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Sabin Center for Climate Change Law

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Full-Text Articles in Environmental Law

Methane Removal Under The Paris Agreement, Romany M. Webb Jul 2025

Methane Removal Under The Paris Agreement, Romany M. Webb

Sabin Center for Climate Change Law

In the 2015 Paris Agreement, the international community agreed to “strengthen the global response to climate change” by limiting the “increase in global average temperatures to well below" 2 degrees Celsius above pre-industrial levels, and ideally to 1.5 degrees Celsius. As recognized in the Agreement, to stay within these limits, global greenhouse gas emissions must be rapidly reduced, “so as to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century” — a situation commonly described as “net zero.” The need to reach net zero has prompted growing …


Varied Legal Parameters Shape Fiduciaries’ Ability To Act On Climate Risk, Cynthia Hanawalt, Andy Fitch Jul 2025

Varied Legal Parameters Shape Fiduciaries’ Ability To Act On Climate Risk, Cynthia Hanawalt, Andy Fitch

Sabin Center for Climate Change Law

Commentators who advocate either for or against corporate and asset managers addressing climate risks often refer to “fiduciary duty” as justification for their claims. Yet no field of corporate or asset management actually imposes one standalone fiduciary duty. Nor do any two business-law fields impose the same fiduciary regime. Instead, these fields adopt differing arrays of fiduciary duties to address various types of relationships, comprising a different blend of affirmative obligations and/or prohibitions, assessed with different degrees of strictness by enforcers and courts. As a result, overgeneralizations about fiduciaries’ duty in all business-law contexts tend to further obscure what a …


The Role Of Advisory Opinions In International Law In The Context Of The Climate Crisis, Maria Antonia Tigre, Armando Rocha Jun 2025

The Role Of Advisory Opinions In International Law In The Context Of The Climate Crisis, Maria Antonia Tigre, Armando Rocha

Sabin Center for Climate Change Law

Between December 2022 and March 2023, three requests for an advisory opinion were submitted to the International Tribunal for the Law of the Sea (ITLOS), the Inter-American Court of Human Rights (IACtHR), and the International Court of Justice (ICJ). Furthermore, a request for an advisory opinion from the African Court on Human and Peoples’ Rights (AfCtHPR) is being prepared. As such, 2024–2025 marks an unprecedented moment in global climate litigation: as of November 2024, we are on the verge of having four of the world’s most important international and regional courts and tribunals answering crucial legal questions on the (ex …


Opposition To Renewable Energy Facilities In The United States: June 2025 Edition, Matthew Eisenson, Jacob Elkin, Ivonne Norman, Rebecca Coombs, Chadol Kim, Rex Koenig, Suzan Michalski, Eric Quiroz, Josepi Scariano, Ava Teasdale, Victor Tong, Annabel Williams Jun 2025

Opposition To Renewable Energy Facilities In The United States: June 2025 Edition, Matthew Eisenson, Jacob Elkin, Ivonne Norman, Rebecca Coombs, Chadol Kim, Rex Koenig, Suzan Michalski, Eric Quiroz, Josepi Scariano, Ava Teasdale, Victor Tong, Annabel Williams

Sabin Center for Climate Change Law

Increasing the amount of electricity generated in the United States to power electric vehicles, data centers, and other end uses, while simultaneously reducing greenhouse gas emissions will require deploying a massive number of renewable energy facilities at an unprecedented scale and pace. Although many renewable energy facilities are sited without a problem, local opposition often arises. The Sabin Center’s annual report, Opposition to Renewable Energy Facilities in the United States, documents legal obstacles and challenges that arise during the siting process. In particular, the report focuses on: (a) state laws and local ordinances (“restrictions”) that impede the siting and deployment …


Decommissioning Offshore Oil And Gas Infrastructure: Report Of Proceedings, May 2, 2025 Offshore Decommissioning Workshop, Martin Lockman, Ashwin Murthy, Romany M. Webb Jun 2025

Decommissioning Offshore Oil And Gas Infrastructure: Report Of Proceedings, May 2, 2025 Offshore Decommissioning Workshop, Martin Lockman, Ashwin Murthy, Romany M. Webb

Sabin Center for Climate Change Law

On May 2, 2025, Ocean Conservancy and the Sabin Center for Climate Change Law organized a workshop at Columbia Law School on offshore oil and gas decommissioning in the United States. The overarching goal of the workshop was to bring together offshore law and policy experts to outline a research and policy agenda for offshore decommissioning. Within this broad goal, we sought to (1) identify key opportunities to reform offshore decommissioning law in the United States, both in the short term and over the next decade, (2) identify knowledge gaps and highlight areas for future research, and (3) begin to …


