Lead EU Lawmaker Pushing for Cuts on Sustainability Laws

Today’s ESG Updates

• EU may scale back green rules: Proposal limits reporting to firms with 3,000+ staff and €450M turnover.
• UK backs carbon capture with £200M: Acorn project to cut 18M tonnes of CO₂ and support 18,000 jobs.
• South Africa launches $5.8B ammonia project: Affordable green ammonia to hit market by 2029
• Trump blocks California’s climate rules: Reversed bans on gas cars and vehicle emissions limits

Lead EU lawmaker makes proposal to amend sustainability laws

Jörgen Warborn, Swedish centre-right lawmaker, has stated that the EU should further reduce the number of companies that are required to abide by its environmental and corporate sustainability rules. He has drafted amendments to the “simplification omnibus” which was proposed by the EU in February to reduce competition between European firms and foreign rivals by relaxing sustainability reporting rules and obligations. He proposes to scale the laws back further to only cover companies with 3,000 employees or more, and over €450M ($521M) in turnover. The Commission proposal would exempt companies with fewer than 1,000 employees which already excludes more than 80% of the estimated 50,000 companies currently covered by the green reporting rules. According to the EU, there are 6,000 companies with more than 1,000 employees at the moment. Warborn’s draft proposal must be negotiated in the European Parliament where other lawmakers can propose their own amendments, and the Parliament will finalise the changes with EU member countries in the coming months. To stay updated on the latest regulations, companies can use ESG solutions.

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Further reading: Lead EU lawmaker on sustainability laws proposes more cuts     

UK government supports Acorn carbon capture project with £200M

Ed Miliband, the UK Energy Secretary, has confirmed that £200M will be allocated for the Acorn Carbon Capture and Storage (CCS) project in Aberdeenshire. The investment in the Acorn Project will be part of the UK government’s spending review, projected to increase Holyrood’s budget by an average of £2.9B a year.. Acorn states that this project will ensure security for approximately 18,000 jobs, and that jobs will be required to build pipelines to transport CO2 safely to generate low-carbon energy for homes and businesses. CO2  captured at Grangemouth will be transported to storage facilities under the North Sea to prevent carbon emissions. The UK government is similarly funding the Viking carbon capture project in the Humber, and upon operation, the projects are predicted to reduce up to a total of 18M tonnes of carbon emissions per year. These major projects are said to facilitate sustainable development and economic growth through job provisions and private investment. 

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Further reading: Acorn carbon capture project to get £200m, Miliband confirms

Joint $5.8B project in South Africa to lead affordable green ammonia production

Using the country’s infrastructure and affordable renewable energy, some of the world’s cheapest green ammonia will be produced in South Africa at the port of Coega. The $5.8B joint project between Britain’s Hive Energy and South African BuiltAfrica is expected to ship approximately 1M metric tons of green ammonia per year to clients by late 2029. This follows the surging demand in Europe and Asia for green hydrogen and ammonia which are produced from renewable energy. The Coega operations are projected to produce the commodity at $650/t with good returns for investors, as compared to global indices of $760/t free-on-board prices. South Africa’s Department of Trade, Industry and Competition predicts that the country may reach $1/kg of green hydrogen by 2050. Furthermore, the project is strategically located along a major shipping route, potentially quadrupling production to 4M tonnes a year. Using ESG tools, companies can keep up with industry developments. 

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Further Reading: South Africa’s $5.8bn Hive project aims to lead low-cost ammonia output

Trump blocks California’s attempts to tackle climate crisis

Trump has recently signed a resolution blocking California’s rule which banned the sale of new gas-powered cars by 2035, interrupting the state’s attempted shifts to green vehicles. He has also signed measures to overturn state policies curbing tailpipe emissions in certain vehicles and smog-forming nitrogen oxide pollution from trucks. These decisions follow Trump’s pledge to revive American auto manufacturing and boost oil and gas drilling. It also comes after the Trump administration’s efforts to roll back rules which target the climate crisis through emission reduction and air and water protection. The Environmental Protection Agency has proposed repealing rules that limit greenhouse gas emissions from power plants fueled by coal and natural gas. To stay updated on the latest regulations, companies can turn to ESG solutions. 

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Further reading: Trump blocks California rules for greener vehicles and gas-powered car ban

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the cover photo: EU flag waving in the air, Jul. 26, 2022. Cover Photo Credit: Alexey Larionov