Policy rollbacks and legal shifts
Key Questions
What major policy rollbacks are occurring in the US?
The SEC has proposed full rescission of climate disclosure rules, while New York amended its CLCPA to weaken the 2030 target and switch to 100-year GWP. Federal actions include reviving pipelines and prioritizing fossil fuels amid clean energy headwinds.
How are data centers impacting climate policy and risks?
Data centers face 79-80% exposure to climate hazards like flooding and heat, with high water use of 110 million gallons per year per medium facility. States like Ohio and Illinois are limiting tax breaks, and the UK launched an inquiry into their AI-related climate impacts.
What updates exist on carbon markets and pricing?
Washington proposes amendments to its cap-and-invest program with allowance budgets to 2050 and potential linkage to California-Québec. The EU reached an ETS2 deal for 42% reductions by 2030 in buildings and transport, while international credit risk taxonomies are being developed.
How is climate litigation evolving globally?
Over 3,600 cases now exist worldwide, with attribution science increasingly used in liability claims and insurers facing growing exposure. Efforts to shield fossil fuel companies from liability are emerging in some US states as a counter to this trend.
What are the latest developments in SBTi standards?
SBTi Version 2.0 shifts focus from ambition to delivery, formally recognizing carbon credits and removals for the first time. It introduces an implementation hierarchy and portfolio approach for corporate net-zero targets.
How are clean energy installations trending despite policy challenges?
US solar generation overtook coal for the first time, with solar-plus-batteries claiming 91% of new capacity in Q1 2026. However, offshore wind installations dropped 17% year-over-year amid cancellations and infrastructure bottlenecks.
What environmental damages are attributed to top consumers?
The top 10% of global consumers cause damages valued at $1.7-5.7 trillion, exceeding global climate and biodiversity funding gaps. This underscores climate justice framing around disproportionate responsibility.
What progress is seen in state-level climate policies?
Nebraska passed responsible siting for renewables while blocking anti-renewable bills, and Washington advances hydrogen and renewable fuels. New York added funds for environmental work even as it weakened some 2030 targets.
Coordinated effort to discredit attribution science before it can be used in climate liability cases – targeting National Academies panel, open records requests, pressure on panelists. SEC proposes full rescission of climate disclosure rules (comment period ends Aug 3); NY CLCPA amended – weakens 2030 target, switches to 100-year GWP, excludes imported fossil fuel emissions; NJDEP delays climate resilience rules; Oxfam calls on NZ to renew climate finance; California cap-and-invest overhaul gives $4B free allowances; Trump $700M coal via DPA; UK 87% cut by 2040; EU CBAM triggering carbon pricing; IMO Net-Zero Framework; NY data center moratorium; IL tax break suspension on data centers; Amazon employees testify; Smith v Fonterra climate tort; New Jersey $50B 'Polluters Pay' bill; FCA cuts reporting; federal youth lawsuit denied; IRA just transition flaws; EU tightens COP strategy amid Iran war; Bonn talks shadowed by war, GEF down 27%, UK halving GCF pledge; health groups urge tripling adaptation finance to $120B by 2035; bipartisan US House passes geothermal permitting package; Virginia legalizes balcony solar; Trump offshore wind buyouts; Charlotte data center moratorium under consideration; Turkish minister at Bonn discusses COP31 agenda. Data-driven study across 132 countries shows policy impacts delayed 2-3 years, varying by income level. US clean energy Q1 2026: 370 GW cumulative, offshore wind down 35%, installations down 17% YoY but pipeline up 6%. ACES ETF dropped 9% on June 30 OBBBA tax credit deadline – policy cliff signal. EPA Administrator Zeldin revives Constitution Pipeline, pushes to overturn NY fracking ban; China solar boom slowing due to policy shifts, market saturation, grid issues; infrastructure cost inflation (steel +20%, copper +22%, grid materials nearly doubled) eroding clean energy ROI, challenging IRA incentives and OBBBA sunset. Nebraska blocks two anti-renewable bills and passes responsible siting bill – state-level win. Turkey, as COP31 host, proposes 2035 global electricity target. America's power problem – surging demand (AI, manufacturing, EVs) vs. slow clean energy deployment, offshore wind cancellations, infrastructure bottlenecks. EDF report confirms clean power lead but faces Trump admin headwinds; India at SB64 calls for developed country leadership on climate finance and negative emissions; Ember report on Indian state electricity transition recommends DISCOM reform, DBT, market design; climate litigation aftermath study shows implementation barriers, Swiss case as example. Ohio proposes data center rules limiting tax exemptions and requiring closed-loop water systems; ACT party in NZ proposes split-gas emissions target; interconnection queue bottleneck: 11 GW stuck, 2,060 GW pipeline with 13-19% success rate, OBBBA accelerating withdrawals. OECD 2026 review on aligning finance with climate goals – 111 countries adopting policies, 14 recommendations. US Fifth National Climate Assessment highlights emissions down 12%. NYC Comptroller Mark Levine keynote on 2026 building trends – urban climate action focus. UK FCA consults on simplifying climate-related reporting for investment products – moves from prescriptive TCFD to outcomes-based approach, £20M cost savings. EU Fertiliser Action Plan ties into ETS and CBAM, affecting sectoral carbon pricing. Latest: EU turned Paris Agreement into market-shaping regulatory system – analysis of ETS, CBAM, CSRD, Net-Zero Industry Act. Climate litigation now exceeds 3,000 cases globally, with insurers facing growing liability exposure – key financial risk signal. EU co-legislators