In today’s edition:
— Court cuts Scope 3 from California climate disclosure rules at 11th hour
— Tesla-SpaceX deal on the clock after Democratic election win
— Time is running out for the Atlantic Meridional Ocean Circulation
— ECB’s Lagarde calls for financial prep in face of extreme weather threats
— China burns more coal than the rest of the world combined
An appeals court this week blocked ambitious climate disclosure plans from California’s Gov. Gavin Newsom, one day before part of them was scheduled to take effect — adding a new wrinkle to the debate over whether companies must report carbon emissions from their vendors and supply chains.
The Ninth Circuit Court of Appeals blocked a controversial section of the climate rule called Scope 3, which impacts supply chain emissions, though it allowed rules to require public companies to report direct and indirect emissions (Scope 1 and 2), which take effect today.
The Scope 3 plans, which were not slated to start phasing in until next year, were halted as the court determined companies were “insufficiently tethered” to their vendors to make the rule constitutional. It also said the wording of the requirement included “subjective ideological assessments,” adding a political strain to the ruling.
The legal action kicks one of the most controversial aspects of climate disclosure back to a district court and again sets back efforts to require companies, such as Apple AAPL 0.00%↑ to report things like the pollution caused by shipping iPhones from their manufacturers in China.
The Scope 3 requirement has been at the center of a debate in Washington for national climate disclosure laws and resulted in the Securities and Exchange Commission withdrawing proposed rules after the Trump administration came to power two years ago. California rules would have been the strictest in the country because they included Scope 3.
The ruling is the first sign that even with a Democratic win in the midterm elections last week, the ideological battle over climate change and particularly climate disclosure reporting is still raging.
If you have ideas or suggestions for us, contact me directly at dcallaway@callawayclimateinsights.com.
Follow us . . . .
X | LinkedIn | Facebook | Instagram
Tuesday’s subscriber insights
