On January 14, 2025, the Biden Administration issued an Executive Order on “Advancing United States Leadership in Artificial Intelligence Infrastructure” (the “EO”), with the goals of preserving U.S. economic competitiveness and access to powerful AI models, preventing U.S. dependence on foreign infrastructure, and promoting U.S. clean energy production to power
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California Air Resources Board Solicits Stakeholder Feedback on Implementation of Climate Disclosure Laws on the Heels of New Enforcement Advisory
On Monday, December 16, the California Air Resources Board (CARB) issued an information solicitation inviting feedback on the implementation of SB 253 and SB 261. Comments are due by February 14, 2025. This information request arrives on the heels of a new CARB enforcement advisory focused on SB 253. Continue Reading California Air Resources Board Solicits Stakeholder Feedback on Implementation of Climate Disclosure Laws on the Heels of New Enforcement Advisory
California Climate Disclosure Laws’ Compliance Timeline Remains Stable While New Amendments Give State Regulator More Time and Flexibility
Companies that do business in California and meet certain revenue thresholds should continue to prepare to comply with the state’s landmark climate disclosure laws that impose reporting deadlines starting in 2026, even as a newly enacted state law gives California regulators more time and flexibility in promulgating implementing regulations.
California Governor Gavin Newsom signed Senate Bill 219 (SB 219) into law on September 27, 2024, making modest amendments to California’s two signature climate disclosure laws, SB 253 and SB 261, enacted in October 2023. SB 253, or the Climate Corporate Data Accountability Act, requires reporting entities to publicly disclose their greenhouse gas (GHG) emissions beginning in 2026 for Scope 1 and 2 emissions, and 2027 for Scope 3. SB 261, the Climate-Related Financial Risk Act, requires covered entities to publish biennial reports, beginning in January 2026, that disclose climate-related financial risk and measures adopted to reduce and adapt to that risk.Continue Reading California Climate Disclosure Laws’ Compliance Timeline Remains Stable While New Amendments Give State Regulator More Time and Flexibility
Engaging in Voluntary Carbon Markets: Overview of Key Developments, Risks, and Opportunities
On May 28, the Biden-Harris Administration issued the Voluntary Carbon Markets Joint Policy Statement and Principles (Policy Statement). You can find Covington’s analysis of the Policy Statement here. Jointly announced by the U.S. Secretaries of Treasury, Agriculture, and Energy, and senior White House climate officials, the Policy Statement describes a three-pronged approach to responsible carbon market development and participation: (1) credit or supply integrity, including protections regarding climate and environmental justice; (2) demand integrity, to ensure the credible use of credits; and (3) market-level integrity, including facilitating efficient market participation and lowering transaction costs. The Policy Statement builds on other recent federal actions, including the Commodities Futures Trading Commission’s 2023 proposed guidance for voluntary carbon credit derivatives and the Securities and Exchange Commission’s final climate risk disclosure rule, which requires certain disclosures related to carbon offset purchases, in the Administration’s attention to and elevation of the voluntary carbon market as an important element in the nation’s climate policy.
In this post, we dive deeper into the voluntary carbon market landscape, implications for business, and additional recent developments. Continue Reading Engaging in Voluntary Carbon Markets: Overview of Key Developments, Risks, and Opportunities
A Week of Climate Action: Spotlight on the Biden-Harris Administration’s Earth Week Regulatory and Grant-Funding Actions
First observed on April 22, 1970, Earth Day has long been recognized as a watershed moment for the modern environmental movement. On that day, over 20 million demonstrators nationwide marched to raise awareness of the need to protect and preserve the environment. The energy generated from that day galvanized the country to action, leading to the creation of the U.S. Environmental Protection Agency (EPA) in December 1970 and the passage of several statutes later that decade—including the Clean Air Act (CAA) the Clean Water Act (CWA), the Endangered Species Act (ESA), and the Resource Conservation and Recovery Act (RCRA)—that serve as the foundation of U.S. environmental legislation. Today, Earth Day is recognized by countries around the world, and has expanded from its initial focus on pollution control to include elevating environmental justice in low-income, disadvantaged, and indigenous communities and promoting domestic and international climate action.
Beginning with a proclamation on April 19 declaring climate change to be “the existential crisis of our time,” the Biden-Harris Administration marked Earth Day and the week after by announcing a suite of final rules and grant programs aimed at fossil fuel abatement and pollution control, accelerating electric transmission grid modernization and solar energy development, and reducing greenhouse gas (GHG) emissions from the transportation sector. These actions underscore not only the continued “whole-of-government” approach that the Administration has taken to combat climate change but also the urgency with which federal agencies have moved to promulgate final rules and protect them from potential congressional revocation ahead of the Congressional Review Act deadline later this spring.
To assist industries and markets as they evaluate the impact of these final rules and programs, we’ve spotlighted several of these Earth Week regulatory and grant-funding actions.Continue Reading A Week of Climate Action: Spotlight on the Biden-Harris Administration’s Earth Week Regulatory and Grant-Funding Actions
COP28 Final Negotiations Recap: A Global Agreement to Transition Away from Fossil Fuels
What You Need to Know.
- After two days of intense negotiations, world leaders adopted a draft decision that sets out international climate priorities in response to the findings of the first Global Stocktake under the Paris Agreement. The decision covers several thematic areas, including mitigation of greenhouse gas emissions, adaptation and resilience in the face of climate change, financing and means of implementation and support for climate projects, and loss and damage funding for climate-vulnerable nations. The text of the draft decision can be found on the UNFCCC’s website here.
COP28 Day 7 Recap: “A Bullet Train to Speed Up Climate Action”
What You Need to Know.
- With a focus on multilevel action, urbanization, and the built environment and transport, the events of Day 7 of COP28 highlighted efforts to transition to low-carbon and resilient infrastructure, particularly in urban areas. This thematic focus is significant; according to the UN Environmental Programme, cities are responsible for an estimated 75 percent of global CO2 emissions, primarily from transportation and buildings.
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COP28 Day 5 Recap: Climate Finance Continues to Grow and Carbon Offsets Face More Regulation
What You Need to Know.
- “We very much believe and respect the science,” said COP28 President Al Jaber on Monday after it had been reported that he had earlier commented that there was “no science” behind requiring the phase-out of fossil fuels to limit global warming to 1.5C. President Al Jaber went on to say that “the phase down and the phase out of fossil fuel is inevitable.” This statement comes after heavy criticism from climate activists and scientists of President Al Jaber’s earlier comments, further emphasizing the centrality of the “phase down” vs. “phase out” debate as a wedge issue at this COP.
COP28 Day 4 Recap: The First COP Health Day
What You Need to Know.
- The fourth Day of COP28 saw the first-ever Health Day at the United Nations Framework Convention on Climate Change conference. In collaboration with the World Health Organization, Health Day included programing that showcased the links between the impacts of climate change on human health and methods for identifying and scaling adaptation measures to address these impacts.
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COP28 Day 2–3 Recap: The World Climate Action Summit and Expanding Commitments to Climate Financing
What You Need to Know.
- After the opening day, action at COP28 shifted to the World Climate Action Summit (WCAS), where world leaders convened to deliver national statements and carry out initial negotiations on the Global Stocktake and expanding climate financing. Concurrently, business leaders and philanthropists gathered at the Business and Philanthropy Climate Forum to discuss how the private sector and philanthropy can contribute to climate action.