The 29th annual conference under the United Nations Framework Convention on Climate Change in Baku, Azerbaijan, concluded with significant strides in climate finance and policy. Billed as the “Finance COP,” there was much anticipation as to whether a new collective goal on climate finance would be set and if the Article 6 rulebook would be finalized.

Acting with other US regulators, the Commodities Futures Trading Commission (“CFTC” or “Commission”) recently issued two consent orders (“CFTC Orders”) and filed a complaint (“CFTC Complaint”) alleging fraud and false, misleading, or inaccurate reports relating to voluntary carbon credits (“VCCs”). As noted by CFTC Director of Enforcement Ian McGinley, “[these actions] demonstrate [the CFTC’s] commitment to vigorously fight frauds in its markets, whether long-established or new and evolving, such as the carbon credit markets.” These are the first CFTC actions for fraud in the VCC market, and closely follow the CFTC’s recently published final Commission Guidance Regarding the Listing of Voluntary Carbon Credit Derivative Contracts (“Final Guidance”).

On March 6, 2024, the US Securities and Exchange Commission adopted final rules (“Final Rules”) that enhance and standardize the disclosure of climate-related information in registration statements and Exchange Act reports. The Final Rules were scaled back after years of significant feedback from registrants and other stakeholders, with the Commission receiving more than 24,000 comment letters in response to the initial rule proposal in March 2022.

On March 6, 2024, the US Securities and Exchange Commission (“SEC” or “Commission”) adopted final rules (“Final Rules”) that enhance and standardize the disclosure of climate-related information in registration statements and Exchange Act reports. The Final Rules were scaled back after years of significant feedback from registrants and other stakeholders, with the Commission receiving more than 24,000 comment letters in response to the initial rule proposal (“Proposed Rules”) in March 2022.
Below we discuss, among others: (i) the key takeaways and requirements for climate disclosures under the Final Rules, (ii) the key differences between the Proposed Rules and Final Rules, (iii) the expected compliance dates for disclosures under the Final Rules, and (iv) some practical considerations for companies that are subject to multiple climate disclosure regimes and regulations such as the new California and European Union climate reporting requirements.

Much of the focus around climate legislation coming out of the latest California legislative session has been on new, far-reaching requirements pertaining to disclosure of climate data and climate-related financial risk. However, California also adopted a third law related to climate change last year – AB 1305 – which has received somewhat less attention but may well have a wider and more immediate effect. Intended to address greenwashing claims, particularly related to voluntary carbon offsets (“VCO”), the Voluntary Carbon Market Disclosure Act mandates disclosure by entities that: (1) sell VCO credits in California; (2) buy or use VCO credits sold in California; and/or (3) make climate claims about corporate performance or products.

Gathering at a pivotal moment, the 28th Conference of the Parties unfolded against the backdrop of projections that 2023 is poised to be recorded as the warmest year on record. The accelerating impacts of climate change served as a stark reminder of the urgency addressed throughout the conference.
Baker McKenzie’s Global Climate Change practice was on the ground in Dubai, continuing a decade’s long commitment to be actively engaged in understanding how UNFCCC negotiations create opportunities for clients, and drawing from our observations, we’ve compiled a concise report outlining our perspective on the outcomes at COP28.

Baker McKenzie has a long-standing history of participation and involvement in the UN Climate Change Conference of the Parties (COP), advising governments, companies and other entities on implementing the Paris Agreement and leading on the development of both international and domestic carbon markets.
The team will be on the ground in Dubai for COP28 and look forward to engaging in ground-breaking discussions with all key stakeholders to share insights and continue to offer cutting-edge advice to our clients. In the meantime, we have prepared a series of primers on what we expect to be some of the key themes for COP28.

Baker McKenzie and Trench Rossi Watanabe* were again on the ground at this years’ COP27 conference held in Sharm-el-Sheik. The team led a three-part webinar series focused on developments and impact of this year’s COP on emerging markets and key takeaways following the event, which they note had a strong focus on implementation.

Across sectors and industries, from start-ups to multinationals, companies everywhere are talking about their sustainability credentials — and in particular, their intention to reach net-zero. Businesses have recognized that a net-zero pledge can be a powerful public message, in the face of growing pressure to tackle the climate crisis and an expectation that business be part of the solution. But amidst all the rhetoric, how much progress are we really making? Are we on course to reach net-zero by 2050, or are businesses simply jumping on the bandwagon on the road to net nowhere? We surveyed 1,000 business leaders to find out more.

COP27 held in Sharm El-Sheikh, Egypt was anticipated by many as an “Implementation COP” to build on the agreements reached at COP26 in Glasgow. In this 45-minute webinar, we will discuss the key outcomes from COP27 and what we expect the key trends and developments to be in 2023 and beyond.