Regulation Of Sargassum Removal And Sinking In Florida, Ashwin Murthy, Korey Silverman-Roati, Romany M. Webb May 2025

Regulation Of Sargassum Removal And Sinking In Florida, Ashwin Murthy, Korey Silverman-Roati, Romany M. Webb

Sabin Center for Climate Change Law

Carbon dioxide removal is increasingly recognized as a necessary component of global climate mitigation efforts. One emerging method involves the deep-sea sinking of plant biomass to sequester carbon. Sargassum, a free-floating brown seaweed, has been identified as a promising candidate for this approach due to its natural buoyancy and decomposition process, which enables it to sink and potentially store carbon in the deep ocean. With sargassum blooms growing dramatically in the Atlantic since 2011 — posing ecological, economic, and public health risks when they wash ashore — there is growing interest in offshore removal and sinking as a climate solution. …


Legacy Liabilities For Oil And Gas Wells Under The Mineral Leasing Act, Martin Lockman, Ashwin Murthy, Romany M. Webb May 2025

Legacy Liabilities For Oil And Gas Wells Under The Mineral Leasing Act, Martin Lockman, Ashwin Murthy, Romany M. Webb

Sabin Center for Climate Change Law

The federal government is the largest landowner in the United States. The bulk of federal land is controlled by the Bureau of Land Management (“BLM”), an agency within the Department of the Interior (“DOI”) that manages more than 245 million acres or approximately 10% of the land in the United States. Below the ground, BLM’s authority reaches even further. In total, BLM controls around 700 million acres of minerals — 30% of the onshore mineral resources in the United States, spanning an area larger than Argentina. The enormous scale of oil and gas production on federal land has created a …


Seaweed Cultivation And Sinking For Carbon Dioxide Removal In Alaska, Ashwin Murthy, Korey Silverman-Roati, Romany M. Webb Apr 2025

Seaweed Cultivation And Sinking For Carbon Dioxide Removal In Alaska, Ashwin Murthy, Korey Silverman-Roati, Romany M. Webb

Sabin Center for Climate Change Law

Meeting global climate change goals requires a rapid and dramatic reduction in greenhouse gas emissions. That will not be sufficient by itself, however. It will also be necessary to remove carbon dioxide, and potentially other greenhouse gases, from the atmosphere. One proposed approach involves the cultivation and sinking of seaweed.

Alaska’s coastal waters, rich in nutrients, provide ideal conditions for seaweed cultivation projects. Moreover, Alaska’s coastal waters are more vulnerable to acidification than those in lower latitudes, making aquaculture particularly beneficial in this region. Alaska has made active efforts to streamline the permitting of seaweed cultivation, encouraging research projects in …


Liability Considerations For Marine Carbon Dioxide Removal Projects In U.S. Waters, Korey Silverman-Roati, Martin Lockman, Romany M. Webb Mar 2025

Liability Considerations For Marine Carbon Dioxide Removal Projects In U.S. Waters, Korey Silverman-Roati, Martin Lockman, Romany M. Webb

Sabin Center for Climate Change Law

Scientists have identified a number of land- and ocean-based carbon dioxide removal (“CDR”) approaches. Ocean-based approaches, also known as marine CDR, hold great potential for uptake and sequestration of carbon dioxide. However, controlled field trials in the ocean are needed to better understand the efficacy and impacts of several marine CDR approaches. Legal considerations will have a major bearing on whether, when, where, and how such field research goes forward. Previous studies have analyzed the potential international and domestic legal framework applicable to marine CDR research and subsequent deployment (if that is ultimately deemed appropriate). However, relatively little research has …


Conference Report: Attribution Science And Climate Law, Jessica A. Wentz Mar 2025

Conference Report: Attribution Science And Climate Law, Jessica A. Wentz

Sabin Center for Climate Change Law

This report provides a summary of proceedings from the Attribution Science and Climate Law conference hosted at Columbia University on January 9-10, 2025. The conference brought together a diverse group of researchers and practitioners to share insights on the status of climate change attribution research and its relevance to climate law and policy. Participants included physical scientists, public health researchers, economists, social scientists, legal scholars, and legal practitioners. The core goals of the event were to facilitate interdisciplinary discussion, advance substantive knowledge in this field, and promote ongoing collaboration between the scientific, legal, and policy-making communities.


