Overview
Legislation
New legislation signed by Illinois Governor J.B. Pritzker on July 18 places a two-year moratorium on the construction of carbon dioxide (CO2) pipelines, creating stricter scrutiny and regulations for the carbon capture and storage industry. The pause allows the federal Pipelines and Hazardous Materials Safety Administration time to update safety rules and oversight of such projects. Critics of the legislation argue it poses risks to citizens, particularly potential groundwater contamination, CO2 leaks, and eminent domain threats against property owners.
Investigations
On July 17, the Italian Competition Authority announced it is investigating two luxury brands companies for possible violations of the Consumer Code. The companies are accused of making false claims regarding their ethics and social responsibility, particularly concerning their suppliers' working conditions. They are suspected of sourcing from workshops where workers are paid inadequate wages, work beyond legal limits, and operate under poor health and safety conditions. Milan prosecutors have ordered the Italy-based, Chinese-owned firms, which manufacture luxury items for them to be placed under administration.
Regulation
Presenting her exposé to the newly elected EU Parliament on July 18, European Commission President Ursula von der Leyen announced that she will introduce a "Clean Industrial Deal" early in her second term. This initiative aims to direct investment towards infrastructure and industry, particularly energy-intensive sectors, to support the EU's decarbonization, growth, and competitiveness goals. The plan will facilitate markets in areas like clean steel and clean tech, as well as accelerate planning, tendering, and permitting processes. This move follows von der Leyen's first-term launch of the European Green Deal, which set the stage for Europe's climate-neutral ambition by 2050.
Companies & Investors
On July 16, BrewDog, a UK-based brewery, announced in its interim sustainability report for 2024 that it will cease its participation in the carbon credits market and abandon its claim of being a carbon-negative brewery from November. BrewDog claimed the carbon credit market has become "unsustainable" due to an influx of low-quality, cheap schemes and a decrease in high-quality, expensive schemes, instead starting to invest in its own emissions reduction strategy and its Lost Forest tree planting project.
Statement
"The climate transition will lead to significant shifts in labor markets, from high-emissions industries towards new opportunities in green-driven jobs. Policy priorities should be to enable the necessary jobs mobility, including through effective training programs in impacted sectors, to support workers who have lost their job or whose jobs are at risk through the transition and to promote green-focused innovation, entrepreneurship and jobs."
OECD Secretary-General Mathias Cormann, July 9, 2024
The transition to net-zero emissions will cause significant shifts within the US workforce, according to a report by the Organization for Economic Cooperation and Development (OECD). The report suggests that some jobs will disappear, new opportunities will arise, and many existing jobs will be transformed. It also highlights that 21% of US workers are in "green-driven occupations", and 18% are already experiencing "significant heat discomfort" due to climate change.
