ESG Newsletter - April 2026

New ESG Quick Guides for 2026

We have published several new ESG Quick guides on key sustainability regimes across the globe, including: 

• supply chain due diligence regimes – EU CSDDD and more
• disclosure regimes – New York climate disclosure law and more
• efforts to simplify regulation – EU SFDR 2.0

The Quick Guides provide easy-to-digest summaries of key sustainability regimes that companies and the financial sector are having to grapple with. The Quick Guides are updated on a regular basis.  

See our new ESG Quick Guides.

EU: Commission requests feedback on Environmental Omnibus

On 12 March 2026, the European Commission invited stakeholder feedback on the Environmental Omnibus, which is a package of six legislative proposals to simplify environmental legislation in the areas of industrial emissions, the circular economy, environmental assessments and geospatial data. The Environmental Omnibus was published by the Commission on 10 December 2025 and is currently being negotiated by the European Parliament and the Council. The feedback period closes on 7 May 2026. The Commission will summarise the feedback received and present it to the European Parliament and the Council, with the aim of feeding into the legislative process. For more information on the Environmental Omnibus, see our previous blog post. 

EU: EFRAG updates its Knowledge Hub with interactive revised ESRS

EFRAG has updated its Knowledge Hub with the European Sustainability Reporting Standards (ESRS) made under the Corporate Sustainability Reporting Directive (CSRD) and practical implementation guidance in an interactive form. 

The platform now contains:

• the full EFRAG Technical Advice on the draft simplified ESRS text (as published in early December and submitted to the European Commission in 2025);

• direct links from each amended disclosure to the corresponding paragraph(s) in the 2023 ESRS from which it originates; and

• reverse links from the 2023 ESRS showing the log of amendments and pointing to the new draft simplified paragraphs.

These cross references make it easier to explore the underlying changes and understand how disclosures have been revised. 

Access to the Knowledge Hub is free but requires registration. 

According to EFRAG, the final simplified ESRS will also be published in an interactive format in the Knowledge Hub once adopted by the European Commission as a Delegated Act.

For more information about the revised ESRS, see our previous blog post.

EU: Directive on Empowering Consumers for the Green Transition – implementation in selected EU member states

The EU Directive on Empowering Consumers for the Green Transition (also known as the ECGT or EmpCo Directive) aims to promote sustainable consumption by: (i) tackling unfair commercial business practices, such as greenwashing, that prevent consumers from making sustainable consumption choices; and (ii) improving consumer information to enable sustainable transactional decisions. For more information on the Directive, see our detailed client briefing. 

EU Member States were required to implement the Directive into national legislation by 27 March 2026. The Directive will then start applying from 27 September 2026. 

We are tracking the implementation of this Directive in selected EU Member States of key relevance - see our Transposition Tracker.

EU: Commission seeks feedback on revisions to simplify technical screening criteria in EU Taxonomy

The European Commission is inviting feedback on potential revisions to the technical screening criteria (TSC) in the EU Taxonomy in order to make the framework "simpler and easier to use". The proposals, set out in two draft Delegated Regulations, include streamlined criteria and clarifications on how to demonstrate compliance. The changes cover the majority of activities under the Climate and Environmental Delegated Acts, including forestry and environmental protection, manufacturing, energy, transport and construction. The feedback period is open until 14 April 2026. For more information, see our blog post. 

EU: ESAs to provide technical advice on the Taxonomy Disclosures Delegated Act

The European Commission has invited the European Supervisory Authorities (ESAs) to develop technical advice to inform the Commission’s review of the Disclosures Delegated Act under Article 8 of the Taxonomy Regulation. The Commission has asked for the advice to focus on the following KPIs: (i) the Operational Expenditure (OpEx) KPI of non-financial firms; (ii) the Commissions and Fees KPI and Trading Book KPI of credit institutions; and (iii) the Underwriting KPI of insurance/re-insurance undertakings. The ESAs should also consider whether other targeted technical amendments are necessary to the Disclosure Delegated Act to simplify and enhance the usability of Taxonomy reporting. For more information, see our blog post. 

European General Court dismisses challenge to Taxonomy technical screening criteria

A group of environmental NGOs, including Robin Wood, challenged the European Commission’s decision to reject their request for an internal review of specific parts of the EU Taxonomy’s technical screening criteria  (TSC) that classify certain forestry and forest-based bioenergy (biomass) activities as “environmentally sustainable”. The NGOs argued that these criteria did not properly reflect what it means for an activity to make a “substantial contribution” to climate objectives, and did not sufficiently ensure “no significant harm” to other environmental goals. In their view, the Commission had set the threshold for what qualifies as “green” too low.
On 18 March 2026, the General Court (which is part of the Court of Justice of the European Union) dismissed the action. It held that the Commission enjoys broad discretion when setting highly technical environmental criteria and that the NGOs had not shown a clear or obvious error in its assessment. The Court also confirmed that the EU Taxonomy does not always require strict numerical thresholds. Qualitative criteria are allowed, and the Commission was entitled to rely on and further develop existing EU legislation, such as the renewable energy framework, when designing the forestry-related criteria.
Previously, in September 2025, the General Court upheld the Commission’s decision to include nuclear energy and natural gas, as well as bioenergy and wind power, as potential environmentally sustainable activities under the EU Taxonomy. In these earlier decisions, the Court also clarified that the Commission has wide discretion to set technical standards for sustainable finance (for more details, see our previous blog post).

