Analyzes CDP data to assess the respective roles of corporate initiatives and subnational public policies in driving corporate decarbonization in the U.S. from 2010 to 2019. Finds that although corporate decarbonization initiatives are associated with greenhouse gas reductions, the primary drivers of corporate facility decarbonization were state-level climate policies, in particular financial incentives for energy efficiency. The study also found that total emissions by disclosing corporations increased substantially during that period, suggesting expansion of corporate and subnational efforts may be key to reduce overall corporate emissions. (March 2024)
The election of Donald Trump could lead to an additional four billion metric tons of U.S. emissions (CO2 equivalent) by 2030, compared to Biden’s plans, according to new analysis by Carbon Brief. U.S. emissions are projected to fall 28% below 2005 levels in 2030 under Trump, compared to 43% under Biden. The analysis accounts for Trump’s stated plans to roll back Biden’s climate policies, but not additional fossil fuel production Trump might support, or additional policies Biden might implement in a second term. (March 2024)
A review of intergovernmental cooperation on the mitigation of climate change (World Resources Institute (WRI)) — Analyzes 93 intergovernmental climate alliances and partnerships designed to tackle emissions. The paper finds that there has been a surge of cooperation since the Paris Agreement in 2015, and that nearly all national governments are members of at least one initiative. However, two-thirds of the initiatives have been established to share knowledge, and just 6% pursue the adoption of policies or the achievement of targets at the country level. Also, developed countries “dominate the landscape,” being involved in many initiatives (the UK leads the list at 71 of 93). Energy supply is the focus of the most initiatives, at 28%, with transport second at 18%. Also, while many have robust operational infrastructure, many lack transparency arrangements. (Oct 2023)
Views on the elements for the consideration of outputs component of the first global stocktake (United Nations Framework Convention on Climate Change (UNFCCC)) — Synthesizes governments’ and stakeholders’ views for the global stocktake at COP28, including ideas for national and collective policies. Some options listed include: tripling renewable energy capacity by 2030; cutting methane emissions by 40% by 2035; phasing out unabated coal power generation by 2040; phasing out fossil fuel use, exploration, and subsidies; and providing $200-400 billion in finance each year for a loss and damage fund by 2030. (Oct 2023)
Government Energy Spending Tracker (International Energy Agency (IEA)) — Tracks spending policies in 68 countries governing clean energy investment support and short-term energy affordability measures. Policies on clean energy investment include measures to support investment in energy infrastructures, renewables, electrification, efficiency, and energy sector supply chains. The report finds that (June 2023):
- $1.34 trillion has been allocated by governments to support clean energy investment since 2020;
- Direct incentives for manufacturers for bolstering domestic manufacturing of clean energy technologies total around $90 billion;
- Since early 2022, governments have allocated $900 billion to short-term consumer affordability measures in addition to pre-existing support programs and subsidies;
- Affordability measures have blunted the impact of rising energy prices, but in 12 countries representing nearly 60% of the global population, the average household share of income spent on energy in 2022 increased;
- As high prices persist, the uptake of clean energy technologies is set to accelerate further, hastening the emergence of a new energy economy.
90% of Net Zero plans by 35 countries are unlikely to be achieved, according to new research in Science. The evaluation assesses countries’ Nationally Determined Contributions based on whether they are legally binding and have “credible” policy plans, and on whether and how fast the countries’ emissions are already declining. It ranks national efforts as “higher,” “lower,” or “much lower” confidence levels. World-leading emitters China and the US fall into the “lower” level, while India, Brazil, and Australia fall in the “much lower” level. The EU falls in the “higher” level. When only the most credible net-zero targets are included in the analysis, warming is projected to reach 2.4°C by the end of the century, well past the Paris goals. Only with lower and very low-credibility targets does projected warming remain below 2.0°C. (June 2023)
Increasing Recycling Rates with EPR Policy (The Recycling Partnership) — Explores how Extended Producer Responsibility (EPR) programs at the state level affected recycling rates and other key metrics. In this study of EPR for printed paper and packaging (PPP) across six U.S. states and seven jurisdictions worldwide, researchers found that (Feb 2023):
- EPR programs in five countries increased the collection and recycling of PPP to over 75%, with Belgium reaching 90% (the remaining two increased collection to over 60%);
- U.S. recycling rates are substantially lower than in jurisdictions with EPR programs, where rates ranged from 66% to 75%;
- By adopting EPR policies, U.S. states could increase their recycling rates by as much as 48%, as Colorado did after implementing an EPR policy (going from 21% to 70%);
- U.S. states with EPR policies retained between $13 million and $91 million in economic value of the recycled materials; reduced greenhouse gas emissions, and produced thousands of jobs.
