The Climate Report | First Quarter 2023
Lawyer Spotlight
Jennifer Chambers
Jennifer Chambers, a partner in the Global Disputes Practice, is a highly experienced commercial litigator whose practice is focused on regulatory investigations and proceedings and corporate governance issues, including ESG and climate risk. Jennifer regularly acts for individual directors and boards, as well as multinational and major domestic corporations in connection with high-value strategic litigation, investigations, and crisis management. Jennifer also is involved in the Firm's representation and counselling of clients in respect of climate change and ESG-related issues. Jennifer is a member of the Corporations Law Committee, Business Law Section of the Law Council of Australia, and is chair of the Firm's Diversity & Inclusion Working Group for Australia. Jennifer is located in the Sydney Office and has been recognised in Litigation in The Best Lawyers in Australia (2021-2023).
REGULATORY ISSUES & UPDATES
Incoming: Mandatory Climate Risk Disclosures in Australia
The Climate-Related Financial Disclosure Consultation Paper proposes that, commencing with the 2024/2025 financial year, large, listed entities and large financial institutions will be required to disclose climate risks. Initially, reporting would align with the disclosure framework recommended by the Taskforce on Climate Related Financial Disclosures.
Evolution of EU Carbon Legislation
The European Parliament and the Council of the EU have reached a provisional agreement on the implementation of the EU Carbon Adjustment Mechanism, which is designed to complement the European Union Emission Trading System by tackling the risk of carbon leakage.
Mission Zero: A Review of the UK's Net Zero Strategy
In a series of 129 recommendations, the review seeks to ensure that the UK reaches net zero carbon emissions by 2050 whilst maximizing economic opportunities.
Shake-Up of the Australian Carbon Market
If the Australian Parliament's proposed reforms are enacted, they will have significant impact on emissions-intensive businesses in Australia, as well as serious ramifications for the broader domestic carbon market.
Washington State Launches New Cap-and-Invest Program
The program originates from the 2021 passage of the Climate Commitment Act, which aims to combat climate change by establishing a market-based program to help Washington achieve its goals of reducing GHG emissions by 95% of 1990 levels and reaching net-zero carbon emissions by 2050.
LITIGATION ISSUES & UPDATES
Louisiana Federal Court Permits Drilling for Carbon Sequestration Project
By preliminarily enjoining a local moratorium on CO2 injection wells, the U.S. District Court for the Middle District of Louisiana paved the way for construction of a carbon sequestration facility.
Cumbrian Coal Mine Challenge
A controversial decision to approve a new coal mine in Cumbria, England, which will seek to supply coking coal to be used in the steel-making industry, is being challenged. Friends of the Earth and the South Lakes Action on Climate Change have filed separate High Court applications seeking a statutory review.
Fourth Circuit Denies Appeal of Trump-Era Changes to NEPA; CEQ Issues Interim Guidance
The U.S. Court of Appeals for the Fourth Circuit denied an appeal by environmental groups to revive their challenge to the 2020 amendments to the Council on Environmental Quality's National Environmental Policy Act regulations based on changes already made by the Biden administration. CEQ subsequently published interim guidance to aid federal agencies in analyzing climate change effects.
States and Industry Groups Challenge California's Regulation of Vehicular Greenhouse Gas Emissions
Ohio et al. v. EPA, No. 22-1081, currently being briefed in the U.S. Court of Appeals for the D.C. Circuit, presents significant issues about the scope of federal and state sovereignty.
Climate Change and Related Litigation Take Center Stage in Europe
Jones Day recently published a White Paper on litigation in Europe that has flourished in response to the actions taken and commitments made by governments and businesses in response to climate change.
TRANSACTIONAL ISSUES & UPDATES
FERC's Climate Review in Flux
The U.S. Federal Energy Regulatory Commission's emergent policy on its climate review, the changing composition of the Commission, and ongoing remand proceedings all generate additional regulatory risk and uncertainty for natural gas and LNG build-out projects.
Australian Coal Mine Projects Stall Due to ESG Risks
With proposed reforms to the EPBC Act underway, it is anticipated that the approval of new emissions-intensive projects in Australia will become more difficult and costly.
There's Something About Hydrogen
Hydrogen's explosive energy makes it a potential source of fuel, but many investors have been disappointed with the poor profits and low returns seen within the hydrogen business recently. Will this change?