EU: Commission sets technical standards for external reviewers of European Green Bonds

On 12 March 2026, the European Commission adopted a Delegated Regulation supplementing the framework for European Green Bonds (EuGB). The Delegated Regulation introduces regulatory technical standards for external reviewers, which are responsible for assessing whether bonds labelled as “European Green Bonds” meet the required environmental criteria.

The technical standards set out criteria for assessing the appropriateness, adequacy and effectiveness of external reviewers’ systems, resources and procedures, their compliance function, internal policies and procedures, assessment methodologies and information used for reviews, as well as the information to be provided and the form and content of applications for recognition of third country external reviewers.
The Delegated Regulation follows a consultation that ran from 7 April to 30 May 2025 (for more information on the consultation, see our blog post) and is now subject to scrutiny by the European Parliament and the Council for a period of up to three months.

EU: Commission publishes corrigendum to its FAQs on EU Green Bond Regulation 

On 16 March 2026, the European Commission published a Corrigendum to its Commission Notice of 6 November 2025 on the interpretation and implementation of certain legal provisions of the European Green Bond Regulation, which replaces their previous response to Question 8, regarding eligibility of CapEx under the gradual approach. 

Pursuant to the revised response, the European Commission notes that as the EU Green Bond Regulation does not expressly provide a specific look back period for CapEx, that CapEx incurred prior to an EuGB’s issuance could be eligible provided the requirements of the Regulation are met (e.g. around Taxonomy alignment and disclosures around share of proceeds used for financing/refinancing). The European Commission also notes that in the absence of a specific look back period provided by the EU Green Bond Regulation, they expect issuers to be guided by general market practice and standards, including investors’ expectations of timelines for historical CapEx to be refinanced. For more information, see our blog post.  

EU: Sustainability aspects of ESMA’s final report on the retail investor journey - understanding retail participation in capital markets

ESMA published a call for evidence in May 2025 to gather input from stakeholders on key aspects of the investor journey, particularly the MiFID II regulatory requirements that impact retail investors when engaging with capital markets.  ESMA has now published its final report, summarising the feedback received and its planned follow-up actions to improve the retail investor journey. ESMA has confirmed that it will support the Commission in simplifying and improving the MiFID II requirements on sustainability, largely reflecting feedback indicating that integration of sustainability preferences into the suitability assessment has introduced significant complexity for both clients and advisers, with clients struggling to express their sustainability preferences meaningfully. For more information, see our blog post.

EU: Regulation on 2040 climate target published in the Official Journal of the EU

On 18 March 2026, a Regulation on the new EU climate target for 2040 was published in the Official Journal of the EU. The Regulation amends the European Climate Law to set a new 2040 climate target of 90% reduction in net greenhouse gas (GHG) emissions (emissions after deduction of removals) compared to 1990 levels. The European Climate Law already requires at least a 55% reduction in net GHG emissions by 2030 and climate neutrality by 2050. The new Regulation adds the 2040 target as a further binding intermediate milestone on that path. The Regulation also makes a number of changes to the European Climate Law beyond inserting the headline 90% figure, in respect of the use of carbon credits and new review and reporting obligations. For more information, see our blog post. 

EU: Commission publishes draft Industrial Accelerator Act 

On 4 March 2026, the European Commission published its proposal for a Regulation establishing a framework of measures for the acceleration of industrial capacity and decarbonisation in strategic sectors - the Industrial Accelerator Act (IAA)). The IAA is deliberately wide-ranging, seeking to cover competitiveness, decarbonisation, supply chain resilience, foreign investment and territorial industrial policy within a single framework.
Under the proposal, strategic industrial and decarbonisation projects would benefit from a single digital permitting process and designated “industrial manufacturing acceleration areas” with pre-cleared approvals. EU origin ("Made in EU") and low carbon criteria would be integrated into public procurement and support schemes, with possible limits on certain third country bidders. Large foreign direct investments in emerging strategic sectors would face additional value added and approval requirements. The proposal will follow the ordinary legislative procedure, with the European Parliament and Council first needing to agree their negotiating positions before trilogue negotiations on a final text can start. For more information on the IAA, see our blog post.
The Commission opened a feedback period on the proposed IAA. Stakeholders can submit their input until 7 May 2026, although this period will be extended on a daily basis until the adopted proposal is available in all EU languages. The results of the consultation are expected to inform the legislative debate.