The State of Nationally Determined Contributions: 2022 (World Resources Institute) — Since the first round of the Paris Agreement, 80% of Nationally Determined Contributions (NDCs) have been updated, according to a new report by WRI. Key findings include (Oct 2022):
- By September 2022, countries have communicated 139 new or updated NDCs;
- The latest NDCs reduce 2030 emissions by about 5.5 gigatons of CO2 equivalent more than initial NDCs, a 7% reduction from 2019 levels. However, emissions must decline at least 43% from 2019 levels to keep the 1.5°C goal within reach;
- 77% of NDCs include greenhouse gas emissions reductions targets and 96% include sector-specific mitigation targets and other measures;
- 86% of NDCs include an adaptation component;
- 53% include estimates of climate finance requirements, and total $4.3 trillion: $2.7 trillion for mitigation, $1.1 trillion for adaptation, and $475 billion unspecified.
The U.S. government will spend an estimated $514 billion on climate technology and clean energy over the next ten years under three recently enacted laws (the Inflation Reduction Act, the CHIPS acts, and the Infrastructure Investment and Jobs Act), according to RMI. The investments are projected to reduce US emissions by around 40% and increase new cumulative capital investments by $3.5 trillion. Annual real federal spending on climate and clean energy is likely to be 3.5 times more than 2009-2017 levels and 15 times levels in the 1990s and early 2000s. (Aug 2022)
Environmental Performance Index (EPI) 2022 (Yale University Center for Environmental Law & Policy / Columbia University Center for International Earth Science Information Network) — Ranks 180 countries on their efforts to address critical sustainability issues including air & water pollution, waste management, biodiversity & habitat protection, and the clean energy transition. The EPI projects 2050 emissions based on 40 performance indicators measured against internationally established targets. It does not account for pollution that spills across borders. Key findings include (June 2022):
- Most countries will not achieve the 2050 net zero goal established in the 2021 Glasgow Climate Pact.
- Denmark and the United Kingdom were the highest performers and are currently projected to reach net zero by 2050, having put in place some of the world’s most ambitious climate policies. The U.S. ranked 43rd (20th out of 22 wealthy democracies in the Global West).
- More than 50% of emissions in 2050 are projected to come from just 4 countries: China, India, the United States, and Russia.
- On the current trajectory, 24 countries will account for nearly 80% of 2050 residual GHG emissions.
- India ranks lowest on the scorecard, with worsening air quality and rapidly rising greenhouse gas emissions noted as urgent challenges.
- Factors noted for contributing to environmental success include good governance, country wealth, quality of life, independent media, and well-crafted regulations.
- The report assesses the impact of COVID-19 and describes how efforts to return to status quo policies “will erase the environmental gains achieved during the past few years."
ESG Regulatory Trends
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Carrots & Sticks: Beyond Disclosure in ESG and Sustainability Policy (GRI, Stellenbosch University Business School et al.) — Analyzes over 2,460 ESG and sustainability policies from 132 countries and 76 international and regional organizations from 1897 to the present. Key findings (March 2024):
- 55.2% of all policies are voluntary. This trend reversed after the Sustainable Development Goals (SDGs) were introduced in 2015, going from 52% mandatory prior to 2015, to 36% mandatory after.
- Less than 20% of policies exhibit a high level of restrictiveness on business. 75% fall in the low restrictiveness category, suggesting limited power of enforcement. Disclosure policies are two to three times more likely to be high restrictive on business.
