[co-author: Semhal Gebrekirstos]
Welcome to Horizon, DLA Piper’s monthly bulletin reporting on late-breaking legislative and policy developments in ESG. Our aim is to scan the litigation, enforcement, and regulatory horizon to help inform business decisions.
Deadline alert
- Colorado’s Extended Producer Responsibility Law, HB 22-1355: July 31, 2025 is the first annual deadline to report data to the Circular Action Alliance (CAA) for covered material sold or distributed in Colorado in 2024.
Please also see our ESG calendar for information about key reporting deadlines around the world, as well as our latest alert, Producer obligations under EPR laws: Exploring alternatives to PRO participation.
Disclosures and voluntary reporting
SEC asks Eighth Circuit to rule on Climate Disclosure Rules litigation. On July 23, the SEC asked the Eighth Circuit Court of Appeals to lift its abeyance (pause) of Iowa v. SEC, the case challenging the validity of the commission’s landmark Climate Disclosure Rules, and issue a ruling in the case. In March, the SEC notified the Court that it wished to withdraw its defense of the Climate Rules in the litigation and in April, the court granted a Motion to Hold Case in Abeyance brought by a group of 18 intervening states and the District of Columbia, which paused the proceedings until further order of the Court. The court also directed the SEC to file a status report advising whether it intends to reconsider or review the Climate Rules. On July 23, the SEC provided that status report, noting that it “does not intend to review or reconsider the Rules” and requesting that “the Court proceed with the litigation and decide the case.” The SEC emphasized that a judicial decision would clarify the Commission’s authority and guide potential future actions regarding the Rules, which a majority of the current SEC Commissioners believe overstepped the SEC’s statutory authority. The timing and outcome of the litigation, as well as the fate of the Rules, are in the Court’s hands; meanwhile, the SEC is likely to maintain its voluntary stay on enforcement. Find out more in our alert, SEC asks Eighth Circuit Court of Appeals to rule on Climate Rules litigation.
California climate disclosure update: CARB issues July 2025 FAQs; developments in court challenges. On July 9, the California Air Resources Board (CARB) published a comprehensive FAQ addressing regulatory development and initial reporting requirements under SB 253 (Climate Corporate Data Accountability Act) and SB 261 (Climate-Related Financial Risk Disclosure Program). This FAQ responds to stakeholder questions from CARB's May 29 public workshop and December 2024 information solicitation and provides practical guidance for companies preparing to comply with California's evolving climate disclosure mandates. The FAQ is structured in two main sections: the first addresses CARB’s ongoing regulatory development for SB 253 and SB 261, while the second provides guidance on the submittal of initial reports.
Additionally, on July 1, the US District Court for the Central District of California held a hearing on the plaintiffs' motion for a preliminary injunction in Chamber of Commerce of the United States of America et al. v. California Air Resources Board. The plaintiffs are seeking to halt enforcement of California's climate disclosure laws, SB 253 and SB 261, primarily on First Amendment grounds. The state maintains that the laws are intended to promote transparency and investor protection without imposing undue burdens. The court has taken the matter under submission and will issue an order following its review. In the meantime, both laws remain in effect, and companies should continue their preparations for the 2026 reporting deadlines. See some of our earlier coverage of this litigation here.
Omnibus I in the news. The EU continues to advance Omnibus I, the set of proposed simplification measures that will roll back key reporting requirements of the bloc’s Green New Deal. Here are the latest developments:
- On July 3, the European Commission announced it has given the European Financial Reporting Advisory Group (EFRAG) an additional month to finalize revisions to the European Sustainability Reporting Standards (ESRS). The standards set out in the ESRS are foundational to the EU’s Corporate Sustainability Reporting Directive (CSRD); the coming revisions to the ESRA are a key aspect of the Omnibus I legislative reforms, which aim to ease key sustainability requirements in the EU’s Green Deal – the CSRD, Corporate Sustainability Due Diligence Directive (CSDDD), EU Green Taxonomy, and Carbon Border Adjustment Mechanism. In mid-June, EFRAG told the Commission that while it was moving forward with updates to the reporting standards, it “considers that a longer timeline could contribute to a more secure management of quality.” In granting the additional time, European Commissioner for Financial Services and the Savings and Investment Union Maria Luis Albuquerque reminded EFRAG that the revised ESRA should be “substantially shorter,” with no additional data points; further, no data points that are now voluntary should be made mandatory. The new deadline for EFRAG to finalize the revisions is November 30, 2025.