EU: Commission backs homegrown Small Modular Reactors to boost energy security

On 10 March 2026, the European Commission published its Strategy for the development and deployment of Small Modular Reactors (SMRs) in Europe (SMR Strategy), as part of a wider Energy Package aimed at boosting investment in homegrown clean energy solutions, increasing resilience and reducing energy prices. Together with other measures aimed (among other things) at incentivising private investment in clean energy solutions (see the Clean Energy Investment Strategy) and designing an energy system that puts citizens at the centre (see the Citizens Energy Package), these new strategies signal the importance of the supply of homegrown, affordable and clean energy in achieving the EU’s strategic goals of industrial competitiveness, independence and decarbonisation. For more information, see our blog post. 

EU Commission issues guidance on Packaging and Packaging Waste Regulation

The European Commission has taken steps to support the roll-out of the Packaging and Packaging Waste Regulation (PPWR) by publishing a guidance document on 30 March 2026. The document is intended to promote consistent application of the new packaging framework across Member States. The guidance document will be made available in all official EU languages ahead of its formal adoption.

Among the areas addressed, the guidance sets out how to determine whether a company qualifies as a manufacturer or producer under the PPWR, and which items fall within the definition of packaging. It also covers restrictions on single-use packaging, the prohibition of PFAS (perfluoroalkyl and polyfluoroalkyl substances) in food contact packaging, and the practical application of re-use targets. Further, the document offers direction on extended producer responsibility schemes for packaging and the establishment of deposit and return systems. 

Alongside the guidance, the Commission has published a set of Frequently Asked Questions (FAQs), compiled in response to practical concerns raised by stakeholders since the PPWR was adopted.

By way of background, the PPWR entered into force on 11 February 2025, with application commencing on 12 August 2026. The Regulation introduces a range of measures, including mandatory recyclability requirements by 2030, minimum recycled content thresholds for plastic packaging, and steps to curb unnecessary or excessive packaging.

UK: Preparing for ESOS Phase 4

The UK’s Energy Savings Opportunity Scheme (ESOS) is an energy usage assessment scheme that requires in-scope organisations to audit their energy usage every four years. The audit assessments must cover energy consumed by buildings, industrial processes, and transport, with a view to identifying opportunities to reduce energy usage. The ESOS Phase 4 qualification date - 31 December 2026 - is fast-approaching. While the compliance date is 5 December 2027, companies should allow good time to refresh / assess scoping analyses given potential complexities. Changes for Phase 4 mean previous routes to compliance have been removed as part of Phase 4.  For more information, see our blog post.

UK: Mandatory ethnicity and disability pay gap reporting: Government publishes its consultation response

On 25 March 2026, the UK government published its long-awaited response to the consultation on mandatory ethnicity and disability pay gap reporting. As widely anticipated, it has reaffirmed its commitment to introducing mandatory reporting in both areas. The consultation response not only confirms the government's intention to legislate but also sets out the key policy decisions it has reached on how the new regime will work in practice. This is a significant development for large employers in the UK. For more information, see our blog post. 

Monetary Authority of Singapore publishes guidelines on transition planning for banks, asset managers and insurers 

On 5 March 2026, the Monetary Authority of Singapore (MAS) published Guidelines on Environmental Risk Management - Transition Planning for banks, insurers and asset managers (collectively, the FIs). The Guidelines set out MAS’ supervisory expectations for FIs to assess and manage the transition and physical risks they face from climate change (being ‘climate-related risks’) as part of a sound transition planning process. The Guidelines are intended to supplement and be an addendum to MAS’ Environmental Risk Management (ENRM) Guidelines for banks, insurers and asset managers, setting out incremental requirements in relation to the respective FIs’ transition planning process. For more information, see our blog post. 

ICMA publishes paper on evolving landscape of ESG ratings and data products

On 12 March 2026, ICMA published a new paper on the role of ESG ratings and data products in sustainable finance. The Paper examines the rapidly evolving role of ESG ratings, scores and data products across capital markets, and the growing scrutiny around how these tools are produced, interpreted and used. One of the areas the Paper looks at is how IOSCO’s recommendations made in 2021 have led to market-led responses in Japan, Singapore, Hong Kong SAR and the UK, including the creation of the ICMA Code of Conduct for ESG Ratings and Data Product Providers as well as more recently to regulation in the EU as well as India and the UK. 

The key takeaways are: 

• the market has already become much more transparent since IOSCO’s Final Report in November 2021, helped by providers signing up to voluntary codes of conduct;

• there continues to be widespread reliance on third-party ESG ratings and data products, but also extensive use of internal ESG scores and ratings by asset managers and owners;

• The ICMA Code of Conduct has become an important reference point in improving transparency, governance and comparability in the market for ESG ratings and data products, however, regulation, if done proportionately, can bring additional benefits;

• the interaction between voluntary codes, formal regulation, internal models and standardised sustainability disclosures will shape how this market develops from here; and

• ESG products not covered by current or future regulation, such as ESG data products, can continue to be covered by voluntary codes of conduct.