- Of Environment (E), Social (S), and Governance (G), E-focused policies dominate, followed by S, and then G. E-focused policies tend to address climate change, energy, waste, and water. S-focused policies focus primarily on compensation.
- Certain SDGs dominate in policies, including SDG 8 (decent work) and SDG 12 (responsible consumption and production).
The number of material and credible national policy announcements on the land and nature transition doubled in the last 12 months, according to Inevitable Policy Response’s latest quarterly forecast tracker. More than two-thirds of tracked policies are in line with the well below 2°C climate goal, but only 1% with the 1.5°C goal. The tracker also forecasts that land utilized for nature-based solutions could grow 10-fold by 2035, equivalent to 10% of global agricultural land. (March 2024)
2023 Climate Risk Scorecard (Ceres Accelerator for Sustainable Capital Markets) — Assesses ten U.S. federal financial agencies across nine categories on their actions to protect capital markets, financial institutions, and communities from climate-related financial risks. This third annual Scorecard found the agencies have collectively taken more than 100 public actions to address climate-related financial risk between July 2022 and June 2023. Most of the assessed regulators have made meaningful strides in producing research and data on climate risk and incorporating climate risk into their supervision of regulated entities. All but one agency, the Public Company Accounting Oversight Board, have publicly affirmed climate as a systemic risk. And all agencies have expanded internal climate-related capacities, with six making significant progress, and four making some progress. Eight agencies also improved transparency regarding their actions to measure and manage climate-related financial risks at their regulated entities. However, only one agency, the Securities and Exchange Commission, has made any progress in including climate risk in regulation. (July 2023)
ESG regulations have increased 155% in the past decade, according to ESG Book analysis of more than 2,400 ESG regulations in more than 80 jurisdictions. 1,255 ESG policy interventions have been introduced worldwide since 2011, compared to 493 between 2001 and 2010. (June 2023)
ESG Battlegrounds: How the States Are Shaping the Regulatory Landscape in the U.S. (Harvard Law School Forum on Corporate Governance) — Summarizes the current efforts in the U.S. on ESG-related regulations, listing laws, policies, and statements by state, that both support and restrict ESG activities. The article also provides key takeaways including: an expected increase in ESG measures especially as the presidential election approaches; that the measures pose “significant legal, operational, reputational, political and financial concerns” for asset managers and companies; and that the measures are still relatively untested, resulting in uncertainties in their “ultimate interpretation and implementation.” (March 2023)
“Global Insights Report 2018: The Rise of ESG Regulations” (Datamaran, 2018) analyzes the growth of ESG regulations dating from 2012 in the financial services, utilities, and healthcare and pharmaceuticals sectors across the U.S., Canada and the UK. The report points to an evolving regulatory landscape that increasingly favors more non-financial information from public companies.
Public Attitudes on Policy
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85% of people polled worldwide believe a global plastic pollution treaty should ban unnecessary single-use plastics, according to a survey of 24,727 people in 32 countries commissioned by WWF and the Plastic Free Foundation. 87% of people also supported banning plastic products that cannot easily and safely be recycled, and 90% supported banning hazardous chemicals used in plastic. (April 2024)
“2021 Edelman Trust Barometer” (Edelman) an annual assessment of global public trust in institutions, finds that business is the most trusted institution — compared to governments, NGOs, and media — and is the only institution seen as both ethical and competent. (January 2021)
Nearly two-thirds (62%) of U.S. voters say they would be more likely to vote for a candidate who supports federal stimulus funding for the renewable energy industry, according to a survey conducted by the Yale Program on Climate Change Communication and the George Mason University Center for Climate Change Communication. The report also finds that 71% of voters support legislation to achieve a 100% clean economy by eliminating fossil fuel emissions from the transportation, electricity, buildings, industry, and agricultural sectors in the United States by 2050. (July 2020)
“Politics & Global Warming” (Yale Program on Climate Change Communication and George Mason University Center for Climate Change Communication, June 2020) analyzes survey responses from around 1,000 Democratic, Independent, and Republican registered voters in the U.S. to better understand how they view global warming, climate and energy policies, and personal and collective action. Select key findings included the following:
- A majority of registered voters (61%) believe global warming is “caused mostly by human activities.”
