Following COP28 in Dubai, where our partner Luiz Gustavo Bezerra was present and participated in various discussions related to the transition to a low-carbon economy and the role of economic instruments and carbon markets, among several other topics, the implementation of initiatives that financially value the adoption of environmentally desirable practices by individuals and institutions
As we alluded to in our pre-COP video (which you can watch here), the first Global Stocktake under the Paris Agreement will be concluded at COP28. Although it is an important milestone in terms of establishing a comprehensive picture of what has been achieved since the Paris Agreement was entered into and what remains to be done, discussions appear to be fraught. Clearly, an exercise of this kind allows for the re-opening of old wounds around substantive matters such as how to share responsibility for mitigation efforts. On this theme, at the opening ceremony, UNFCCC Executive Secretary, Simon Stiell, urged participants to signal the decline of the fossil fuel industry. Current expectations are that decisions in this regard will be in the context of the Global Stocktake. Continue Reading COP28 Insights Mini-Series – Part 2
The Brazilian Securities Commission (“CVM“) made a significant announcement on October 20, 2023, by introducing CVM’s Rule No. 193. This resolution provides comprehensive guidance on the creation and dissemination of sustainability information reports, specifically the IFRS S1 and IFRS S2, as outlined by the International Sustainability Standards Board (“ISSB“), which are aligned with the recommendations of the Task Force on Climate-Related Financial Disclosures (“TCFD”) and the criteria set by the Sustainable Accounting Standards Board (“SASB”).Continue Reading Brazil Sets Global Precedent: First Nation to Embrace ISSB Sustainability Financial Reports
On 27 September 2023, Brazil’s Supreme Court concluded the trial of Extraordinary Appeal No. 1,017,365, which discussed a cut-off date for indigenous occupation as a requirement for demarcation of indigenous lands. Based on a strict interpretation of the Brazilian Constitution, the time limit thesis tried to implement a cut-off date to restrict indigenous land claims, arguing that only indigenous lands occupied on the date of the 1988 Constitution promulgation could be demarcated by the Federal Government. In reviewing the appeal, the Supreme Court not only rejected the time limit requirement, but also established a broad set of criteria covering other relevant aspects to the demarcation of indigenous lands.Continue Reading Brazil’s Supreme Court rejects time limit requirement for indigenous land demarcation
Our international ESG team has been keeping an eye on what’s going on with regards to green taxonomies. With so much activity already this year, we summarize some of the key developments below.
EU
We recently published this reminder of the EU’s taxonomy framework. Our publication is particularly relevant to non-EU groups with large subsidiaries
Brazil’s draft Sustainable Taxonomy Action Plan (the Action Plan), prepared by the Ministry of Finance, is currently under public consultation and receiving contributions and comments for its improvement. The deadline for taking part in the public consultation is October 20, 2023.
The development of a sustainable taxonomy seeks to address Brazil’s main environmental and social
On 12 September 2023, Brazil´s Attorney General Office, representing the Brazilian Federal Environmental Agency, filed a climate litigation lawsuit against a livestock farmer, seeking compensation for the deforestation of the Amazon Forest between 2003 and 2016.
This blog post provides a brief overview on this new lawsuit, which further strengthens a new trend for climate litigation in Brazil.Continue Reading New lawsuit filed by Brazil’s Federal Government further strengthens climate litigation trends against private entities in Brazil
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.Continue Reading Federal government of Brazil enacts Kigali Amendment to Montreal Protocol, extending restrictions to HFCs
The risk of an accusation of “greenwashing” is now an important concern for many companies. Greenwashing is an ill-defined concept but, nevertheless, is increasingly a source of litigation and regulatory scrutiny – with more of both expected. It carries with it reputational, regulatory and litigation risks for which companies should be prepared. Whilst the risks are always context specific – varying by jurisdiction, industry
Climate-related litigation is increasingly being used as a tool to hold private and public sector actors to account over their contributions to climate change. According to the Grantham Institute’s 2023 Global Trends in Climate Change Litigation Policy Report (the “Report“) – which was published on 29 June 2023 – around two-thirds of climate-related cases have been filed since 2015: between 1986 and 2014, approximately 800 cases were filed, but between 2015 and May 2023, approximately 1,557 cases were filed.
Although the majority of the climate-related cases identified in the Report were brought against regional and national governments, the Report identified an increase in the number of climate-related cases brought against private sector actors. Of the 190 climate-related cases identified in the Report as being filed between June 2022 and May 2023, around 46% were filed against an increasingly diverse pool of private sector actors. This reflects the growing recognition by prospective litigants of litigation as an effective means of influencing the actions private sector actors are taking to address climate change. We discuss the trends identified in the Report in this blog post.Continue Reading Climate litigation – the Grantham Research Institute on Climate Change and the Environment publishes its 2023 global trends in climate litigation report