Global Climate Legislation Roundup - April & May 2024
Legislation, Schemes and Guidelines from governments on Climate
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Asia Pacific and Africa
Japan has passed a carbon capture and storage bill that will require authorities to setup a permitting process for carbon storage and exploration drilling rights, and design regulations for storage and CO2 transport via pipelines. Specific areas may also be designated for geological storage of captured carbon. The country has also passed a law to introduce a subsidy for hydrogen production, to make it competitive with existing energy sources. CarbonCredits.com
Japan has published a Technology Strategy for Energy Efficiency and Transition to Non-Fossil Energy 2024, that identifies areas where the country should prioritise energy-related innovation. METI Press Release
Queensland (Australia) has banned carbon storage in the Great Artesian Basin - Australia’s largest underground freshwater reservoir and also one of the largest such reservoirs in the world. Following the environmental assessment of a proposed carbon storage project in the region, the Queensland government has now banned all carbon storage projects in the area of the basin under its jurisdiction - the ban does not affect the parts of the basin managed by other states.
Greenhouse gas storage activities, including carbon capture and storage projects, will be permanently prohibited in the basin as part of the move to protect the critically important resource. The ban also extends to enhanced oil or petroleum recovery activities that use a greenhouse gas stream. The ban, which will be legislated, clarifies that activities involving greenhouse gas storage or the injection of a greenhouse gas stream into underground formations within the Great Artesian Basin are not permissible.
China has released a new action plan for reducing energy use and emissions for 2024-25. Renewable energy and storage will be scaled, and unutilised production capacity in steel, petrochemicals, non-ferrous metals, and building materials will be addressed to reduce emissions intensity per unit of final products. South China Morning Post | Government Press Release
China has launched the Kunming Biodiversity Fund to help protect ecosystems in developing nations. Carbon Pulse
Malawi has finalised its regulatory framework for Carbon Trading. Times.mw | African Carbon Markets Initiative
Seychelles has published a new National Aquaculture Policy for 2023-27. Seychelles News Agency | Seychelles National Aquaculture Policy 2023-2027 (PDF)
European Union
The European Council has approved the Net-Zero Industry Act, which aims to simplify the permitting process, improve market access and support skill building for greentech products made in EU.
Progress towards the objectives of the net-zero industry act will be measured by two indicative benchmarks. Firstly, manufacturing capacity of net-zero technologies, such as solar photovoltaic panels, wind turbines, batteries and heat pumps, reaching 40% of the EU’s deployment needs. Secondly, a specific target for an increased Union share for these technologies with a view to reaching 15% of world production by 2040.
ET Energy | European Council Press Release | Net-Zero Industry Act
Europe has published a new methane regulation that
obliges the fossil gas, oil and coal industry in Europe to measure, monitor, report and verify their methane emissions according to the highest monitoring standards, and to take action to reduce them. It requires EU gas, oil and coal operators to stop avoidable and routine flaring and to reduce flaring and venting to situations such as emergencies, technical malfunctions or when it is necessary for safety reasons.
The European Council has adopted regulation setting internal market rules for natural gas and hydrogen.
It contains specific rules for the transport, supply and storage of natural gas and hydrogen.
The new rules call for integrated and transparent network planning across the EU, under the principle of ‘energy efficiency first’ and with a forward-looking approach. Gas and hydrogen network operators will prepare a 10-year EU network development plan. European Council
The European Parliament has adopted a new rule that sets stricter limits for 2030 on air pollutants - particulate matter (PM2.5, PM10), NO2 (nitrogen dioxide), and SO2 (sulphur dioxide).
For the two pollutants with the highest documented impact on human health, PM2.5 and NO2, the annual limit values are to be more than halved from 25 µg/m³ to 10 µg/m³ and from 40 µg/m³ to 20 µg/m³ respectively. There will also be more air quality sampling points in cities. The air quality standards shall be reviewed by 31 December 2030 and at least every five year thereafter and more often if clear from new scientific findings
The European Parliament has adopted new regulation that aims to reduce use of packaging - 5% by 2030, 10% by 2035 and 15% by 2040.
Certain single use plastic packaging types will be banned from 1 January 2030. These include packaging for unprocessed fresh fruit and vegetables, packaging for foods and beverages filled and consumed in cafés and restaurants, individual portions (for e.g. condiments, sauces, creamer, sugar), accommodation miniature packaging for toiletry products and very lightweight plastic carrier bags (below 15 microns).
The regulation will also require all packaging to be recyclable, and set “minimum recycled content targets for plastic packaging and minimum recycling targets by weight of packaging waste.” EP Press Release
The European Commission has signed the European Solar Charter, that includes voluntary actions that the Commission and member states may take to support the solar sector in Europe. These actions include -
using non-price criteria such as responsible business conduct in auctions;
promoting forms of PV like agri-PV, floating solar, vehicle-integrated PV;
maintaining and expanding current production capacity;
urging solar buyers to apply non-price criteria in picking solar module manufacturers;
access to EU funding for solar manufacturing projects;
facilitating investment in solar projects from European Investment Bank;
improving skills for solar manufacturing;
assessing unfair industry practices
The European Parliament has adopted a new voluntary certification framework for carbon removals.
