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The Climate Report | Second Quarter 2024
REGULATORY ISSUES & UPDATES
Recent Evolution of the European Regulatory Framework on Greenwashing
Two new Directives adopted by the EU in 2024—the "Empowering Consumers Directive" and the "Green Claims Directive"—apply to claims companies may make about climate change, as well as other environmental and sustainability claims.
EU Corporate Sustainability Due Diligence Directive
Adopted in April by the European Parliament, the Directive imposes extensive due diligence obligations on a significant number of large EU and non-EU companies.
The Challenges Faced in the Implementation of the EU Deforestation Regulation
The regulation, which aims to limit the impact of deforestation on greenhouse gas emissions, will necessitate significant preparatory work for many stakeholders of the supply chain, among other challenges.
U.S. EPA Finalizes Rules to Regulate Pollution from Coal, Oil, and Gas-Fired Power Plants
As discussed in a recent Jones Day Commentary, the United States Environmental Protection Agency ("EPA") has finalized four rules to regulate pollution from coal, oil, and gas-fired power plants, including emissions of greenhouse gases.
U.S. EPA Announces New Stringent Vehicle Emissions Standards
As recently discussed in separate Jones Day Alerts, the U.S. Environmental Protection Agency ("EPA") has announced new emissions standards to be gradually phased in for passenger cars, light-duty trucks, and medium-duty vehicles, as well as for heavy-duty vehicles, for model years 2027 and beyond. A coalition of 25 states has filed a petition for review with the United States Court of Appeals for the D.C. Circuit to vacate the rule for light- and medium-duty vehicles, and a separate coalition of 24 states has filed a petition for review with the United States Court of Appeals for the D.C. Circuit to vacate the rule for heavy-duty vehicles.
EU Adopts Strategy to Develop Carbon Capture and Storage Technologies
As discussed in a recent Jones Day Commentary, the European Commission has adopted an Industrial Carbon Management Communication, outlining the Commission's ambitions for a strategy to boost the deployment of technologies in the European Union that can capture, store, transport, and use carbon dioxide emissions from industrial facilities.
U.S. Department of Treasury and IRS Finalize Regulations on Clean Energy Tax Credit Transfers
As discussed in a recent Jones Day Alert, the United States Department of Treasury and the Internal Revenue Service issued final regulations, effective July 1, 2024, on requirements for taxpayers selling clean energy tax credits.
Japan Approves Draft Hydrogen Bill
As discussed in a recent Jones Day Commentary, the Japanese Cabinet has approved a draft bill to financially incentivize the supply and utilization of low-carbon hydrogen and its derivatives as part of its push to reach net zero by 2050.
LITIGATION ISSUES & UPDATES
European Court of Human Rights: Landmark Ruling Deems Climate Inaction Amounts to a Violation of Human Rights
In April, the European Court of Human Rights delivered three highly anticipated and significant judgments on the application of the European Convention on Human Rights.
U.S. SEC Climate Disclosure Rules Spark Flurry of Litigation
Multiple parties filed petitions for review following the adoption of the SEC's much anticipated climate-related disclosure rules. Petitioners include business groups, energy companies and trade associations, and environmental groups. The Eighth Circuit will hear all challenges to the SEC rules.
D.C. Circuit Court of Appeals Rejects Challenge to California's Limits on Automotive Greenhouse Gas Emissions
Petitioners argued they suffered economic harms, including rising costs of conventional vehicles due to California's more stringent emission limits; the Court of Appeals rejected their challenges but left open several potential avenues of challenging future waiver decisions.
UK Government Challenged Over Net-Zero Rollback
A challenge to the UK government's decision to rollback and delay policy commitments designed to help achieve net zero by 2050 will be heard in the High Court later this year.
Federal Courts Vacate the U.S. Federal Highway Administration's GHG Performance Rule for On-Road Emissions on the National Highway System
The Federal Highway Administration has appealed both decisions.
U.S. EPA Increases the Heat on Coolant Enforcement
The U.S. Environmental Protection Agency filed a complaint in April for civil penalties for the illegal import of hydrofluorocarbons, marking the first time the agency exercised its authority under the AIM Act to file an administrative complaint for an illegal import of HFCs into the United States.
TRANSACTIONAL ISSUES & UPDATES
Harnessing the Wind: The Growth of Offshore Wind Development Along the East Coast of the United States
Despite past challenges for offshore wind developments, the current trend among East Coast states suggests that offshore wind could still be a key source of this renewable energy generation.
What About Your Suppliers? Insuring Against Climate Risks to Your Supply Chain
Many companies are already assessing how climate risks may impact their critical suppliers and customers. Armed with that information, companies should assess their property insurance programs.
LAWYER SPOTLIGHT: Daniel L. Corbett
Dan, an associate in the Government Regulation Practice in the Boston Office, has broad experience in trial and pre-trial procedures in federal and state courts, alternative dispute resolution proceedings, internal investigations, and administrative enforcement proceedings.
A member of Jones Day's environmental, health & safety team, Dan focuses much of his practice on environmental disputes, regulatory compliance counseling, environmental diligence, and transactional support. Recent representations include defending citizen lawsuit claims and pursuing private cost recovery and contribution claims under federal and state environmental laws and representing a real party in interest in a challenge under the California Environmental Quality Act (CEQA) to new regulations by the California State Water Resources Control Board (SWRCB). Dan has defended clients in administrative enforcement actions related to California's hazardous waste, site remediation, chemical, consumer products, and other regulations.
Dan also has an active pro bono practice. He represented several refugees in asylum proceedings before the U.S. Immigration Court. He also drafted an amicus curiae brief to the California Court of Appeal in a successful defense of California's cap-and-trade program.