China and UK sign memorandum of understanding on Clean Energy Partnership

The UK’s Department of Energy Security and Net Zero (DESNZ) and China’s National Energy Administration (NEA) signed a Memorandum of Understanding on 17 March 2025 establishing new terms for a Clean Energy Partnership initially set up a decade ago (the Partnership). The revised Partnership, details of which were published on 27 February 2026, is intended to accelerate the development and deployment of clean energy in both countries, with the shared goals of reducing emissions, strengthening energy security and supporting economic growth. 

The parties have agreed to prioritise cooperation across five specific sectors: (i) power market reform and electricity grids; (ii) battery storage; (iii) offshore wind; (iv) carbon capture usage and storage; and (v) clean, low carbon and renewable hydrogen. Broader cooperation on additional areas of shared interest (including civil nuclear, charging infrastructure, green electricity certificates, coal power transition pathways and third-market opportunities) will also continue through this and other forums.

The parties have agreed to collaborate on policy, regulation and standards, including sharing experience on market reform, investment incentives, green financing, energy security and supply chains. They have also agreed to explore ways to align their respective industrial strategies to support the clean energy transition and to develop collaboration between their industries, governments and academic institutions.

On commercial matters, both sides have agreed to facilitate trade and investment opportunities between British and Chinese companies and financial bodies in the green manufacturing and clean energy sectors, with economic growth and job creation in both markets identified as important considerations.

In terms of governance, the Partnership will be overseen through a dedicated session of the annual UK-China Energy Dialogue, with ministerial and working-level meetings encouraged in between. The parties may also establish joint working groups, centres of expertise, or other mechanisms to advance the Partnership’s objectives, with funding agreed on a case-by-case basis and potentially including commercial financing for certain projects. 

National People’s Congress releases Ecological and Environmental Code of the People’s Republic of China

On 12 March 2026, the National People’s Congress (NPC) released the Ecological and Environmental Code of the People’s Republic of China (Chinese language), which will take effect on 15 August 2026. The Code is China’s second codified law following the Civil Code and represents a significant step in the systematic codification of ecological and environmental governance. It consolidates and elevates existing regulatory practices across multiple environmental domains while introducing a unified statutory framework.

The Code spans pollution prevention and control, ecological conservation, green and low‑carbon development and legal liability. It unifies rules governing air, water, soil, solid waste, noise, radioactive and marine environments and expands coverage to chemicals, electromagnetic radiation and light pollution. It also underscores coordinated high‑quality development and ecological protection, promoting comprehensive ecosystem preservation and sustainable use of natural resources. The Code establishes legal regimes supporting green transformation and low‑carbon development across key sectors and strengthens liability provisions to ensure more stringent and unified enforcement in ecological and environmental protection.

National People’s Congress issues Fifteenth Five Year Plan setting green transition and compliance priorities 

On 13 March 2026, the National People’s Congress issued the Fifteenth Five Year Plan (Chinese language) (the FYP) at the 2026 Two Sessions. Article 13 of the FYP sets out China’s integrated framework for advancing the green and low carbon transition from 2026 to 2030. The FYP emphasises coordinated progress on carbon peaking and carbon neutrality, improved environmental quality, strengthened biodiversity protection and more efficient use of key resources.

The FYP introduces dual controls on total carbon emissions and carbon intensity and strengthens carbon management across major sectors. It requires more robust accounting, monitoring and verification systems and establishes product-level carbon footprint and carbon labelling standards. New or expanded high emissions projects will require offsets in the form of carbon‑equivalent or reduced emissions. For businesses, these changes mean more restrictive approval pathways for emissions intensive activities, stricter expectations for data accuracy and disclosure and stronger drivers to improve energy efficiency, adopt lower-carbon technologies and demonstrate credible transition strategies. Oversight of energy use and emissions are expected to tighten, creating upward pressure on compliance costs and requiring earlier assessment of project-level environmental risks.

Environmental and ecological measures under the FYP aim to improve air and water quality, reduce key pollutants and strengthen ecosystem and natural resource resiliency. The FYP targets reductions in major air and water contaminants and prioritises restoration of critical ecological zones, expansion of the national park system and improved management of wetlands, grasslands and other sensitive habitats. Resource efficiency measures include tighter controls on water, land and mineral use, supported by a target to reduce water consumption per unit of GDP and increase utilisation of major solid wastes. These elements signal rising expectations across supply chains, including more scrutiny of local environmental impacts, waste management practices and water stewardship, and a clearer regulatory preference for businesses able to align operations and sourcing with China’s long term green goals.

