CONTENTS
- U.S. Regulatory Developments
- Climate Change Issues for Management
- Carbon Market Transactions
- Tools for the Carbon Market
- Climate Change Litigation
- Climate Change Regulation
- Beyond the U.S.
- Glossary of Key Climate Change Terms
U.S. Regulatory Developments
As the fall elections approach, the focus of potential climate change legislation in Congress has shifted from economy-wide emissions caps to incentives for energy efficiency and broader support for alternative energy. Meanwhile, U.S. EPA continues moving forward with greenhouse gas regulation via the Clean Air Act, finalizing a so-called Tailoring Rule that will begin to phase in regulation of such emissions from new and modified facilities in January 2011. In California, voters will decide whether to suspend the state's ambitious climate change law until unemployment drops to 5.5 percent. DETAILS
Climate Change Issues for Management
A recent survey by Ceres and Zurich in North America finds wide variation in corporate strategies for managing climate change risk, and a need for better communication between insurers and insureds. The White House's proposed guidance to federal agencies on addressing climate change impacts under the National Environmental Policy Act draws divergent reactions, with some urging an even more stringent approach, while others in Congress are seeking to prohibit any such reviews. A CERES study of mutual fund proxy voting finds growing support for climate change resolutions. DETAILS
Carbon Market Transactions
Although buildings produce about 40 percent of U.S. greenhouse gas emissions, the commercial real estate industry has thus far had limited success in addressing such emissions. New "green leasing" concepts allow landlords and tenants to build greater sustainability into building operations. Hybrid power generation facilities, which combine solar technology with traditional fossil fuel-based generation, offer cost-effective opportunities to take advantage of growing demand for renewable energy, while using existing infrastructure and minimizing concerns over solar variability. DETAILS
Tools for the Carbon Market
Additional facilities are now subject to EPA's greenhouse gas reporting program, and EPA has proposed a rule on the scope of data submitted by companies that will be deemed confidential. FERC has proposed policies to ensure construction of the transmission lines needed to get future renewable output to energy markets. The White House's carbon capture and storage task force is finalizing a proposed deployment plan, while DOE moves forward with demonstration projects. Carbon prices have increased in Europe while decreasing in the U.S., reflecting market perceptions of the prospects for future regulation. DETAILS
Climate Change Litigation
The question of whether greenhouse gas emitters may be sued under common law nuisance theories is moving closer to Supreme Court review. The U.S. Court of Appeals for the Second Circuit has allowed such claims to proceed, while the Fifth Circuit has reinstated a decision dismissing such claims. EPA's greenhouse gas regulatory docket is keeping the federal courts busy. Challenges to each final rule are pending in the D.C. Circuit, and one group has sued EPA for not regulating enough. NASA has been sued under the FOIA seeking documentation of alleged climate data manipulation. DETAILS
Climate Change Regulation Beyond the U.S.
The United Kingdom's first coalition government in more than a half century has reaffirmed that nation's commitment to combat climate change, describing it as "one of the gravest threats we face." The coalition agreement between the Conservative and Liberal Democrat parties proposes a range of initiatives to discourage use of fossil fuels and promote alternative energy technologies. Meanwhile, the government is moving forward with implementation of a carbon emissions trading program and a "feed-in tariff" system to financially support small-scale renewable electricity generators. DETAILS
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