Welcome to Monday’s Overnight Energy & EnvironmentSubscribe to, your source of the latest news on energy, the environment, and beyond.
Today’s focus was on the SECs long-awaited regulation on climate risk disclosure. It also examined how frayed U.S./Saudi relations are affecting energy crisis and a dire warning by the United Nations secretary-general.
Rachel Frazin was the Hill’s editor, and Zack Budryk was the assistant editor. Write to us with tips:[email protected]@thehill.com.
Lets jump in.
SEC proposes rules for climate risk and emissions
Monday’s Securities and Exchange Commission (SEC), proposed rules that would require publicly traded companies to disclose how climate change could affect their businesses and their contributions to global warming.
The SEC voted to approve long-awaited standards that will govern how stocks are traded. Investors must be able to see how climate change impacts their financial stability as well as their role in the production and distribution of greenhouse gasses. SEC Chairman Gary Gensler
Gary GenslerDemocratic SEC Commissioner Allison Lee to leave agency at term end Crypto firm BlockFi settles with SEC, states for 0M over lending business Equilibrium/Sustainability PR public employees protest for better pay MOREDemocrat Caroline Crenshaw voted for the rule along with Democratic Commissioners Allison Lee & Caroline Crenshaw. SEC Commissioner Hester Perce, the agency’s sole Republican, voted against the rule.
The regulations will be open for public comment for 60-days before the SEC can finalize them and enforce them. This could take several months or even weeks.
What does it all mean?Publicly traded companies will have to inform investors in their regular disclosures how climate-related risk can affect their finances. There are potential risks associated with rising severe weather and the costs of shifting away fossil fuels. These could also impact a company’s efforts to reduce its carbon footprint. These potential costs will be calculated by companies using data that they already have and provide regular disclosures to investors.
Scope 1 emissions will be required by companies to be disclosed by them. This refers to the greenhouse gas emissions that they directly produce from their business operations like manufacturing or mining, and Scope 2 emissions which are derived from energy they purchase to run their business.
And what more?Scope 3 greenhouse gas emissions would be reported by companies if they have established public emission reduction targets or if the emissions are a financial risk to their business. However, firms that are required to report Scope 3 greenhouse gas emissions will not be penalized if they make mistakes or miscalculations.
Washington and Wall Street are putting increasing pressure on both the SEC and the SEC to set clear standards for climate disclosure. Since years, Democratic lawmakers and environmentalist organizations have urged financial regulators in Washington to pay more attention the risks that climate change poses to their financial system.
Several investment firms have also asked for clear guidelines from the SEC regarding disclosure of climate risks. This is in response to investor interest in rapidly growing environmental, social, and governance (ESG), issues.
It is our responsibility to remain focused on facts and science, and their implications for financial market. Lee stated that the pandemic was a timely reminder of how a crisis outside financial markets can, and often will, send shockwaves directly through these markets.
Continue reading at The Hills Sylvan Lane.
Tensions between the US and Saudi complicate push for more oil
Stifled relations between Saudi Arabia, the United States, and Riyadh are hampering efforts of the Biden administration, which aims to convince Riyadh – the capital of the Middle Eastern country – to increase its oil production. This could provide some relief for consumers facing high prices due to the Russian war with Ukraine.
Since Jamal Khashoggi’s 2018 death, the U.S. government has been more critical of Saudis since he was killed in Istanbul by a Saudi Consulate.
What is the problem?The strife has been exacerbated by the human rights record of Saudi Arabia and tensions over Yemen’s civil war.
It places the administration in a difficult spot when it seeks to get Saudi Arabian and United Arab Emirates to increase their production.
Rep. Tom Malinowski
Thomas (Tom), MalinowskiU.S. – Saudi tensions make it difficult to push for more oil. AM General Presents Overnight Defense & National Security. More weapons, but no aircrafts for Ukraine Zelensky challenges conscience Congress.(D-N.J.), who was a top official in human rights during the Obama administration, said this week to reporters.
