Global Regulatory Watch December 2021

COP 26 started the conversations on Article 6, end deforestation, cut methane emissions, end or phase down coal use, ISSB’s standardised sustainable reporting, common ground taxonomy and surprise US...

COP 26 started the conversations on Article 6, end deforestation, cut methane emissions, end or phase down coal use, ISSB’s standardised sustainable reporting, common ground taxonomy and surprise US. -China climate deal, also developments in GFANZ reaching $130 trillion AUM…More ESG Research and Insights are Available from Subscription to GC Insights Monthly ESG Regulatory Watch: info@gc-insights.com


AMER


U.S. President signed into law the $1 trillion Infrastructure Investment and Jobs Act earmarks billions in energy transition-focused spending, targeting areas including hydrogen development, vehicle electrification, and carbon removal technologies. The House of Representatives has passed the Build Back Better Act, which boasts an array of social and climate programs, ranging from generous support for child care, paid leave, and new health benefits to renewable electricity tax credits. The Financial Crimes Enforcement Network (FinCEN) is issuing a Notice to call attention to an upward trend in environmental crimes and associated illicit financial activity.


The Government of Canada finalised its proposed ban on non-essential single-use plastics by the end of 2021.


EMEA


European Central Bank (ECB) releases bank climate stress test methodology: which will require lenders to report on a common set of climate risk metrics, including the volume of greenhouse gas emissions they finance. Banks will also be required to assess their exposure to short-term physical and transitional climate risks in 2022.


The BCBS (Basel Committee on Banking Supervision) has issued a public consultation on principles for the effective management and supervision of climate-related financial risks. The principles offer guidance for banks on corporate governance, internal control frameworks, risk management, risk reporting, and scenario analysis, among other areas.


The UK Government is in the process of considering the introduction of a ban on polluting plastics across England, Environment Secretary, George Eustice, has announced. A ‘separate call for evidence’, in order to address other sources of plastic pollution has launched. UK FCA (Financial Conduct Authority) published Sustainability Disclosure Requirements (SDR) and investment labels discussion paper.


The Scottish Government also announced the implementation of similar measures on 15 November that certain polluting plastics will be outlawed from 1 June 2022.


Switzerland published FINMA Guidance 05/2021 to preventing and combating greenwashing.



APAC


The People’s Bank of China (PBoC) provides Credit Tool to Support Emissions Reduction, guiding finance towards green and low-carbon areas. More National “14th FYP” has released including cleaner production, water-saving society, high-quality development of resource-based regions and upgrading of coal-fired power plants.


The Cabinet of Japan’s government passed the sixth Strategic Energy Plan on October 22, which planned to increase the national target for renewable energy, including hydropower, in the country’s power mix to between 36% to 38% by 2030.


India set to go net zero by 2070. One of Narendra Modi's aims is for the nation to emit one billion fewer tons of carbon by 2030, with 50% of energy being provided by renewable sources by then.


New Zealand’s Financial Markets Authority (FMA) has asked supervised entities to start preparing for the mandatory climate disclosure legislation expected to take full effect in 2023. In-scope financial institutions and listed companies will have to file their first climate statements from July 2024.


The Australian Prudential Regulation Authority (APRA) has released its final prudential practice guide on climate change financial risks, following consultation on the draft Prudential Practice Guide CPG 229 Climate Change Financial Risks (CPG 229) released in April this year.