ESG International Weekly News 4/8 -4/14
1.Trump Issues Order to Block State Climate Laws Aimed at Cutting Fossil Fuel Use
U.S. President Donald Trump signed an executive order—“Protecting American Energy from State Overreach”—directing the federal government to block state-level climate and emissions policies deemed restrictive to fossil fuel development. The order targets New York, California, Vermont, and others with laws on carbon pricing, ESG, and climate litigation.
📌 What the Order Does
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Instructs the Attorney General to identify and challenge state climate laws through legal action
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Claims such regulations violate constitutional principles and threaten U.S. energy dominance
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Calls for a report within 60 days with recommendations for further legislative or executive steps
🎯 Key Policies in the Crosshairs
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NY and Vermont’s “climate liability” laws fining fossil fuel firms for historical emissions
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California’s cap-and-trade system
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State-led lawsuits demanding climate damages from oil firms
🗣️ Reactions
⚖️ Why It Matters
This move expands federal power over state environmental policy and could halt state climate innovation, sparking legal battles over federalism and states’ rights. It reinforces Trump’s fossil-fuel-first agenda and may disrupt ESG-aligned investment and clean energy policies nationwide.
📅 Timeline Highlights
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2015: Obama’s Clean Power Plan empowers states
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2020: Trump revokes California’s Clean Air waiver
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2023: NY and VT pass laws to penalize fossil fuel companies
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2025: Executive order issued; DOJ legal actions expected by June
🔍 Legal analysts expect major constitutional challenges, particularly on the Tenth Amendment and federal preemption of state authority.
2.EU Considers Using International Carbon Credits to Meet 2040 Climate Target
The European Commission is considering allowing international carbon credits to offset part of its 2040 emissions target—a major shift from its domestic-only strategy. A dual-track plan is under discussion: a slightly lower domestic reduction paired with global offset use.
While this could ease pressure on EU industries and support global climate finance, critics warn of risks tied to fraud, weak accountability, and price collapse—issues that led the EU to ban such credits in 2013. A formal proposal is expected before summer and would require EU Parliament and member state approval.
3.J.P. Morgan’s Campbell Global Raises $1.5 Billion for Climate-Focused Timberland Fund
J.P. Morgan Asset Management has closed the Campbell Global Forest & Climate Solutions Fund II at $1.5 billion, surpassing its $1B target. Including separate accounts, total capital raised reached $2.3 billion, backed by U.S. and European pensions, banks, and insurers.
🔍 Fund Strategy Highlights:
Invests in ~212,000 acres of U.S. timberland
Targets carbon removal, biodiversity, and sustainable timber
Managed under Sustainable Forestry Initiative (SFI) standards
The fund aligns income generation with climate impact, reflecting growing investor demand for nature-based, inflation-hedged assets. J.P. Morgan said the strategy offers long-term value through environmental stewardship and carbon sequestration, positioning timberland as a core climate-aligned asset class.
4.Japan’s JFE Steel Unveils $2.2B Project to Deliver World’s First Low-Carbon, High-Grade Steel
JFE Steel announced a ¥329.4B ($2.2B USD) investment to build a next-gen electric arc furnace at its Kurashiki plant, marking a breakthrough in Japan’s carbon-neutral steel production. Supported by a ¥104.5B ($690M USD) government grant under the Green Innovation Fund, the project targets a 2 million-ton annual capacity, with operations starting in FY2028.
📌 Key Features
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First to mass-produce high-tensile and electromagnetic steel via low-carbon methods
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Uses hydrogen-based reduction and low-carbon direct-reduced iron
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Part of Japan’s national decarbonization plan for hard-to-abate industries
This project supports the JFE Group Environmental Vision for 2050 and aims to position Japan as a global leader in advanced green steel technologies.
Resource：
ESG NEWS