- 43% stated that a candidate's position on global warming will be "very important"when deciding who they will vote for in the 2020 presidential election.
- More than 85% of registered voters support policies that boost funding for research into renewable energy sources and increase renewable power generation on public land in the United States.
- 77% support U.S. participation in the Paris Climate Agreement.
- 72% believe that corporations and industry should do more to address global warming.
- Only 2% say they are currently participating in a campaign to convince elected officials to take action on global warming. However, an additional 8% say they "definitely would" participate in such a campaign, and another 24% say they "probably would."
Climate Litigation News & Trends
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The U.S. Supreme Court denied the appeal by the American Petroleum Institute, ExxonMobil, and Koch Industries to stop Minnesota’s lawsuit against the companies for deceiving consumers about their products’ role in climate change. The case can now proceed in state court. (Jan 2024)
A New York judge ruled that Danone must face a lawsuit challenging its “carbon neutral” claim on bottles of Evian spring water. The judge called “carbon neutral” an ambiguous and confusing term, according to reporting from Reuters. (Jan 2024)
National Consumers League sued Starbucks in a D.C. court, alleging that the company is deceiving customers with its claims of “100% ethical” coffee and tea sourcing, citing evidence that it relies on farms that commit labor and human rights violations. (Jan 2024)
Truck engine manufacturer Cummins Inc. agreed to pay fines of $1.675 billion in a $2 billion settlement to address U.S. regulatory claims regarding its use of “defeat devices”
to bypass or disable emissions controls in certain pick-up trucks. This is the largest-ever civil penalty for a Clean Air Act violation according to the Department of Justice. Cummins will also spend $325 million to remedy the excess emissions. (Jan 2024)
The total number of climate change court cases has more than doubled since 2017 and is growing worldwide according to a new report by the UN Environment Programme and the Sabin Center for Climate Change Law at Columbia University. As of December 2022, there have been 2,180 climate-related cases filed in 65 jurisdictions, including international and regional courts, tribunals, quasi-judicial bodies, or other adjudicatory bodies. This has grown from 884 cases in 2017 and 1,550 cases in 2020. Of the cases, more than two-thirds have been filed in the U.S., and 17% in developing countries. (July 2023)
Global Trends in Climate Change Litigation: 2023 Snapshot (The Grantham Research Institute on Climate Change and the Environment) — Between May 2022 and May 2023, 2,341 cases have been captured in climate change litigation databases, 190 of which were filed in the last year. Growth in cases is slowing, but diversity in cases is still expanding. Key trends include (July 2023):
- Seven new countries have now had climate litigation cases, including China and Russia;
- More than 50% of 549 assessed climate cases (in which an interim or final decision has been rendered) have direct judicial outcomes that can be understood as favorable to climate action;
- Most recorded cases are climate-aligned outcomes but non-climate aligned litigation (e.g. ESG backlash) is increasing;
- More cases are being filed against corporate actors, with a more complex range of legal arguments;
- There has been growth in ‘climate-washing’ cases challenging the accuracy of green claims and commitments over the past few years;
- Around 20 cases filed by U.S. cities and states against the Carbon Majors are now likely to go to trial;
- Challenges to the climate policy response of governments and companies have grown significantly outside the U.S.;
- Litigation concerning investment decisions is increasing and can help clarify the parameters within which decisions should be made in the context of climate change;
- High-emitting activities are now more likely to be challenged at different points in their lifecycle, from initial financing to final project approval.