The Role Of Marine Co2 Removal In Combating Climate Change, Sarah Vican, Meghan Gavin, Wil Burns, Douglas Edwards, Romany M. Webb Feb 2025

The Role Of Marine Co2 Removal In Combating Climate Change, Sarah Vican, Meghan Gavin, Wil Burns, Douglas Edwards, Romany M. Webb

Sabin Center for Climate Change Law

Combating climate change requires not only rapid reduction of greenhouse gas emissions, but also removal of significant amounts of carbon dioxide (CO2) from the atmosphere. CO2 removal (CDR) comes in many different forms, but climate scientists and policymakers are focusing on the potentially important role of large-scale use of emerging ocean-based techniques, often referred to as marine CDR (mCDR). In the United States, mCDR in domestic waters is governed by a patchwork of laws and regulations. There are also major uncertainties concerning regulation of mCDR in the open ocean, where international treaty regimes have struggled to develop coherent rules. On …


Climate Change In The Courts: A 2024 Retrospective, Maria Antonia Tigre, Margaret Barry Jan 2025

Climate Change In The Courts: A 2024 Retrospective, Maria Antonia Tigre, Margaret Barry

Sabin Center for Climate Change Law

Drawing from the jurisdictions covered in the Sabin Center's United States (U.S.) and Global Climate Litigation databases, this report offers insights into key developments, emerging themes, evolving legal strategies, and the pulse of climate litigation in 2024. The report identifies eight major thematic areas of climate litigation, namely (i) climate change in international and regional courts and tribunals, (ii) constitutional and human rights cases, (iii) GHG emissions in EIAs, (iv) factoring climate impacts and obligations into government decision-making, (v) non-compliance with climate commitments, (vi) climate displacement, (vii) greenwashing and climate-washing cases, and (viii) nuisance and other claims against major emitters.


Regulation Of Ocean Alkalinity Enhancement In Washington State, Ashwin Murthy, Korey Silverman-Roati, Romany M. Webb Jan 2025

Regulation Of Ocean Alkalinity Enhancement In Washington State, Ashwin Murthy, Korey Silverman-Roati, Romany M. Webb

Sabin Center for Climate Change Law

This paper focuses on one commonly-discussed ocean carbon dioxide removal approach, ocean alkalinity enhancement (“OAE”), which involves adding alkaline substances to ocean waters in order to increase their ability to uptake carbon dioxide from the atmosphere. OAE also has the potential to mitigate ocean acidification, which has been worsening globally due to climate change, and has threatened marine life and industries in places like Washington State.

There is significant interest in pursuing OAE off the coast of Washington state. This paper examines the legal framework for OAE projects in Washington State. As we explain, OAE projects conducted in near-shore areas …


The Need To Explore The Potential Of Marine Cdr With A One-Earth Strategy: A Guide For Policy-Makers, Philip W. Boyd, Jean-Pierre Gattuso, Minhan Dai, Louis Legendre, Terre Satterfield, Romany M. Webb Jan 2025

The Need To Explore The Potential Of Marine Cdr With A One-Earth Strategy: A Guide For Policy-Makers, Philip W. Boyd, Jean-Pierre Gattuso, Minhan Dai, Louis Legendre, Terre Satterfield, Romany M. Webb

Sabin Center for Climate Change Law

Rapid, deep and sustained reductions in carbon dioxide (CO₂) emissions are essential to achieve the goals of the Paris Climate Agreement of keeping the long-term global average surface temperature increase well below 2°C above pre-industrial levels and pursue efforts to limit it to 1.5°C . In addition, the 2021 IPCC Report explains that carbon dioxide removal (CDR) will be needed to offset residual CO₂ emissions from activities and sectors that are difficult to decarbonize by 2050. The objective of CDR is removal of atmospheric CO2 from residual emissions and its durable storage in reservoirs, which is an additional critical element …


The Legality Of Revenue Disbursement From An Economic Measure Agreed At The International Maritime Organization For Purposes Other Than The Decarbonisation Of International Shipping, Blánaid Sheeran Dec 2024

The Legality Of Revenue Disbursement From An Economic Measure Agreed At The International Maritime Organization For Purposes Other Than The Decarbonisation Of International Shipping, Blánaid Sheeran

