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The Status of Two Pending Rules That Would Require Disclosure of Climate Risks

Posted by Jeffrey Karp on 12/27/22 10:05 AM

By Jeffrey Karp, Senior Counsel, and Edward Mahaffey, Legal Research and Writing Attorney

We discuss the status of two pending federal regulations that would require the disclosure of information concerning greenhouse gas (GHG) emissions and climate-related risks: one proposed by several agencies that would apply to federal contractors, and the other by the Securities and Exchange Commission (SEC) that would apply to public companies.

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Topics: Climate change, Securities and Exchange Commission

The Inflation Reduction Act and Other Climate Measures

Posted by Jeffrey Karp on 8/15/22 4:09 PM

By Jeffrey Karp, Senior Counsel, and Edward Mahaffey, Legal Research and Writing Attorney

The Biden administration has been announcing a new series of actions to address climate change, relying on executive power due to insufficient support in Congress. On July 27, 2022, however, Senators Charles Schumer (D-NY) and Joe Manchin (D-WV) unexpectedly agreed on a bill, the Inflation Reduction Act (“Act”), which would include many provisions intended to reduce greenhouse gas emissions, alongside other policies such as deficit reduction and prescription drug price negotiation. The Senate passed the bill on August 7, 2022, followed by the House on August 12.

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Topics: Climate change, Greenhouse Gas Emissions, Inflation Reduction Act

Prosper Africa Reboot Revitalizes Investment Opportunities in Africa

Posted by Jeffrey Karp on 9/20/21 1:06 PM

By Jeffrey Karp, Senior Counsel, and Caroline Lambert, Associate

The United States (US) government’s Prosper Africa project is getting a reboot by the Biden administration, renewing the government’s commitment to increased trade with African countries and incentivizing American companies to invest in projects, particularly clean energy, climate solutions, health, and digital technology projects, across the African continent. This initiative presents a multitude of opportunities for US companies looking to expand into a growing market.

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Topics: clean energy, Climate change, Prosper Africa

New Developments Could Raise the Temperature of Climate Change Disclosure

Posted by Jeffrey Karp on 7/8/21 2:37 PM

By Jeffrey Karp, Senior Counsel; Zachary Altman, Associate; and Laura Jarvis, Summer Associate

The buzz around climate change is expanding to include the potential effects it could have on businesses’ physical operations and value in the marketplace. Climate-related business risks typically fall into two categories: physical risks (extreme weather events, changes in climate patterns that can affect physical facilities and supply chains) and transition risks (the cost of transitioning to a low-carbon economy, including reputational effects).[1] As climate change can directly and indirectly impact a company’s present value and prospects for the future, the natural question follows: should companies have to disclose a broader range of risks to the public? A bill passed in the House, a recent Biden Executive Order, and actions by the Securities and Exchange Commission ("SEC") signal that the answer to that question is shifting toward "yes."

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Topics: Climate change, Executive Orders, Securities and Exchange Commission

The Federal Reserve’s Role in Implementing President Biden’s Executive Order on Climate-Related Financial Risk

Posted by Jeffrey Karp on 6/14/21 11:47 AM

By Jeffrey Karp, Senior Counsel, and Edward Mahaffey, Law Clerk

On May 20, 2021, President Biden issued an Executive Order on Climate-Related Financial Risk. The Executive Order seeks "to advance consistent, clear, intelligible, comparable, and accurate disclosure of climate-related financial risk." According to the president, the Order is necessary due to "[t]he failure of financial institutions to appropriately and adequately account for and measure these physical and transition risks," which "threatens the competitiveness of U.S. companies and markets, the life savings and pensions of U.S. workers and families, and the ability of U.S. financial institutions to serve communities."[1] Physical risks are damages caused by an increase in the frequency or severity of weather events or other climate shifts.[2] Transition risks are more indirect; they arise from changes in policy, technology, or consumer behavior that lead to a lower-carbon economy.[3]

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Topics: Climate change, ESG, Federal Reserve, Climate-related financial risk

