Publication
DFSA introduces Fixed Penalty Regime
The Dubai Financial Services Authority (DFSA) has introduced a fixed penalty notice (FPN) regime for breaches of specified reporting requirements. The amendments came into force on 15 April 2024.
Global | Publication | May 2024
In February, we reported on the Department of Energy Security and Net Zero’s confirmation that a UK Carbon Border Adjustment Mechanism (CBAM) would be bought into force by 2027. See our review of the UK CBAM and comparison with the EU CBAM here.
HM Treasury and HM Revenue and Customs (HMRC) have recently published a consultation on the introduction of a CBAM on imports into the UK of certain carbon intensive goods (the Consultation). The Consultation seeks views on the design, implementation and administration of the CBAM to ensure that its implementation meets the government’s environmental and other objectives, while not placing disproportionate burdens on business.
Carbon leakage is the movement of production activities and the associated carbon emissions from one country to another in order to avoid higher levels of carbon pricing and more stringent climate regulation. The CBAM will mitigate the risk of carbon leakage by applying a carbon price, known as the CBAM rate, to imported goods. The CBAM rate will reflect both the carbon emitted in the production of the goods together with any gap between the carbon price applied in the country of origin and the carbon price incurred by UK-based production.
The Consultation seeks views on the following proposals:
The responses to the Consultation will influence the final design and implementation of CBAM legislation. The CBAM will be a key part of the government’s wider strategy to tackle carbon leakage risk and will ensure that highly traded, carbon intensive goods from overseas face a comparable carbon price to those produced here. The CBAM will operate alongside other established mechanisms, such as the ETS, to support decarbonisation.
The Norton Rose Fulbright Environment team is on hand to advise and support entities in navigating the developing decarbonisation legislative framework. We will continue to monitor and provide further updates on amendments to the UK and EU CBAMs, and advise of any other jurisdictions looking to follow suit – for example, Turkey, Indonesia, Vietnam and Thailand have previously stated intentions to consider the introduction of domestic CBAMs. Our global climate change and sustainability practice has extensive experience advising clients across all key environmental and carbon markets.
With thanks to Katie Phipps (trainee solicitor) for her contributions
Publication
The Dubai Financial Services Authority (DFSA) has introduced a fixed penalty notice (FPN) regime for breaches of specified reporting requirements. The amendments came into force on 15 April 2024.
Publication
On 24 April 2024, the European Parliament voted to adopt the long-awaited EU Corporate Sustainability Due Diligence Directive (CSDDD or the Directive).
Publication
The UK’s Economic Crime and Corporate Transparency Act received Royal Assent on 26 October 2023 and the much-discussed new failure to prevent fraud offence is likely to come into force (after government guidance is issued) by the end of 2024 or early 2025.
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