- The European Commission announced on July 4 that it has adopted amendments, proposed in February, that will simplify reporting requirements under the EU Green Taxonomy, exempting non-material activities and streamlining reporting on Taxonomy Key Performance Indicators. The Green Taxonomy was created to classify sustainable economic activities and guide investment toward them. The EC states that the “simplification measures will apply as of January 1, 2026 and will cover the 2025 financial year” but that companies will have “the option to apply the measures starting with the 2026 financial year if they find this more convenient.” The amendments were adopted via a so-called Delegated Act, which now moves to the European Parliament and European Council for legislative negotiations. See the Commission’s Q&A about these simplification measures here.
- On July 9, the European Parliament added its voice to criticism of the Commission’s proposed simplifications of the EU Regulation on Deforestation-Free Products (EUDR), voting in favor of a non-binding resolution objecting to the country risk classifications the Commission was proposing. The resolution called for further changes that would, among other things, modify the country benchmarking system – the foundation of the EUDR – and provide support for forest governance reforms and traceability systems. In late 2024, enforcement of the EUDR, which prohibits the import of commodities such as soy, beef, palm oil, and coffee unless they are certified as deforestation-free, was postponed by a year. Addressing the objections of Parliament and others, sources suggest, will likely push back the compliance deadline yet again (for large EU operators and traders, it is now December 30, 2025). In the latest twist, on July 24 the European Commission announced a call for evidence seeking comments on a new environmental omnibus package that would simplify and streamline companies’ administrative burdens. The laws that would be affected by this new omnibus package are “not yet defined,” a Commission spokesperson told the online publication Responsible Investor. Likely, however, that package will include further adjustments to the EUDR.
- On July 10, the European Financial Reporting Advisory Group (EFRAG) released “unapproved” exposure drafts of amendments to the European Sustainability Reporting Standards (ESRS). Those standards set out detailed guidance on complying with reporting obligations under the Corporate Sustainability Reporting Directive (CSRD). The unapproved exposure drafts are part of EFRAG’s work to simplify the ESRS; they are called “unapproved” because they are working drafts. EFRAG says it intends to release the approved exposure draft by the end of this month. The unapproved drafts may be found on this page.
- On July 11, the European Commission announced that it had adopted targeted “quick fix” amendments that would ease CSRD reporting requirements for so-called Wave One companies – the largest reporting entities, with more than 500 employees. Wave One companies were not included in the reporting deadline delays set out in the stop-the-clock directive earlier this year. The Commission says that this change “gives additional flexibility in reporting to wave one companies and ensures that they do not have to report additional information for financial years 2025 and 2026 compared to what they had to report for financial 2024.”
You may also enjoy the materials from our June webinar on navigating compliance with the EU’s Carbon Border Adjustment Mechanism. In the webinar, we offered practical guidance on the latest CBAM developments and highlighted emerging tools and frameworks to support corporate decarbonization targets. Access the webinar recording here.
UK drops plans for green taxonomy. In the UK, HM Treasury has announced that the government is walking away from its plans to introduce a green taxonomy. The decision follows significant pushback from industry stakeholders during the consultation process. In a statement, HM Treasury said that stakeholders’ concerns “largely centered around the real-world application of this policy, primarily driven by experience of working with other taxonomies, and concerns over the extent to which taxonomies were delivering on desired objectives.” While the UK government “remains committed to delivering our Clean Energy and Growth Missions and meeting our environmental targets,” the statement continued, it “has concluded that a UK Taxonomy would not be the most effective tool to deliver the green transition and should not be part of our sustainable finance framework.” More than half of the respondents to the consultation, among them businesses, NGOs, and charities, voiced skepticism about the value of implementing such a taxonomy. Another separate consultation, on a proposed oversight regime for assurance of sustainability-related financial disclosures, is open through September 17.
