Strategic Intelligence: Navigating Climate Regulation

Strategic Intelligence: Navigating Climate Regulation

Summary

Governments have been introducing more regulations to meet their climate commitments. This report covers the future of reporting and transparency requirements, carbon pricing, and state support for low-carbon industries.

Key Highlights

• International Financial Reporting Standards (IFRS) sustainability reporting standards are becoming a global baseline for sustainability reporting. The EU is introducing the most comprehensive reporting and transparency rules but plans to scale them back. Some US states and large economies like China, Japan, and India are introducing reporting requirements. In the US, federal rules will be scrapped.
• Emissions trading systems (ETSs) are expanding globally, especially in the EU and China. The spread of ETSs will directly impact carbon-intensive industries like power, steel, cement, and chemicals.High-emitting companies must invest in decarbonization technologies to mitigate the long-term threat of ETSs.

• This report introduces GlobalData's framework to help company's understand climate regulation. The framework is split into five categories: reporting and transparency requirements, carbon pricing, state support for low-carbon industries, broader environmental policies with climate impact, and climate resilience regulations. This report focuses on the first three categories, providing key conclusions and offering guidance on how companies should respond in these areas.

• Governments worldwide have introduced thousands of new climate laws and policies. This report aims to help companies understand the evolving regulatory landscape and develop strategies for achieving compliance and meeting net zero targets.