On March 26, 2025, China’s Ministry of Ecology and Environment (the MEE) published the “Work Plan for the National Carbon Emissions Trading Market Covering the Steel, Cement, and Aluminum Smelting Industries” (the Work Plan)....more
EU Regulation 2023/956 on the Carbon Border Adjustment Mechanism (CBAM) was introduced to make sure importers of certain goods into the European Union bear similar carbon costs as if they were produced inside the EU and...more
The draft U.K. Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024 have been published, together with an explanatory memorandum. The Order makes changes to the U.K. Emissions Trading Scheme, including the...more
The drive to achieve a carbon-neutral future is accelerating. Through the 2015 Paris Climate Agreement, nations committed to curbing climate change by limiting global temperature increases to no more than 2°C above...more
The Environmental Protection Agency announced March 20 final national pollution standards applicable to cars, light-duty trucks, and medium-duty vehicles. These standards apply to vehicles manufactured beginning in 2027. The...more
The U.S. Securities and Exchange Commission has adopted much anticipated climate-related disclosure rules....more
In December 2023, the United Kingdom's Department for Energy Security and Net Zero ("DESNZ") launched two consultations to garner views on the efficient operation of the UK's Emissions Trading Scheme ("ETS")....more
The U.K. Emissions Trading Scheme Authority has launched a consultation on its approach to free allocations. The ETS is proposing options to amend the free allocation methodology, focusing on its approach to accounting for...more
The European Union Emissions Trading System (EU ETS) is coming into effect for the maritime transportation sector on January 1, 2024. Here’s what that means. Background - The EU ETS launched in 2005 and on May 10, 2023...more
Goods imported into the UK from countries with a lower or no carbon price will face a levy by 2027. On 18 December 2023, the UK government announced a proposal for a new carbon border adjustment mechanism (UK CBAM)....more
The UK has finally confirmed that it will be following the EU and introducing its own Carbon Border Adjustment Mechanism (CBAM) to be implemented by 2027. It published the eagerly awaited outcome of its consultation on...more
As part of the Fit for 55 Package of the EU Green Deal, the EU Carbon Border Adjustment Mechanism("CBAM"), adopted through Regulation (EU) 2023/956 of May 10, 2023, is considered by the EU institutions as a key tool to become...more
Asia is at the forefront of the global challenge to balance economic development, climate adaptation and mitigation, and energy security. The region is diverse, dynamic and pragmatic, facing both the risks and opportunities...more
Through many of our projects, clients often mention alignment as a gas "Producer" or "Optimizer." The distinction lies in where the operational focus is attuned – flowing assured gas to customers or optimizing earnings...more
A clear trend has emerged for CO2 allowances: dwindling availability coupled with escalating prices. At Orrick, we are seeing two key events which promise to further intensify this trajectory. Firstly, the upcoming regulatory...more
Importers into the EU of CBAM goods should be aware of their transitional reporting obligations under the new rules. On 17 August 2023, the European Commission (Commission) adopted rules governing the implementation of...more
On Tuesday, the European Commission published a draft Implementing Regulation for the Carbon Border Adjustment Mechanism (CBAM). The regulation sets rules for the reporting obligations during the CBAM transitional period that...more
On May 16, the Regulation establishing an EU Carbon Adjustment Mechanism (CBAM) was published in the Official Journal of the EU and entered into force the following day. Under the CBAM, importers into the EU of...more
On 18 April 2023, the EU Parliament adopted the reform of the EU ETS. As key points, the reform includes stricter requirements for installations already subject to the EU ETS (“ETS I”), the gradual inclusion of maritime...more
The European Parliament voted in favor of implementing the Carbon Border Adjustment Mechanism (CBAM) after reaching a provisional agreement on the CBAM in December 2022. Several countries and the European Union (EU) have long...more
On 30 March 2023, the United Kingdom Department for Energy Security and Net Zero (DESNEZ) and the UK Treasury opened a public consultation on policies to reduce carbon leakage risk and support decarbonisation, especially in...more
Yesterday (1 Feb 2023) marked the launch by the European Commission (EC) of the Green Deal Industrial Plan for the Net Zero Age. Its introduction is aimed at a levelling up of the international playing field and combatting...more
In November 2022, the International Organization of Securities Commissions (“IOSCO”) published two reports − one on Compliance Carbon Markets (“CCMs”) and one on Voluntary Carbon Markets (“VCMs”). IOSCO continues to seek...more
Environmental regulators and ministers from across the EU member states provisionally approved the introduction of the world’s first major carbon border tax, the Carbon Border Adjustment Mechanism (CBAM), which will require...more
The European Parliament and Council of the European Union have reached an agreement on the text of the EU Carbon Border Adjustment Mechanism regulation and the directive providing an updated EU Emissions Trading System....more