He added that I find it disgusting that the Biden administration needs to figure out how to leverage Saudi Arabia’s relationship to get my constituents to pay more.
Saudi Arabias control over strategic oil reserves may force the Biden administration, which is under pressure ahead of the midterms to provide some relief to consumersamidinflation and high gas prices, to reassessits strategy towards Riyadh.
Learn more about tensions here.
UN: The world is’sleepwalking towards climate catastrophe’
Antonio Guterres, United Nations Secretary General, warned Monday that there is no time to meet the international goal to limit climate change to 1.5 degrees Celsius. He said that the world is “sleepwalking toward climate catastrophe.”
Guterres stated that the goal is to be on life support and in intensive care. This was due to a combination issue such as the COVID-19 pandemic and the Russian invasion Ukraine. There is also a lack of political will.
The world has returned to [the COP26 climate summit]Guterres spoke with a certain optimism about achieving this goal to attendees of the Economist Sustainability Summit. 1.5 must be kept alive by a 45 percent reduction of global emissions by 2030, and carbon neutrality before mid-century. Glasgow was not able to solve this problem.
He stated that the global emissions are projected to increase by almost 14 per cent in 2020, according to national commitments. Global energy-related CO2 emitteds increased by 6 per cent last year, reaching their highest levels ever recorded. The record-breaking coal emissions have been reached. We are accelerating towards climate catastrophe.
Guterres stated that Russia’s invasion in Ukraine and subsequent sanctions against Russian oil had created an energy crisis, which illustrated the risks associated with the status quo.
Guterres stated that our continued dependence on fossil fuels leaves the global economy and energy security vulnerable to geopolitical shocks or crises.
He assured attendees that there was still hope to move the 1.5 degree goal from life support to recovery room if certain steps were taken, such as increased renewables use and decarbonization in major industrial sectors.
Learn more about his comments here.
YOUNG, FIXTURE of NATURAL RESURES PANEL, DEAD AT88
Rep. Don Young
Donald Edwin YoungBiden recalls Don Young as a ‘tough and larger than life’ Rep. Don Young, the longest-serving member, has died at age 88 Project American leadership and resources for global democracy MORE(R-Alaska), who was a former chairperson of the House Natural Resources Committee, passed away Friday night at the age 88.
Young, the longest-serving Republican member in Congress, was elected to the House panel in 1994, when the GOP won the chamber. After his 1994 victory, Young changed the name of the House Committee on Resources to the House Committee on Resources. In 2006, Democrats won control of the House and reverted to their original name.
Young was a prominent member of the panel and was known for advocating for his state’s timber and oil industries. He also opened the Arctic Wildlife Refuge for oil drills. Young also introduced the Interior secretary Deb Haaland
Deb HaalandCommerce secretary is declared survivor in 2022 State of the Union Overnight Energy & Environment Supreme Court to hear climate cases Offshore wind lease sales record.4B MOREAt her confirmation hearing in 2021, which Senate Energy Committee Chair Joe Manchin
Joe ManchinFormer Bernie Sanders press secretary: US should ‘more holistically’ fight climate change Equilibrium/Sustainability Repurposing petroleum to build electric cars On The Money Democrats search for plan on inflation MORE(D.W.Va.) said that was a major reason he supported the nomination.
Haaland stated that Mr. Young was the Dean of the House and taught us all how love the people and states we represent. Every day he did was for Alaska and its people. He loved them dearly. We are left with a remarkable legacy of bipartisanship for the greater good.
WHAT WE’RE READING
- FEMA will provide flood prevention funds to these four states that were affected by Hurricane Ida (CNN).
- EPA Union Urges Agency To Scrap Trump-Era Plan To Relocate Houston Lab (HuffPost)
- These charts compare the cost of charging an EV to refueling a gasoline vehicle (CNBC).
- Will SoCalGas’ use hydrogen help fight climate change (The Los Angeles Times).
- Last but not least, Happy Peak Bloom!
ICYMI
This is it for today. Thanks for reading. For the most recent news and coverage, visit The Hillsenergy & environment page. We look forward to seeing you tomorrow.