1) Fit for 55 package: the French presidency of the Council of the EU led to an agreement on further measures to tackle climate change. The main goal of the package is for the EU to reduce its greenhouse gas emissions by at least 55% by 2030.
This includes, among others:
· Increased target for carbon removals from land use and forestry
· Revision of the Energy Tax Directive
· More ambitious target in terms of renewable energy
· Reform of the EU emissions trading system
· Higher efforts in sharing regulations among member states
2) Some major ESG data providers (such as MSCI and the London Stock Exchange) have rejected the EU’s proposal to implement the legislative intervention in the ESG rating market.
They believe that a code of conduct would be sufficient. Nevertheless, it turned out that 80% of the market was in favour of some regulatory input.
3) The European Commission has launched a request for advice to the European Supervisory Authorities on the management of greenwashing within the EU. The ESAs have until 15 August 2023 to provide their reports.
4) California’s SB-260 – also called the Climate Corporate Accountability Act – keeps getting closer to adoption. On August 11, it was approved by the California Assembly Appropriations Committee. The current text calls for, among other measures, mandatory reporting of GHG emissions by large companies.
5) The Glasgow Financial Alliance for Net Zero (“GFANZ”) members will now have to meet more demanding standards, as called for by the UN’s “Race to Zero” campaign. As of 2023, those who fail to meet the new criteria (e.g., end coal financing, disclose their transition plans) will be ejected.
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