Speaking Sustainability

From November 6 to November 18 of this year, climate leaders will convene in Sharm el Sheikh, Egypt, for the United Nations Framework Convention on Climate Change’s (UNFCCC) 27th Conference of the Parties (COP 27).

As Congress headed into recess, it sought to wrap up loose ends, including passing permitting reform. However, Sen. Joe Manchin (D-WV) removed his permitting reform language from a continuing resolution and Senate Majority Leader Chuck Schumer (D-NY) reiterated his commitment to passing legislation to expedite the permitting process of energy and minerals projects. House Republicans released a platform ahead of the 2022 midterm elections, highlighting domestic energy production and climate regulatory reform. Texas is seeking authority over its carbon dioxide wells, following suit of North Dakota and Wyoming. As Gov. Glenn Youngkin (R-VA) seeks to remove Virginia from the Regional Greenhouse Gas Initiative (RGGI), a public comment period regarding the regulatory action opened this week.

To read Akin Gump’s most recent climate policy update, please click here.

As Sen. Joe Manchin (D-WV) seeks to push his permitting reform past the finish line, other Senate Democrats have advocated for amendments in its language. Also in the Senate, President Biden praised the body for ratifying the Kigali amendment. While the Securities and Exchange Commission (SEC) is aiming to finish the development of its climate goal disclosure rule, the Environmental Protection Agency (EPA) is slated to develop its own standard for corporate climate targets. In California, Gov. Gavin Newsom (D-CA) met with climate leaders at Climate Week and highlighted the recently passed California Climate Commitment. Finally, ahead of the 2022 United Nations Climate Change Conference (COP27) summit, the United Nations Secretary-General called on polluters to cover the costs of events caused by climate change.

Following Rep. Richard Neal’s (D-MA) request for information to health care providers regarding the impact of climate invents on the industry, the House Ways and Means committee released a report highlighting the intersection of the health care sector and the climate crisis. The U.S. Court of Appeals for the D.C. Circuit is urging energy regulators for updates on plans to utilize social cost estimate metrics. In California, Gov. Gavin Newsom (D-CA) is speaking out against Proposition 30, which would establish a tax to incentivize the purchasing of electric vehicles. Additionally, the California Air Resources Board rolled out a proposal that prohibits manufacturers from selling new, gas or diesel-fueled medium and heavy-duty trucks by 2040. On a global scale, the United Nations published a report outlining current global pledges to reduce emissions, noting they are insufficient in addressing the climate crisis. 

The Inflation Reduction Act (“IRA”) includes a variety of incentives, including tax credits and grants, for US industries to reduce greenhouse gas (“GHG”) emissions. The IRA also includes a significant “disincentive” for emitting methane from certain oil and gas facilities, namely the Methane Emissions Reduction Program which includes a methane waste emissions charge (“methane fee”) that will become effective January 1, 2024.  The 2021 Global Methane Assessment recognized that, as described by the Institute for Governance and Sustainable Development, “aggressively cutting methane emissions is the fastest and most effective way to reduce the rate of warming and keep the global average temperature from breaching the 1.5°C barrier above preindustrial levels.”

As Climate Week approaches, various climate and energy policies are developing. In the United States, the Federal Reserve’s governor has outlined his priorities, including equipping the Federal Reserve with the tools to assess financial risks associated with climate. As the dust settles around the passage of the Inflation Reduction Act of 2022, a multitude of large-scale clean energy projects have launched domestically. After Gov. Glenn Youngkin (R-VA) announced his administration’s intention to remove the state from the Regional Greenhouse Gas Initiative (RGGI), 61 Virginia Democrats penned a letter expressing opposition to the regulatory proposal. Meanwhile in California, the state is experiencing both record-breaking temperatures and electrical demands. Finally, a drought in southwestern China may potentially exacerbate international supply chain issues. 

The European Parliament has rejected a motion to remove gas and nuclear investment products from the EU’s sustainable investment taxonomy, surprising many who consider their inclusion to be greenwashing. This article considers the basis for this rejection and the criteria applicable to gas and nuclear products to be included in the taxonomy.