Singapore and Japan sign framework to boost collaboration in energy sector

Singapore’s Ministry of Trade and Industry (MTI) and Japan’s Ministry of Economy, Trade and Industry (METI) signed an Energy, Sustainability, and Climate Change Cooperation Framework, which is intended to enhance collaboration in areas such as cross-border electricity imports, low-carbon hydrogen/ammonia, CCUS, civil nuclear energy, LNG, and offshore wind. Under the framework, the countries will collaborate more through policy exchanges, business facilitation, financial cooperation, and the harmonisation and mutual recognition of standards. Singapore and Japan will also work together to encourage low-carbon energy projects. 

Malaysia launches consultation on proposed Malaysia Taxonomy for Sustainable Finance

On 2 March 2026, Bank Negara Malaysia (BNM) and the Securities Commission Malaysia released the Malaysia Taxonomy for Sustainable Finance for consultation (the Malaysia Taxonomy). The Malaysia Taxonomy is intended to build on the earlier works of principle-based taxonomies, i.e. the Climate Change and Principle-based Taxonomy (CCPT) and the Principles-Based Sustainable and Responsible Investments Taxonomy (SRI Taxonomy).  The aim is create a unified taxonomy at the national level as well as align the structure of the national taxonomy with the ASEAN Taxonomy for Sustainable Finance, to ensure interoperability across jurisdictions. While the CCPT and SRI Taxonomy were largely principles-based, the proposed Malaysia Taxonomy introduces technical screening criteria (TSC), expands beyond climate change to include new environmental objectives for protection of biodiversity and healthy ecosystems as well as promotion of resource resilience and transition to a circular economy are being considered; introduces a “traffic-light” classification system; and proposes moving to a weighted-average assessment based on the revenue/ turnover, or expenditure (CapEx/OpEx) of the underlying investee entities (transaction-level) to be used in deriving entity- and portfolio-level classification (instead of relying on instrument-level label). The consultation closes on 14 April 2026.