Sabin Center for Climate Change Law

This analysis fills a gap in the existing legal literature on the adoption of a greenhouse gas (GHG) pricing mechanism at the International Maritime Organization (IMO or Organization). First, it investigates whether the adoption of a GHG pricing mechanism which includes the potential use of funds for purposes aside from the decarbonisation of international shipping is within the general competence of the IMO. Providing an affirmative interpretation, it then considers the adoption of such a measure as an amendment to Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL). The analysis concludes that a broad …


Removing Methane Via Soil Amendments: The Legal Framework, Korey Silverman-Roati, Romany M. Webb Dec 2024

Removing Methane Via Soil Amendments: The Legal Framework, Korey Silverman-Roati, Romany M. Webb

Sabin Center for Climate Change Law

Rapid and sustained reductions in human-driven methane emissions are critical to limiting warming in line with the 2015 Paris Agreement. Reductions in certain methane emissions, particularly from the fossil fuel sector, can be implemented cheaply and efficiently. Other forms of methane emissions, like those from agricultural sources, are more difficult to control. This fact, coupled with concerns that climate change could unlock significant additional natural emissions from tropical wetlands and melting permafrost, has increased interest in atmospheric methane removal (“AMR”).

AMR refers to human interventions to accelerate the conversion of methane in the atmosphere to a form that causes less …


State Authority To Regulate Ocean Alkalinity Enhancement, Ashwin Murthy, Korey Silverman-Roati, Romany M. Webb Dec 2024

State Authority To Regulate Ocean Alkalinity Enhancement, Ashwin Murthy, Korey Silverman-Roati, Romany M. Webb

Sabin Center for Climate Change Law

This paper provides a detailed examination of the regulatory landscape surrounding Ocean Alkalinity Enhancement (“OAE”), a form of marine carbon dioxide removal (“CDR”) that seeks to mitigate climate change. The paper explores the domestic (U.S.) regulation of two of the most commonly discussed approaches to OAE: a mineral based approach and an electrolytic approach.

While no federal laws specifically mention OAE, the practice might be subject to various pollution control and other federal statutes and regulations. One key question is the extent to which federal law preempts state regulation of OAE. This paper aims to answer that question by reviewing …


Shedding Light On Climate Risk In 2025: Upcoming Debates About The Sec's Climate Disclosure Rule, Andrew Bernstein, Cynthia Hanawalt, Lisa E. Sachs, Chloe Field Nov 2024

Shedding Light On Climate Risk In 2025: Upcoming Debates About The Sec's Climate Disclosure Rule, Andrew Bernstein, Cynthia Hanawalt, Lisa E. Sachs, Chloe Field

Sabin Center for Climate Change Law

What will happen to the SEC’s March 2024 climate disclosure rule under the new U.S. federal administration? This paper seeks to contribute to the upcoming debates on this question after the 2024 election. Setting aside ideological considerations, this paper contends with novel questions of implementation and enforcement that the SEC will face in 2025, as it establishes climate disclosure policies under anticipated new leadership. Aided by an in-depth survey of existing climate reporting, the report discusses how companies are likely to determine what climate information is and is not material to their businesses and financial performance, and whether some companies …


The Transformation Of European Climate Litigation, Maxim Bönnemann, Maria Antonia Tigre Nov 2024

The Transformation Of European Climate Litigation, Maxim Bönnemann, Maria Antonia Tigre

Sabin Center for Climate Change Law

In Spring 2024, the European Court of Human Rights ruled for the first time that inadequate climate mitigation violates human rights. The Court’s landmark rulings have significant implications, ranging from the design of domestic climate laws and questions of standing to international trade issues and the European Union’s climate governance.

Building on a symposium by Verfassungsblog and the Climate Law Blog, this book offers the first comprehensive assessment of the rulings in KlimaSeniorinnen, Duarte Agostinho, and Carême. It explores key innovations, missed opportunities, and the untaken paths in European climate litigation.


