Portrait of engineer man or worker, people, with solar panels or solar cells on the roof in farm. Power plant with green field, renewable energy source in Thailand. Eco technology for electric power.

Companies are increasingly recognising that climate risk poses “strategic and operational risk” that could severely impact business operations. On 3 August 2023, United Nations Global Compact released Just Transition in Supply Chains: A Business Brief (the “Brief”).  At the heart of the Brief is a call for businesses to embed the concept of ‘just transition’ into supply chain risk management, taking into account both the environmental and social impacts of their supply chains. There is real concern that as companies increase their climate mitigation and adaptation activities, such actions may have unintended consequences that negatively affect workers, small businesses and local communities that drive global supply chains. On the other hand, integrating climate and social risks into a business’ core business and risk management could be “mutually reinforcing” and could “deliver valuable co-benefits”.

Ozone layer from space view of planet Earth

On 24 August 2023, through Decree No. 11,666/2023, the Kigali Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer was enacted in Brazil (the “Amendment“). It was at MOP 28 (Meeting of the Parties) of the Montreal Protocol, in 2016, in the city of Kigali, Rwanda, that the Parties agreed to include HFCs among the substances controlled by the international regime. Hydrofluorocarbons (“HFCs“) have been used as alternatives to chlorofluorocarbons, mainly in the refrigerant market.

Cannabis

In Lucas v. City of Pomona (2023) 92 Cal.App.5th 508, the Second District of the Court of Appeal affirmed the trial court’s decision that the City of Pomona’s (“City”) application of the statutory exemption under CEQA Guidelines section 15183 was proper for approval of a zoning overlay district for commercial cannabis activities (the “Project”). Applying…

Wetlands

On September 8, the U.S. Environmental Protection Agency and the U.S. Army Corps of Engineers published a final rule in the Federal Register to amend the Agencies’ January 2023 “waters of the United States” (WOTUS) definition. 88 Fed. Reg. 61,964 (Sep. 8, 2023). According to the Agencies, these amendments conform that definition to the Supreme Court’s Sackett decision.…

LNG Infrastructure: The Department of Transportation Suspends LNG Rail Transportation
On September 1, 2023, the U.S. Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) published a rule in the Federal Register suspending a previously published final rule that allowed for the transportation of liquified natural gas (LNG) by rail cars. The PHSMA’s…

On August 10, 2023 the Sixth District Court of Appeal filed its published opinion in Santa Rita Union School District v. City of Salinas (2023) 94 Cal.App.5th 298.  On September 7, 2023, it filed an Order slightly modifying its opinion without modifying the judgment and denying rehearing.  The case concerns the certification of an EIR for the “West Area Specific Plan” in and by the City of Salinas, and claims by two school districts in the City that asserted perennial underfunding meant that the EIR failed to adequately address school-related impacts.  While the trial court agreed in part, granting narrow writ relief enjoining future entitlements while leaving the specific plan approval in place, the Sixth District did not, holding that the districts’ expressed concerns were speculative in nature and need not have been evaluated in the EIR.

Environment - EPA Sign

EPA finalized a rule effective on August 7, 2023 concerning the treatment of confidential business information (CBI) claims made in Toxic Substances Control Act (TSCA) submissions. Companies who submit any information to EPA under TSCA and want their confidential information to be protected from public disclosure must comply with these new requirements for CBI claims. Failure to follow these procedural requirements can result in EPA’s denial of the confidentiality claims and the information being made public.

The Green Technical Advisory Group, which is guiding the UK government’s implementation of a UK Green Taxonomy, has issued detailed advice for the upcoming legislation.

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

In September 2023, the Green Technical Advisory Group (GTAG), chaired by the Green Finance Institute, has released four reports offering technical advice to HM Treasury on the development of a UK Green Taxonomy:

  • “Developing a UK Taxonomy Adapted to the UK’s Needs” — assesses short- and medium-term priorities for establishing a usable taxonomy
  • “Getting KPIs Right: Implementing an Effective Reporting Regime for the UK Green Taxonomy” — outlines issues in European taxonomy reporting Key Performance Indicators (KPIs)
  • “Treatment of green financial products under an evolving UK Green Taxonomy” — reviews how the UK Green Taxonomy affects previously considered “green” activities
  • “Operational considerations for taxonomy reporting” — provides recommendations for minimising data gaps in disclosures and guidance on the use of proxies

    • GTAG’s latest guidance seeks to provide a roadmap for the UK Green Taxonomy. While it draws on many elements of the EU taxonomy, GTAG has stated that it has looked to adapt the UK Green Taxonomy to provide a “more effective reporting framework” for both disclosing businesses and investors within the UK context.