Bergeson & Campbell, P.C. (B&C®) is a Washington, D.C., law firm providing biobased and renewable chemical product stakeholders unparalleled experience, judgment, and excellence in bringing innovative products to market.

By Lynn L. Bergeson
 
On June 2, 2021, the U.S. Department of Energy’s (DOE) Office of Energy Efficiency & Renewable Energy (EERE) announced that the United States, Denmark, and Norway joined forces with the Global Maritime Forum and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping to lead a new Zero-Emission Shipping Mission. This effort is part of Mission Innovation, “a global initiative to catalyze action and investment in research, development and demonstration to make clean energy affordable, attractive and accessible to all this decade.” Supported by the governments of India, Morocco, the United Kingdom, Singapore, France, Ghana, and South Korea, Mission Innovation aims to accelerate the Paris Agreement progress toward net zero emissions. According to DOE’s EERE, international maritime shipping represents approximately two to three percent of the world’s total annual greenhouse gas (GHG) emissions. Without addressing these emissions from maritime shipping, emissions could increase anywhere between 50 and 250 percent by 2050. Therefore, the Zero-Emissions Shipping Mission aims to:

  • Develop, demonstrate, and deploy zero-emissions fuels, ships, and fuel infrastructure across the value chain;
  • Ensure that by 2030, ships capable of running on hydrogen-based zero-emission fuels, such as green hydrogen, green ammonia, green methanol, and biofuels, make up at least five percent of the global deep-sea fleet measured by fuel consumption; and
  • Ensure that by 2030, at least 200 of these zero-emission fueled ships are in service and using these fuels across their main deep-sea shipping routes.

 

By Lynn L. Bergeson and Ligia Duarte Botelho, M.A.

On May 18, 2021, the European Parliament (EP) issued a press release announcing the Just Transition Fund (JTF) to assist European Union (EU) countries to address climate neutrality goals. The Just Transition Fund is composed of €7.5 billion from the European Commission’s (EC) long-term EU budget under the 2021-2027 Multiannual Financial Framework (MFF) and €10 billion from the EU recovery plan, NextGenerationEU. According to the press release, eligible projects must focus on economic diversification, reconversion, or job creation, or they must contribute to the transition into a sustainable and circular European economy. JTF will finance:

  • Job seeking assistance, upskilling, and reskilling to help workers as Europe shifts to a climate-neutral economy;
  • Micro-enterprises;
  • Business incubators;
  • Universities;
  • Public research institutions; and
  • Investments in new energy technologies, energy efficiency, and sustainable local mobility.

A “Green Rewarding Mechanism” could be introduced to the JTF for distribution of additional funding to member states if the EP decides to increase the fund’s resources after December 31, 2024. The goal is for the €7.5 billion JTF funds to generate between €30 and €50 billion from investments. Member states that succeed in reducing industrial greenhouse gas (GHG) emissions will receive additional funding.
 
Access to JTF for member states is conditional upon adoption of national-level commitments to achieve climate neutrality by 2050. Before adoption of such commitments, member states will be entitled to only 50 percent of their national allocations. The portion of the investments provided by EC is set at a maximum of 85 percent for less developed regions, 70 percent for transitional regions, and 50 percent for more developed regions.
 
JTF is part of the European Green Deal Just Transition Mechanism (JTM) initiative, which provides targeted support to regions and sectors in the EU that are most affected by the transition into a green economy. JTM aims to help EU member countries by also:

  • Supporting the transition to low-carbon and climate-resilient activities;
  • Creating new jobs in the green economy;
  • Investing in public and sustainable transport;
  • Providing technical assistance;
  • Investing in renewable energy sources;
  • Improving digital connectivity;
  • Providing affordable loans to local public authorities; and
  • Improving energy infrastructure, district heating, and transportation networks.

In support of JTM, Frans Timmermans, Executive Vice President of EC stated that “[w]e must show solidarity with the most affected regions in Europe, such as the coal mining regions and others, to make sure the [European] Green Deal gets everyone’s full support and has a chance to become a reality.”


 

By Lynn L. Bergeson

On May 12, 2021, from 3:30 p.m. to 5:00 p.m. (EDT), the European Commission (EC) Helpdesk will host a webinar on appropriate Intellectual Property (IP) rights for biotechnology inventions.  The 60-minute webinar will provide an overview of:

  • Relevant IP rights;
  • Product development IP context;
  • IP specifics in biotechnology;
  • IP portfolio development; and
  • IP portfolio management.

