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The Reemergence of the Social Cost of Carbon as an Important Policy Tool in Tackling Climate Change | Sullivan & Worcester


[co-author: Pratishtha Date]
In January 2021, President Biden signed an executive order Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis. [1] This order provided a clear signal that the Biden administration was recommitting the United States to climate initiatives guided by the best science. [2] With a renewed federal focus on addressing the climate crisis, federal agencies have been tasked with captur[ing] the full cost[] of greenhouse gas emissions as accurately as possible in order to engage in informed decision and policy making.[3] Consequently, agencies have been examining both old and new methods of measuring greenhouse gas emissions. One such measure that government agencies have readopted is the social cost of carbon. ....

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New Developments Could Raise the Temperature of Climate Change Disclosure | Sullivan & Worcester


[co-author: Laura Jarvis]
The buzz around climate change is expanding to include the potential effects it could have on businesses’ physical operations and value in the marketplace. Climate-related business risks typically fall into two categories: physical risks (extreme weather events, changes in climate patterns that can affect physical facilities and supply chains) and transition risks (the cost of transitioning to a low-carbon economy, including reputational effects).[1] As climate change can directly and indirectly impact a company’s present value and prospects for the future, the natural question follows: should companies have to disclose a broader range of risks to the public? A bill passed in the House, a recent Biden Executive Order, and actions by the Securities and Exchange Commission ( SEC ) signal that the answer to that question is shifting toward yes. ....

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