GRI opens public consultation on fashion sector reporting standard. On July 15, the Global Reporting Initiative (GRI) announced the opening of a global public consultation on its proposed Textiles and Apparel Sector Standard, created to help fashion sector companies that manufacture and sell textiles, apparel, footwear, and jewelry to improve their sustainability reporting. Those sectors were targeted, GRI says, because they often depend on fragmented, complex, international supply chains that may conceal environmental and human rights risks. Such companies, GRI stated, “need a globally consistent set of metrics to meet both reporting needs and stakeholder expectations.” GRI will accept feedback on the exposure draft through September 28 and will hold a global-level public webinar on the exposure draft on September 21. See the Textiles and Apparel Sector exposure draft here and register for GRI’s webinar here.
IFRS Foundation proposes updates to reporting standards and industry-based guidance. On July 3, the IFRS Foundation’s International Sustainability Standards Board (ISSB) published two exposure drafts that propose updates to its reporting standards as well as amendments to the Industry-based Guidance on Implementing IFRS S2. The updated reporting standards would affect eight industries in the Extractives & Minerals Processing sector – among them oil and gas, coal, metals and mining, and construction – along with the processed foods sector, and would also revise metrics for another 41 industries in such areas as workforce health and safety and water management. The proposed revisions to the Industry-Based Guidance on Implementing IFRS 52, meanwhile, aim to keep that guidance in alignment with climate-related content in the SASB Standards. The comment period on both exposure drafts is open through November 30.
Greenwashing
ESMA issues “thematic notes” to help the financial sector avoid greenwashing. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator, has issued “thematic notes” setting out four guiding principles to help financial services firms avoid making misleading sustainability claims to investors. EFRAG notes that the guiding principles, issued on July 1, “do not create new disclosure requirements but aim to remind market participants about their responsibility to make claims only to the extent that they are clear, fair and not misleading.” It called on financial services firms to "acquaint themselves" with the four principles so that they can avoid the risk of greenwashing. Under the four principles, marketing claims for sustainability investments should be accurate and well balanced; accessible; substantiated by robust evidence and methodologies; and up to date. The thematic notes come shortly after EFRAG warned national regulators across the EU to be more vigilant about the ways investment managers disclose sustainability-related factors.
EBA proposes amendments to EBA Guidelines on offerings of retail banking products with ESG features. On July 9, the European Banking Authority (EBA) opened a public consultation on proposed amendments to the EBA Guidelines on product oversight and governance (POG) arrangements for retail banking products. The proposed revisions address offerings of products with ESG features and aim to strike a balance among several factors: preventing greenwashing, clarifying existing POG requirements for products with ESG features, ensuring that financial institutions meet the highest standards of business conduct, and avoiding additional regulatory burdens. See the draft amendments here. The comment period is open through October 9. The EBA will hold a virtual public hearing on the proposed amendments on September 21. Register for it here by September 8.
Greenwashing: the legal and regulatory landscape across Asia Pacific. Countries in Asia Pacific typically do not have specific regulations that solely target greenwashing, but often are able to deploy existing laws to regulate greenwashing and environmental claims. Our series of alerts covers such rules in Australia, China, Hong Kong, New Zealand, Singapore, and Thailand.
Sustainability: Regulatory
EPA proposes overturning 2009 Endangerment Finding, threatening federal climate protections. On July 29, the EPA proposed a rule to revoke the Endangerment Finding. The 2009 finding determined that greenhouse gas (GHG) emissions are pollutants that endanger public health and welfare. It serves as the foundation for GHG regulation under the Clean Air Act and is widely regarded as the backbone of US climate policy. In addition, the proposed plan seeks to rescind limits on tailpipe emissions that were designed to encourage electric vehicle production. If finalized, this move would eliminate the current and future ability of the federal government to impose limits on climate pollution from vehicles, power plants, and other sources, drastically altering US climate policy. The outcome of the proposal will likely be determined through a lengthy legal and regulatory process.