reach ETS2 deal to strengthen carbon pricing for buildings and road transport (42% reduction by 2030). Washington cap-and-invest auction shows growing participation. Union-led clean energy growth in Wisconsin (Badger Hollow wind) shows state-level momentum. New: UK parliamentary inquiry launched on data centre and AI climate impacts – could shape regulatory direction. Japan grid-scale battery storage policy report adds to global clean energy deployment analysis. US solar generation overtook coal for the first time – major milestone. China's clean tech supply chain dominance highlighted as structural challenge for US manufacturing. Scope 3 carbon reporting video provides practical guidance for corporate compliance. India's fossil fuel subsidies now exceed health budget – powerful health-centered climate justice framing. South Africa's coal-to-clean transition targets 29.5 GW renewable capacity by 2030 – key just transition case. Texas solar boom continues despite federal headwinds, nearing California's installed capacity; judge overturns DOE cancellation of $82.1M in clean energy grants, reinforcing court pushback against partisan targeting. NYS adds funds for environmental work and climate implementation – positive state-level signal. New: NY Fiscal Year 2027 Budget amends Climate Act, weakening 2030 target – major state-level rollback. UK grid reform unlocks £40B investment and 37 GW clean energy projects. SBTi 2.0 shifts from ambition to delivery with implementation hierarchy. California Democrats threaten to block Newsom priorities over carbon market revenue standoff. New: Washington advancing hydrogen and renewable fuels; SBTi 2.0 released; IRA rebates study shows benefits for LMI households. Latest: Feds back Michigan gas upgrades with $1.6B loan while clean energy funding languishes – concrete example of Trump admin fossil fuel prioritization. Wes Streeting proposes emergency laws to build UK power plants, including backing North Sea drilling – mixed signals on UK energy policy. Solar paired with batteries claimed 91% of new US power capacity in Q1 2026 – market momentum despite policy headwinds. New: Bangladesh's green budget 2026-27 targets $3.75bn carbon market opportunity – positive Global South policy signal. 5 million tonnes CO2 released in first 14 days of West Asia conflict highlights war's climate cost. Microsoft's potential retreat from 24/7 clean energy in Virginia illustrates tension between data center growth and state climate goals. New: EU 2040 target includes 5% from cross-border climate measures (carbon removals/credits) – new policy mechanism interacting with CBAM/ETS. New: Minnesota proposed Climate Superfund law – state-level policy innovation to hold polluters accountable for climate damages, adds to state-level momentum. Latest: Climate risk being deprioritized by businesses amid economic pressures – signals potential slowdown in corporate climate action. New: Senator Cortez Masto introduces FREEDOM Act to speed clean energy permitting – bipartisan bill to streamline projects while maintaining environmental safeguards. NY balcony solar bill advances – could unlock rooftop solar for renters. US state lawmakers propose legislation to shield fossil fuel companies from climate liability – direct counter to growing litigation trend. New: EU ETS 2026 revision debate underway – expert perspectives on design changes, sectoral coverage, and CBAM interaction. Ireland's carbon budget exceedance exposes fossil fuel lock-in and consumer exposure. Bloomberg launches portfolio climate alignment scoring, scenario analysis, and emissions tracking tools – signals deepening financial integration of transition risk. New: States rolling back climate laws due to energy costs and federal hostility – NY, VA, HI, CA examples. Climate reparations framing gains traction with ICJ advisory opinion. SBTi updated net-zero standard (CNZS V2) addresses hard-to-abate sectors. African climate leverage at COP32 builds on loss-and-damage win but finance contestation remains. Latest: Attribution science increasingly used in climate litigation, with over 3,600 cases globally – reinforces legal accountability trend. New: Japan's transition finance blueprint offers concrete framework for capital markets to fund decarbonization in Asia. SBTi V2.0 released – first formal recognition of carbon credits/removals, shifting corporate net-zero from pure reduction to portfolio approach. Amy Jaffe podcast covers energy risk, climate justice, AI data center demand – adds expert depth to policy and adaptation narratives. New: SEC proposes full rescission of climate disclosure rules – major rollback affecting corporate transparency; comment period ends Aug 3. Grid squeeze from AI and data centers highlighted as infrastructure bottleneck. New: Report finds 80% of global data center capacity faces heightened climate hazards, with water consumption of 110M gallons/year per medium facility – reinforces data center climate risk and infrastructure vulnerability. New: Bonn 2026 press conference challenges bioenergy carbon neutrality, revealing true emissions and human rights impacts – adds to policy debate on biomass. New: SBTi V2.0 electricity strategy analysis deepens corporate procurement guidance. New: Cement industry decarbonization pathways evaluated – efficiency, clinker substitution, carbon capture. New: Cross-border carbon markets video from CO2GeoNet adds to carbon pricing integration discussion. New: Energy transition outlook emphasizes infrastructure financing and grid buildout as next phase. New: Taxonomy of risks in international carbon credits adds to market integrity debate. New: Washington Ecology proposes linkage to California-Québec carbon market – positive state-level policy signal. Washington proposes amendments to cap-and-invest program setting allowance budgets through 2050 – continued subnational momentum. New: Study finds environmental damages of top 10% consumers ($1.7-5.7T) exceed global climate and biodiversity funding gaps – powerful climate justice framing.