United States: Climate Change

This issue examines pivotal developments in carbon markets and climate policy, including California, Québec, and Washington's historic carbon market linkage agreement, the Trump Administration's use of Defense Production...

A federal court has struck down New York's Climate Change Superfund Act, which sought to recover $75 billion from fossil fuel companies based on historical emissions. The ruling found the Act preempted by the Clean Air Act, marking the first judicial decision on state climate superfund legislation and establishing that EPA's rescission of the endangerment finding does not alter preemption analysis.

On August 31, 2026, a district judge of the United States District Court for the Northern District of New York held that the State’s Climate Change Superfund Act (or the Act) is preempted and thus cannot be enforced. West Virginia v. James, No. 1:25-cv-00168 (N.D.N.Y. 2026).

The California Air Resources Board (CARB) continues to refine the implementation of California’s landmark greenhouse gas (GHG) emissions reporting law, the Climate Corporate Data Accountability Act (SB 253). During a public workshop held on July 21, 2026...

ISO and the Greenhouse Gas Protocol have announced a strategic partnership to harmonize their greenhouse gas accounting standards into unified, co-branded frameworks. This consolidation promises to streamline corporate emissions reporting, reduce duplicative work, and improve comparability across global disclosure requirements. Companies should monitor the development process closely as the changes could significantly impact inventory calculations, emissions targets, and climate-related claims substantiatio

California faces mounting water challenges as Lake Mead and Lake Powell reach historic lows, prompting innovative solutions like interstate water sharing and desalination programs. Meanwhile, state lawmakers debate how to balance the water demands of AI-driven data centers with conservation needs, and regulators advance major infrastructure projects including the controversial Delta Conveyance Tunnel and Sites Reservoir amid environmental concerns.

Following EPA's February 2026 repeal of the 2009 Endangerment Finding that established greenhouse gases as air pollutants threatening public health, two major legal challenges have emerged in the D.C. Circuit Court of Appeals. Health organizations and a coalition of 24 states are separately contesting the agency's decision to eliminate federal GHG emission standards for motor vehicles, with both cases potentially delayed pending EPA's response to administrative reconsideration petitions.

The European Central Bank has progressively integrated climate and environmental risks into its prudential expectations since 2022, establishing binding supervisory decisions with specific milestones for institutions to meet.

The European Commission is preparing amendments to the EU Taxonomy Climate Delegated Act to simplify technical screening criteria and reduce administrative burdens for companies reporting on sustainable activities. The proposed changes, set to take effect January 1, 2027, aim to streamline compliance processes while maintaining environmental standards and expanding the scope of eligible activities.