Global Climate Legislation: September 19-20
Netherlands' export control on deep ultraviolet lithography equipment; Sweden's 2025 Budget supports transport, wind, nuclear, electric vehicles; China SAF pilot; Australia National Ecosystem Accounts
European Commission plans on Climate policy
The European Commission has announced the portfolios of its various Commissioners-designate. Here are some climate-related mandates from the mission letters, written by the President to each Commissioner-designate, describing the issues they need to address and specific policy actions they must take.
For Climate, Net Zero and Clean Growth
propose to enshrine the 90% emission-reduction target for 2040 in European Climate Law
develop the Clean Industrial Deal
ensure investment is targeted towards European net zero infrastructure
ensure implementation of ETS2 (emissions trading system for buildings, road transport and additional sectors)
enhance carbon removals, build-up a Single Market for CO₂
work on CO₂ transport and storage
work on a European Climate Adaptation Plan
further scale down and phase out use of fossil fuel subsidies
ensure a technology-neutral approach [for climate neutrality of cars] in which e-fuels have a role to play
work to level the energy taxation playing field
strategic use of taxation measures to incentivise the uptake of clean technologies
For a clean, just and competitive transition
develop a new State aid framework to accelerate the roll-out of renewable energy, to deploy industrial decarbonization and to ensure sufficient manufacturing capacity of clean tech.
review Horizontal Merger Guidelines (to modernize competition policy)
strengthen and speed up enforcement of competition rules
enforce the Foreign Subsidies Regulation and tackle anticompetitive policies
revise State Aid rules to enable housing support
For Tech Sovereignty, Security and Democracy
In the first 100 days, ensure access to tailored supercomputing capacity for AI-startups and industry through the AI Factories Initiative.
For Prosperity and Industrial Strategy
develop the Clean Industrial Deal in the first 100 days of the mandate, notably with a focus on decarbonisation, clean technologies and incentivising investment.
work to boost investment, create lead markets for clean tech and put in place conditions for companies to grow and compete globally.
present an Industrial Decarbonisation Accelerator Act
setup a dedicated EU Critical Raw Materials Platform, notably to support joint purchasing and manage strategic stockpiles, and to implement the Critical Raw Minerals Act.
present the Circular Economy Act, helping to create demand for secondary materials and a single market for waste, notably in relation to critical raw materials
work on a Chemicals Industry Package, to simplify REACH and provide circularity on “forever chemicals”, or PFAS
develop a steel and metals action plan
For People, Skills and Preparedness
support the implementation of the Social Climate Fund to support those struggling with energy or transport poverty
work on a new European Biotech Act
work on anti-microbial resistance
prevent and reduce food waste
For the Mediterranean
set up a Trans-Mediterranean Energy and Clean Tech Cooperation Initiative to increase renewable energy trading and boost clean tech manufacturing in the region
a new European Oceans Pact, focusing on healthy oceans and coastal areas, promoting the blue economy, managing uses of seas and oceans
strengthen approach to maritime spatial planning
develop an EU Ocean Research and Innovation Strategy
ensure the EU leads efforts for the ratification of the Treaty on Biodiversity Beyond National Jurisdiction, and incorporate this into EU law, with the specific goal of protecting at least 30% of the High Seas by 2030.
For Environment, Water Resilience and a Competitive Circular Economy
prioritise the design of incentives for nature positive actions and private investment, lead the work on nature credits
boost private finance for nature
work on European Water Resilience Strategy to address water efficiency, scarcity, pollution and water related risk
ensure EU reaches international biodiversity commitments
strive for a global plastic treaty
put forward an Action Plan for Affordable Energy Prices
boost roll out of renewable energy and storage
propose an Electrification Action Plan, accompanied by a roadmap towards ending Russian energy imports
support the acceleration of the development and deployment of Small Modular Reactors in Europe during the 2030s
incentivise and increase the uptake of carbon capture utilisation and storage
adopt a strategic roadmap for digitalisation and AI in the energy sector
develop a European Strategy for Housing Construction
establish a pan-European investment platform for affordable and sustainable housing
For Sustainable Transport and Tourism
ensure that missing parts of the Trans-European Transport Corridor are built by 2030
put forward a plan for an ambitious European high-speed rail network
speed up electrification of road transport, build-up charging infrastructure
put forward proposals for clean corporate fleets
develop an EU industrial action plan for the automotive sector
develop a comprehensive EU Port strategy
prepare in the first 100 days a Vision for Agriculture and Food
propose an EU-wide benchmarking system in the agri-food sector
explore possibilities to support organic farming
present a strategy for generational renewal in agriculture
work to strengthen Europe’s food sovereignty
Carbon Markets
Taiwan intends to launch a cap-and-trade scheme for carbon emissions in the next 4 years, beginning with a pilot program involving handpicked companies. Focus Taiwan
Kenya will develop a nation-wide REDD+ registry, expected to be operational by Q2 2025, for carbon removal projects focused on reducing deforestation and forest degradation. S&P Global
Climate Finance
Sweden has presented the Budget Bill for 2025. As per the Budget Statement, the government intends to
fund more transport infrastructure - In upcoming months, an infrastructure bill is expected. “In that bill, the Government will propose expanding the financial framework for transport infrastructure by more than SEK 200 billion for the longterm infrastructure-planning period 2026–2037.”