Presidential proclamations exempt more than 100 facilities from Clean Air Act rules. Deeming the facilities “vital to national security,” on July 17, President Donald Trump issued four proclamations that collectively exempt more than 100 factories, refineries, mines, and processors from Clean Air Act rules finalized in 2024. The proclamations are Regulatory Relief for Certain Stationary Sources to Promote American Chemical Manufacturing Security, exempting certain chemical plants from the so-called HON Rule targeting emissions of chloroprene, ethylene oxide, and other chemicals; Regulatory Relief for Certain Stationary Sources to Promote American Security with Respect to Sterile Medical Equipment, exempting around 40 commercial sterilization facilities from compliance with requirements to reduce their emissions of ethylene oxide; Regulatory Relief for Certain Stationary Sources to Further Promote American Energy, which exempts six coal-fired power plants from compliance with the Mercury and Air Toxics Standards Rule; and Regulatory Relief for Certain Stationary Sources to Promote American Iron Ore Processing Security, which exempts certain taconite producers from compliance with a rule targeting their emissions of mercury, hydrofluoric acid, and hydrochloric acid. Under the Clean Air Act, the President may choose to exempt polluters from complying with its regulations if he determines that the rules are based on technology that does not yet exist; phrases to that effect appear in each of the proclamations. In March this year, the EPA opened a portal allowing businesses to request exemptions from Clean Air Act rules.
Retail associations sign MOU to form producer responsibility organization for textiles in California. On July 17, the California Retailers Association, American Apparel & Footwear Association, and National Retail Federation announced the signing of a Memorandum of Understanding to jointly establish an independent, producer-led 501(c)(3) producer responsibility organization (PRO). This PRO focuses on collaboration across the textile value chain and is designed to develop and implement an effective stewardship program. The organization is expected to be operational in early 2026, starting with registration of producers by July 1, 2026. One of the PRO’s first steps will be conducting a statewide needs assessment to identify necessary actions and investments to meet legal requirements and guide the program’s budget and planning.
Microplastics proposed for Candidate Chemical listing in California: Key considerations for businesses. California’s Department of Toxic Substances Control (DTSC) has proposed adding microplastics to its list of regulated chemicals under the Safer Consumer Products program. This action and its subsequent could provide DTSC with the means to regulate a wide variety of plastic-containing products, including packaging, in an unprecedented way. If fully implemented, the proposal could have significant and costly impacts on businesses. See our alert.
European Commission announces new climate target for EU. On July 2, the European Commission announced it is proposing legislation aiming to set a 2040 target of 90 percent net reductions in GHG emissions compared to 1990 levels. The Commission is required to propose this intermediate emission target under the European Climate Law, which sets an overarching goal for the EU of climate neutrality by 2050. Notably, the plan is somewhat softer than originally proposed. For instance, initial proposals would have required the EU to meet the 90 percent by 2040 goal solely through their own internal endeavors. Under the proposal, in contrast, member states would be allowed to achieve part of their emissions reduction targets by purchasing international carbon credits covering up to 3 percent of their 2040 targets. Simultaneously, the Commission also released a communication on “the state of play and work ongoing in the delivery of the Clean Industrial Deal,” as well as updates on other regulatory work furthering the EU’s climate goals – a recommendation on tax incentives to support the Clean Industrial Deal and a recommendation and three guidance documents from the Commission, to, it stated, help member states “facilitate the uptake of innovative renewable energy sources,” speed up grid and infrastructure rollouts, and ensure cost-effective operations in future. In related news, the European Commission reported in late May that the EU is almost on track to attain its energy and climate goals, not least its target of slashing GHGs by 55 percent by 2030 compared to 1990 levels. The EU, the Commission said, is in line to reduce its net GHG emissions by around 54 percent by 2030; by the end of 2023 it had already reduced GHG emissions by 37 percent – 8 percent of that achieved in 2023 alone.