Federal Agency Actions

• On 1 April 2026, the Environmental Protection Agency (EPA) published a final rule pertaining to hazardous air pollutants that introduces new leak detection and repair requirements for equipment, updates leak monitoring obligations for large heat exchange systems, and revises the definition of “metal HAP process vent” by removing the existing metal HAP concentration threshold, thereby bringing process vents that emit metal HAP at concentrations below that threshold within the scope of regulatory control. The proposed rule contained restrictions for ethylene oxide, but these restrictions were eliminated in the final rule following a separate proposed rule that would reduce the regulatory burdens on facilities using ethylene oxide.
• A number of organizations, cities, and states have filed petitions for review of the EPA’s February 2026 rule rescinding the agency's 2009 finding that greenhouse gas emissions pose a danger to public health within the meaning of the Clean Air Act.
  • On 31 March 2026, 21 states and local governments filed suit in the U.S. Court of Appeals for the District of Columbia.
  • On 19 March 2026, 24 states, Washington, D.C, the U.S. Virgin Islands, and 12 cities and counties filed suit in the U.S. Court of Appeals for the District of Columbia.
  • On 12 March 2026, the Service Employees International Union (SEIU) filed suit in the U.S. Court of Appeals for the District of Columbia.
  • On 31 March 2026, the Endangered Species Committee (colloquially known as the “God Squad”) unanimously granted a national security exemption under Section 7(h) of the Endangered Species Act (ESA) covering all oil and gas exploration, development, and production activities associated with the Bureau of Ocean Energy Management's (BOEM) and the Bureau of Safety and Environmental Enforcement's Outer Continental Shelf Oil and Gas Program in the Gulf of Mexico. The exemption allows federal agencies to proceed without the need for ESA consultation and renders otherwise prohibited "take" actions permissible for the duration of those activities. The exemption was granted pursuant to a finding by the Secretary of the Army that it was necessary for national security purposes, which under Section 7(j) of the ESA required the Committee to grant it notwithstanding any other provision of the statute. This is the first time the Committee has ever granted an exemption on the basis of national security.
• On 30 March 2026, a federal judge in California struck down four regulatory changes related to the ESA and the National Environmental Policy Act that the Fish and Wildlife Service (FWS) and National Marine Fisheries Service (NMFS) had introduced through two rulemakings in 2019 and another two in 2024. The changes would have restricted the FWS' and NMFS' ability to evaluate the effects of agency action on listed species and their habitats, required them to consider non-binding mitigation plans as beneficial actions when preparing an opinion on an action, allowed adverse modifications to critical habitats as long as they did not diminish the overall value of the habitat, and eliminated FWS' and NMFS' duty to request reinitiation of consultation. The court concluded that these regulatory provisions were unlawful because they either contradicted the text of the ESA or were arbitrary and capricious. The court vacated the invalidated provisions and reinstated the versions of those regulations that had been in effect prior to the 2019 and 2024 rulemakings.
• On 27 March 2026, the EPA finalized the Renewable Fuel Standard (RFS) "Set 2" final rule, establishing renewable fuel volume requirements for 2026 and 2027 at the highest levels in the history of the RFS program. To meet the new volume levels, EPA estimates that biodiesel and renewable diesel production and use must increase by over 60 percent compared to 2025 volumes and conventional biofuel will be maintained at 15 billion gallons for both years. The rule also removes renewable electricity from the RFS program and finalizes a 70 percent partial reallocation of exempted Renewable Volume Obligations from 2023–2025 to the 2026 and 2027 compliance years. Additionally, EPA announced that beginning in 2028, foreign fuels and feedstocks will receive half the RFS compliance value compared to domestically produced products.
• The same day, the EPA announced that it would no longer require Diesel Exhaust Fluid sensors on diesel engines with Selective Catalytic Reduction emission controls. Instead, the EPA recommends manufacturers employ alternative detection methods, such as NOx sensor-based systems. The EPA also confirmed that software updates implementing these alternative monitoring strategies may be installed on existing diesel products without such action constituting tampering under the Clean Air Act.
• On 23 March 2026, the US Department of the Interior (DOI) and TotalEnergies signed settlement agreements whereby DOI stated that TotalEnergies relinquished two offshore wind leases in the Carolina Long Bay and New York Bight areas and committed to cease development of offshore wind projects in the United States. In exchange, the US government agreed to reimburse TotalEnergies for the roughly $1billion lease fees paid, contingent on TotalEnergies’ investing an equivalent amount in US liquified natural gas (LNG) production, including development of the Rio Grande LNG plant in Texas and upstream oil and gas production in the Gulf of Mexico. Subsequently, TotalEnergies signed a Letter of Intent with Glenfarne, lead developer of the Alaska LNG project, for the long-term offtake of LNG over 20 years, subject to the project's final investment decision.
• On 19 March 2026, Japan and the United States signed a Memorandum of Cooperation (MOC) on deep-sea mineral resource development, establishing a bilateral Japan-US Working Group to facilitate cooperation in science and technology and accelerate deep-sea mineral resource development. The Working Group, to be convened at the senior level and led by METI and the National Oceanic and Atmospheric Administration, will focus on sharing information on seabed mineral resource projects (including Japan's rare-earth muds project near Minamitorishima Island), presenting relevant technologies, engaging with industry on regulatory approaches, and exploring opportunities for the mutual utilization of relevant assets. The MOC was signed alongside a broader Critical Minerals Action Plan to increase the production and diversity of critical minerals through a plurilateral trade initiative supported by price floors or other measures. The MOC does not constitute or create rights or obligations under the domestic laws of either country or under international law and does not commit either party to the expenditure of funds.
• On 16 March 2026, the Commodity Futures Trading Commission (CFTC), withdrew a request for information on climate-related financial risk it published on 8 June  2022. The request was published following an Executive Order signed by President Biden directing, among other things, that federal financial regulators engage in an assessment of climate-related financial risks pertinent to the U.S. financial system. The CFTC has withdrawn its request for information in light of President Trump’s revocation of E.O. 14030 on 20 January 2025.
• On 13 March 2026, the Federal Energy Regulatory Commission approved a tariff filing by Southwest Power Pool that establishes a new framework for planning the region's transmission infrastructure and connecting new generators to the grid. The framework merges what were previously two separate and siloed processes — regional transmission planning and generator interconnection — into a single assessment designed to be more efficient and cost-effective.
• On 12 March 2026, a federal judge in Oregon granted a preliminary injunction restoring $14 million dollars in grants made to conservation organizations, which DOI terminated in September 2025. The court found that this conduct constituted strong circumstantial evidence that the cancellations were retaliatory rather than cost-driven. 

