Author: Camellia Moors ‘22
Welcome to our first Good News Friday post of the new year! In the spirit of new beginnings, this issue focuses on legal and legislative issues that may have big implications for climate change mitigation efforts around the world this coming year.
- Shell faces emissions lawsuit: Shell, a multinational oil company that provides 3% of the world’s energy, is facing a lawsuit from several Dutch environmental groups (Shell is headquartered in the Netherlands). The plaintiffs allege that the company, despite its pledge to reach net-zero emissions by 2050, is failing to reach more ambitious climate goals set by the Paris Agreement, which the Netherlands is a signatory to. They argue that because of the location of the company’s headquarters, the oil giant is subject to Dutch emissions laws. The outcome of the lawsuit has significant implications for oil companies around the world: “If the judges rule against Shell in the new year… it will set a precedent that could leave oil and gas producers vulnerable to further lawsuits for their emissions abroad… [A] verdict against Shell could boost climate lawsuits against polluters across the world.”
2. The Fed joins climate-minded international bank network: The U.S. Federal Reserve Board recently announced that it is becoming a member of the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). The NGFS, established in 2017, aims to “[strengthen] the global response required to meet the goals of the Paris agreement and to enhance the role of the financial system to manage risks and to mobilize capital for green and low-carbon investments.” The Fed’s involvement in the group is largely seen as a shift in mentality by the “steward of the world’s largest economy,” acknowledging that the U.S. is ready to have a greater role in the global fight against climate change.
3. A cap-and-trade program for Eastern states: 11 Northeastern and mid-Atlantic states, along with the District of Columbia, signaled their support last year to draft an “ambitious cap-and-trade program to curb tailpipe emissions from cars, trucks and other forms of transportation.” (To learn more about how cap-and-trade programs work, take a look at the Center for Climate and Energy Solutions’ explanation). Last month, three states and Washington, D.C. formally agreed to adopt the finalized plan, while eight other states are considering joining at a future date. The plan is estimated to affect approximately one-fifth of the U.S. population if all 11 states sign on and is expected to begin in 2023. If successful, the plan has the potential to significantly reduce carbon emissions from the transportation sector (currently the largest national emissions contributor).
That’s all for this week! Keep an eye out for more more news next Friday, and, until then, feel free to get in touch if you want to share some Good News with us!