European Union

Last week, the European Commission took a major step to implement the climate aspects of its European Green Deal.  It presented a proposal for a European Climate Law and two consultations on its announced Climate Pact and Carbon Border Adjustment Mechanism (“CBAM”).
Continue Reading Climate Change: The EU Moves Towards a Carbon Border Adjustment Mechanism

Electronic devices and their components marketed in the European Union and European Economic Area are subject to a morass of environmental and product safety requirements that is only likely to increase with the EU’s implementation of its Circular Economy Strategy in the near future.  The requirements apply to all types of equipment, from sophisticated information technology equipment, to military equipment, aircraft components, electronic medical devices, household electronics, consumer devices, and industrial tools.
Continue Reading Environmental and Safety Requirements Affecting the Marketing of Electronic Devices and their Components in the European Union and European Economic Area

The European Union has adopted a new obligation on suppliers of articles that contain substances listed in the REACH Candidate List of SVHCs in concentrations above 0,1% to submit a notification to the European Chemicals Agency (“ECHA”).  The new requirement is intended to facilitate the recycling of products and was introduced by a new Directive amending the EU Waste Framework Directive.
Continue Reading New EU Requirements on Products Containing REACH Candidate List SVHCs

Last week the European Commission presented an extensive package of legislative proposals (“Clean Energy Package”) that are intended to achieve and implement the European Union’s climate change and clean energy targets for 2030: a 40% cut of CO2 emissions, a share of 27% for renewable energies, and energy savings of 30%.

The package presents both opportunities and challenges for energy-related industries as well as for information technology companies whose products will help to achieve Europe’s energy efficiency objectives.  According to the Commission, its proposals should mobilize up to 177 billion Euros of public and private investment per year from 2021, and generate up to a 1% increase in GDP over the next decade.

The Commission’s proposals are a first step of a legislative process in the European Parliament and Council that is likely to last at least 18 months, and will provide industry with opportunities to influence the legislation on renewable energies and energy efficiency that will apply in the EU as of 2021.Continue Reading The European Commission Presents its 2030 Clean Energy Package

The European Commission calculated years ago that someone flying from London to New York and return generates roughly the same level of CO2 emissions as the average person in the EU does by heating their home for a whole year. And air traffic is supposed to double by 2035…

This is why the European Union decided as early as 2008 that, as part of its effort to address climate change, it would extend its so called EU emissions trading system (“ETS”) to the aviation sector.[1] By 2012, in principle, emissions from all flights from, to and within the European Economic Area (EEA) – the 28 EU Member States, plus Iceland, Liechtenstein and Norway – should have been included in the EU ETS system.

But this proposal was very negatively received by third countries. Airlines for America (A4A) together with several American air carriers engaged in legal disputes against the EU Directive, arguing that it broke the EU-US open sky agreement, the Kyoto Protocol, and the International Civil Aviation Convention. After their case was lost in the European Court of Justice, a coalition of countries led by the United States, China, Russia, India, Japan, and others launched a major political offensive against the unilateral character of the EU scheme. Their major argument was that the Directive, by imposing obligations on third countries, went against the principle of sovereignty. They pleaded that a satisfactory solution could only come through a global market based scheme, as it was discussed (but with not much success at the time) in the International Civil Aviation Organization (ICAO) Assembly .

As a result of these pressures – which included retaliation threats targeting Airbus sales – the EU renounced, provisionally, imposing its system to extra-EU flights. ETS requirements for flights to and from non-European countries were ‘suspended’ until the end of 2016, in order to give time to ICAO to develop a global ‘market-based measure’ (MBM) scheme. ICAO’s Assembly in 2013 decided in principle that a mechanism would be agreed by 2016 and applied by 2020. In the meantime, only flights within the EEA continued to be covered by the ETS system, with some exemptions for operators with low emissions.

ICAO has respected its self-imposed deadline: In its 39th session, on October 6th 2016 in Montreal, an agreement was reached on a ‘Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). According to the scheme, CO2 emissions for international aviation would be capped at the level of average emissions between 2019 and 2020, with participants offsetting any increases; the offsetting obligation would apply to all international flights between States that are part of CORSIA. In order to offset its emissions, an airline operator would have to buy ‘Emission Units’ originating from various emission reduction programs and projects across the globe. The specific criteria for these ‘Emission Units’ will be developed by ICAO in the next two years.

But, in order to ensure broad support, negotiating States concluded substantive compromises on the timeline of implementation, exemptions to the agreement, and the distribution of offsetting requirements among airline carriers.[2]  The European Union fought to reduce these exceptions or delays to a minimum but with limited success. It decided, anyway, in the end, to accept the final agreement.
Continue Reading The EU reaction to ICAO ’s Agreement on Aviation Emissions

The EU recently published a Guidance on Compliance Criteria on Environmental Claims (“Environmental Claims Guidance”).  The Guidance is intended to support economic operators and EU Member State enforcement authorities in  their application and implementation of the principles of the Unfair Commercial Practices Directive (“UCP Directive”) to self-declared environmental claims and related graphics and imagery.  The UCP Directive establishes principles to prevent unfair commercial practices that may harm the commercial interests of consumers.
Continue Reading EU Adopts New Guidance on Environmental Claims

The International Energy Agency (IEA)’s latest monthly market report, published on November 13, 2015, revealed that the already “massive cushion” of oil stockpiles has inflated further to reach a record level of almost 3 billion barrels.  Following the announcement, oil prices reportedly dropped to a two-month low.

The IEA described this stockpile as “an unprecedented buffer against geopolitical shocks or unexpected supply disruptions.”  The glut in oil supplies is expected to maintain pressure on global oil prices, which many analysts predict will remain at the lower end of a $54-$64.0/bbl range during 2016.

In this post, we highlight two observable trends in the M&A activities of industry participants during 2015 as they navigate the current challenges facing the sector.


Continue Reading What’s the Deal with Low Oil Prices?

On September 23, the Dutch Government appealed a decision* of the District Court in The Hague that obliges the Dutch State to reduce its greenhouse gas (“GHG”) emissions by at least 25%, instead of the currently envisaged 17%, compared to 1990 levels.  The decision is unique in its kind in Europe: it forces a government to change its policies in pursuit of more ambitious climate change targets on the basis of the State’s “duty of care.”  The ruling comes at a time where NGOs in Europe are becoming increasingly active in pressuring governments to tighten environmental regulations.
Continue Reading Can Courts Oblige States to Increase Greenhouse Gas Emission Cuts? Urgenda vs. Dutch State

The Council of Environment Ministers of the European Union has approved the EU’s Intended Nationally Determined Contribution (“INDC”) in anticipation of the COP 21 of the UNFCCC in Paris in December 2015.  At COP 21, the UNFCCC contracting parties are expected to agree on a new international legal agreement
Continue Reading The Road to Paris 2015: The EU Commits to a 40% Reduction of Greenhouse Gas Emissions as Part of its INDC to the UNFCCC COP 21