On June 28, the European Union (EU) member states officially approved the “European Climate Law,” which enacts a carbon neutral goal by 2050. The European Climate Act is based on a provisional agreement in April that stipulated that the EU would reduce its net greenhouse gas emissions by at least 55% compared to 1990 emissions by 2030 and achieve carbon neutrality by 2050. This bill is meaningful in that it has prepared legislation that can serve as a basis for climate-related regulations to be prepared by the European Commission and member countries of the EU.
The EU Commission has officially approved the European Climate Act, allowing it to be legally binding in related fields. Based on this, it is expected that each country's policies will be revised to reduce carbon emissions in 12 fields, including industry, energy, transportation, and housing. The next step of the EU Commission is to reform the carbon trading market and discuss the Carbon Border Adjustment Mechanism.
Under the goal of creating the “first climate neutral continent,” the European Commission has specified carbon emission allowances and included aggressive carbon-neutral targets in the legislation. The carbon emission allowance limits the absolute amount to 225 million tons, reducing reliance on new technologies such as offsetting carbon emission and demanding active structural changes in carbon emission itself. Accordingly, it is expected that companies with high carbon emissions or companies that sell products with high carbon emissions will be greatly affected.
It is known that there is also discussion about raising the carbon emission standard for new cars and regulating aircraft fuel. The carbon border tax currently under discussion is also expected to be structured in such a way that some industries are required to purchase carbon credits. It is time to take countermeasures, focusing on companies with a high proportion of exports to Europe.
ING Capital, Incentive Loans for Green Remodeling (PR Newswire)
- ING Capital signed a ‘Green Incentive Loan’, a sustainable loan product that links apartment development and management with environmental, social and governance (ESG) performance with LMC, a subsidiary of Lennar. $33 million in size
- The interest rate incentive for this loan is compensated by a decrease in margin due to the establishment of a green certification target, an additional margin decrease according to the acquisition of green certification, and related expenses in the case of green certification
- Loan funds will be used for architectural green remodeling in Maddox, a multi-family apartment community owned by LMC.
- Existing buildings are rapidly aging, resulting in deterioration of energy performance and excessive energy consumption.
- Residential or commercial building carbon emissions account for 40% of total US carbon emissions. Green remodeling is essential to improve the energy performance of buildings
American Petroleum Association Announces GHG Emission Disclosure Guide (ESG Today)
- The American Petroleum Institute (API) announced guidelines for the disclosure of greenhouse gas emissions in the energy industry on June 24.
- API, in which ExxonMobil and Chevron are participating, standardizes greenhouse gas emission collection and disclosure standards to enhance comparability
- API disclosure guidelines consist of 5 categories
- Guidelines for disclosure of emission reduction activities such as setting the information disclosure scope on GHG emissions directly emitted and energy consumption by companies, application of new and renewable energy consumption and CO2 capture, utilization and storage (CCUS) technology, and verification of disclosure information Methodology, Scope 3 Voluntary Disclosure of Emissions Recommended
- Disclosure reflecting the guidelines will be applied from 2022