Enforcing Legacy Environmental Liabilities For Offshore Oil And Gas Infrastructure, Martin Lockman, Romany M. Webb Oct 2024

Enforcing Legacy Environmental Liabilities For Offshore Oil And Gas Infrastructure, Martin Lockman, Romany M. Webb

Sabin Center for Climate Change Law

For more than a century, American fossil fuel companies have extended their operations offshore to exploit the vast oil and gas reserves that lie under the seafloor. Since 1953, the Department of the Interior (DOI) has operated a complex system of offshore leasing that allows private oil and gas companies to operate in federal waters. DOI’s leasing regime requires companies to plug wells, remove offshore platforms, and generally return their operation sites to a safe and stable condition when their leases end. This process, known as “decommissioning,” can cost tens or hundreds of millions of dollars for each offshore platform. …


Legal Considerations For Atmospheric Methane Removal, Korey Silverman-Roati, Romany M. Webb Oct 2024

Legal Considerations For Atmospheric Methane Removal, Korey Silverman-Roati, Romany M. Webb

Sabin Center for Climate Change Law

Scientists are beginning to investigate atmospheric methane removal approaches, which would accelerate the conversion of methane to a less radiatively potent form or physically remove methane from the atmosphere and store it elsewhere. Developing and, if appropriate, deploying atmospheric methane removal approaches will require an understanding of relevant legal considerations and governing structures that could impact whether, when, where, and how specific projects take place. This paper examines the treatment of atmospheric methane removal approaches under international and U.S. domestic law. The paper focuses on five atmospheric methane removal approaches that are currently being investigated: (1) atmospheric oxidation enhancement, (2) …


Implementing The Inflation Reduction Act: Progress To Date And Risks From A Changing Administration, Romany M. Webb, Martin Lockman, Emma Shumway Sep 2024

Implementing The Inflation Reduction Act: Progress To Date And Risks From A Changing Administration, Romany M. Webb, Martin Lockman, Emma Shumway

Sabin Center for Climate Change Law

The Inflation Reduction Act of 2022 (“IRA”) is the largest investment in climate change mitigation and adaptation in American history. The IRA appropriates more than $142 billion to carry out activities designed to reduce greenhouse gas emissions and protect against the impacts of climate change. This includes up to $37 billion in appropriations for federal loans and loan guarantees, and nearly $105 billion allocated for grants, awards, and other direct spending by federal agencies. In addition, the IRA creates and expands a number of tax credit programs designed to support a broad range of climate-related activities, including investments in clean …


Permit Proposals: Summary Of Recommendations, Luis Pablo Alvarez Aug 2024

Permit Proposals: Summary Of Recommendations, Luis Pablo Alvarez

Sabin Center for Climate Change Law

All scenarios for meeting greenhouse gas reduction targets require faster deployment of renewable energy projects. However, the current permitting processes, while designed to ensure environmental and public safety as well as public participation, often delay progress. The challenge is to speed up renewable energy development without compromising environmental and community protections. This white paper by the Sabin Center reviews 15 reports from reputable institutions that identify steps to streamline the permitting process. These recommendations offer strategies to reduce time and costs in advancing renewable energy projects.

This report will be updated from time to time. Readers who identify errors in …


Removing Methane Via Atmospheric Oxidation Enhancement: The Legal Framework, Romany M. Webb, Martin Lockman, Korey Silverman-Roati Jul 2024

Removing Methane Via Atmospheric Oxidation Enhancement: The Legal Framework, Romany M. Webb, Martin Lockman, Korey Silverman-Roati

Sabin Center for Climate Change Law

To achieve the Paris Agreement’s goal of limiting the increase in global average temperatures to “well below 2 degrees Celsius,” and ideally 1.5 degrees Celsius, above pre-industrial levels, global greenhouse gas (“GHG”) emissions must reach net zero in the second half of the century. The global community is not currently on track to achieve net zero emissions. In fact, with the exception of a slight dip during the Covid-19 pandemic, emissions have risen steadily in recent years. This, together with the increasingly visible impacts of climate change, has prompted growing interest in the possibility of removing GHGs directly from the …


Opposition To Renewable Energy Facilities In The United States: June 2024 Edition, Matthew Eisenson, Jacob Elkin, Harmukh Singh, Noah Schaffir Jun 2024

Opposition To Renewable Energy Facilities In The United States: June 2024 Edition, Matthew Eisenson, Jacob Elkin, Harmukh Singh, Noah Schaffir

Sabin Center for Climate Change Law

Achieving lower carbon emissions in the United States will require developing a massive number renewable energy facilities at an unprecedented scale and pace. Although many renewable energy facilities are sited without any problem, local opposition often arises. This report updates and considerably expands three previous Sabin Center reports, published in September 2021, March 2022, and May 2023, which document local and state restrictions against, and opposition to, siting renewable energy projects, as well as energy storage and transmission projects that are closely tied to renewable energy generation. The time period covered by this report ranges from as early as 1995 …


