Funding incentives under the U.S. Inflation Reduction Act of 2022 (IRA) to transition to a clean energy economy are unleashing opportunities for key U.S. allies and partners around the world. In particular, tax credits exceeding 10% of the price of average electric vehicle (EV) sold in the United States are leading to new investments in Mexico and Canada, and have triggered high-level political negotiations from U.S. partners such as the European Union and Japan.
Red States Still Have Nothing to Complain About Regarding the Social Cost of Carbon
Today, the 5th Circuit Court of Appeals dismissed for lack of standing claims by a number of states challenging the Biden Administration’s Interim Estimates of the Social Cost of Carbon. The Court had telegraphed this outcome last spring when it vacated a District Court injunction against use of the Interim Estimates, noting that:
The Government
Mexico’s New Sustainable Taxonomy — Voluntary for Now, but Designed to Expand
The country’s financial authorities may evaluate potential regulatory efforts in conjunction with the Taxonomy following its rollout.
In March 2023, Mexico published a finalized version of the country’s Sustainable Taxonomy (the Taxonomy), growing the increasing number of jurisdictions that have developed such a framework. At their core, these frameworks aim to provide parameters for what is considered “sustainable,” thereby combating greenwashing and providing clarity to markets for discussing sustainability in terms of investment products and economic activities. However, these taxonomies are not uniform; instead, they adapt to the distinct considerations and priorities of their respective jurisdictions. Mexico similarly takes a distinct approach with the Taxonomy, incorporating a substantial focus on social as well as environmental parameters.
This blog post discusses the general structure of the Taxonomy and how it may impact sustainability claims and offerings for companies doing business in or with the country.
Cal/OSHA Turns Up The Heat on Employers
By Ilana R. Morady, Adam R. Young, and Patrick D. Joyce
Seyfarth Synopsis: After a lengthy delay due in part to the COVID-19 pandemic, Cal/OSHA has published its proposed indoor heat illness prevention standard. After the publication, there is a 45-day comment period, ending at the Standards Board May 18, 2023
WBSCD Publishes New Guidance on Avoided Emissions to Incentivise Shift to Net Zero
The guidance, published by a key entity behind the Greenhouse Gas Protocol, provides information on reporting of avoided emissions, and eligibility criteria for companies.
By JP Brisson, Paul A. Davies, Michael D. Green, and James Bee
On 22 March 2023, the World Business Council for Sustainable Development (WBCSD) released guidance on avoided emissions, i.e., emissions that occur outside of a company’s value chain. The WBCSD said the new guidance “will help ensure credible accounting of avoided emissions” and “seeks to bring harmonization and concrete guidance on how companies can assess and account for the decarbonizing impact of their solutions”.
Shale Law Weekly Review—Week of April 3, 2023
Oil and Gas Leasing: Federal Pause on Oil and Gas Leases on North Dakota’s Public Lands and Waters Overruled
On Monday, March 27, 2023, the District Court of North Dakota decided in favor of a motion for preliminary injunction filed by the State of North Dakota in an ongoing lawsuit against the Department of Interior
Dave Curran and Reco Charity Discuss Navigating Sustainable Organizations at Syracuse University Symposium
Dave Curran, executive director of the Institute and co-chair of the Paul, Weiss ESG Advisory Practice, and Paul, Weiss corporate associate Reco Charity participated in the inaugural “Navigating the Sustainable Organization Symposium,” hosted by Syracuse University’s Dynamic Sustainability Lab.
Dave moderated “Fireside Chat with Chief Sustainability Officers,” which included chief sustainability officers from Colgate-Palmolive Co.,
Deja Vu One More Time? What Will Happen If EPA Ignores CASAC Regarding the Ozone NAAQS?
Last week, Inside EPA (subscription required) reported that the Clean Air Science Advisory Committee has pretty much agreed that the National Ambient Air Quality Standards for ozone must be made more stringent. Apparently, the panel is looking at recommending that the primary standard be reduced from 70 ppb to a range of 55-60 ppb. CASAC
Greenwashing: EU Unveils Ambitious Proposal on Green Claims
On March 22, 2023, the European Commission (“Commission”) presented its proposal for a Directive on substantiation and communication of explicit environmental claims (“Proposed Green Claims Directive”). The Proposed Green Claims Directive is intended to work in tandem with the Commission’s 2022 Proposal for a Directive empowering consumers for the green transition through better protection against unfair practices and better information (“Proposed Greenwashing Directive”). Both Proposed Directives are intended to contribute to the EU’s green transition towards a circular, climate-neutral and clean economy by enabling consumers to make informed purchasing decisions based on reliable information about the sustainability of products and traders. In particular, the Proposed Green Claims Directive would create a common methodology for substantiating green claims about the environmental footprint of products, services and companies and require companies making environmental claims to secure a certification of compliance from an independent national “verifier.”
EPA Proposes National Primary Drinking Water Regulation to Set Stringent Limits on PFAS in Drinking Water, Including Four Newly Targeted Substances
On March 29, 2023, the US Environmental Protection Agency (EPA) published in the Federal Register its long-awaited proposed rule to restrict certain per- and polyfluoroalkyl substances (PFAS) in drinking water under the Safe Drinking Water Act (SDWA). This action is part of EPA’s whole-of-agency approach in its PFAS Strategic Roadmap and is expected to directly affect 66,000 public water systems across the country. Comments on the proposal are due on May 30, 2023. EPA will also hold a public hearing on May 4, 2023 to receive stakeholder input on this important rulemaking.