Yesterday, President Trump issued a memorandum on “Withdrawing the United States from International Organizations, Conventions, and Treaties that Are Contrary to the Interests of the United States” (the Memorandum). The Memorandum directs all executive departments and agencies to take immediate steps to effectuate the withdrawal of the United States and cease participating in and funding of 35 non-United Nations (UN) organizations and 31 UN entities that “operate contrary to U.S. national interests, security, economic prosperity, or sovereignty.” Most notably, the Memorandum directs the withdrawal of the U.S. from the Intergovernmental Panel on Climate Change (IPCC) and the United Nations Framework Convention on Climate Change (UNFCCC), a move with potentially far-reaching implications for global climate action, climate multilateralism, and international climate science coordination and reporting. This bulletin identifies the key climate, environment, and energy-related organizations listed in the Memorandum and provides an overview of the differing processes and implications of withdrawing the U.S. from the UNFCCC and the soon to be effected withdrawal from the Paris Agreement. Non-UN Organizations. The U.S. will withdraw from the IPCC and, among others, the following climate, environment, and energy-related non-UN organizations: 24/7 Carbon-Free Energy Compact; Commission for Environmental Cooperation; Inter-American Institute for Global Change Research; Intergovernmental Forum on Mining, Minerals, Metals, and Sustainable Development; Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services; International Energy Forum; International Renewable Energy Agency; International Solar Alliance; International Tropical Timber Organization; International Union for Conservation of Nature; Renewable Energy Policy Network for the 21st Century; and Secretariat of the Pacific Regional Environment Programme. UN Organizations. The U.S. will effectively withdraw from the UNFCCC and, among others, the following climate, environment, and energy-related UN organizations by “ceasing participation in or funding to those entities to the extent permitted by law”: Department of Economic and Social Affairs; International Law Commission; International Trade Centre;…
A panel of judges of the Commerce Chamber of the Frankfurt am Main Regional Court (the Court) has released its decision barring Apple from promoting three Apple Watch models as “CO2-neutral products”. The Court granted an injunction sought by Deutsche Umwelthilfe (Environmental Action Germany), finding that advertising the watches as a “CO2-neutral product”, based in part on the purchase of carbon credits from “nature-based” projects, was misleading under German competition law. This bulletin briefly summarizes the key findings of the Court. Decision. In finding that Apple must refrain from advertising the three models of Apple Watches as a “CO2-neutral product”, the Court determined that the claims were misleading and violated s. 5(1) of the Act against Unfair Competition, which prohibits misleading business acts that are likely to induce consumers or other market participants to make a business decision that they would otherwise not have made. Apple’s claims were based, in part, on the purchase of carbon credits from a forest project in Paraguay. However, the Court held that 75% of eucalyptus plantations in the carbon offsetting forest projects in Paraguay were only leased until 2029 and that the CO2 offsetting could therefore only be guaranteed until 2029. The Court also rejected Apple’s argument that Verra’s buffer pool account was sufficient to secure the uncertainty of lease extensions according to the VCS Standard, and noted that in the event of non-renewal of the leases, the VCS Standard only allowed Apple to continue to monitor the forest project: “The possibility of only monitoring the remote part of the project area for the remaining duration and only having the buffer account mechanism intervene in the event of loss is not a CO2 compensation measure that is equally suitable for the continuation of the forest project beyond 2029.” (translated from the original German) In finding Apple’s claims misleading to…
The International Court of Justice (ICJ) today released its unanimous advisory opinion on obligations of States in respect of climate change (the Advisory Opinion). The Advisory Opinion, delivered by Judge Yuji Iwasawa and non-binding, determined that States may face legal consequences under international law for failing to meet their obligations to address climate change and protect the environment. This bulletin briefly summarizes background information, key findings of the Advisory Opinion, and highlights from separate opinions of ICJ judges delivered alongside the Advisory Opinion. Background. On 29 March 2023, the General Assembly of the United Nations adopted a resolution requesting the ICJ to give an advisory opinion on the following questions: (a) What are the obligations of States under international law to ensure the protection of the climate system and other parts of the environment from anthropogenic emissions of greenhouse gases (GHG) for States and for present and future generations? (b) What are the legal consequences under these obligations for States where they, by their acts and omissions, have caused significant harm to the climate system and other parts of the environment, with respect to: (i) States, including, in particular, small island developing States, which due to their geographical circumstances and level of development, are injured or specially affected by or are particularly vulnerable to the adverse effects of climate change? (ii) Peoples and individuals of the present and future generations affected by the adverse effects of climate change? Key findings. Key findings of the Advisory Opinion in response to question (a) include: International climate change treaties, including the United Nations Framework Convention of Climate Change (UNFCCC), Kyoto Protocol (KP) and the Paris Agreement (PA), set forth binding obligations for States parties to ensure the protection of the climate system and other parts of the environment from anthropogenic GHG emissions. Customary international law sets forth obligations for States to ensure the…
The United States today submitted its updated Nationally Determined Contribution (“NDC”) under the Paris Agreement to the UN Climate Change secretariat. The updated NDC sets an economy-wide target of reducing net greenhouse gas (“GHG”) emissions by 61-66 percent below 2005 levels by 2035 (the “Target”). The Target increases ambition from the previous target of 50-52% below 2005 levels by 2030, and provides a pathway to achieve net-zero emissions by 2050 in line with the goals of the Paris Agreement. President-elect Donald Trump, who will take office on January 20, 2025, is widely expected to withdraw the U.S. from the Paris Agreement on the first day of his new administration. Many observers are consequently treating the new NDC as mostly symbolic. See our earlier analysis on U.S. withdrawal from the Paris Agreement here. This bulletin briefly summarizes key details of the NDC and the Biden-Harris Administration’s Fact Sheet on the Target. Net-zero by 2050. The Target aligns with President Joe Biden’s goal of a net zero GHG economy no later than 2050, with the 61-66% range on a “straight line or steeper trajectory to net zero emissions by 2050 for all greenhouse gases.” Article 6. The NDC is very light on international cooperation through now-finalized rules of international carbon markets under Article 6 of the Paris Agreement. Notably, however, the new NDC omits language included in the last U.S. NDC, which indicated that the U.S. did “not intend to use voluntary cooperation using cooperative approaches referred to in Article 6.2 or the mechanism referred to in Article 6.4 in order to achieve its target.” Methane and other emissions. The updated NDC does not set sub-targets for individual GHGs; however, as part of achieving the Target, it is anticipated that methane emissions will also be reduced by at least 35% from 2005 levels by 2035. The Inflation Reduction Act (“IRA”) provides…
Resilient LLP is pleased to share that the World Bank Group has today released guidance on Letters of Authorization and Acknowledgement as part of its Article 6 Approach Paper Series. The guidance includes a Letter of Authorization that provides a common template intended to be used for all authorizations to be granted under Articles 6.2 and 6.4 of the Paris Agreement. The Letter of Authorization is intended to be used with schedules that may be specified by each country and includes illustrative terms and conditions that are most likely to maximize investment and value for the country. It also allows each country to actively choose whether a project is intended to be authorized (subject to corresponding adjustments and a Letter of Authorization) or outside the scope of authorization (ideally subject to a Letter of Acknowledgement in order to increase certainty and corresponding investment value). A template Letter of Acknowledgement is also provided. This common template (with schedules) is intended to simplify the process for authorization, reduce transaction costs, and allow flexibility for bilateral arrangements. The guidance also includes a template Letter of Authorization developed by the Multilateral Investment Guarantee Agency (MIGA), which presents illustrative terms that are conducive to facilitating insurance for breach of a Letter of Authorization. For further information or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@resilientllp.com.