Talks on binding global plastic pollution treaty to resume next month. In August, the UN’s Intergovernmental Negotiating Committee on Plastic Pollution (INC) convenes again in Geneva, resuming the fifth, and likely final, session (INC-5.2) as it strives to develop an international legally binding instrument on plastic pollution, including in the marine environment. Negotiators were unable to come to an agreement during the first part of the fifth session, held in Busan in late 2024, but did settle on some text that will be the launching pad for the August talks. The 2022 UN resolution creating the INC began by “noting with concern that the high and rapidly increasing levels of plastic pollution represent a serious environmental problem at a global scale” and went on to state, among other things, “that plastic pollution, in marine and other environments, can be of a transboundary nature and needs to be tackled, together with its impacts, through a full lifecycle approach taking into account national circumstances and capabilities.” DLA Piper will be present at the negotiations in Geneva, representing the Environmental Law Institute.
Sustainability: Litigation
This month, two of the world’s three human rights tribunals issued historic advisory opinions on the legal obligations of states and businesses arising from climate change. Here is our quick look at those opinions:
International Court of Justice: A healthy environment is a human right; states have a legal obligation to address climate change. On July 23, the International Court of Justice (ICJ) issued its historic advisory opinion concluding that a "clean, healthy and sustainable environment" is a human right. It further found that a state’s failure to protect the planet from the impacts of climate change may violate international law. As we reported in December, the case, brought by the island nation of Vanuatu, sought to determine whether states have an obligation under international law to protect the environment from human-caused climate change. Yes, the ICJ concluded, they do, and that is especially so for the world’s developed nations. The opinion states that a government's failure to take appropriate climate action may constitute an internationally wrongful act. States are also required to regulate businesses whose emissions cause climate harm, and industrialized countries have an urgent duty to lead global efforts, cooperate, and adhere to climate agreements. The case was the largest ever heard by the ICJ, with tens of thousands of pages in written submissions and nearly 100 countries and 12 international organizations providing testimony over two weeks. While the advisory opinion is not legally binding, it, like the IACtHR opinion, is considered authoritative because it summarizes existing law: its findings therefore are expected to influence future litigation and political activity worldwide. The 15 judges on the ICJ panel were unanimous in joining the opinion. See the ICJ’s summary of its advisory opinion here.
IACtHR Advisory Opinion: States and corporations have binding legal duties to address the climate crisis. Earlier in the month, the Inter-American Court of Human Rights (IACtHR) issued its own landmark advisory opinion, holding that states and corporations have binding legal obligations to address the climate crisis as a human rights emergency. The 234-page opinion, announced on July 3, requires states to prevent irreversible environmental harm and protect ecosystems through “reinforced due diligence,” including regulating business activities, adopting science-based climate targets, and holding polluters accountable for their own and their subsidiaries’ emissions. The opinion also affirms states’ obligations to investigate, prosecute, and punish crimes against environmental defenders. As an authoritative interpretation of international law, the opinion is expected to guide climate litigation and policymaking in countries under IACtHR jurisdiction. The IACtHR, one of three global human rights tribunals, was established by the American Convention on Human Rights. Its jurisdiction covers 20 of the 35 Organization of American States members, among them Argentina, Brazil, Chile, Colombia, and Mexico. See the Advisory Opinion, which is in Spanish, here.
Florida launches investigation of SBTi and CDP “climate cartel.” Florida Attorney General James Uthmeier announced on July 28 that his office is investigating the Science Based Targets initiative (SBTi) and CDP, formerly known as the Carbon Disclosure Project, to determine whether they have violated state consumer protection and antitrust laws Calling the two entities part of the “climate cartel,” Uthmeier said in a statement that “Florida will not sit back while international pressure groups shake down American companies to fund their ESG grift.” CDP is an international nonprofit that helps companies and jurisdictions disclose their environmental impact; SBTi, co-founded by CDP and the United Nations Global Compact, developed the Corporate Net-Zero Standard, which provides a benchmark for companies to set science-based net-zero targets. We will continue following this investigation, which is in its earliest stages.