The webinar is free of charge, but registration is required.  Additional information is available here.


 

By Lynn L. Bergeson

Under Canada’s New Substances Fees Regulations, fees must be provided with each New Substance Notification (NSN) package submitted under the New Substance Notification Regulations (Chemicals and Polymers). The amount of the fee is dependent on the annual sales in Canada for the notifier, the specific Schedule being submitted, and other services being requested (e.g., confidential search on the Domestic Substances List (DSL) or Non-Domestic Substances List (NDSL) or masked name application). As of April 1, 2019, Environment and Climate Change Canada (ECCC) modifies NSN fees annually based on the country’s Consumer Price Index (CPI). Based on a decrease in Canada’s CPI over the past 12 months, fees for NSN submissions will decrease by 0.2% starting April 1, 2021. ECCC has posted a revised fees table, effective April 1, 2021, to March 31, 2022.


 

By Lynn L. Bergeson

Under Canada’s New Substances Fees Regulations, fees must be provided with each New Substance Notification (NSN) package submitted under the New Substance Notification Regulations (Chemicals and Polymers). The amount of the fee is dependent on the annual sales in Canada for the notifier, the specific Schedule being submitted, and other services being requested (e.g., confidential search on the Domestic Substances List (DSL) or Non-Domestic Substances List (NDSL) or masked name application). As of April 1, 2019, Environment and Climate Change Canada (ECCC) modifies NSN fees annually based on the country’s Consumer Price Index (CPI). Based on a decrease in Canada’s CPI over the past 12 months, fees for NSN submissions will decrease by 0.2% starting April 1, 2021. ECCC has posted a revised fee table, effective April 1, 2021, to March 31, 2022.

Tags: Canada, NSN, Fees

 

By Lynn L. Bergeson 

On February 23, 2021, the European Agency for Safety and Health at Work (EU-OSHA) announced that in association with other relevant Directorates-General (DG) of the European Commission (EC), DG Environment has opened a call for applications to select members for an expert group, the High-Level Roundtable on Implementation of the Chemicals Strategy for Sustainability. According to EU-OSHA, the expert group’s mission “is to set the Chemicals Strategy for Sustainability objectives and monitor its implementation in dialogue with the stakeholders concerned.” Specific tasks include contributing to identifying and addressing social, economic, and cultural barriers to the transition toward safe and sustainable chemicals. The expert group will act as a core group of ambassadors to facilitate discussions and promote this transition in the economy and society, developing a regular exchange of views, experiences, and good practices between the EC and stakeholders on the main objectives of the Strategy, namely:

  • Innovating for safe and sustainable chemicals, including for materials and products;
     
  • Addressing pressing environmental and health concerns;
     
  • Simplifying and consolidating the legal framework;
     
  • Providing a comprehensive knowledge base on chemicals; and
     
  • Setting the example for global sound management of chemicals.

The expert group will consist of up to 32 members, with a maximum of:

  • The member state holding the Presidency of the Council of the European Union;
     
  • Ten third-sector organizations in the following areas: health protection, environmental protection, human rights, animal protection, consumer rights, and workers’ rights;
     
  • Eight scientific organizations, academia, and research institutes providing a suitable balance between expertise in fundamental research, applied research, and training/education;
     
  • Ten industries, including small- and medium-sized enterprises (SME) or associations of enterprises, including an adequate representation of frontrunners in the production and use of safe and sustainable chemicals. Those should include chemical industries, downstream users (from different sectors), and retailers; and
     
  • Three international organizations -- the Organization for Economic Cooperation and Development (OECD), the World Health Organization (WHO), and the United Nations Environment Program (UNEP).

Interested organizations are invited to submit their applications before March 18, 2021.


