World Court Climate Opinion Puts Legal Pressure on Governments

Today’s ESG Updates

• World Court Opinion Turns Up Legal Heat on Climate Inaction: Ruling says countries may be liable for emissions and must align plans with the Paris Agreement
• UN Scrambles to Curb COP30 Costs for Developing Nations: Emergency talks held after surging hotel prices risk excluding poorer countries
• LG Energy Solution Secures $4.3B Tesla Battery Deal: Multi-year U.S. supply deal signed for lithium iron phosphate (LFP) energy storage batteries
• Russia Quake Triggers Tsunami: 8.8 magnitude quake sparks warnings across Pacific, prompts evacuation

World Court opinion puts pressure on governments to take further climate action 

The landmark opinion delivered by the World Court has laid out the duty of states to limit harm from greenhouse gases and to regulate private industry. The opinion states that failure to reduce emissions could be an internationally wrongful act,  and that treaties such as the 2015 Paris Agreement on climate change should be considered legally binding. The Court stated that countries outside of the UN climate treaty must still protect the climate as a matter of human rights law and customary international law. Though not legally binding, the opinion holds significant legal weight. The Court announced that countries’ national climate plans must be rigid and align with the Paris Agreement’s warming limit goals. Countries should also be responsible for their fair share of historical emissions. Under this opinion, states may be held liable for the activities of private actors under their control, including the licensing and subsidisation of fossil fuel production.

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Further reading:  World Court climate opinion turns up the legal heat on governments

UN holds emergency talks regarding accommodation costs for COP30 climate summit

The UN’s climate bureau recently held an urgent meeting regarding concerns of significantly high accommodation prices for the COP30 climate summit in Brazil, which may price poorer countries out of the negotiations. Developing countries have warned that they cannot afford the accommodation prices in Belem, which have surged due to room shortages. Brazil is making efforts to expand the existing availability of 18,000 hotel beds to accommodate the projected attendance of 45,000 people, and the government has secured two cruise ships to provide 6,000 extra beds for delegates. More bookings for affordable accommodation have been opened up to developing countries, with daily rates of up to $220. However, that cost still exceeds the UN’s “subsistence allowance” of $149, specific to Belem, which is offered to poorer nations. Brazil has agreed to address these concerns and to report back with more updates at another meeting on August 11.

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Further reading: UN holds emergency talks over sky-high costs for COP30 climate summit

Sources say LG Energy Solution has secured a new $4.3B deal with Tesla

Sources have disclosed that LG Energy Solution (LGES) has recently signed a $4.3B contract to supply Tesla with lithium iron phosphate (LFP) batteries for energy storage systems. The batteries will be supplied from LGES’s U.S. factory, and the LFP battery contract lasts from August 2027 to July 2030. The company says that an option of a seven-year deal extension was included in the agreement, alongside a potential supply volume increase, depending on discussions with its customer. Relying on ESG solutions can help businesses monitor industry developments and make well-informed decisions amid volatile markets. 

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Further reading: Exclusive: LG Energy Solution, Tesla sign $4.3 billion battery supply deal, source says

An earthquake in Russia’s Far East caused a tsunami, and evacuations were ordered by Japan and Hawaii

A magnitude 8.8 earthquake struck Russia’s Far Eastern Kamchatka Peninsula, which generated a tsunami of up to 4m high. It damaged buildings and prompted warnings and evacuations that stretched across the Pacific Ocean, including those from Japan and Hawaii. Several people were injured in the remote Russian region, and most of Japan’s eastern seaboard was ordered to evacuate. It was last reported that all patients were in satisfactory condition. The U.S. Geological Survey stated that the earthquake was shallow with a depth of 19.3km, and was centred 119km east-southeast of Petropavlosk-Kamchatsky, a city of 165,000. It reported a strong aftershock of magnitude 6.9 soon after. The Russian Academy of Sciences stated that this was the strongest earthquake to hit the region since 1952. Intense aftershocks are to be expected, but stronger tremors are not expected soon. The quake underscores the need for ESG tools to improve disaster response and risk planning.

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Further reading: Powerful quake in Russia’s Far East causes tsunami, Japan and Hawaii order evacuations

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the cover photo: Flags waving in the sky, Oct. 1, 2021. Cover Photo Credit: Saj Shafique