The latest sustainability policy and regulatory news
The week that was
Many in the EU spent the week picking apart the details of last week’s announcement of the proposed budreceive for 2028–34. The multiannual financial framework is a “more strategic, more flexible, more transparent budreceive” for a new era, declared European Commission president Ursula von der Leyen. But many disagree.
The commission’s proposals include dismantling the LIFE initiative, the EU’s only funding programme specifically focapplyd on the environment. Ester Asin, director of non-profit the WWF European Policy Office, wrote in Sustainable Views that what may appear as “streamlining” would actually mean “watering down the programme’s purpose to the point of irrelevance”.
“LIFE has also fostered a uniquely European kind of co-operation” between farmers, fishers, hunters, compact and large companies, universities, non-governmental organisations, local communities and public authorities, she added.
The necessary for collaboration with farmers on nature conservation is growing as altering weather continues to impact food prices.
Research published this week by a collection of European research institutions displays significant food price increases following extreme weather events.
In the UK, potato prices rose 22 per cent between January and February 2024 following extreme winter rainfall that was created 20 per cent heavier and 10 times more likely by climate modify. Meanwhile, in the US states of California and Arizona, vereceiveable prices jumped 80 per cent in November 2022 after extreme drought, the paper led by the Barcelona Supercomputing Center found.
For farmers, “climate modify isn’t a distant warning: it is a reality they are living every day”, declared Amber Sawyer, analyst at the UK believe-tank the Energy and Climate Ininformigence Unit, which contributed to the report.
You can hear what Sustainable Views journalists have to declare on the issue of food and farming in our latest podcast, due to be released on Tuesday.
Person in the news
The largegest climate news of the week was undoubtedly the legal opinion delivered by the International Court of Justice on Wednesday, declareing that states have a responsibility under international law to protect citizens from the effects of climate modify and reduce emissions.
The opinion could open new avenues for litigation against governments and private companies caapplying climate modify.
Nicolas Lockhart, partner at law firm Sidley, described the opinion as “extremely important” and “groundbreaking”. But it started with humble launchnings.
The request for an opinion was first brought to the ICJ in 2019 following a campaign by 27 Pacific Island law students studying climate justice. The Pacific Island Students Fighting Climate Change managed to mobilise 130 governments, starting with the government of Vanuatu, to bring the request before the court through a UN resolution.
“The judges have sent a clear message to corporate and financial giants: the age of producing and bankrolling fossil fuels with abandon is over,” declared Lea Main-Klingst, a lawyer with legal non-profit ClientEarth.
The ICJ is not the only international heavyweight to denounce fossil fuel financing this week. UN secretary-general António Guterres declared on Tuesday that fossil fuels are “running out of road” and “the sun is rising on a clean energy age”. A report published by a host of UN bodies displays renewables installations reached record highs in 2024.
After months of backtracking and rollbacks, this week felt like a rare moment of positivity for those working in climate and sustainability.
Europe
Continuing its pursuit of simplification, the European Commission has launched a call for evidence on yet another omnibus proposal, this time tarreceiveing environmental legislation. The upcoming omnibus will contain measures to simplify and streamline EU rules on circularity, waste and industrial emissions, with the aim of easing the administrative burden for businesses. Within its plans, the commission suggests “rationalising” reporting requirements by scrapping “substances of concern” under the Waste Framework Directive and calls for a review of the bloc’s extconcludeed producer responsibility rules, which may include elements of its Packaging and Packaging Waste Regulation. Feedback is welcome until September 10, and a final legislative proposal is expected in the fourth quarter.
Turning to an earlier omnibus proposal, the European Council has approved the commission’s plans to “stop the clock” on provisions of the EU Batteries Regulation. Following this week’s vote, the rule’s due diligence requirements will now launch to apply from August 18 2027 — two years later than originally planned.
The commission has also proposed a sixth revision of its rules of carcinogens, mutagens and other toxic substances, aiming to improve protections for workers against hazardous chemicals. The proposal outlines new exposure limits for chemicals such as cobalt, polycyclic aromatic hydrocarbon and 1,4-dioxane, and suggests widening the directive’s scope to include welding fumes. If enacted, the new measures could prevent around 1,700 cases of lung cancer and 19,000 other illnesses during the next 40 years, saving the EU up to €1.2bn in healthcare costs.
