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.
Due diligence under the Corporate Sustainability Due Diligence Directive (CSDDD) is designed to direct finite corporate resources towards the issues that matter most for people and the environment. At the heart of that effort is prioritisation, defined in Article 9 of the Directive. Having spoken about this topic at the RBA conference this week, I want to share some reflections on what good prioritisation looks like in practice and what pitfalls to avoid.
The Parliament proposal shows that many of the concerns raised through Frank Bold’s research and engagement with policymakers are now entering the legislative mainstream. But the negotiations ahead will determine whether the final framework is capable of addressing the structural weaknesses that continue to undermine trust in the sustainable investment market.
The European Commission has published its draft Delegated Regulation revising the European Sustainability Reporting Standards (ESRS). The revision follows the Omnibus I Simplification Package and is presented as a burden-reduction measure. Some of it is - but a closer reading reveals a set of changes that go well beyond simplification, departing from EFRAG's technical advice and disregarding formal recommendations from the European Supervisory Authorities. Many of these changes have significant implications for the quality and comparability of sustainability data available to the market and public.
