Synthesis Report of the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) released
On 20 March 2023, the Intergovernmental Panel on Climate Change (IPCC) released the Synthesis Report of the Sixth Assessment Report (AR6), to inform the 2023 Global stocktaking under the United Nations Framework Convention on Climate Change. The Synthesis Report summarizes the state of knowledge of climate change, its widespread impacts and risks, and climate change mitigation and adaptation, integrating the key findings of the AR6. Under this report, the IPCC highlights the urgency of acting on climate change to guarantee a livable and sustainable future for all.
UN Water Conference
The UN 2023 Water Conference was held in New York between the 22th and the 24th of March 2023. During this conference, the Water Action Agenda was adopted, comprising voluntary commitments, pledges and actions from nations and stakeholders to accomplish the UN Sustainable Development Goals (SDGs) and their targets related to water.
European Parliament adopts revised Effort Sharing Regulation
On the 14th of March 2023, the European Parliament announced that it adopted a revised version of the Effort Sharing Regulation. The Effort Sharing Regulation was first adopted in 2018 and sets national targets for Member States to collectively contribute to the reduction of greenhouse gas emissions at EU level. The revision was adopted under the European Green Deal, aiming at reducing EU’s emissions by 55% by 2030, compared to 1990 levels, and includes the increase of the emissions reduction target to 40% in 2030, compared to 2005 levels, as well as adjusted Member States’ targets.
Commission publishes Proposal for Directive on Green Claims
On the 22th of March 2023, the European Commission published a Proposal for a Directive on Green Claims. This Directive aims at (i) making green claims reliable, comparable and verifiable across the EU, (ii) protecting consumers from greenwashing, (iii) contributing to creating a circular and green EU economy by enabling consumers to make informed purchasing decisions, and (iv) helping establish a level playing field when it comes to environmental performance and products. Under this Directive, clear criteria on how companies should prove their environmental claims and labels are set, such as requirements for these claims and labels to be checked by an independent and accredited verifier. Additionally, new rules are set on governance of environmental labelling schemes to ensure they are solid, transparent and reliable.
European Parliament and the Council reach agreement on “FuelEU Marine”
On the 23rd of March 2023, the European Parliament and the Council agreed on the FuelEU Maritime, a new regulation that aims to ensure that the greenhouse gas intensity on fuels applied by the shipping sector is gradually reduced over time, by 2% in 2025 to 80% by 2050. This agreement was reached under the European Green Deal and aims at reducing greenhouse gas emissions from the shipping sector by promoting the use of cleaner fuels and energy.
European Council adopts new rules for zero-emission cars by 2035
On the 28th of March 2023, the European Council adopted the Commission’s proposal for a regulation foreseeing stricter CO2 emission performance standards for new cars and vans. The regulation aims at making all new cars and vans registered in Europe zero-emission from 2035 and sets the following targets:
- 55% CO2 emission reductions for new cars and 50% for new vans from 2030 to 2034 compared to 2021 levels;
- 100% CO2 emission reductions for both new cars and vans from 2035.
Anti-ESG proposal vetoed by Joe Biden
On the 20th of March 2023, the president of the United States of America, Joe Biden, vetoed an anti-ESG proposal presented by the Republican party, which would prevent pension fund managers from basing investment decisions on factors as climate change.
Nuclear power to be considered as environmentally sustainable under the United Kingdom’s green taxonomy
On the 15th March 2023, Jeremy Hunt, the United Kingdom’s Chancellor of the Exchequer, announced that nuclear power is to be considered as environmentally sustainable under the green taxonomy regulation to be approved in the United Kingdom.
UN adopts resolution on climate justice
On the 29th of March 2023, the United Nations General Assembly adopted by consensus a resolution requesting an advisory opinion from the International Court of Justice on the obligations of States in respect to climate change. The resolution provides that the International Court of Justice will render an opinion regarding the obligations of States to ensure the protection of the climate system from anthropogenic emissions of greenhouse gases, under international law.
Larry Fink releases Annual Chairman’s Letter to Investors
Larry Fink, Chairman and CEO of BlackRock released his Annual Chairman’s Letter to Investors. His letter includes a section on “helping clients navigate and invest in the global energy transition”, where he states that he will continue to perceive climate risk as a financial risk.
Authors: Ana Carina Duarte and Inês Crispim