Resilient LLP (formerly DeMarco Allan LLP)
Author

DT Vollmer

Browsing

G7 Climate, Energy, and Environment Ministers Commit to Urgent Action on Climate Change

No Comments By

The Group of Seven (G7) recently published the Climate, Energy and Environment Ministers’ Meeting Communiqué following the G7 Ministers’ Meeting on Climate, Energy and Environment held last week in Turin, Italy. This marked the first meeting of G7 climate, energy and environment ministers (the Ministers) since COP28 last November and included renewed commitments on strengthening energy security, greenhouse gas (GHG) emission reduction, limiting global temperature increases to 1.5°C, and the imperative of transitioning to cleaner energy sources for economic growth and climate resilience. We view the Ministers’ renewed dedication to energy transition as the meeting’s most significant outcome, although it is important to note that countries heavily reliant on coal maintain some degree of flexibility. This bulletin briefly highlights key commitments made by the Ministers. Carbon Markets. Key carbon market commitments include: work jointly towards delivering robust outcomes from the Work Programme on Article 6 at COP29 in Baku, Azerbaijan later this year; explore innovative options for carbon markets and carbon pricing to contribute to mobilizing public and private contributions to climate finance; and  enhance demand and robust certification standards for carbon dioxide removals.  Energy. Key energy commitments include: phase out existing unabated coal power generation in energy systems during the first half of 2030s or in a timeline consistent with keeping a limit of 1.5°C temperature rise within reach, in line with national net-zero pathways; setting a global target of reaching 1,500 GW of energy storage in the electricity sector by 2030, six times more than in 2022;  reduce demand for and use of fossil fuels, including by rapidly scaling-up clean technologies in power generation, transportation and other end users; and phase out inefficient fossil fuel subsidies, with all countries committing to a progress report in 2025, when Canada will have the Presidency of the G7 (read our earlier bulletin on Canada’s inefficient…

Read More
By

SBTi To Extend Use of Environmental Attributes For Scope 3 Abatement

No Comments By

The Science Based Targets initiative (SBTi) today released a statement (the Statement) from the SBTi Board of Trustees announcing its decision to extend the use of environmental attribute certificates (EACs), including but not limited to EACs from voluntary carbon markets (i.e., carbon credits), for the purpose of abatement of Scope 3 related emissions beyond the current limits in its Corporate Net-Zero Standard (the Standard). SBTi noted that the use of EACs is an additional tool to address climate change when paired with policies, standards, and procedures based on scientific evidence. This bulletin briefly summarizes important aspects of the Statement. Expansion of EAC Use. SBTi plans to broaden the application of EACs for Scope 3 emissions abatement and intends to introduce definitions of specific “guardrails” and thresholds, as well as applicable rules, for such EACs to be considered valid for Scope 3 emissions abatement purposes and in line with “principles of mitigation hierarchy” — the principle that companies set science-based targets to address their value chain emissions and implement strategies to achieve these targets before actions or investments to mitigate emissions outside their value chain. Collaborative Framework Revision. SBTi indicated that it would consult, and seek cooperation agreements with, other relevant initiatives and stakeholders on revisions of the Scope 3 framework, which will include the responsible use of EACs in science-based target-setting. Carbon Credit Quality. SBTi does not intend to validate carbon credit quality and indicated that other entities are better positioned to assess the quality and integrity of carbon credits (an implicit reference to the Voluntary Carbon Market Integrity Initiative and the Integrity Council for the Voluntary Carbon Market). SBTi noted that such entities will have clear access to, and a complete understanding of, the demand-side guardrails and rules established by SBTi for the use of EACs. Accelerating Decarbonization. The SBTi indicated that the expanded use of EACs is…