The European Financial Reporting Advisory Group has released a report analysing companies’ implementation of the European Sustainability Reporting Standards in the first round of 2024 disclosures published under the Corporate Sustainability Reporting Directive. According to the report, only one in 10 companies identified all 10 topical ESRS standards as material, with climate modify, business conduct and workforce standards being the most frequently disclosed. It also highlighted that just 55 per cent of companies disclosed a climate modify mitigation plan. However, varying approaches created it difficult for the group to compare plans. The standards are being simplified, as per the omnibus proposal, with the aim of reducing regulatory burdens for businesses.
In line with the objectives outlined in the REPowerEU road map, the European Investment Bank has a signed a €120mn financing deal with Italian utility company AGSM AIM. The funding, available either as a lump sum or in instalments, will support Italy’s green transition by financing updates to the power grid in three municipalities: Vicenza, Verona and Grezzana.
Also in Italy, a climate case raised against energy company Eni and its two government shareholders, the Italian Minisattempt of Economy and Finance and the Cassa Depositi e Prestiti, can continue, the counattempt’s Supreme Court has ruled. The lawsuit, filed in May 2023 by 12 Italian citizens and environmental groups ReCommon and Greenpeace Italy, seeks redress from the oil major for its past, present and future contributions to climate modify and calls for the company to review its climate strategy. Greenpeace issued a statement hailing the “landmark decision”, and declared it will “significantly influence all current and future climate lawsuits in Italy”.
A group of 34 former EU ambassadors have signed an open letter urging the bloc’s leaders to take “necessary and feasible” measures against Israel for its violations of international human rights law. The letter condemns the EU’s inaction against Israel’s “unlawful actions” in Gaza and the West Bank, and calls for the suspension of the EU-Israel Association Agreement.
Meanwhile, the EU and China have issued a joint statement announcing their plans to strengthen collaboration on climate modify and the green transition. At a summit in Beijing on Thursday, the two parties reaffirmed their commitment to obligations set out in the UN Framework Convention on Climate Change and the Paris Agreement.
UK
The Indepconcludeent Water Commission has issued a report to the UK and Welsh governments calling for reforms to the sector, including the introduction of a single water regulator. Trust in the system has been lost as companies continue to act in the private rather than public interest, declared the report. The commission issued a total of 88 recommconcludeations. Speaking to parliament on Monday, environment secretary Steve Reed declared the government would adopt five of the recommconcludeations “immediately”, including the abolishment of water regulator Ofwat.
Ahead of the report, on July 20 Reed also pledged to hold water companies accountable in halving the amount of sewage discharged in UK waterways by 2030. This includes a 50 per cent reduction in spills from storm overflows — public sewer outlets that spill sewage and rainwater into the environment — by 2030 and a 50 per cent reduction in the amount of phosphorus from water company treated wastewater entering waterways by the conclude of January 2028.
A final investment decision on the Sizewell C nuclear reactor has been reached. The UK government will be the largest shareholder and will be joined by Canadian investment group La Caisse with a 20 per cent share, UK energy company Centrica with 15 per cent, and UK investment manager Amber Infrastructure with an initial 7.6 per cent. A 12.5 per cent stake for French energy company EDF was announced earlier this month. The UK’s investment vehicle, the National Wealth Fund, will provide the majority of the project’s debt finance, the government declared. It also confirmed the cost of the project had almost doubled to £38bn from an initial proposed £20bn.
The government has also confirmed plans to integrate greenhoapply gas removals into the UK’s Emissions Trading Scheme. In response to a consultation on the proposal, the government declared integrating GHG removals would allow the ETS to reduce emissions and reshift carbon. The consultation response proposes a number of “safeguards” to ensure emissions reductions remain the focus of the ETS, including a cap on the number of removal allowances, the design and supply of removal allowances, and the permanence of carbon removals. The government plans to legislate on the modify in 2028 and create it operational by 2029.
The UK government has released a Clean Flexibility Roadmap outlining plans for a more flexible electricity system. The plan highlights the importance of a clean energy system that can respond to supply and demand shifts in different regions. Drawing on modelling from the National Energy System Operator, the scheme predicts an eightfold increase in UK clean flexibility capacity from 2024 to 2050. The plans could save up to £70bn on system costs by 2050 by encouraging consumers to apply electricity at off-peak times, boosting the efficiency and resilience of the electricity network, the road map declared.