Coalition of state AGs, led by Montana, asks to join youth-led climate lawsuit as intervenors. Montana is heading a coalition of US states seeking to intervene as defendants in Lighthiser v. Trump, a youth-led lawsuit charging that three of the President’s energy-related Executive Orders (EOs) will accelerate climate change, causing “irreversible harm” to the plaintiffs and violating their constitutional rights to life and liberty. As we reported in May, the young plaintiffs, among them litigants who prevailed in the landmark Held v. Montana case, charge that the EOs “falsely claim an energy emergency, while the true emergency is that fossil fuel pollution is destroying the foundation of Plaintiffs’ lives.” They are asking the US District Court for the District of Montana to invalidate the EOs and order the President, as well as 11 federal agencies also named as defendants, not to enforce or implement them. Now, Montana Attorney General Austin Knudsen is leading a coalition of state Attorneys General, all Republicans, seeking to intervene in the suit. A court filing said that these states each “have unique interests in this case because it threatens their economies, the use of their properties, and their state budgets.” Seeking to join as intervenors are 19 states and one territory: Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, Texas, Utah, West Virginia, Wyoming, and the Territory of Guam. Should they be allowed to join the litigation, they reportedly intend to file a motion to dismiss by August 4. On September 16 and 17, the US District Court for the District of Montana will hold a combined evidentiary hearing on the plaintiffs’ motion for a preliminary injunction and on the federal government’s own expected motion to dismiss.
Supply chain integrity
Major automakers will be requesting forced labor supply chain due diligence reporting from suppliers. In support of the auto industry’s Forced Labor Due Diligence Program, at least six major automakers will be asking select suppliers to provide forced labor due diligence reporting starting in September 2025. Suppliers are being requested to report forced labor risks using the supply chain due diligence reporting template (DDRT) developed by the Automotive Industry Action Group (AIAG) in collaboration with major original equipment manufacturers (OEMs). The DDRT, AIAG states, “facilitates a supply chain risk Forced Labor information exchange between OEMs and their tiered supply chain partners, supporting social responsibility due diligence and compliance with relevant legislation.” Among the OEMs taking part are General Motors, Ford, Stellantis, and Toyota. AIAG is a nonprofit created in 1982 to improve quality standards and practices across the global automotive industry.
New guide pushes for stronger corporate accountability laws. The Global Initiative on Corporate Accountability (GICA) has released a new messaging guide, Thriving Communities: A hope-based messaging guide for holding corporations accountable. The guide is designed to help communities and civil society actors worldwide to push for tougher laws that hold companies responsible for their impact on people and the environment. The new messaging guide helps civil society actors craft persuasive narratives in their campaigns for the adoption of mandatory human rights and environmental due diligence laws, which the guide refers to as “responsible business laws.” Thriving Communities: A hope-based messaging guide for holding corporations accountable is available in English and Spanish.
Energy and natural resources
EPA will eliminate Office of Research and Development, its research arm, and make further deep staff cuts. On July 18, the EPA announced that it is eliminating the Office of Research and Development (ORD), its long-standing research and development arm, and will also make further deep staffing cuts across the agency, eliminating thousands more employees, among them chemists, biologists, toxicologists and other scientists. ORD’s ambit includes analyzing the dangers posed to public health by such hazards as toxic chemicals, smog, runoff, water pollution, watershed destruction, climate change, and wildfires; It also oversees grant programs that fund private companies and universities. Instead, EPA intends to launch a new Office of Applied Science and Environmental Solutions that, according to the agency, will “allow EPA to prioritize research and science more than ever before and put it at the forefront of rulemakings and technical assistance to states.” EPA Administrator Lee Zeldin stated that the changes will make the EPA “better equipped than ever to deliver on our core mission of protecting human health and the environment, while Powering the Great American Comeback.” Zeldin also said that more than 3,700 additional EPA employees will soon be eliminated. With these further cuts, the agency will have eliminated more than 23 percent of its staff since January.
Congress passes bill cutting EV and renewable energy tax credits. On July 3, Congress passed the "One Big Beautiful Bill," ending the $7,500 new and $4,000 used electric vehicle tax credits as of September 30, 2025. The law also phases out tax credits for wind, solar, and other renewables, while keeping credits for nuclear, geothermal, and clean hydrogen on the original timeline. A new tax credit is introduced for metallurgical coal, now classified as a critical mineral. The bill passed both chambers by narrow margins and was signed into law on July 4.
