Report

Ten lessons in sustainability regulation

Creating an effective regulatory framework will be critical to deliver Net Zero. But does that mean more – or less – regulation? 

A dutch energy farm on the coast
Read Time
8 mins
Published Date
Apr 9 2024
The quickest way to decarbonize the global economy will be for jurisdictions to adopt sustainability regulations that have been successfully deployed elsewhere. In this report we identify what unites effective low carbon frameworks and what we can learn from unsuccessful implementations to ensure the mistakes of the past are not repeated. Our teams examine everything from trade agreements to antitrust rules and state support mechanisms for green infrastructure. 
Summary

Policymakers must avoid stifling innovation or overburdening companies with too many sets of rules. They must provide clear guidance on disclosure requirements, and allow business the freedom to pursue climate objectives in the most efficient way possible. 

The capital markets are a good example, where excessive regulatory rigidity has the potential to drive away issuers. If the capital markets are to achieve their critical role in the transition, flexibility is required. 

Companies must adapt to the physical, regulatory and commercial risks and opportunities presented by a low-carbon economy. Their responsibilities will include tracking significant volumes of new regulation, anticipating and responding to pressure from investors, customers and activists, and meeting stringent disclosure requirements. 

Related people

This report was developed by lawyers across our global network with leadership roles in environmental regulation, energy, antitrust, capital markets, international trade and public international law. You can read about their expertise below.