 

By Lynn L. Bergeson 

The United Kingdom (UK) completed its withdrawal from the EU on December 31, 2020, and, as of January 1, 2021, is a “third country” from the EU perspective. Companies worldwide must be aware of the significant implications for compliance under the following newly established independent chemical regulatory regimes: the Great Britain (England, Scotland, and Wales) (GB) Biocidal Products Regulation (GB BPR); the GB Classification, Labeling, and Packaging Regulation (GB CLP); the GB Prior Informed Consent (PIC) Regulation (GB PIC); Regulation (EC) 1107/2009 concerning plant protection products (PPP); and the UK REACH Regulation. On February 5, 2021, the UK Health and Safety Executive (HSE) provided a brief overview of the new chemical regulatory regimes and links to resources available online. Further information is available in The Acta Group’s, B&C’s affiliate, February 9, 2021, memorandum.

Tags: UK, UK REACH

 

By  Lynn L. Bergeson and Ligia Duarte Botelho, M.A.

On December 19, 2020, the Government of Canada’s Department of the Environment published a proposed rule titled Clean Fuel Regulations. The proposed rule addresses Canada’s concerns in achieving its net-zero emissions by 2050 under the Paris Agreement. In an effort to reduce the largest sources of greenhouse gases (GHG), the Clean Fuel Regulations would require liquid fossil fuel primary suppliers to reduce the carbon intensity (CI) of the liquid fossil fuels they produce in and import into Canada from 2016 CI levels by 2.4 g of CO2/megajoule (MJ) in 2022, increasing to 12 g of CO2/MJ in 2030. The proposed rule would also establish a credit market whereby the annual CI reduction requirement could be met via three main categories of credit-creating actions:

  • Actions that reduce the CI of the fossil fuel throughout its life cycle;
  • Supplying low-carbon fuels; and
  • Specified end-use fuel switching in transportation.

The Clean Fuels Regulations would also retain the minimum volumetric requirements of at least five percent low CI fuel content in gasoline and two percent low CI fuel content in diesel fuel and light fuel oil that are currently set out in the federal Renewable Fuels Regulation (RFR). The RFR would be repealed, and parties that are not primary fossil fuel suppliers would be able to participate in the credit market as voluntary credit creators by completing certain actions. Further details are available here.


 

By Lynn L. Bergeson

The government of Manitoba, Canada, is currently working to amend three regulations under the Biofuels Act. The amendments will update Manitoba’s clean fuel standards by increasing the ethanol and renewable fuel content in gasoline. The proposed amendments include:

  • “Ethanol General Regulation is amended to:
     
    • Include the latest fuel standards for ethanol blended gasoline;
       
    • Remove the quarterly reporting requirements of obligated entities; and
       
    • Increase ethanol content from 8.5% to 10%.
       
  • Biodiesel Mandate for Diesel Fuel Regulation is amended to:
     
    • Increase renewable fuel content of diesel from 2% to 5%;
       
    • Adjust the compliance formula to reflect the 5% blending requirement; and
       
    • Adjust the shortfall calculation to reflect the 5% blending requirement, and to increase the penalty amount from $0.45 to $1.50 per litre.
       
  • Biodiesel (General) Regulation is amended to:
     
    • Repeal the definition of “non-commercial licence;
       
    • Include the latest fuel standards for biodiesel and renewable diesel sold or offered for sale in Manitoba;
       
    • Include the latest fuel standards for biodiesel blends eligible under the Biodiesel Mandate;
       
    • Remove the non-commercial biodiesel manufacturing licence class;
       
    • Clarify the conditions required to hold a commercial biodiesel manufacturing licence; and
       
    • Remove references to the non-commercial licence class.”
       

The primary public policy objective of Manitoba’s government is to reduce greenhouse gas (GHG) emissions while increasing renewable fuels use. The regulatory amendments will come into force on January 1, 2021.


 

By Lynn L. Bergeson

On October 8, 2020, the European Commission (EC), under the European Union (EU) State aid rules, approved the prolongation of tax exemptions for biofuels in Sweden. Having exemptions for liquid biofuels from energy and carbon emissions taxation since 2002, Sweden’s scheme aims to increase biofuels use while reducing the fossil fuels use in transport. With EC’s decision, the tax exemption has now been prolonged by one year from January 1, 2021, until December 31, 2021. EC stated that the tax exemptions are not only appropriate, but necessary for stimulating the production and consumption of domestic and imported biofuels in Sweden. In addition, EC found that the Swedish scheme will contribute to the delivery of the EU’s goals in the Paris Agreement and EU’s move towards its 2030 renewables and carbon emissions targets.


 
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