Interior memo sets out new layers of review for wind and solar energy projects. "Department Review Procedures for Decisions, Actions, Consultations, and Other Undertakings Related to Wind and Solar Energy Facilities,” a Department of the Interior memorandum released on July 15 by Deputy Assistant Secretary for Land and Minerals Management Gregory Wischer, sets out new layers of review for wind and solar energy projects. Review of such projects, the memorandum states, “shall require submission to the Office of the Executive Secretariat and Regulatory Affairs, subsequent review by the Office of the Deputy Secretary, and final review by the Office of the Secretary.” The memorandum goes on to list 69 types of “decisions, actions, consultations, and other undertakings” affected by the change, among them notices to proceed; draft, final, and supplemental environmental impact statements; determinations of National Environmental Policy Act adequacy; land use plan amendments and revisions; Outer Continental Shelf Lands Act compliance memos; and right-of-way applications. See the memorandum here.
National Climate Assessment website goes dark. The purpose-built website housing the National Climate Assessment – a Congressionally mandated scientific report issued every four to five years and summarizing the impacts of climate change on the US – has gone dark. The Assessment is a source of scientific information utilized by governments, researchers, and businesses around the world. As we previously reported, in April the Trump Administration eliminated funding for, and the entire staff of, the US Global Change Research Program, whose responsibilities included preparing the Assessment. Hundreds of scientists already working on the 2028 report were dismissed. In June, the White House indicated that the latest report, from 2023, would be housed on NASA’s website. Then this month, NASA officials stated that they would not house the 2023 report on nasa.gov after all. “NASA has no legal obligations to host globalchange.gov's data," NASA's press secretary Bethany Stevens told the media outlet Space.gov. The previous Assessments may still be found in some form in various places online. At this writing, the Southeast Climate Adaptation Science Center, a part of the US Geological Survey, is hosting all five previous Assessments.
Return of the Coal Council. The Department of Energy (DOE) has reinstated the National Coal Council, authorizing it for a two-year term. According to a Federal Register notice, committee members will be chosen from “all segments of the coal industry,” as well as “coal consumers, coal transportation providers, technology suppliers, and organizations engaged in environmental remediation related to coal; coal mining and coal user host communities; and service providers and regional development experts” to advise Secretary of Energy Chris Wright. The council is being reinstated pursuant to an Executive Order from April, Reinvigorating America’s Beautiful Clean Coal Industry and Amending Executive Order 14241. Its charter had been allowed to lapse in 2021.
Deep sea mining uncovered. Attention is increasingly turning to the possibilities of deep sea mining following the recent issuance of the White House’s Executive Order, Unleashing America's Offshore Critical Minerals and Resources. Proponents of DSM argue that it may be the key to unlocking billions of tonnes of critical battery minerals. Opponents argue that DSM will cause irreversible damage to the environment. What is clear is that the world – and the International Seabed Authority – must strike a balance between protecting ecologically important species in the deep sea and meeting the mineral demand necessary for the transition to net-zero. Our concise three-part series explores the issues. Get started here.
UK to integrate engineered carbon removals into Emissions Trading Scheme. The UK government’s Emissions Trading Scheme Authority will allow companies to meet their emissions reduction targets through greenhouse gas removals (GGRs), the Authority announced on July 22. The UK's Emissions Trading Scheme (ETS), like the EU's Emissions Trading System, sets caps on GHG emissions by GHG-intensive sectors, which shrink over time. Businesses that cut their emissions below the cap are allowed to sell emissions allowances to companies in hard-to-abate industries through a secondary marketplace, helping those emitters meet their own GHG goals. The government stated that GGRS "are needed to balance residual emissions from hard-to-abate sectors if we are to reach net zero" and that adding GGR integration into the system "represents a significant opportunity to advance towards our climate goals. The UK ETS could drive both emission reductions and carbon removal in one efficient market." The ETS will particularly focus on engineered GHG removal technologies, among them BECCS (bio-energy with carbon capture and storage) and DAC (direct air capture). Next, the UK government intends to advance legislation integrating such removals into the ETS, with a target date for legislation of year-end 2028 and operationality by year-end 2029.