The new law covers different types of carbon removals namely permanent carbon storage, notably through industrial technologies, carbon storage in long-lasting products and carbon farming. The scope was also extended to cover certain types of carbon farming activities that reduce emissions from agricultural soils provided they lead to an overall improvement in the soil carbon balance. The reduction of methane release from enteric fermentation or manure management from livestock will be included as part of the 2026 review. Src
The European Commission will also establish a public EU registry for carbon removals and soil emission reductions within 4 years from when the regulation comes into force.
The European Parliament has adopted revised regulations that requires CO2 emissions from large trucks and buses to be reduced in a phased manner - 45% in 2030-34, 65% for 2035-39 and 90% for 2040 as compared to 2019 levels. Urban buses will be required to be zero-emission by 2035. Measures will also be taken to create demand for zero-emission heavy duty vehicles.
By 30 June 2024, the Commission shall present a legislative proposal to the European Parliament and to the Council to increase the share of zero-emission heavy-duty motor vehicles owner or leased by large fleet operators. The proposal shall include binding zero-emission mandates on large fleet operators, while taking into account regional disparities and the level of deployment of charging and refuelling infrastructure.
The European Parliament has adopted a reform of the EU electricity market that
allows use of Contracts for Difference (CfDs) in all new electricity production, whether from renewables or nuclear
allows countries to prohibit suppliers from “cutting the electricity supply of vulnerable customers, including during disputes between suppliers and customers.”
allows the Union to “declare a regional or EU-wide electricity price crisis, allowing member states to take temporary measures to set electricity prices for SMEs and energy intensive industrial consumers”
The European Union has passed a new rule that requires traders to provide clear and relevant information to consumers about the environmental and social aspects, impact and performance of a product. EC Press Release | Directive on Empowering Consumers for the Green Transition
European States
Italy has banned installing ground-mounted solar panels on agricultural land. Panels installed over crops are still permitted. Reuters
Netherlands has announced that its previous target of 21GW offshore wind capacity by 2030, will be achieved by 2032 instead. At the end of 2023, the country had reached 4.7GW in total offshore wind installations. Energy Watch
Denmark has banned the discharge of scrubber water from ships 12 nautical miles (22 km) from its coast, effective from 2025. (Ships use scrubbers - a system that passes the exhaust through a liquid such as water - to remove sulphur from the exhaust.) Offshore Energy | Danish Shipping
United States
The US has passed legislation to ban import of low-enriched uranium from Russia, to encourage domestic production of nuclear fuel. Utility Dive | H.R.1042 - Prohibiting Russian Uranium Imports Act
US has passed new rules that require coal & gas-based power plants to control 90% of their carbon pollution, reduce mercury emissions, reduce pollutants in wastewater discharge, and safely manage coal ash. The Guardian | EPA Press Release
US has announced a national goal for zero-emissions freight transport covering rail, road, aviation and maritime sectors. Initiatives include:
$1 billion in funding to replace class 6 and 7 heavy duty vehicles, such as school buses, trash trucks, and delivery trucks
A $400 million grant program to reduce truck emissions at port facilities
$72 million investment to “demonstrate how vehicle-grid integration enables depots and truck stops to provide affordable, reliable charging while increasing grid resiliency.”
US has designated two PFAS chemicals, perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS), as hazardous substances.
The US Environment Protection Agency (EPA) has announced stricter clean air standards, including limits on possible carcinogens - ethylene oxide and chloroprene, for chemical plants. The rule also requires facilities to monitor emissions of 6 key pollutants (Ethylene oxide, chloroprene, benzene, 1,3- butadiene, ethylene dichloride or vinyl chloride) at the fenceline and ensure that the level for these remains below a specific threshold.
For each chemical, if the annual average concentration at the fenceline is higher than the “action level” for the chemical, owners and operators must determine the cause and make necessary repairs. The monitoring requirements include procedures that account for background levels of the six air toxics.
New York Times | EPA Press Release | EPA Factsheet - Overview of the final rule (PDF)
The US state of Minnesota has passed legislation on extended producer responsibility for packaging and paper.
Producers would be required to pay half of recycling costs come 2029, with that threshold ramping up in the years that follow, including to at least 90% by 2031. Waste Dive
The US state of Minnesota has passed a bill to set up a regulatory framework for extraction of helium in the state, after a large helium reserve was discovered earlier this year. Unlike most sites where helium is found along with natural gas, Minnesota has reserves created from granite rock infusing with uranium and thorium. Innovation News | Minnesota House of Representatives
The US Department of Energy announced new energy efficiency standards for commercial unitary air conditioners, commercial heat pumps, circulator pumps and dishwashers. Utility Dive | DoE Press Release
United Kingdom
UK has published a Sustainable Aviation Fuel (SAF) mandate that will “deliver 10% of all jet fuel in flights taking off from the UK from sustainable sources by 2030 and 22% by 2040”. Subject to approval from the Parliament, the mandate is expected to be implemented from January 1, 2025.
