Major Climate Action: EPA, SEC Unveil Regulations; U.S. Lawmakers Align Cap-and-Trade Systems
In a significant week for climate action, the Environmental Protection Agency (EPA) and the Securities and Exchange Commission (SEC) both unveiled major regulations. Meanwhile, lawmakers in Washington passed a bill to align the state's cap-and-trade system with California and Quebec's mechanisms. These developments come as the International Energy Agency (IEA) reports global CO₂ emissions reaching an all-time high in 2023.
The EPA's updated power plant carbon regulation, released this week, aims to cut emissions from the sector by 32% below 2005 levels by 2030. This is a significant step towards President Biden's goal of a carbon pollution-free power sector by 2035.
The SEC's new climate disclosure rule requires companies to report their greenhouse gas emissions and climate-related risks. This move is expected to increase transparency and encourage investors to consider environmental factors in their decisions.
In Washington, lawmakers passed a bill to make the state's cap-and-trade system compatible with California and Quebec's mechanisms. This alignment will create the largest carbon market in North America, covering over 80 million people and 30% of the U.S. economy.
The IEA's report from Paris, France, revealed that global CO₂ emissions reached 36.44 billion tonnes in 2023, surpassing the previous high set in 2019. The increase is attributed to a rebound in economic activity and energy demand following the COVID-19 pandemic.
These developments highlight a growing commitment to tackling climate change, with governments and regulatory bodies implementing stricter regulations and incentives. However, the IEA's report serves as a stark reminder of the urgent need for further action to reduce global emissions.