State Actions

• On 26 March 2026, the Ohio Attorney General’s office certified the petition title and summary for a constitutional amendment that would prohibit construction of data centers in the state. The proposed Prohibition of Construction of a Data Center amendment would prohibit construction of data centers with an aggregate monthly demand or peak load of greater than twenty-five (25) megawatts. Amazon Web Services plans to build up to eight new data centers, an investment of over $23 billion, across Ohio by the end of 2030. The petitioners must still satisfy various signature requirements for the amendment to be listed on the voting ballot in Ohio.
• On 23 March 2026, the California Air Resources Board (CARB) proposed several possible frameworks for how large businesses may account for Scope 3 indirect emissions throughout their value chains under Senate Bill 253 for reporting that starts in 2027. Senate Bill 253 mandates that companies producing revenue over $1 billion and doing business in California provide annual reports on certain categories of Scope 3 emissions, including those connected to supply chains, travel, commuting, procurement, waste, and water usage. The three Scope 3 frameworks under consideration differ in their scope and timing. The first framework would require immediate full compliance across all indirect emission sources, while the other two gradual approaches would either start with the transportation and industrial sectors only, or mandate reporting across all industries beginning only with the emission categories that businesses already most frequently track and disclose.
• On 20 March 2026, New York Governor Kathy Hochul released a statement supporting amendments to the state's Climate Act, which requires New York to reduce its greenhouse gas emissions 40% from 1990 levels by 2030. The Governor proposed setting a 2030 deadline for putting in place the regulations required to implement the Act and linking those regulations to a new 2040 target for reducing emissions. Hochul's proposed changes to the law would also amend the accounting methods used to calculate emissions to match those used internationally and in other states in the U.S. Her statement follows the New York Supreme Court's October 2025 holding that the state had to issue regulations by 6 February 2026, for which appeals are ongoing.
• On 13 March 2026, U.S. Secretary of Energy Chris Wright ordered Sable Offshore Corp. to resume production at the Santa Ynez oil facilities and pipeline system in California, invoking the Defense Production Act as authority for the order. The Santa Ynez facilities and pipeline system were shut down in 2015 following a significant oil spill that affected the surrounding coastal area. In response to the order, the State of California filed a complaint against the Secretary of Energy on 23 March 2026, seeking declaratory and injunctive relief. The State’s complaint argues that the order exceeds the authority granted by the Defense Production Act, violates the Administrative Procedure Act, and breaches constitutional separation of powers and the Tenth Amendment.
• Throughout the first quarter of 2026, three states moved to reduce energy efficiency program funding amid rising electricity costs. In Massachusetts, the House passed legislation on 26 February 2026 reducing the Mass Save program budget by $1 billion, redirecting 70 percent of Alternative Compliance Payments to ratepayers through at least 2029, and reducing net metering credit amounts. On 13 March 2026, Maryland Governor Wes Moore and legislative leaders announced the Utility RELIEF Act , which would deploy more than $200 million from the state's Strategic Energy Investment Fund (including $100 million in direct bill relief) with projected annual household savings of at least $150, cap utility executive compensation recoverable from ratepayers, require data centers to fund their own grid infrastructure upgrades, and direct utilities to prioritize advanced transmission technologies. In Rhode Island, Governor Dan McKee's proposed FY 2027 budget would cap annual energy efficiency program funding at $75 million for three fiscal years — down from approximately $117 million in 2025 — and modify the Renewable Energy Standard's Alternative Compliance Payment structure and net metering rules, drawing formal opposition from the Conservation Law Foundation on climate obligation grounds.

Climate Change Litigation

• On 24 March 2026, the Maryland Supreme Court affirmed the dismissal of three consolidated climate tort cases brought by Baltimore, Anne Arundel County, and the City of Annapolis against 26 multinational oil and gas companies. The plaintiffs alleged that the defendant companies had, for more than 50 years, marketed fossil fuel products that drove greenhouse gas emissions and that the companies had misled consumers and the public about a known connection between those products and climate change, causing localized harms such as sea level rise and flooding. The court determined that the local governments' state law claims amounted to an attempt to regulate air emissions, an area of federal jurisdiction, and were thus preempted and displaced by federal law. The court further held that, even if the claims had survived the preemption analysis, each of the five causes of action – public nuisance, private nuisance, trespass, and strict liability and negligent failure to warn – independently failed to state a claim under Maryland state law.
• On 9 March 2026, the Fifth Circuit withdrew its 25 March 2025 opinion backing the EPA’s disapproval of the Texas State Implementation Plan (SIP). Under the Clean Air Act’s State Implementation Plan provision, states must prevent emissions that could negatively affect the air quality in neighboring states. In 2015, the EPA tightened the ozone limits for the National Ambient Air Quality Standards, triggering the obligation for states to submit updated SIPs. The EPA issued a final rule disapproving the SIP in 2023, which led to the Fifth Circuit’s original 2025 opinion. On 30 January 2026, the EPA then published a notice of a proposed rule and reconsideration of a final rule, which indicated that the 2023 decisions relied on data not available to Texas at the time the state submitted its SIP. In light of this notice, the court granted the petition for review of the EPA’s disapproval of Texas’s SIP, vacated the EPA’s disapproval and remanded the matter to the EPA.
• On 3 March 2026, a former Cushman & Wakefield employee filed a class action lawsuit against the company on behalf of the Cushman & Wakefield 401(k) Plan and plan participants or beneficiaries. The complaint alleges that Cushman & Wakefield breached its fiduciary duties by mismanaging its employee retirement plan, which had approximately $1.7 billion in assets as of December 31, 2024. The complaint further claims that Cushman & Wakefield ignored red flags including climate change-related financial risks which resulted in employees suffering losses to retirement savings.

Oil & Gas Litigation

• On 27 February 2026, the U.S. District Court for the Western District of Wisconsin stayed an injunction requiring an energy company to shut down a portion of its pipeline on tribal lands in Wisconsin, pending a decision from an ongoing appeal with the U.S. Court of Appeals for the Seventh Circuit. The dispute began in 2019 when the indigenous tribe filed a lawsuit against the energy company, alleging that the company was trespassing on their reservation by continuing to operate a crude oil and natural gas pipeline after its easements expired. In 2022, summary judgment was granted in favor of the tribe on its trespass claim, and in 2023, the energy company was ordered to pay $5.2 million for the trespass and was given three years to reroute the pipeline off the reservation. The energy company appealed that decision which is currently pending. In granting the stay, the court cited the potential devastating impact a sudden shutdown would have on energy prices, local economies, and foreign relations. 