The mandate will start in 2025 at 2% of total UK jet fuel demand, increase on a linear basis to 10% in 2030 and then to 22% in 2040. From 2040, the obligation will remain at 22% until there is greater certainty regarding SAF supply.
The mandate also aims to incentivize the development of new SAF technologies by capping the feedstocks used in the hydroprocessed esters and fatty acids (HEFA) process, and other measures.
To drive innovation and diversification, a separate obligation on power-to-liquid fuels will be introduced from 2028 and will reach 3.5% of total jet fuel demand in 2040. This will accelerate the development of this high-tech fuel, which is less dependent on feedstocks and can generate greater emission reductions. The mandate includes buy-out mechanisms for both the main and power-to-liquid obligations to incentivise supply while protecting consumers where suppliers are unable to secure a supply of SAF. These will be set at £4.70 and £5.00 per litre of fuel, respectively.
Statement to Parliament | Creating the UK SAF mandate, April 2024 (PDF)
UK’s anti-greenwashing rule that “requires firms to ensure that any reference to the sustainability characteristics of a product or service is: consistent with the sustainability characteristics of the product or service, and is fair, clear and not misleading”, will come into force on May 31, 2024. The Financial Conduct Authority (FCA) has published guidance to help firms comply with the rule.
Our anti‑greenwashing rule applies when a firm:
• communicates with clients in the UK in relation to a product or service, or
• communicates a financial promotion (or approves a financial promotion for communication) to a person in the UK.
Carbon Pulse | FCA Press Release | Finalised non-handbook guidance on the anti-greenwashing rule
UK has published new guidance on its green gas support scheme which aims to increase the proportion of green gas in the gas grid.
[The scheme is] designed to support the deployment of new anaerobic digestion (AD) biomethane plants to increase the proportion of green gas in the gas grid. Support will be provided to registered biomethane producers based on the volume of eligible biomethane, produced from AD, that they inject into the gas grid
The UK has funded new fusion energy projects working on
digital tools for future fusion powerplant designs, and advanced production and handling of hydrogen isotopes. GOV.UK
Scotland previously set a target to reduce GHG emissions by 75% by 2030. The government has now said this is difficult to achieve and it will follow a ‘carbon budget’ plan similar to that used by UK. New policy actions focus on - reducing car use and switching to EVs, more EV charging, boosting public transport use, lower aviation emissions (using sustainable aviation fuels is proposed), reducing methane emissions from livestock, land management and better farming. ECEEE | Climate change action: policy package (April 18, 2024)
Australia
New budget includes significant allocation for renewable energy and climate projects. Notable:
Tax incentive of $2/kg for Hydrogen production from 2027-40
Tax incentives for processing and refining critical minerals
Funding for batteries and solar supply chains
Supporting commercialisation of green metal and low-carbon alternative fuel production technologies
Measuring and certifying carbon emissions across supply chains for key products
Funding mapping of critical mineral resources and national groundwater systems
Australia has published its National Battery Strategy with AUD 523 million in production linked incentives, AUD 20 million for skill building and programs for energy apprenticeships and critical minerals trade. Energetica India | gov.au | National Battery Strategy, May 2024 (PDF)
Australia has published a Future Gas Strategy that aims to optimise gas use to reduce emissions, while keeping gas affordable, developing new gas production, and remaining a global trading partner for LNG and low-emission gases. Press Release | Future Gas Strategy
Under Consideration
Switzerland will vote on a renewable energy bill - Federal Act on a Secure Electricity Supply from Renewable Energy Sources - on June 9.
The bill includes funding instruments and new arrangements for producing, transporting, storing and consuming electricity. The expansion of solar power production is to take place primarily by installing panels on buildings. In suitable areas, there will be less strict planning conditions for wind power and large solar energy plants, which are particularly important for the electricity supply in winter. The 16 hydropower plants mentioned in the new legislation will also be subject to more relaxed planning conditions. This will increase the chances that a project can be realised even in the event of opposition. Swiss govt | Bill on a secure electricity supply
The UK is working on a National Policy Statement for fusion energy, to aid planning, siting and regulation of fusion facilities. GOV.UK (PDF)
Northern Ireland has published a draft Review of the Marine Protected Areas Strategy for the Northern Ireland Inshore Area 2024 – 2030 and a Blue Carbon Action Plan for consultations. Carbon Pulse
India’s capital market regulator, Securities and Exchange Board of India (SEBI), has proposed to include reporting of green credits - generated by a listed company and/or its partners - in its business responsibility and sustainability reporting framework. Carbon Pulse | SEBI BRSR Recommendations, May 2024 (PDF)
California (USA) is considering new Extended Producer Responsibility (EPR) programs for marine flares, textiles and household hazardous waste. Waste Dive
India has released draft guidelines for a scheme that will provide subsidies to install solar rooftops in 10 million households. pv magazine
If you know of more legislation or government announcements that should be included here, please let me know in comments or email.
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