ESG International Weekly News 6/17 -6/23

1.EU Lawmakers Agree to CBAM Changes: 90% of Importers Exempt, Climate Impact Unchanged

European Parliament and Council have agreed on new amendments to the Carbon Border Adjustment Mechanism (CBAM), exempting 90% of importers—mainly SMEs—by introducing a 50-tonne annual import threshold, while keeping 99% of emissions from carbon-intensive imports like steel and cement within CBAM’s scope.

🔹 Key Highlights:

• New threshold: Imports under 50 tonnes/year per importer will be exempt, replacing previous “negligible value” rules.

• Process simplification: Changes include streamlined authorization, emissions calculation and verification, and clearer financial responsibilities.

• Regulatory relief goal: Part of the Omnibus I package (Feb 2025), aligned with EU's Competitiveness Compass, aiming for 25% burden reduction for all companies, and 35% for SMEs.

📌 Background:

• CBAM was adopted in 2023 and will be enforced in 2026 to prevent “carbon leakage” and align carbon costs between EU-made and imported goods.

• Importers must buy CBAM certificates to offset carbon cost gaps with the EU Emissions Trading System (ETS).

📣 Quotes:

• Antonio Decaro (Parliament rapporteur): “We've simplified the process and exempted 90% of importers without undermining our climate goals.”

• Adam Szłapka (Polish Minister for EU): “Today’s deal reduces red tape and boosts EU competitiveness.”
   

2. SEC Withdraws ESG Fund Disclosure Rules, Marking Shift Away from Climate Focus

The U.S. Securities and Exchange Commission (SEC) has withdrawn a proposed rule requiring ESG-related disclosures from investment advisers and fund managers. The rule was originally introduced under former SEC Chair Gary Gensler to address greenwashing risks and provide consistent data for investors.

🔹 Proposal Overview:

• Launched in 2022, the rule would have required ESG-focused funds to disclose strategy details in registration forms, annual reports, and brochures, including GHG metrics like carbon footprint and intensity.

• It also required standardized tabular presentation of ESG strategies to facilitate fund comparison and differentiation.

• Funds not considering ESG would be clearly identified to prevent misleading branding.

🔸 Current Decision:

• The SEC stated: “The Commission does not intend to issue final rules with respect to these proposals,” signaling a step back from ESG regulation. Any future rules in this area would be re-proposed.

📌 Context:

• This follows broader reversals of climate-related initiatives since Trump’s return to the presidency, including:

  • Ending legal defense of the SEC’s climate disclosure rule;

  • Dropping rules that restricted companies from excluding shareholder proposals.

📣 Implication: The move reflects a broader policy shift away from ESG oversight, raising concerns among climate-conscious investors about transparency and fund accountability.

 

3.France Passes Landmark Anti–Fast Fashion Bill to Tackle Environmental Impact

The French Senate has unanimously passed a sweeping bill to curb the environmental impact of fast fashion, reinforcing growing global efforts to regulate the textile industry, which contributes 10% of global GHG emissions—more than international flights and maritime shipping combined.

🔹 Key Measures in the Bill:

• Mandatory consumer information on the environmental impact of clothing;

• Ban on advertising for fast fashion products and brands;

• Eco-contribution fees based on sustainability performance;

• Legal definition of "fast fashion" introduced;

• Incentives for clothing repair and reuse.

📌 Background Context:

• Over 100 billion garments are sold globally each year;

• In France, annual clothing sales have increased by 1 billion items in a decade, now totaling 3.3 billion items (48 per person).

🔸 Legislative Path & EU Alignment:

• Originally proposed by MP Anne-Cécile Violland with cross-party support;

• Already passed the National Assembly in March 2023, and now moves to a joint committee to reconcile versions;

• Aligned with the EU Parliament's broader textile waste reduction push, including holding brands responsible for collection and recycling.

📣 The legislation signals France’s leadership in sustainable fashion regulation, and may pave the way for broader EU and global policy shifts against unsustainable textile practices.


 

4.Nasdaq Launches Free “Carbon Academy” to Train Professionals on CDR Credit Integration

Nasdaq has launched the Carbon Academy, a free online platform designed to train individuals and organizations on integrating carbon dioxide removal (CDR) credits into emissions reduction strategies, amid rising demand for credible carbon offsets.

🔹 Objective & Context:

• As companies turn to offsets for hard-to-abate emissions, there is growing need for knowledge on carbon credit quality, MRV standards, pricing, and technologies.

• Developed in partnership with AirMiners, the Academy builds on the group’s “Buyers Academy” pilot.

🔸 The Platform Offers 5 Courses:

1. Intro to CDR – Fundamentals of carbon dioxide removal.

2. CDR Concepts – Market stakeholders and criteria for high-quality carbon credits.

3. CDR Methodologies – Evaluation of permanence, co-benefits, scalability.

4. Quality, Value & Incentives – MRV principles and price influencers in voluntary carbon markets.

5. Budgeting & Contracting – Managing portfolios, budgeting, contract types, and risk.

📣 Quotes:

• Fredrik Ekström, Nasdaq: “The Carbon Academy delivers accessible content from basic to advanced levels to raise awareness and empower action.”

• Tito Jankowski, AirMiners: “We built this to help sustainability leaders grow from curious to confident in CDR.”

This academy supports the next generation of sustainability leadership as carbon markets evolve toward greater sophistication and transparency.

 

5. SBTi Releases Draft Net-Zero Standard for Automotive Sector, Opens Consultation

The Science Based Targets initiative (SBTi) has released its first draft Automotive Sector Net-Zero Standard, providing science-aligned guidance for automakers and auto parts suppliers to set robust, verifiable net-zero targets across their operations, supply chains, and products.

🔹 Key Standard Features:

• Aligned with SBTi’s upcoming Corporate Net-Zero Standard V2, with additional sector-specific criteria.

• For automakers:

  • Requires inclusion of aggregated GHG emission intensity (fuel use, end-of-life impacts).

  • Mandates targets to increase low-emission vehicle sales share.

• For auto parts suppliers:

  • Emissions reduction focus on material sourcing and manufacturing.

  • Requires disclosure of share of parts used in low-emission vehicles.

🔸 Context & Industry Impact:

• Automotive sector contributes over 20% of man-made GHG emissions;

• Facing risks from supply chain disruptions, regulatory tightening, and investor scrutiny;

• Part of SBTi’s broader effort to develop sector-specific pathways (e.g., FLAG, aviation, cement, chemicals).

📣 Karl Downey, Head of Sector Standards at SBTi:

“The net-zero transition is a huge innovation opportunity for automakers. This standard will help them cut emissions, accelerate electrification, and remain competitive.”

📬 Open Consultation Topics:

• Alignment with Corporate Net-Zero V2;

• New aggregated Scope 1–3 indicator;

• Criteria for low-emission vehicles and suppliers;

• Sector applicability and practical implementation.