Support nuclear power by reviewing the “forms of state support and conditions for utilising support for new nuclear power facilities.”
Reduce the subsidy on installing solar and abolish the tax deductions provided for micro-renewables
Reduce tax on diesel for agriculture, forestry and aquaculture
Provide wind power incentives for municipalities, and lower property tax on these
Support biogas production, electric vehicles, and biodiversity conservation
Hong Kong Government completed a successful Institutional Green Bond offering of HK$25 billion of green bonds in July 2024.
the Green Bonds were priced on 17 July 2024 as follows:
RMB 2 billion 2-year tranche at 2.60%;
RMB 2 billion 5-year tranche at 2.70%;
RMB 2 billion 10-year tranche at 2.80%;
RMB 2 billion 20-year tranche at 3.05%;
RMB 2 billion 30-year tranche at 3.15%;
US$1 billion 3-year tranche at 4.336%; and
EUR 750 million 7-year tranche at 3.379%.
In May, the Hong Kong Monetary Authority extended the Green and Sustainable Finance Grant Scheme until 2027. The scheme “provides subsidy for eligible green and sustainable debt issuance in Hong Kong”. Here are the updated guidelines for the scheme and the Hong Kong Taxonomy for Sustainable Finance.
Biodiversity
Australia’s Bureau of Statistics will release the first set of National Ecosystem Accounts for the country in 2025. The accounts will cover the “entire Australian territory, encompassing terrestrial, freshwater, and marine realms.”
Ecosystem accounts consist of five main components:
stocks of ecosystem assets
the condition or ‘health’ of the assets
the flows of goods and services from the assets
the value of the benefits from the goods and services
the value of ecosystem assets.
The accounts are intended to help link natural ecosystems with human and economic activity, and aid various programs targeted at these.
Cities in Finland have announced intent to include biodiversity conservation actions and targets in city strategies. businesswire
More government announcements
Pesticides such as cyproconazole and spirodiclofen are banned in the European Union, but were previously allowed upto a certain level in agricultural products imported into the EU. The European Parliament has now disallowed residue levels of these pesticides, to “ensure a level playing field” and preserve the health of European citizens. European Parliament Press Release
The Netherlands has expanded its ‘export control’ measures to include deep ultraviolet lithography equipment used for semiconductor manufacturing.
The national authorisation requirement stipulates that, from now on (September 7 2024), companies will have to apply for an authorisation when exporting this type of advanced manufacturing equipment. The government will assess applications on a case-by-case basis, so this is not an export ban. The national measure applies to exports from the Netherlands to destinations outside the EU.
The Hague (Netherlands) has banned advertising of oil & gas, and products using these such as combustion engine vehicles and gas stations, effective January 1 2025. The EnergyMix
India has removed the windfall tax on domestically produced crude oil, effective September 18. ET Energy
China has launched a Sustainable Aviation Fuel (SAF) pilot at several airports including Beijing, Chendu and Zhengzhou. The first phase will run from September-December 2024, and the second phase in early 2025. Govt Press Release
Belarus is considering a second nuclear power plant in partnership with Russia. TASS - Russian News Agency
The US has launched a new Task Force on AI Datacenter Infrastructure to “provide streamlined coordination on policies to advance datacenter development operations in line with economic, national security, and environmental goals.” Press Release
Colorado (USA) plans to restart its Automated Permit Processing for Solar (APPS) grant program for local and tribal governments. Solar Power World
