Resilient LLP (formerly DeMarco Allan LLP)
Tag

United States

Browsing

EPA to Rescind 2009 GHG Endangerment Finding

No Comments By

The U.S. Environmental Protection Agency (EPA) yesterday announced its intent to rescind the 2009 Endangerment and Cause or Contribute Finding for Greenhouse Gases (the Finding) later this week. The Finding, issued under the Clean Air Act (the Act) and preceded by confirmation of the EPA’s regulatory authority by the U.S. Supreme Court in a landmark 2007 decision, has served as the legal foundation for almost all climate regulations under the Act, including auto standards. Once rescinded, the EPA is expected to repeal all GHG emission standards for light-, medium-, and heavy-duty vehicles and engines. The EPA previously indicated that engine and vehicle manufacturers would no longer have any future obligations for the measurement, control, and reporting of GHG emissions for any highway engine and vehicle. The EPA has stated, however, that it would maintain regulations necessary for criteria pollutant and air toxic measurement and standards, Corporate Average Fuel Economy testing, and associated fuel economy labeling requirements. Background. On December 7, 2009, the Obama Administration signed two distinct findings regarding GHGs under section 202(a) of the Act: Endangerment Finding. Current and projected concentrations of the six key well-mixed greenhouse gases – carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6) – in the atmosphere threaten the public health and welfare of current and future generations. Cause or Contribute Finding. The combined emissions of the well-mixed GHGs from new motor vehicles and new motor vehicle engines contribute to the GHG pollution that threatens public health and welfare. On January 20, 2025, President Trump signed an Executive Order directing the EPA to submit recommendations regarding the legality and continuing applicability of the Finding. Following that directive, the EPA announced last summer that it was reconsidering the Finding, culminating in this week’s anticipated formal rescinding of the Finding.   For further information or to discuss the contents…

Read More
By

President Trump Directs U.S. Withdrawal From 66 International Organizations, Conventions, and Treaties

No Comments By

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;…

Read More
By

Major US and Canadian Banks Exit NZBA

No Comments By

The six largest US banks, JPMorgan, Goldman Sachs, Wells Fargo, Citi, Bank of America, and Morgan Stanley have each announced their departure from the Net-Zero Banking Alliance (NZBA), a group of leading global banks committed to aligning their lending, investment, and capital markets activities with net-zero greenhouse gas (GHG) emissions by 2050. In Canada, TD, BMO, and National Bank announced their withdrawal from the NZBA earlier today. RBC has also indicated that it is open to leaving the alliance. We anticipate significant changes in the NZBA and additional withdrawals over the coming days. Major US asset managers are also leaving other UN-convened climate coalitions, including the recently announced departure of BlackRock from the Net Zero Asset Managers initiative (NZAM), a multi-trillion dollar international group of asset managers committed to supporting the goal of net zero GHG emissions by 2050. Following BlackRock’s departure, a statement issued by NZAM on Monday indicates that it is suspending activities while the initiative undergoes review “to ensure NZAM remains fit for purpose in the new global context.” Both NZBA and NZAM are organizations under the umbrella of the Glasgow Financial Alliance for Net Zero (GFANZ), co-chaired by Michael Bloomberg and Mark Carney.    For further information or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@resilientllp.com.

Read More
By

U.S. Submits New NDC Setting Emission Reduction Target of 61-66% below 2005 levels by 2035

No Comments By

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…

Read More
By

SEC Adopts Climate-Related Disclosure Rules

No Comments By

The U.S. Securities and Exchange Commission (SEC) today adopted final rules for the “Enhancement and Standardization of Climate-Related Disclosures for Investors” (the Rules). The Rules require registrants to disclose climate-related risks that have had, or are reasonably likely to have, a material impact on business strategy, results of operations, or financial condition, together with their associated actual or potential material impacts. The Rules do not require reporting on Scope 3 emissions or greenhouse gas (GHG) emissions originating in a registrant’s value chains or outside of its direct operations (as was proposed in earlier versions – see our earlier bulletin here). The Rules notably require more disclosure from registrants on capitalized costs, expenditures expensed, and losses related to material use of carbon credits. Disclosure requirements will be phased-in between 2025-2033, with compliance dates dependent on the type of registrant. The SEC also published a fact sheet alongside today’s release. This bulletin briefly summarizes key details of the Rules. Content of the disclosures. The Rules will require a registrant to disclose, among other things: Strategy. The Rules require disclosure of the following strategy-related climate risks and impacts: actual and potential material impacts of any identified climate-related risks on the registrant’s strategy, business model, and outlook; if, as part of its strategy, a registrant has undertaken activities to mitigate or adapt to a material climate-related risk or has adopted a transition plan to manage material risks, a quantitative and qualitative description of material expenditures incurred and material impacts on financial estimates and assumptions that directly result from such mitigation or adaptation activities; and specified disclosures regarding a registrant’s activities, if any, to mitigate or adapt to a material climate-related risk including the use, if any, of transition plans, scenario analysis, or internal carbon prices. Risk management. The Rules require disclosure of a registrant’s climate-related risk management, including: any oversight…

Read More
By
Load More