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Modern slavery and human trafficking reporting: Maritime supply chain risks
According to the International Labour Organisation (ILO), an estimated 50 million people globally were living in modern slavery on any given day in 2021.
Global | Publication | July 2024
In this article we provide an update on significant new proposals affecting the UK and EU ETS. In particular, we consider the recent consultation on the potential expansion of the UK ETS to include waste, waste incineration and greenhouse gas removals (GGRs). We also look at the new draft EU regulation for permanent capture and utilisation of carbon emissions (CCU) in products which are exempt from the obligation to surrender allowances under the EU ETS.
This updater builds upon our previous articles on the subject (see, e.g., our article on the inclusion of energy from waste (EfW) into the UK ETS).
In the UK, the Department for Energy Security and Net Zero (DESNZ) has published consultations (due to close in August 2024) on expanding the UK ETS to include EfW and waste incineration, and integrating GGRs. The outcome of the consultations will determine the proposed way forward.
The waste consultation seeks views on the following proposals:
The GGR consultation seeks views on the following proposals:
Back in 2023, the EU introduced significant amendments to the EU ETS framework, including creating an exemption from the obligation to surrender allowances in respect of emissions of greenhouse gases “considered to have been captured and utilised in such a way that they have become permanently chemically bound in a product…”. The European Commission has recently published a draft regulation (the draft Delegated Regulation) for consultation (now closed) setting out the requirements for greenhouse gases to be considered to have become permanently bound in a product.
Key points from the draft Delegated Regulation are:
The draft Delegated Regulation provides that the European Commission shall review the list of CCU products based on relevant technological developments and innovation in the field.
Following the European Commission’s adoption of the regulation, the European Parliament and the Council will have the opportunity to examine this (usually they have 2 months to do so). If there is no objection, the regulation will enter into force shortly thereafter.
These proposals will impact those market players active in the waste sector as well as those involved in the development of new technologies around GGRs and CCU. Should these changes go ahead and be implemented, it will remain to be seen whether they will be a sufficient incentive to drive investment in decarbonisation.
The NRF Environment team will continue to monitor amendments to the ETS and provide further updates as appropriate. Our global climate change and sustainability practice has extensive experience advising clients across all key environmental and carbon markets.
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According to the International Labour Organisation (ILO), an estimated 50 million people globally were living in modern slavery on any given day in 2021.
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Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
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The EU’s Artificial Intelligence Regulation, commonly referred to as the AI Act, is expected to come into force during the summer of 2024 (the AI Act). The AI Act will be the first comprehensive legal framework for the use and development of artificial intelligence (AI), and is intended to ensure that AI systems developed and used in the EU are safe, transparent, traceable, non-discriminatory and environmentally friendly.
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