Podcast - Cracking Down on Carbon Markets: CFTC and FTC Exercise Heightened Scrutiny
Today, the European Commission proposed an amendment to the EU Climate Law reviewing the 2040 climate targets that first enshrined climate neutrality by 2050—and with it, a structural shift in how climate action will be...more
AT A GLANCE - Law 15,042/24 (the “Consumption Tax Reform”) was a milestone for the regulation of Brazil's carbon market. It established the regulated market called the Brazilian Emissions Trading System (SBCE), recognized...more
Washington State’s ambitious Cap-and-Invest Program was on the ballot this November. The program is designed to reduce planet-warming greenhouse gases (GHG) in the state by requiring large-emitting businesses to purchase...more
Purchasing carbon credits was once seen as a way for companies to sidestep genuine emissions reduction in their decarbonisation efforts. But that is changing as these products, and the way they are used, face growing...more
In this week’s edition, we discuss a Colombian court’s ruling in favor of an indigenous community who challenged the legality of a carbon credit project and a letter written by environmental activist groups to 71 airlines...more
Taylor Swift’s “Eras Tour” was one of the highest grossing music tours of all time with approximate proceeds exceeding US$1 billion. While this is a monumental feat, Taylor Swift also gained negative attention during the tour...more
In this week’s edition, our focus remains on carbon credits where the first ever set of “Core Carbon Principles”-labelled carbon credits were approved. The three European supervisory authorities publish their final reports on...more
In this week’s edition, we discuss the U.S. government’s proposed guidelines for the ever-controversial voluntary carbon markets. In the EU, ESMA published a report of its findings on greenwashing in the marketing materials...more
On May 28 2024, the Biden administration released the “Voluntary Carbon Markets Joint Policy Statement and Principles”. This is one of a number of recent international initiatives to “shore up” the voluntary carbon markets...more
In this week’s edition, we discuss the European Parliament’s approval of a certification framework that is set to govern carbon removal activities, including the proper certification of carbon credits. Europe continues to...more
Advertisers wishing to emphasize their environmental progressiveness often assert that their products or processes are "carbon neutral." This is meant to convey that there are no net emissions of carbon associated with the...more
California’s unprecedented AB 1305 law purports to target “greenwashing” by mandating public disclosures about virtually any claim of “significant” carbon reductions, but its broad wording and uncertain effective date raise...more
During 2023 the Commodity Futures Trading Commission (CFTC) engaged in several regulatory actions aimed at further clarifying its jurisdictional reach over environmental commodity markets generally and the voluntary carbon...more
In August 2023, the Australian Department of Climate Change, Energy, the Environment and Water (DCCEEW) solicited feedback on proposed amendments to the Australian Carbon Credit Unit (ACCU) Scheme. This is the third step in...more
The voluntary carbon market is rapidly growing to match the increasing focus by corporate leaders on ESG efforts and net-zero goals. In 2021, the voluntary carbon market reached $2 billion, and by some estimates may be worth...more
A consumer filed a class action lawsuit against a commercial airline on May 30, 2023, in the U.S. District Court for the Central District of California alleging three violations of California state law related to unfair and...more
Many major companies have announced a blueprint to minimize their carbon footprint. Some companies have gone so far as to proclaim that they will achieve “net zero” emissions in the near future. To accomplish their climate...more
In November 2022, the International Organization of Securities Commissions (“IOSCO”) published two reports − one on Compliance Carbon Markets (“CCMs”) and one on Voluntary Carbon Markets (“VCMs”). IOSCO continues to seek...more
A recently published independent review of Australia’s carbon credit units (ACCU) scheme, commissioned by the Australian government, has found that the ACCU scheme is “essentially sound,” but provides 16 recommendations to...more
The 27th United Nations Climate Change Conference of the Parties (COP27) was held in Sharm el-Sheikh, Egypt, in November 2020. While much was discussed, there are four takeaways that may be of greatest interest to business...more
The energy industry and market participants have provided a variety of comments on what role the Commodity Futures Trading Commission (CFTC) should play in the voluntary carbon markets, in response to a June 2022 request for...more
Introduction- The burgeoning voluntary carbon credit (“VCC”) market presents a clear opportunity for tackling carbon emissions by allowing individuals, countries, and corporates to purchase credits to offset their own...more
At a recent meeting of the SEC’s Investor Advisory Committee discussing the SEC’s climate disclosure proposal, a speaker in charge of ESG investing at an asset manager raised the possible risk that companies, faced with a...more
On June 2, 2022, the Commodity Futures Trading Commission (“CFTC”) convened for the first time market participants to discuss the state and the challenges of the U.S. voluntary carbon credit (“VCC”) markets and, at the end of...more
As discussed in Shearman & Sterling’s previous Energy & Infrastructure Insight, there is significant pressure on companies and governments to reduce their carbon emissions, not only driven by mandatory regimes but also...more