In a landmark intervention, in 2010, the Federated States of Micronesia (FSM) requested a transboundary environmental impact assessment (EIA) of the Prunéřov II brown coal-fired power plant in the Czech Republic. FSM asserted its right to be heard as a sovereign state because the plant’s greenhouse gas emissions may contribute to climate change impacts. We provided FSM with legal support throughout the legal proceedings in the Czech Republic.
It was the first ever ‘transregional’ use of a Transboundary Environmental Impact Assessment, meaning that the FSM are not located in geographical proximity to the Czech Republic. FSM’s involvement in the EIA process for the Prunéřov II Power Plant is a unique example under international law.
After a lengthy process, the Czech Ministry of Environment issued an affirmative EIA decision for the project. Although FSM concerns were officially rejected in the final decision, an assessment of the climate impacts was carried out. The plant developer is also obligated to reduce the CO2 emissions of its other projects by over five million tons over the next 25 years. The concept was presented at a conference organized by the Columbia School of Law in New York, which discussed the legal consequences of climate change and rising seas for island nations.
By the end of July, the European Commission is expected to adopt its first set of sustainability reporting standards (ESRS). The standards will impact 50,000 European companies and thousands international corporate groups. As part of the EU Corporate Sustainability Directive (CSRD) ecosystem, they will require large companies to report information on their sustainability impacts on people and planet as well as their sustainability-related risks and opportunities.
The Committee on Legal Affairs of the European Parliament adopts improvements on the Corporate Sustainability Due Diligence Directive.
The European Parliament has adopted the Corporate Sustainability Reporting Directive (CSRD), which clarifies transparency obligations for large companies operating in the EU on their sustainability impacts, risks, and opportunities. Pursuant to the CSRD, companies across all sectors will report against the European Sustainability Reporting Standards, which were developed by the European Financial Reporting Advisory Group (EFRAG), submitted to the European Commission and published on 22 November.
