This update covers information regarding the California Air Resources Board (CARB) rulemaking delay for California’s climate disclosure laws, SB 253 and SB 261, as well as additional new litigation challenging the constitutionality of these laws. The bottom line for companies is that despite the rulemaking delays and ongoing litigation, the laws remain valid and in
Brazilian National Council of Justice Recommends Parameters for Quantifying the Climate Impact of Environmental Damages
The Brazilian National Council of Justice (CNJ) has recently issued Recommendation No. 156/2024, advising all branches of the Brazilian Judiciary and judges to adopt the second scope of the CNJ’s Protocol for Judging Environmental Lawsuits (Protocol). This second scope provides guidelines for quantifying the impact of environmental damages on climate change. In 2023, the CNJ
COP-29: Progress in the Operationalization of the International Carbon Credit Market
On November 11, 2024, one of the first substantive outcomes of the 29th Session of the UN Conference of the Parties to the UN Framework Convention on Climate Change (COP29) was approved. The President of COP19 introduced a draft decision of the Conference of the Parties Serving as the Meeting of the Parties to the
Brazil Enacts New Framework for Carbon Capture and Storage
On October 8 2024, Brazil enacted Federal Law No. 14,993/2024, which stems from Bill No. 528/2020, the “Fuels of the Future Bill.” The new law, which addresses several matters related to decarbonization, provides for the regulation and inspection of activities involving the capture and geological storage of carbon dioxide, also known as CCS (Carbon Capture
Brazil’s Attorney General Files Climate Lawsuit to Protect Conservation Unit
On September 16, 2024, Brazil’s Attorney General filed a lawsuit seeking compensation for climate damage resulting from environmental infractions allegedly perpetrated by livestock farmers inside a Conservation Unit, more specifically the Jamanxim National Park, located in the Amazon Rainforest.
In Brazil, a Conservation Unit is a type of specially protected area, legally established by public
Governor Newsom Proposes Delay of California Climate Disclosure Laws
On July 15, 2024, Governor Gavin Newsom proposed amendments that would, among other things, delay initial reporting deadlines for two of California’s recently enacted climate-related disclosure laws by two years.
Governor Newsom signed the two bills, Climate Corporate Data Accountability Act (California Senate Bill 253 (SB-253)), relating to greenhouse gas (GHG) emissions disclosures, and the
VOLUNTARY CARBON MARKETS
- High-integrity VCMs, as well as carbon credit markets more broadly, have the potential to support decarbonization efforts within the United
SUSTAINABILITY COORDINATORS: A TRANSATLANTIC COMPARISON
On April 24, 2024, the Loan Market Association (LMA) published its Sustainability Coordinator Letter. The publication of the LMA’s letter follows the LSTA’s February 2023 publication of its own Sustainability Structuring Agent Engagement Agreement Inserts. This Legal Update contains a comparative analysis of the LMA and LSTA’s documents, notes key similarities and differences between the
SEC Pauses Its Climate Rules Amid Litigation Challenges
The SEC today paused implementation of the climate rules the agency rolled out less than one month ago, in the face of significant legal challenges in numerous federal lawsuits. The rules would impose substantial disclosure mandates on companies, including concerning the costs of extreme weather events, corporate strategies for addressing climate change, corporate governance procedures
BRAZILIAN FEDERAL GOVERNMENT CREATES INTER-INSTITUTIONAL COMMITTEE TO DEVELOP BRAZILIAN SUSTAINABLE TAXONOMY
On March 25, 2024, the Brazilian federal government published Decree No. 11.961/2024, establishing an advisory and deliberative group, the Brazilian Sustainable Taxonomy Interinstitutional Committee (“CITSB”), which will coordinate the development and implementation of the Brazilian Sustainable Taxonomy (“TSB”). The TSB will establish a classification system for sustainable projects and activities, providing standardized terminology for companies