India reaches a key climate goal five years early. India’s Ministry of New and Renewable Energy reported on July 14 that the country has reached 50 percent of its installed electricity capacity from non-fossil fuel sources. This means that the country has reached its Nationally Determined Contributions 2030 target, set under the Paris Agreement, five years early. In a press release, the Ministry points to an array of initiatives fostering renewable energy and sustainable agriculture which, it stated, also bring “widespread co-benefits – enhanced energy access, employment generation, reduced air pollution, better public health outcomes, and stronger rural incomes.”
Sustainability in financial services
Banks need to divulge the full extent of the emissions they enable: Norges Bank Investment Management. Jeanne Stampe, the lead policy adviser for Norges Bank Investment Management (NBIM), the world’s largest sovereign wealth fund, stated in an interview on July 16 that global banks need to begin informing investors of the full extent of emissions the banks enable through their services. Most banks, Stampe noted, do not report the GHG emissions generated by their capital markets activities. The NBIM is supporting an International Sustainability Standards Board proposal that would require banks and insurers to disclose how much of their business they exclude from their emissions reporting. Stampe told Bloomberg, “Investors need to know the potential magnitude of excluded emissions” to be able to arrive at “a sense of the relative contribution of excluded activities.”
ECB report: Banks are “misaligned” with Paris Agreement, creating “elevated transition risks.” Meanwhile, also on July 16, the European Central Bank (ECB) issued a new report, Risks from misalignment of banks’ financing with the EU climate objectives: Assessment of the alignment of the European banking sector, which analyzes the 95 EU banks whose activities cover 75 percent of euro-area loans. In a blog post, ECB Executive Board Member and Supervisory Board Vice-Chair Frank Elderson said, “The longer we wait to transform our economy, the more disruptive the transition and the greater the risks that will materialise on banks’ balance sheets,” making it “crucial for banks to identify, measure and − most importantly − manage transition risks, just as they do for any other material risk.” But, he continued, the ECB report “shows that currently banks’ credit portfolios are substantially misaligned with the goals of the Paris Agreement, leading to elevated transition risks for roughly 90% of these banks.” While EU banks have made “significant strides” in addressing and managing climate risks, he concluded, transition planning, potentially based on the alignment assessment methodology set out in the ECB report, “must become a cornerstone of standard risk management, as it is only a matter of time before transition plans become mandatory.” See Elderson’s blog post here and see the report here.
SBTi releases final Financial Institutions Net-Zero Standard. Aiming to help participants in the financial services sector “align their lending, investing, insurance underwriting and capital market activities” to achieve net zero “by 2050 at the latest,” the Science Based Targets initiative (SBTi) has released its finalized Financial Institutions Net-Zero Standard. The standard, SBTi said in a press release, contains “clear, actionable science-based guidance” founded on SBTi’s Corporate Net-Zero Standard, and also draws on other relevant sector-specific standards and guidance to, SBTi states, ease the process of integrating it into existing risk and investment processes. SBTi notes that the Standard features some innovations to ensure its flexibility, transparency, and broad applicability. It also “addresses key climate challenges through requirements focused on the most emission-intensive activities” – deforestation and fossil fuel activities – “expectations” that financial institutions will “assess, monitor, disclose and address deforestation exposure in their portfolios,” and “clear steps and timelines for ceasing new financial activities and insurance services to the fossil fuel industry.” Some sources are already giving the Standard a nickname: FINZ. See the Standard here.
Sustainability in the marketplace
Most large US companies are continuing to invest in sustainability, just not talking about it. A recent EcoVadis study, the 2025 US Business Sustainability Landscape Outlook, surveyed 400 executives from large US companies and found that 87 percent are maintaining or increasing investments in ESG initiatives, despite regulatory and political challenges. Sixty-five percent see sustainability as a competitive advantage, and 89 percent plan to boost their use of technology for ESG tracking. The report also notes a rise in “greenhushing,” with 31 percent increasing sustainability efforts while reducing public communications and 8 percent stopping ESG publicity altogether. EcoVadis is a global provider of business sustainability ratings.
Calendar
Coming events
[View source.]
