SUSTAINABILITY DESK

Week of April 7

The GHG Protocol is getting its first Scope 3 reporting makeover in decades, CBAM certificates now have a real price tag (€75), renewables quietly hit half of global power capacity, China’s clean tech companies are having a moment, and the administration’s second budget takes another $30 billion bite out of climate programs. Happy Friday — grab a coffee.

Table of Contents

GHG PROTOCOL UPDATE

The Scope 3 standard is finally getting a rewrite

The Greenhouse Gas Protocol released its first progress update on revising the nearly 30-year-old Scope 3 standard, developed in cooperation with ISO. Here’s where Scope 3 reporting is headed:

  • New boundary rules: Companies would need to report at least 95% of Scope 3 emissions and quantitatively assess 100% to verify that exclusions stay within a 5% threshold
  • Data quality upgrade: Tiered data quality requirements, updated emissions factors, stronger verification—pushing toward supplier-specific data over spend-based estimates
  • Category 15/16 split: Category 15 (investments) would isolate investments only; a new optional Category 16 covers “other value chain activities” including insured emissions, aligned with PCAF guidance. Financial institutions: read the boundary-setting section on Page 25 carefully

This is a progress update, not a final draft—public consultation comes later this year. But if you’re building your Scope 3 program, build to these specs.

CARBON BORDER POLICY

CBAM now has a price: €75.36 per tonne

The EU’s carbon border tariff has a real number: €75.36 per tonne of CO₂, based on average Q1 2026 allowance auction results. CBAM certificate purchases are required starting February 2027.

  • UK is right behind: The UK published its own CBAM rules this week. The first measurable period starts January 1, 2027, with payments beginning early 2028. Coverage includes building products, fertilizer, and iron and steel
  • U.S. CBAMs: Three different U.S. carbon border proposals now have bipartisan sponsors in Congress. Carbon border pricing is going global—the question is structure, not whether
  • Over 4,100 authorized declarants have onboarded in the EU ahead of the January 1 launch; a new de minimis threshold exempts importers under 50 tonnes
CLEAN TECH SUPPLY CHAINS

The clean tech supply chain is tilting toward China — fast

The Iran war ceasefire this week dropped oil prices, but the energy shock has already reshuffled clean tech supply chains. Energy rationing across Asia is accelerating renewable adoption, and Chinese manufacturers are the primary beneficiaries.

  • BYD exports up 65% year over year in March; battery giant CATL’s shares jumped 29.5%
  • Used EV sales in the U.S. rose 12% this quarter, even as new EV sales dropped more than 25% following the withdrawal of the EV tax credit
  • Cuba is turning to Chinese solar imports to offset its energy blockade, aiming to nearly triple solar parks by 2028
  • Worth watching: By April 30, China’s three largest stock exchanges become the biggest to mandate sustainability reporting, covering 450-plus companies. China is also bidding to host the UN High Seas Treaty body, offering $70 million
RENEWABLE ENERGY MILESTONE

Half the world’s power capacity is now renewable

IRENA’s annual report landed this week: global renewable capacity hit 5,149 GW after adding a record 692 GW in 2025—a 15.5% jump. Renewables now represent nearly half of all global power capacity.

  • Solar added 511 GW (75% of new renewables). Wind added 159 GW. Together they accounted for 96.8% of net additions
  • Asia led at 74% of new capacity. Africa hit its highest-ever increase (15.9%). The Middle East grew 28.9%
  • This growth happened during a year of tariff chaos, subsidy cuts, and war. Renewables economics are increasingly policy-proof
U.S. BUDGET

Trump’s second budget: $30 billion more in climate cuts

The administration’s second budget features an unprecedented 44% jump in military spending to $1.5 trillion. The bill comes due on climate and environment.

  • EPA budget cut in half
  • Infrastructure Investment and Jobs Act clean energy funding canceled
  • Funding eliminated for climate research, energy efficiency, and renewables programs
  • All told: more than $30 billion in cuts to environmental, disaster recovery, and clean energy programs
  • Forest Service shutting down two-thirds of research facilities; scientists warn climate and wildfire research could be permanently lost
There’s more

Also notable

Global conditions

Climate and weather: Forecasters are warning of a potential super El Niño — temperatures 2°C or more above average. Non-survivable heat waves are on the rise. 2026 could be a rough year.

