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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…

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…

The Intergovernmental Panel on Climate Change (IPCC) announced the finalization of its Synthesis Report of the IPCC Sixth Assessment Report (AR6) during its 58th Session held in Interlaken, Switzerland, March 13-19, 2023. The IPCC also published a Summary for Policymakers (the Summary) in advance of the release of the Synthesis Report, as well as a Longer Report and a Presentation. The Synthesis Report integrates the main findings of the AR6 and provides an overview of the state of knowledge of climate change, its widespread impacts and risks, and climate change mitigation and adaptation. The Synthesis Report has been highly anticipated and is the last of the Sixth Assessment Report products, due for release in time to inform the 2023 Global Stocktake under the United Nations Framework Convention on Climate Change. It provides an unprecedented level of scientific analysis and indicates that there are numerous, feasible, and effective options currently available to reduce greenhouse gas (GHG) emissions and adapt to human-caused climate change. Media reports from the New York Times emphasized that the Earth is likely to cross a critical global warming threshold by 2030 without rapid and drastic reductions in global GHG emissions. Reuters, quoting from the Summary, noted that “there is a rapidly closing window of opportunity to secure a livable and sustainable future for all”. This bulletin briefly highlights key findings of the Synthesis Report included in the Summary. The Summary is divided into the following three sections: Current Status and Trends, which covers the historical and present period.  Future Climate Change, Risks, and Long-Term Responses, which addresses projected futures up to 2100 and beyond. Responses in the Near Term, which considers current international policy timeframes, and the time interval between now and 2030-2040. Current Status and Trends. The Summary notes that: Human activities, principally through emissions of GHGs have unequivocally caused global warming, with global surface temperature reaching 1.1°C above 1850–1900 in 2011–2020,…

The Intergovernmental Panel on Climate Change has released its final installment of the Sixth Assessment Report, Working Group III’s report on the global assessment of climate change mitigation progress and pledges “Climate Change 2022: Mitigation of Climate Change” (the Report). It also released an accompanying Summary for Policymakers and Technical Summary. The Report considers and documents the scientific, technological, environmental, economic, and social aspects of mitigation of climate change and notes the growing role of non-state and sub-national actors including cities, businesses, Indigenous Peoples, citizens, transnational initiatives, and public-private entities in addressing the impacts and causes of climate change. The Report has been highly anticipated and is the first mitigation report that the IPCC has published since 2014. It provides an unprecedented level of scientific analysis on the options to mitigate climate change, including a significant focus on carbon dioxide removals and the costs of emissions reductions. This bulletin briefly highlights key findings of the Report. Recent developments and current trends. The Report notes that: Total greenhouse (GHG) emissions continued to rise during the period 2010–2019, largely attributed to urban areas, and that the average annual GHG emissions during 2010–2019 were higher than in any previous decade. Reduced emissions from industrial processes and fossil fuels have been more than offset by increased emissions from rising global activity levels in industry, energy supply, transport, agriculture, and buildings. Global GHG emissions in 2030 associated with the implementation of nationally determined contributions (NDCs) announced prior to COP26 make it likely that warming will exceed 1.5°C during this century. Policy, cost, deployment of low-emission technologies and finance. The Report notes that: The cost of low-emission technologies such as photovoltaics, onshore and offshore wind, concentrating solar power, and batteries for passenger electric vehicles (EVs) has continued to decrease since 2010, as demonstrated by an over…

Environment and Climate Change Canada (ECCC) today released the 2030 Emissions Reduction Plan (the Plan) under the Canadian Net-Zero Emissions Accountability Act (the Act; read our earlier bulletin on the Act here). The Plan sets out current actions, additional funding of $9.1B, and several new initiatives to meet Canada’s emissions reduction target of 40-45% below 2005 levels by 2030, as provided last year in an update to Canada’s Nationally Determined Contribution (NDC) under the Paris Agreement (read our earlier bulletin on Canada’s updated NDC targets here).   The Plan also sets a new interim objective of reducing GHGs by 20% below 2005 levels by 2026, noting that this interim objective is not an official target akin to Canada’s 2030 NDC, but that progress towards achieving the objective will be a cornerstone of progress reports associated with the Plan in 2023, 2025, and 2027.   This bulletin highlights key parts of the Plan and summarizes the newly announced funding and initiatives, across the following categories: Carbon pricing Clean fuels Clean growth funding Methane Buildings Electricity Heavy industry Oil and gas Transportation Agriculture Waste Nature-based solutions Clean technology and climate innovation Sustainable finance Jobs, skills, and communities Prime Minister Justin Trudeau launched the Plan in an address at the GLOBE Forum in Vancouver earlier today.  Carbon pricing. The Plan notes the measures undertaken to address economy-wide emissions including the federal fuel charge and the Output-Based Pricing System for industrial emitters under the Greenhouse Gas Pollution Pricing Act. Escalating the federal benchmark price to $170 by 2030 is meant to further support the 2030 targets of the federal government along with continued consultations on a possible border carbon adjustment (read our earlier bulletin here). Very significantly, the Plan puts forward the concept of investment approaches, like carbon contracts for differences, which enshrine future price levels in contracts between the federal government and low-carbon…