Climate Disclosure Legislation and Regulations

• On 26 February 2026, the California Air Resources Board (CARB) approved the adoption of the California Greenhouse Gas Reporting and Climate Financial Risk Disclosure Initial Regulation. Adoption of the initial regulation represents a step toward implementing two California climate disclosure laws, Senate Bill 253 (the Climate Corporate Data Accountability Act) and Senate Bill 261 (the Climate-Related Financial Risk Act). Under the initial regulation, CARB will be able to administer and fund the reporting programs of SB 253 and 261. Specifically, the regulation establishes a fee structure to fund program administration, sets key definitions, and fixes 10 August 2026 as the first reporting deadline under SB 253, with first-year reporting covering only Scope 1 and Scope 2 greenhouse gas emissions.

Anti-ESG Actions

• On 25 February 2026, The Vanguard Group (Vanguard) reached an agreement to settle a lawsuit brought by multiple states in the District Court for the Eastern District of Texas. The complaint, filed on 27 November 2024, accused Vanguard, BlackRock Inc., and State Street Corp. of manipulating the coal market in violation of federal and state antitrust law. The complaint further alleged that the defendants formed a syndicate to use acquired shares in coal companies to coerce the companies into reducing their coal output to meet carbon emission reduction targets. As part of the settlement agreement between Vanguard and the states, Vanguard will pay $29.5 million and make commercially reasonable efforts to offer a proxy voting choice to investors in funds accounting for at least 50% of assets invested in U.S. equity funds it advises by 2027.

DEI Developments and Litigation

• On 26 March 2026, President Trump issued the “Addressing DEI Discrimination by Federal Contractors” Executive Order. As part of the order, government agency contracts must include an additional provision requiring contractors to pledge that they will not engage in “racially discriminatory” DEI activities and will furnish reports to the agencies to ensure compliance. If a contractor fails to comply with the order, their contract may be terminated, canceled, or suspended.

Greenwashing Litigation

• On 17 March 2026, multiple trade organizations filed suit challenging the constitutionality of Senate Bill 343, a 2021 California labeling law, in the Southern District of California. Senate Bill 343 is set to become operative in October 2026 and would place certain restrictions on advertising and labeling that uses environmentally friendly terms or the “chasing arrows” symbol commonly associated with recycling. Under this bill, manufacturers would have to use information published by the California Department of Resources Recycling and Recovery to determine whether their products are “recyclable” under the agency’s criteria. The complaint alleges that the law violates the free speech clause of the First Amendment and is vague under the Fourteenth Amendment.
• On 3 March 2026, the plaintiffs in a class action greenwashing suit against Apple gave notice to the U.S. District Court for the Northern District of California that they did not intend to file an amended complaint, leaving a 20 February 2026 ruling in favor of Apple in place. In their complaint, the plaintiffs alleged that Apple's environmental marketing, specifically its claims that Apple has been carbon neutral for corporate emissions since 2020 and that some models of the Apple Watch are carbon neutral, were misleading and false because they referred to Apple's practice of offsetting its emissions with carbon credits. The plaintiffs alleged the carbon credits did not fully offset Apple’s emissions. In its 20 February ruling, the court ruled in favor of Apple's motion to dismiss, finding that the plaintiffs did not provide sufficient facts to show that Apple acted deceptively and that their allegations were based on unproven assumptions.

EPA Litigation

• On 30 March 2026, a group of public health and environmental organizations filed a petition for review concerning the EPA’s final rule repealing revised Mercury and Air Toxics Standards changes promulgated in 2024, which further limited mercury emissions from power plants. On 31 March, attorneys from several states filed a petition for review challenging the same rule. Pursuant to the “Unleashing American Energy” Executive Order, aimed to ensure abundant supplies of reliable energy, the EPA claimed that the increased restrictions were not necessary under the Clean Air Act and therefore should be repealed. Both petitions were filed in the US Court of Appeals for the D.C. Circuit.
• On 16 March 2026, environmental groups filed a petition for review challenging the EPA’s final rule on new source performance standards for stationary combustion turbines and stationary gas turbines. The American Petroleum Institute also filed a separate challenge to the final rule on the same day. The rule creates new subcategories for stationary combustion turbines, identifies the Best System of Emission Reduction (BSER) for nitrogen oxide, and retains the existing BSER for sulfur dioxide. Both petitions were filed in the US Court of Appeals for the D.C. Circuit. 

• Webinar recording: What will California’s new law on climate disclosures (SB 253) mean for your organisation?
• Insights from Berlin: key themes from the Infrastructure Investor Global Summit 2026