Today, the Securities & Exchange Commission voted 3 to 1 in favor of adopting a long-awaited set of proposed revisions to SEC regulations concerning the disclosure of climate risks and related financial impacts, as well as data on greenhouse gas emissions in certain SEC filings. The recommendation to adopt the new set of rules was not unanimous, with Commissioner Hester Peirce voting against the measure, arguing that the new set of rules is at best unnecessary,… More
Category Archives: Climate Response
The White House has taken a strong stance in expanding the production and use of Sustainable Aviation Fuel (SAF) to reduce carbon emissions in the aviation industry. SAFs are liquid hydrocarbon fuels that are blended into the existing fuel supply using materials like waste, fats, cooking oils and corn. The Administration has identified the aviation industry as a climate priority in its push to reduce the country’s carbon footprint.… More
Each year since 1995, with the exception of 2020, the United Nations Framework Convention on Climate Change (UNFCCC) has hosted a Conference of Parties (COP), where members of the UNFCCC negotiate issues relating to reducing greenhouse gas emissions and other matters relating to climate change. The 26th COP concluded in Glasgow on November 13 with a Climate Pact that continues the evolution of global climate policy over the past 30 years.… More
The first phase of the regulations is focused only on reporting issues. It will address
- Reporting Requirements
- Third-Party Data Verification Requirements
- Preservation of Records
The rationale for this narrow focus is that the City wants these regulations in place promptly,… More
Earlier this week, Greenwire (subscription required) had an interesting story about the role that EPA’s estimate of the cost to comply with the Mercury and Air Toxics Standards rule played in the politics and judicial review of the rule. It turned out that compliance costs were much less than originally estimated by EPA – let alone by industry. Unfortunately, the $9.6 billion price tag originally put on the MATS rule lived on,… More
Last week, the Boston City Council approved amendments to the Building Energy Reporting and Disclosure Ordinance. The changes are being referred to as “BERDO 2.0”, which almost understates the scope of the revisions. As indicated by its name, since its original enactment, BERDO only dealt with reporting and disclosure. Now, however, Boston will be imposing limits on GHG emissions from large buildings.
The limits will first be effective in 2025,… More
The IPCC has released its Sixth Assessment Report on the physical science basis of climate change. I would say that it makes sobering reading, except any sane person’s immediate response to AR6 would be to go out and have any number of stiff drinks. Here are a number of the lowlights:
It is unequivocal that human influence has warmed the atmosphere, ocean and land.… More
The White House this morning released a fact sheet on “The American Jobs Plan,” also known as President Biden’s infrastructure plan. There’s a lot in here (as there should be for a couple of trillion dollars!), so today I’ll focus on energy infrastructure. Here are the highlights:
- $100B to “build a more resilient electric transmission system.” This includes “the creation of a targeted investment tax credit that incentivizes the buildout of at least 200 gigawatts of high-voltage capacity power lines.”
- Creation of a “Grid Deployment Authority” within DOE to facilitate transmission line siting.…
In January, when Governor Baker vetoed the Legislature’s effort to go big on climate, my colleague Zach Gerson made clear that the bill was not even “mostly dead.” I am pleased to say that Zach’s diagnosis was correct. The climate bill is very much alive.
As promised, President Biden has recommitted the U.S. to the Paris climate agreement. He’s also undertaken sweeping executive action to undo the previous administration’s environmental rollbacks. But after four years of lagging behind the rest of the world, the U.S. will face significant challenges in achieving meaningful emissions reductions without new legislation. And that means a tough road ahead working with an evenly divided Senate and moderates in Biden’s own party from states that remain dependent on fossil fuels.… More
Within hours after being sworn into office, President Joe Biden signed an executive order (“EO”) that teed up a slew of clean air issues as top environmental priorities. The Biden administration signaled its plan to unwind four years of environmental and energy policies marked by aggressive deregulation and sidelining efforts to combat climate change.
Although only allotted a short paragraph in the EO,… More
Sometimes, “mostly dead” is just a pause before successfully storming the castle. On January 14, Governor Baker vetoed the climate bill that passed the Massachusetts Legislature on January 4 with overwhelming support (see our posts here, here, and here). I couldn’t resist the Princess Bride reference, but despite the veto, it is probably a stretch to refer to the bill as even “mostly dead.”… More
On January 4th, as the legislative session came to a close, both houses of the Massachusetts legislature passed “An Act Creating a Next-Generation Roadmap for Massachusetts Climate Policy.” My colleague, Seth Jaffe, posted on the act yesterday, when the details of the bill first came out, focusing on the climate and economic impacts. There is no doubt that this act will significantly shape Massachusetts’s path towards a net-zero future.… More
There are few people left, at least in my orbit, who don’t share the goal of prompt decarbonization of the economy. The quaintly named $64,000 question ($64 trillion question?) is how we get from here to there.
Today, the New England Power Generators Association released a report prepared by Analysis Group that explains how an economy-wide price on carbon can help New England do just that. … More
This week, the Massachusetts Attorney General’s office released a white paper documenting the results of a symposium convened last fall to discuss how electric markets should be organized to manage the transition to a “low / no-carbon future.” Policy wonks, such as myself, will find it fascinating reading, though it is moderately dense stuff.