Read More
By

Dutch Court Rules KLM Misled Customers and Engaged in Greenwashing

No Comments By

The District Court of Amsterdam (the Court) recently released its decision on alleged ‘greenwashing’ claims against Dutch airline KLM (the Decision). The Court found that 15 of the 19 impugned KLM advertising statements and environmental claims were unlawful and misleading to consumers. Specifically, the Court held that it was misleading and unlawful for KLM to make advertising statements suggesting that (i) flying can be or become sustainable, and (ii) the purchase of or contribution to a “compensation” product actually reduces, absorbs or compensates for part of the climate impact of flying. This bulletin briefly summarizes the background of the case and important aspects and implications of the Decision. Background. Dutch environmental groups Fossielvrij Netherlands (Fossil Free Netherlands) and Reclame Fossielvrij (Fossil Free Advertising) (together, FF), supported by ClientEarth, an international environmental advocacy organization, delivered a letter to KLM in May 2022 stating their intention to file a legal claim if their demands, including calling for a ban on all fossil fuel advertising in the EU, were not met. FF and ClientEarth indicated that they were targeting KLM’s ‘Fly Responsibly’ ad campaign and the airline’s offers for customers to purchase carbon offsets to fund reforestation projects or the purchase of biofuels to offset the emissions from a customer’s flight. FF filed a ‘greenwashing’ lawsuit against KLM in July 2022, alleging that the airline’s climate-related advertising misled the public and challenging KLM’s carbon offsetting marketing, which purported to allow customers to reduce the carbon impacts of their flights by supporting reforestation projects or the purchase of small quantities of biofuels and Sustainable Aviation Fuel (SAF). Court’s Findings and Decision. The Court considered 19 statements made by KLM in connection with its ‘Fly Responsibly’ and ‘CO2ZERO’ marketing campaigns and ‘KLM Real Deal Days’ promotion campaign under the Dutch Unfair Commercial Practices Act and…

Read More
By

SCC in Yatar Clarifies Availability of Judicial Review in Parallel with Statutory Rights of Appeal

No Comments By

The Supreme Court of Canada (SCC) last week in Yatar v. TD Insurance Meloche Monnex (Yatar) clarified the right to seek judicial review of administrative decisions in tandem with pursuing statutory rights of appeal. The SCC also affirmed its earlier decision in Canada (Minister of Citizenship and Immigration) v. Vavilov (Vavilov), which held that a right of appeal does not preclude an individual from seeking judicial review for questions not dealt with in the appeal. In Yatar, the SCC held that, where there is a statutory right of appeal limited to questions of law, judicial review is available for questions of fact or mixed fact and law. In so doing, the SCC clarified that parallel statutory appeals and applications for judicial review are permissible. This bulletin briefly summarizes the background of the case and important aspects and implications of the SCC’s decision. Background. The appellant (Yatar) was injured in a car accident and denied insurance benefits. Following mediation, Yatar contested the denial of insurance benefits, but the Ontario Licence Appeal Tribunal (LAT) dismissed her application as being time-barred. Yatar’s right of appeal from the LAT decision was restricted solely to questions of law pursuant to the Licence Appeal Tribunal Act, 1999. Yatar consequently pursued an appeal on questions of law, and simultaneously sought judicial review on questions of fact or mixed fact and law. The Divisional Court dismissed Yatar’s appeal as well as her application for judicial review. The Ontario Court of Appeal agreed with the decision of the Divisional Court, holding that it would only be in “rare cases” that the remedy of judicial review would be exercised, given the available statutory scheme for the resolution of such disputes. Decision. In a unanimous decision, the SCC held that it was an error for the courts below to find that,…

Read More
By

Watch Lisa DeMarco at North American Climate Summit 2023

No Comments By

Watch Resilient LLP’s Lisa DeMarco discuss important developments and insights on voluntary carbon markets during her interview on SmartMarkets™ as part of IETA’s 2023 North American Climate Summit (NACS) last September at Climate Week New York City. The interview explores the role of carbon markets to support corporate climate action and the need for increased (i) integrity, (ii) excellence and transparency, and (iii) ambition, and highlights the important work of the Integrity Council for Voluntary Carbon Markets and the Voluntary Carbon Markets Integrity Initiative to support and provide confidence to corporates and others to credibly use emission units, emission reduction units and removals towards emissions reduction targets. SmartMarkets™ has also compiled a selection of its NACS interviews (including Lisa’s interview) into a special episode (available here) covering how carbon markets support corporate strategy for climate action; how the challenges to operationalize the Article 6 markets, as well as the challenges to the reputation and growth of the voluntary carbon markets, affect corporate strategies; and what were the most important ideas being discussed at NACS.

Read More
By
Load More