Cities, E-Commerce & Public Health: 3 Legal Pathways To Limiting Freight Vehicle Emissions, Amy E. Turner Jun 2024

Cities, E-Commerce & Public Health: 3 Legal Pathways To Limiting Freight Vehicle Emissions, Amy E. Turner

Sabin Center for Climate Change Law

In recent years, cities have become increasingly defined by e-commerce – the sprawling network of goods delivery from central warehouses to neighborhood distribution centers to residents’ front doors. This growing network of warehouses and the freight vehicles that serve them contribute significantly to a community’s greenhouse gas emissions and exposure to harmful pollutants like nitrogen oxides (NOx), carbon monoxide and particulate matter. Moreover, so-called last-mile delivery warehouses (or distribution centers) are proliferating, largely in low-income communities and communities of color, where residents are exposed to increasing traffic, pollution, and harmful health impacts.

While a handful of cities have pursued approaches …


Climate Litigation In The Global South: Mapping Report, Maria Antonia Tigre Jun 2024

Climate Litigation In The Global South: Mapping Report, Maria Antonia Tigre

Sabin Center for Climate Change Law

In recent years, climate litigation has undergone a notable transformation globally, witnessing a surge in cases across diverse jurisdictions. While scholarly interest has predominantly focused on cases from the Global North, attention to litigation originating in the Global South has been more limited. Nonetheless, understanding the distinct legal grounds, remedies sought, and objectives of plaintiffs in the Global South is crucial. This report addresses this gap by providing a comprehensive insight into the current landscape of climate litigation in the Global South.

The report utilizes data from the Sabin Center’s Global Climate Change Litigation databases, which has seen an influx …


Recommendations To Update The Ftc & Doj’S Guidelines For Collaborations Among Competitors, Cynthia Hanawalt, Denise Hearn, Chloe Field May 2024

Recommendations To Update The Ftc & Doj’S Guidelines For Collaborations Among Competitors, Cynthia Hanawalt, Denise Hearn, Chloe Field

Sabin Center for Climate Change Law

Existing joint agency guidance from the FTC and DOJ, “Antitrust Guidelines for Collaborations Among Competitors” was written in 2000 and is misaligned with the agencies’ focus on market power considerations and protecting the competitive process. This white paper seeks to provide a rationale and suggestions for revising the collaboration guidelines. We look to examples in other jurisdictions, with an eye to their treatment of sustainability-related collaborations, as many were updated with these considerations in mind. Importantly, we do not recommend that updated guidelines follow international examples in creating explicit sustainability-related carve outs, safe harbors, or exemptions. Due to the complex …


The Private Litigation Impact Of New York’S Green Amendment, Evan Bianchi, Sean Di Luccio, Martin Lockman, Vincent Nolette May 2024

The Private Litigation Impact Of New York’S Green Amendment, Evan Bianchi, Sean Di Luccio, Martin Lockman, Vincent Nolette

Sabin Center for Climate Change Law

The increasing urgency of climate change, combined with federal environmental inaction under the Trump Administration, inspired a wave of environmental action at the state and local level. Building on the environmental movement of the 1970s, activists have pushed to amend more than a dozen state constitutions to include “green amendments” — self-executing individual rights to a clean environment. In 2022, New York activists succeeded, and New York’s Green Amendment (the NYGA) now provides that “Each person shall have a right to clean air and water, and a healthful environment.”

However, the power of the NYGA and similar green amendments turns …


Shocking Financed Emissions: The Effect Of Economic Volatility On The Portfolio Footprinting Of Financial Institutions, Ilmi Granoff, Tonya Lee May 2024

Shocking Financed Emissions: The Effect Of Economic Volatility On The Portfolio Footprinting Of Financial Institutions, Ilmi Granoff, Tonya Lee

Sabin Center for Climate Change Law

Many financial institutions are now calculating and disclosing their financed emissions, a class of metrics enabling these institutions to calculate the greenhouse gas (GHG) emissions associated with investment and lending activities. These institutions have widely adopted the metric to estimate exposure to climate-related financial risk associated with GHG-emitting activities and to provide shareholders and investors a picture of how their financial activity impacts global climate change. Financed emissions metrics, despite widespread adoption, face two key methodological challenges: lack of comparability of outputs within and between portfolios, and vulnerability of calculations to portfolio volatility. Markets are naturally volatile, but the economic …