In Brief: EU climate policies face further backlash; UK CMA warns fashion retailers over greenwashing
The latest ESG policy and regulatory news
Some of the EU’s cornerstone climate policies are facing continued pushback, with the EU Nature Restoration Law now not set to be agreed before the European parliament elections in June, following opposition from Hungary.
Meanwhile, fresh concerns have been raised on the bloc’s anti-deforestation rulebook, which would see obligations apply from the end of this year. Austria is reportedly lobbying the European Commission to introduce exemptions for EU farmers, in a similar way to those granted under the union’s Common Agricultural Policy earlier this month. The exemptions to the CAP have been endorsed by the European Council and are now headed to the parliament.
The council has given its final go-ahead to amendments targeting waste shipments regulations and has also agreed to “encourage” member states to continue reducing their gas consumption by at least 15 per cent over the next year.
The council has also formally adopted the Environmental Crime Directive, which expands criminal liability for companies and individuals.
The European Financial Reporting Advisory Group is looking for technical experts in road transport or textiles, accessories, jewellery and footwear to provide comments on the sectors’ draft sustainability reporting standards. Applications are accepted until April 19. Efrag has also launched a call for tenders to analyse the feedback received on the public consultation for sustainability reporting standards for small and medium-sized enterprises.
The European Securities and Markets Authority has opened a new consultation related to the registration and supervision of entities interested in becoming external reviewers of EU green bonds. The consultation, which has no specific deadline, will look at topics including conflicts of interest and outsourcing.
The UK Competition and Markets Authority has received formal commitments from fashion retailers Asos, Boohoo and George at Asda regarding the future use of green claims in their marketing to consumers, following an investigation. The agreement will result in changes to the way the retailers display, describe and promote their green credentials, including statements on fabrics, criteria for green ranges, use of imagery, environmental targets and accreditation schemes. The CMA has also published an open letter to the wider fashion retail sector about the standards it expects from companies when making environmental claims.
The UK’s opposition Labour party has pledged to further support offshore wind energy if it wins the next general election. Support for offshore operations would come from GB Energy, a state-owned fund that Labour has pledged to create if it leads the next UK government. Labour has been criticised for dropping its £28bn annual pledge for green energy in favour of fiscal discipline.
The University of Cambridge has temporarily halted donations from fossil fuel companies following internal pressures and concerns about reputational risk, the Financial Times reports. The ban will be in place until the university’s donations process has been reviewed.
Discussions at the UN’s International Seabed Authority are continuing on the framework of a contested mining code to collect minerals from the seabed. The UN body is set to adopt any decisions on March 29. Greenpeace’s protest conduct was discussed on March 22, following an incident last November when the group interfered with the operations of a vessel belonging to The Metals Company, which was carrying out exploration research in a remote area of the Pacific known as the Clarion-Clipperton Zone. Member states disagreed on whether Greenpeace’s conduct needed further limiting, including a suggestion by island state Nauru — which had sponsored The Metals Company’s activities — to install a “safety zone” of up to 500 metres around vessels operating in the area. Others opposed Nauru’s proposal, arguing that authority to establish such a zone would fall under the remit of the International Maritime Organization and is not provided for under the UN Convention on the Law of the Sea. The issue has highlighted the tensions between the right of peaceful protest at sea and companies’ legitimate contractual exploration rights.
The US Department of Energy has announced up to $6bn in funding from the Inflation Reduction Act to assist 33 projects across the US to help decarbonise energy-intensive industries. The industries under scope include aluminium and other metals, cement and concrete, chemicals and refining, and iron and steel.
Meanwhile, the World Trade Organization has received a complaint from China over electric vehicle subsidies announced by the US government that would exclude Chinese manufacturers, according to media reports referencing the Chinese commerce ministry.
France and Brazil have announced an investment programme targeting the bio-economies of the Brazilian Amazon and French Guiana, following meetings between Presidents Luiz Inácio Lula da Silva and Emmanuel Macron in the city of Belém — which will host COP30. The investment programme will aim to raise €1bn from public and private resources over the next four years through technical and financial partnerships between Brazilian public banks, such as BNDES and the Amazon development bank, and the French Development Agency. The two countries also launched a coalition to tackle greenwashing in the voluntary carbon market and to finalise the stranded negotiations on Article 6 of the Paris Agreement by COP29.
Canada-based utility FortisBC is facing a greenwashing lawsuit by a group of local non-profits, which allege the company is deceiving people in buying new gas furnaces instead of switching to heat pumps.