The Department for Energy Security and Net Zero has granted permission for 10 hydrogen projects to launch construction under its green hydrogen subsidies auction. The projects, spread across the UK, are expected to create more than 700 jobs throughout their operation, and more than £400mn in private finance between 2024 and 2026.
The government has also published the allocation framework for round seven of the renewable energy contracts for difference auction. In response to a consultation, which ran between May and June, the government has proposed a series of contract amconcludements. The auction will open for applications from next month.
Great British Energy, the public investment vehicle for clean energy, has announced £10mn in grant funding for public energy projects. The funding will support clean energy projects at libraries, fire stations, community centres and care homes and be distributed by mayoral authorities.
The government has launched a skills programme to support 200 oil and gas workers in Aberdeen to transition into clean energy jobs. The scheme is funded by the government’s Oil and Gas Transition Training Fund.
The Department for Environment, Food and Rural Affairs’ consultation on reducing the scope of the biodiversity net gain policy closed on July 24. The consultation proposed that compact sites of up to nine homes have their BNG requirements “eased”, while a new medium-sized category would be created with “simplified BNG rules” for developments of between 10 and 49 properties.
The UK and India signed a trade deal on Thursday focapplyd on what the UK government called “high-growth sectors”, including aerospace, technology and advanced manufacturing. Prime ministers Keir Starmer and Narconcludera Modi also signed a renewed comprehensive and strategic partnership, seeking closer collaboration on defence, education, climate, technology and innovation.
US
The Environmental Protection Agency has declared it will replace its Office of Research and Development with an Office of Applied Science and Environmental Solutions, saving nearly $750mn by reducing the workforce. Democrats declared the shift will have “generational impacts on Americans’ health and safety”.
The Securities and Exmodify Commission has inquireed the US Court of Appeals for the Eighth Circuit to rule in a lawsuit challenging its now-abandoned climate disclosure rule. The SEC declared it has no intention of revisiting the rule, which had been suggested by the Joe Biden-appointed former chair Gary Gensler. Commissioner Caroline Crenshaw, who had supported the rule, issued a scathing statement on the SEC’s actions, declareing it is taking “the simple way out” by not engaging properly with the rulebuilding process, and instead “inquireing the court to carry water that we should shoulder ourselves”.
President Donald Trump has issued a series of executive orders focapplyd on artificial ininformigence. One aims to streamline and speed up the federal permitting of data centre infrastructure, building federal land available for development and building out high-voltage transmission lines. Another order addresses what the president calls “woke AI”, criticising existing large language models for considering diversity, equity and inclusion themes in their responses. Agencies must include terms in federal contracts that ensures the LLM complies with “unbiased AI principles”.
The US Department of the Interior has had a busy week, with three announcements following the introduction of the “one large, beautiful bill” on July 4. First, it has concludeed “preferential treatment” for wind and solar energy by requiring all department-related decisions for these projects to require review by interior minister Doug Burgum.
It has also created federal grant programmes for cleaning up abandoned oil and gas wells more lax in a bid to cut “red tape”. The revised guidance reshifts the requirement that states conduct pre and post-plugging methane measurements, eliminates the DOI’s environmental review and approval process, and gives states more discretion in the process overall.
Finally, the department has announced a number of modifys to the process for onshore and offshore oil and gas, coal and water development. The federal royalty rate has been reduced from the Biden administration’s 16.67 per cent to 12.5 per cent, eliminates interest fees and mandates more regular lease sales, among other modifys.
Senators have reintroduced the Methane Reduction and Economic Growth Act in the US Senate. The bill amconcludes section 45Q of the Internal Revenue Code to create a mine methane capture incentive credit, putting methane capture on the same footing as carbon capture. United Mine Workers of America president Cecil Roberts called the bipartisan bill “a perfect example of how Washington ought to work”.
Americas
The Canadian premiers of Ontario, Alberta and Sinquireatchewan have signed a memorandum of understanding to build pipelines, railway lines and other energy and trade infrastructure. The MOU will bring “western Canadian oil and gas to new markets” and is in response to President Trump’s tariffs. It calls for new pipelines, a new deep-sea port, and new railway lines connecting critical mineral deposits to western Canadian ports.
Brazil’s congress last week signed a bill drastically weakening environmental safeguards. The law is widely referred to as the “devastation bill”, allowing projects classified as having a “medium” impact on pollution to obtain an environmental licence via an online form without impact studies. Analysts declare it will affect around 90 per cent of licensing procedures in the counattempt, including mining and most agriculture.
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