Friends of the Earth France, Notre Affaire à Tous, and Oxfam France sued BNP Paribas over its “massive support” to fossil fuels and for its substantial contribution to climate change, arguing the bank violated a 2017 French law requiring companies to identify and reduce environmental risks. The three groups said the bank was involved in indirectly funding more than 200 new fossil fuel projects by eight oil and gas companies and urged the bank to immediately stop financing fossil fuels and adopt an oil and gas exit plan. This is the world’s first climate lawsuit against a commercial bank. (Feb 2023)
The legal organization Client Earth filed a lawsuit in the UK high court against the Board of Directors of Shell for failing to manage the material and foreseeable risks posed to the company by climate change. This is the first ever derivative action against a Board of Directors over failure to properly prepare for the energy transition. Institutional investors holding more than 12 million shares in the company and over £450 billion ($546 billion) in total assets under management support the claim. The lawsuit argues that the company’s transition plan has serious shortcomings and will only result in a 5% reduction in net emissions by 2030 and will force an abrupt pivot “to retain commercial competitiveness as the energy transition accelerates.” (Feb 2023)
While only 2% of corporate counsel surveyed reported ESG-related litigation in 2022, 28% said their exposure to this area increased in 2022, and 24% expect increased exposure in the coming year, according to Norton Rose Fulbright’s latest Annual Litigation Trends Survey. The food and beverage sector had the highest proportion of respondents (40%) who expect increased exposure to ESG disputes in the coming year, possibly related to lawsuits tied to recycling and single-use plastics, according to the report. Also, of those concerned with class actions in the coming year, 37% said ESG-related class actions are an area of future concern. (Jan 2023)
Three environmental organizations, ClientEarth, Surfrider Europe, and Zero Waste France, have sued France-based food and beverage company Danone over its plastic usage. The organizations sued Danone under the French “Duty of Vigilance” law, which requires large companies to have plans to assess and prevent operational impacts on the environment and human rights. The groups are calling on the company to assess its plastic footprint; the impacts its use of plastics has on the environment, health, and human rights; and based on the assessment, create and implement a deplastification plan with specific and dated objectives. (Jan 2023)
The Price of Plastic Pollution (Minderoo Foundation) — Corporate liabilities from plastic pollution, including environmental clean-up, ecosystem degradation, shorter life expectancy and medical treatment, could exceed $20 billion per year in the United States, and $100 billion globally between 2022 and 2030. Beyond 2030, corporate liabilities may increase by an order of magnitude. This report is a first-ever attempt to calculate quantitative estimates from both the social costs and corporate liabilities to plastics, chemicals, and waste companies from all forms of plastic-related pollution. Manufacturers of chemical additives used in plastics are most exposed to litigation risk. The report concludes with action steps for corporates, insurance companies, policymakers, and investors, particularly focused on more fully disclosing plastic-related pollution risks. (Oct 2022)
H&M / DECATHLON — H&M and sporting goods chain Decathlon have made commitments to the Netherlands Authority for Consumers and Markets (ACM) to remove sustainability-related labels from their products and websites, and to improve the use of sustainability claims in the future, following an investigation by ACM. ACM found that H&M uses sustainability claims such as “Conscious” and “Conscious Choice,” without explaining what they mean, or providing a description of the sustainability benefits of the products. H&M and Decathlon also agreed to make donations of €400,000 and €500,000, respectively, to sustainable causes “to compensate for their use of unclear and insufficiently substantiated sustainability claims.” (Sept 2022)
Environmental law nonprofit ClientEarth is suing Shell’s board of directors for “mismanaging climate risk” and “[failing] to properly prepare” the company for the net-zero transition. ClientEarth says this is the first-ever legal case of its kind. (March 2022)
A panel of lawyers for the Netherlands-based Stop Ecocide Foundation unveiled draft law defining “ecocide,”
making the case that the International Criminal Court should adopt it to prosecute environmental offenses by governments and companies. (June 2021)
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“Global Trends in Climate Change Litigation: 2020 Snapshot” (Grantham Research Institute on Climate Change and the Environment, the Sabin Center for Climate Change Law at Columbia Law School, and the Centre for Climate Change Economics and Policy, July 2020) provides an overview of trends and developments in climate change litigation from May 2019 to May 2020. The report finds that 58% of cases filed outside of the U.S. had outcomes favorable to climate change action, 33% had unfavorable outcomes, and 9% had no discernible likely impact on climate policy.
“Global Trends in Climate Change Litigation: 2019 Snapshot” (Grantham Research Institute on Climate Change and the Environment and the Centre for Climate Change Economics and Policy) provides an overview of trends and developments in climate change litigation from May 2018 to May 2019. The report finds that more than 75% of climate change cases were filed in the United States.