Corporate Disclosures of Climate-Related Risks and Fulfilling Sustainability and Climate Commitments

Posted by Jeffrey Karp on 12/3/20 10:00 AM

By Jeffrey Karp, Senior Counsel and Edward Mahaffey, Law Clerk

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Topics: Climate change, Corporate Sustainability

Corporate Sustainability Efforts on Upswing

Posted by Administrator on 8/16/17 5:36 PM

Despite the new administration’s efforts to rollback Obama Era environmental regulations, most businesses in the U.S. are maintaining their commitments to sustainability. According to Lucid’s 2017 Sustainability Outlook Report, only 5% of private companies surveyed expect to decrease their commitment to sustainability programs in 2017, while 74% expect no change and 21% expect an increase in their commitments. Growing concern about climate change have presented companies with the opportunity to lead the way by increasing their sustainability efforts. Major companies are taking the threat of climate change more seriously, and already are developing solutions to reduce their greenhouse gas (GHG) emissions.

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Topics: Climate change, Trump Administration, Corporate Sustainability, Sustainability

The New Administration’s Efforts to Deconstruct the Obama Climate Initiatives

Posted by Jeffrey Karp on 8/11/17 2:22 PM

President Trump is spearheading a government-wide roll back of Obama Era climate initiatives. The president and his EPA Administrator, Scott Pruitt, have delivered a one-two punch.  They both have denied the impact of human activity on climate change, while seeking to resurrect the moribund fossil fuel sector.  In March 2017, the President issued a wide-ranging “Energy Independence” Executive Order requiring review and reconsideration of any rule that might burden development of domestic energy sources, particularly oil, gas, coal and nuclear energy. After much drama, in June 2017, President Trump fulfilled a campaign promise to withdraw the United States from the Paris Climate Accord (“Accord”).  Moreover, in seeking to implement the new Administration’s energy independence strategy, government departments and agencies are pursuing delay or repeal of regulations aimed at curbing greenhouse gas (“GHG’) emissions, most notably EPA’s targeting for elimination the Clean Power Plan rule (“CPP”).

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Topics: clean power plan, Climate change, Trump Administration, Energy Independence Executive Order, Paris Climate Accord

With Proper Policies, A $12.1 Trillion Investment Opportunity for Renewable Energy Can Be Realized

Posted by Administrator on 2/19/16 1:20 PM

Despite the currently low prices of oil and natural gas, renewable electric power generation is poised for rapid growth. Based on a “business-as-usual” scenario, Bloomberg New Energy Finance’s New Energy Outlook, June 2015 predicted a $6.9 trillion investment in new renewable electric power generation over the next 25 years. A newly published report by Ceres, Bloomberg New Energy Finance, and Ken Locklin, Managing Director for Impax Asset Management LLC, predicts a much greater opportunity for private sector companies and commercial financiers to invest in new renewable energy.

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Topics: Carbon Emissions, Biomass, Solar Energy, Renewable Energy, COP21, ITC, Energy Investment, Investment Tax Credit, renewable energy investment, PTC, carbon tax, Wind Energy, Climate change, Ceres, United Nations, UNFCCC, production tax credit, cap-and-trade, renewable portfolio standard, feed-in-tariff, COP22, carbon pricing

Stay of Clean Power Plan Hampers Innovative Strategies to Reduce Carbon Emissions & Obscures Policy Signals for Investment

Posted by Administrator on 2/10/16 9:18 PM

Co-authors Jeffrey M. Karp and Morgan M. Gerard

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Topics: Renewable Energy, United States Supreme Court, Investment Tax Credit, clean power plan, renewable energy investment, clean power plan delay, united states energy policy, Climate change, Clean Air Act, scotus, clean power plan stay

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The Environment & Energy Insights blog analyzes developments in the law, as well as provides updates and perspectives on trends and polices.

The material on this site is for general information only and is not legal advice. No liability is accepted for any loss or damage which may result from reliance on it. Always consult a qualified lawyer about a specific legal problem.

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