Seriously, it is important to acknowledge that these issues are as complex as they are important. … More
It’s probably not news that the immediate prospects for a carbon tax aren’t great. I still think that it’s going to seem impossible until, fairly suddenly, it actually happens. Hope springs eternal.
In any case, there has been some news on the carbon tax front this month. Here’s the quick summary. The Climate Leadership Council, everyone’s favorite collection of Republicans who used to matter, released The Dividend Advantage,… More
BlackRock, which manages more than $5 trillion in assets, has released a statement on how it “engages with climate risk.” The statement has three main elements.
- Support for the Financial Stability Board’s Task Force on Climate-Related Disclosures
- Engagement with companies over assessment on climate risks
- An indication of potential support for shareholder resolutions on climate risk,…
According to the American Wind Energy Association blog, installed wind capacity in the United States has reached 82,000 MW. That puts it past the 80,000 MW of installed hydropower capacity and makes wind the largest installed renewable energy resource.
While the overall number represents a significant milestone, some of the details are interesting as well. Wind represents 5.5% of US generation. Moreover,… More
When RGGI was first implemented, I heard Ian Bowles, then Secretary of Energy and Environmental Affairs in Massachusetts, say more than once that the purpose of RGGI wasn’t really to reduce greenhouse gas emissions or jump start the clean energy economy. Instead, the goal was much more modest; it was simply to demonstrate that a trading regime could work. The RGGI states were to serve as a model,… More
Last Friday, the Senate Committee on Ways and Means released its version of the energy bill that passed the House earlier this month. Whereas the House bill would require distribution companies to procure 1,200 MW of offshore wind power by 2027 and 9,450,000 MWH of hydroelectric power by 2022, the Senate’s version would require 2,000 MW of offshore wind by 2030 and 12,450,000 MWH of “clean energy generation” by 2018.… More
This week a draft of the long-awaited Massachusetts energy bill was reported out of the Joint Committee on Telecommunications, Utilities and Energy. The bill would require the Commonwealth’s distribution companies to competitively solicit long-term, fifteen- to twenty-year contracts for large-scale offshore wind and hydroelectric power. Notably absent from the bill are provisions addressing resources such as solar, onshore wind, nuclear, energy storage, and energy efficiency.
The bill seeks to jumpstart the development of offshore wind in federal lease areas by directing distribution companies to enter into contracts for 1,200 MW of offshore wind power before July 1,… More
This week, the San Francisco Board of Supervisors enacted an ordinance that will require that the developers of all new buildings of 10 floors or less that apply for building permits after January 1, 2017 install solar PV or solar thermal systems. I’m not an expert in the California Code of Regulations, so I’m not familiar with all of the potential exemptions, but the only one stated in the new ordinance is for buildings (residential or non-residential) with a “solar zone” of less than 150 contiguous square feet.… More
On April 11, Massachusetts Governor Charlie Baker signed into law compromise legislation modestly raising the cap on the state’s net metering program. Net metering allows customers to generate solar power to offset electricity costs and provide surplus power to the grid.
The program was previously limited to 4 percent of peak electricity demand for private projects and 5 percent for public projects. These limits were reached in National Grid’s service territory last March,… More
Earlier this week, Massachusetts released its updated Massachusetts Clean Energy and Climate Plan for 2020. The headline for the press release was “Massachusetts on Track to Meet 25% Greenhouse Gas Reduction Target for 2020”. The slightly more nuanced version is that we can do it, but only with a large dose of Canadian hydropower.
While that’s the main take-away, it really is a useful report,… More
New guidance from the US Department of Labor (“DOL”) clarifies the role of environmental, social and governance issues (referred to as “ESG factors”) in investment decisions by ERISA fiduciaries. ERISA Interpretive Bulletin 2015-01 recognizes that ESG factors, which include climate change, may directly affect the economic value of an investment, and makes clear that ERISA fiduciaries should appropriately consider such factors in investment decisions.
This Bulletin,… More
The fourth installment of our Paris climate change negotiations tracker is available.
Some progress seems to be occurring, but it’s certainly not obvious that COP21 will result in an agreement sufficient to ensure that it will result in meeting a “below 2°C” objective.
Click here to download the report:
The U.S. Department of Energy (DOE) recently released a Draft Environmental Impact Statement (DEIS) for Northern Pass Transmission, LLC’s proposed 187-mile transmission line across the United States-Canada border in New Hampshire.
If approved, the line would have the ability to deliver 1200 MW of hydroelectric power from Quebec into southern New England—a potentially tantalizing amount of power for policymakers seeking to diversify the region’s generation portfolio and lower its GHG emissions.… More
The Baker Administration announced on July 9 that it filed a bill for sourcing long-term hydroelectric power in the Commonwealth. Hydroelectric power currently provides a small portion of electricity consumed in Massachusetts. According to the Energy Information Administration, it ranks behind natural-gas, nuclear, coal and other renewable energy sources.
The bill, titled “An Act Relative to energy sector compliance with the Global Warming Solutions Act,” would require the State’s electric distribution companies to solicit proposals for hydroelectric contracts spanning 15 to 25 years. … More