Week of April 21

What a historic week means for your carbon accounting program

Happy belated Earth Day. And for once, we’re leading with good news.

Renewables overtook coal globally for the first time in a century. A federal judge blocked the Trump administration’s wind and solar freeze. China opened the world’s largest carbon accounting and trading market to financial institutions. Then reality checked in: the ISSB passed on a nature standard, and Europe launched an emergency energy plan because it has six weeks of jet fuel left.

For companies managing sustainability reporting software or building out emissions infrastructure, the message is consistent: the reporting landscape is shifting fast, and the organizations investing now will not be scrambling later.

ISSB is gaining ground, ESRS is simplifying, and new product-level carbon standards are on the way. Companies that build strong emissions data infrastructure now will be ahead of the curve on CBAM compliance, SBTi validation, and whatever the EU decides next. Also, extremely positive corporate actions below from GM and Apple.

Table of Contents

ENERGY MILESTONE

Renewables overtake coal globally — for the first time in 100 years

Ember’s Global Electricity Review 2026 confirms a historic milestone: renewables (33.8%) passed coal (33.0%) in the global electricity mix in 2025. Solar alone met 75% of the world’s net electricity demand growth.

A record 647 GW of solar capacity was added in 2025 — up 11% year-over-year. Together, solar and wind met 99% of global electricity demand growth. Even China and India recorded falls in fossil generation for the first time.

Battery costs fell 45% in 2025 (on top of a 20% drop in 2024), while deployment grew 46% to 250 GWh. The storage bottleneck is starting to crack. Separately, the IEA’s Global Energy Review confirmed that renewable energy was the single largest source meeting new global energy demand for the first time — with solar accounting for 25% of all new demand, beating gas.

POLICY WATCH

Federal judge blocks wind and solar permitting freeze

A federal judge in Boston issued a preliminary injunction halting enforcement of Trump administration policies that had stalled wind and solar projects nationwide — ruling the plaintiffs are likely to win on the merits.

The Interior Department had required every step in the wind and solar permitting process to get sign-off from three senior political appointees, including Secretary Doug Burgum. Chief Judge Denise Casper found the agencies adopted “unlawful procedures” that created deliberate bottlenecks.

A coalition of nine advocacy groups and developers accused Burgum of favoring fossil fuels and intentionally changing longstanding processes to delay and prevent renewable energy projects. This is the second major judicial check on the administration’s energy policy in a week — a Hawaii judge also dismissed the DOJ’s attempt to block the state from suing oil companies over climate change.

CARBON MARKETS

China opens the world’s largest carbon market to financial institutions

A State Council policy document published April 21 encourages banks and financial firms to participate in carbon trading — a move that could transform the world’s largest emissions trading system from a compliance exercise into a real market.

China’s ETS covers 8 billion-plus tons of emissions but has been restricted to compliance entities since its 2021 launch. Trading clusters around year-end deadlines with thin liquidity the rest of the year. Financial intermediaries should smooth that out.

Regulators have circulated a draft list of eligible institutions, and some firms are already setting up carbon trading desks. More liquidity means better price discovery, which means a more credible carbon price signal. As the EU’s CBAM creates pressure for trading partners to price carbon domestically, a liquid Chinese carbon market could reshape global trade dynamics — and the risk mitigation calculus for multinational companies with supply chain emissions.

STANDARDS UPDATE

ISSB passes on nature — no standalone standard, just guidance

At an Earth Day meeting in Beijing, the ISSB voted to develop a non-mandatory “practice statement” on nature-related disclosures — the weakest of four options on the table, and a decision that drew immediate criticism from conservation leaders.

The ISSB could have added nature to its existing S1 or S2 standards, created a standalone S3 standard, or issued non-binding guidance. They chose the least ambitious path, arguing it won’t disrupt companies still adopting S1 and S2.

Former Unilever CEO Paul Polman said, “Nature is not separate from climate. It is a fundamental part of the same Earth system.” The Finance for Biodiversity Foundation called it “a missed opportunity” given the urgency of biodiversity loss. An exposure draft for public comment is expected in October 2026, but without mandatory force, the practice statement risks becoming shelf-ware while nature loss accelerates.

For companies building CDP reporting programs now, the practical implication is this: S1 and S2 adoption timelines remain intact, and a solid emissions data foundation still positions you well for whatever comes next on nature.

ENERGY SECURITY

Europe launches emergency energy plan as fuel clock ticks

With the Strait of Hormuz still constrained and six weeks of jet fuel left in several European countries, the EU Commission unveiled “AccelerateEU” — an emergency package to cushion the energy shock and fast-track the clean energy transition.

The package includes fuel vouchers, EV credits, remote work encouragement, a new Fuel Observatory to track supply, and lowered gas storage targets (80%, down from 90%). An Electrification Action Plan is promised by summer with binding electrification targets.

The cost so far: $28 billion and counting — that’s what Europe has spent on energy crisis measures since the Iran conflict began.