Regulatory updates
Climate litigation
  • Oklahoma: The state Supreme Court struck down a law requiring the state to boycott financial firms seen as hostile to energy companies. A similar Texas law was already overturned.
  • Utah: Passed a law shielding fossil fuel companies from climate damage lawsuits. Republicans are working on a federal version.
Standards updates
  • SBTi: APAC companies with validated science-based targets jumped 53% in 2025 to 2,297. 39% of the S&P 500 is now validated. Healthcare spiked 76%.
  • PCAF: The standard is now used by 719 financial institutions representing approximately $100 trillion in assets.
Company moves
  • JPMorgan signed a 60,000-tonne carbon removal deal with Graphyte. The Arizona facility uses forest thinning material to reduce wildfire risk—carbon credits that double as fire prevention.
  • CATL is moving into shipping, aiming to electrify smaller vessels in global fleets.
Ready to streamline your emissions reporting and compliance readiness?

Frequently asked questions

The GHG Protocol’s Corporate Value Chain (Scope 3) Standard has been in place for nearly 30 years without a major revision. The new progress update, developed in coordination with ISO, signals a meaningful shift in what Scope 3 reporting will require: a 95% emissions coverage threshold, tiered data quality standards that push companies away from spend-based estimates toward supplier-specific data, and a restructured investment category. This isn’t a final standard yet (public consultation is expected later in 2026) but companies building Scope 3 programs should design to these emerging specifications rather than current requirements.

The EU Carbon Border Adjustment Mechanism (CBAM) is a carbon tariff applied to imports of carbon-intensive goods entering the EU — currently covering cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen. The €75.36 per tonne price is based on Q1 2026 average EU Emissions Trading System allowance auction results. Certificate purchases become mandatory starting February 2027. Importers in these sectors selling into the EU need to begin assessing their embedded carbon exposure now. The UK is implementing a parallel CBAM effective January 1, 2027, and multiple U.S. carbon border proposals have gained bipartisan sponsors.

The proposed update would restructure how financed emissions are categorized. Category 15 (investments) would be narrowed to investment activities only, while a new optional Category 16 would cover broader value chain activities including insured emissions—aligned with PCAF methodology. Financial institutions with existing Scope 3 programs built around current Category 15 definitions should pay close attention to the boundary-setting guidance in the progress update, as the restructuring could affect both what is required and what is comparable across reporting periods.

Global renewable capacity reaching nearly half of all power capacity has direct implications for location-based Scope 2 emission factors. As grids incorporate more renewable generation, average grid emission factors in leading renewable markets will continue to decline — which affects both the location-based and market-based Scope 2 calculations companies use for disclosure. Companies with facilities in high-growth renewable markets like Asia and Africa may see meaningful changes to their Scope 2 figures over the next reporting cycle, and should ensure they are using the most current, geographically precise emission factors available.

The proposed elimination of more than $30 billion in climate, clean energy, and environmental research funding has several practical implications. The halving of the EPA budget may affect the availability and quality of publicly accessible greenhouse gas data, including the emission factors many companies rely on for Scope 1 and 2 calculations. The cancellation of Infrastructure Investment and Jobs Act clean energy funding will slow some U.S. renewable energy buildout, affecting corporate renewable energy procurement timelines. For companies with science-based targets or net zero commitments, this increases the importance of building programs that are not dependent on federal policy continuity.

CARB is still in the pre-rulemaking phase for Scope 3 requirements under California SB 253. The April 13 deadline closes the comment period on three proposed implementation paths for 2027: broad applicability (all companies report all categories from day one), sector phase-in (heavy emitters first), and category phase-in (most commonly reported categories first). Companies subject to SB 253 that have views on which approach is most workable for their industry or Scope 3 complexity should submit comments before the deadline. Scope 1 and 2 reporting under SB 253 remains due August 10, 2026, with or without Scope 3 rulemaking finalized.

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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