Climate Commissioner Wopke Hoekstra summarized it clearly: “The only way forward is more electrification, more nuclear, more solar, more wind, more battery capacity, more interconnectors — and all of it with much more speed.”

There’s more

Also notable

Carbon accounting methodology

The GHG Protocol released a white paper on its Actions and Market Instruments (AMI) standard, proposing a multi-statement reporting structure: physical inventory, market-based inventory, GHG impact statement, and non-GHG indicators. The 60-day comment period closes May 31.

Climate litigation

Milieudefensie filed a second lawsuit against Shell — the first-ever attempt to legally ban a company from all new oil and gas extraction. Shell called it “unrealistic and misplaced.” Separately, environmental groups sued the Trump administration over BP’s $5 billion Kaskida deepwater project — its first new Gulf oilfield since Deepwater Horizon, drilling six miles below the sea floor, deeper than Mount Everest is tall.

Corporate climate action

GM became the first U.S. automaker to hit 100% renewable energy across all U.S. operations — a goal originally set for 2050, then accelerated twice. Operational emissions are down 52% since 2018. Apple announced 30% of all products now use recycled materials, 50% of water use comes from restoration projects, and suppliers have procured 20 GW of renewable energy.

Regulations

The EU 2040 Climate Law entered into force this month, setting a binding 90% emissions reduction target vs. 1990 levels — with up to 5% achievable through international carbon credits. The European Banking Authority proposed a major simplification of ESG disclosure rules for banks, aligning with recent EU corporate reporting simplifications.

Politics

The U.S. House planned to reduce endangered species protections but had to cancel the vote when it became clear they didn’t have enough Republican votes.

WHAT THIS MEANS FOR YOUR PROGRAM

What to do next

If you’re managing sustainability reporting or carbon accounting for a mid-market company, this week’s news is a signal — not a fire drill. The GHG Protocol’s AMI update is worth flagging to your reporting lead now: the comment window closes May 31, and the proposed multi-statement structure could change how your market-based inventory is built. ISSB S1 and S2 timelines are holding, so if your organization hasn’t formally mapped its emissions baseline to those frameworks, that work is overdue. On CBAM: if you have European customers or suppliers, the question of whether your carbon data is audit-ready is no longer theoretical. The organizations that invested in emissions data infrastructure two years ago are already answering those questions from a position of confidence — not catch-up.

Frequently asked questions

The ISSB (International Sustainability Standards Board) sets global baseline standards for climate-related financial disclosures, primarily through S1 (general sustainability) and S2 (climate). While ISSB standards are not yet universally mandatory, regulators in the UK, Canada, Australia, and other jurisdictions are adopting them, and many mid-market companies are using them as a framework for investor-grade disclosures.

The EU Carbon Border Adjustment Mechanism requires importers of certain goods into the EU to pay a carbon price equivalent to what EU producers pay under the EU ETS. For companies with European customers or suppliers, having verified emissions data — particularly Scope 3 — is increasingly necessary for compliance and contract retention.

The GHG Protocol’s proposed Actions and Market Instruments (AMI) standard introduces a multi-statement reporting structure that separates physical and market-based inventories. Companies that use renewable energy credits, carbon offsets, or other market-based instruments to reduce their reported emissions should review the white paper. The comment period closes May 31, 2026.

The ISSB cited concerns about overwhelming companies still implementing S1 and S2. Instead, they voted to issue a non-mandatory “practice statement” on nature-related disclosures, with an exposure draft expected in October 2026. Critics argue this decision delays meaningful action on biodiversity loss, which intersects significantly with physical climate risk.

China’s ETS — the world’s largest — is opening to financial institutions, which should improve liquidity and price transparency. For multinationals with Chinese operations, a more liquid carbon market means a more credible domestic carbon price, which could affect both emissions reporting and supply chain risk assessments.

Both companies accelerated targets they originally set for 2050 or beyond — GM hit 100% renewable energy across U.S. operations, and Apple’s suppliers have now procured 20 GW of renewable energy. For sustainability leads building internal business cases, these benchmarks signal that ambitious, accelerated targets are achievable and are increasingly expected by investors and customers.

Carbon accounting is the systematic measurement and reporting of greenhouse gas emissions across Scopes 1, 2, and 3. A rigorous carbon accounting program provides the emissions data infrastructure that underpins virtually every major reporting framework — ISSB, CDP, SBTi, CBAM, and others. Companies with strong carbon accounting foundations are also better positioned for CSRD readiness, as the European standard builds on the same underlying data.

Corinne Hanson headshot

Corinne Hanson is VP of ESG Strategy at Greenplaces, the all-in-one sustainability platform helping businesses turn climate goals into results. She brings over a decade of experience in corporate sustainability, including leadership roles at SH Hotels & Resorts, Global Footprint Network, and the NRDC. A George Washington University grad with degrees in International Relations and Philosophy, Corinne spends her time outside the office the same way she spends it inside: trying to keep the planet in good shape.

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