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Key developments
Court restores clean energy tax safe harbor
Mondaq reports that the U.S. District Court for the District of Columbia vacated IRS Notice 2025-42 and remanded it to the IRS, restoring the Five Percent Safe Harbor for certain wind and solar projects seeking clean energy tax incentives under Sections 45Y and 48E. The decision comes before the July 4, 2026 beginning-of-construction deadline and may help projects that incurred at least 5% of facility costs but cannot satisfy the physical-work test. The court found the IRS action arbitrary and capricious under the Administrative Procedure Act, while leaving open a possible appeal or revised guidance.
Why it matters
Beginning-of-construction status affects project eligibility, tax-credit transfer pricing, diligence, insurance coverage, and financing for wind and solar pipelines.
Sources & driving stories
MONDAQ
Mondaq coverageBloomberg pledges $285 million for developing economies
Inside Climate News’ Ajani Stella reports that London Climate Action Week ended with new climate finance commitments for developing countries, including a $285 million Bloomberg Philanthropies pledge to expand clean energy infrastructure across developing economies. Former UNFCCC executive secretary Patricia Espinosa said the financing is meant to close mitigation and adaptation gaps, but experts cited by Inside Climate News warned that public and private investment remains insufficient. Oxfam International reported that loans made up nearly 70% of international climate finance as of 2024.
Why it matters
The pledges show continued climate-finance diplomacy while underscoring developing countries’ persistent need for grant-based, accessible funding.
Sources & driving stories
INSIDE CLIMATE NEWS · Ajani Stella
Inside Climate News coverageNew Zealand activist challenges climate liability shield
Reuters reports that Māori elder Mike Smith filed a High Court judicial review challenging Justice Minister Paul Goldsmith’s plan to amend New Zealand’s Climate Change Response Act 2002. The proposed amendment would prevent courts from finding major greenhouse-gas emitters liable in tort for climate-related harm, affecting current and future cases. Smith argues the government unlawfully interfered with live court proceedings after the Supreme Court reinstated his underlying climate claim in 2024.
Why it matters
The case tests whether governments can narrow climate tort exposure while litigation against major emitters is already underway.
Sources & driving stories
REUTERS
Reuters coverageWorth noting
WORTH NOTING
SunZia begins operating in New Mexico
Energy Connects reports the major onshore wind complex is expected to power more than 1 million homes in the U.S. Southwest, even as BloombergNEF projects U.S. onshore wind additions will decline until 2030.
WORTH NOTING
Foxconn and Brookfield target Vietnam renewables
Sustainability Magazine’s Lucy Potter reports the companies announced a partnership to develop up to 1 GW of wind, solar, and large-scale battery storage in Vietnam under long-term power purchase agreements.
WORTH NOTING
California school air funds face deadline
Canary Media reports California lawmakers must decide whether to release $194 million in frozen CalSHAPE school HVAC and plumbing funds before unallocated money reverts to utilities as the program nears sunset.
Still unclear
OPEN QUESTION
Will IRS appeal before project deadlines?
The July 4 beginning-of-construction deadline means even short-lived regulatory uncertainty could affect clean energy project underwriting and tax-credit transfer deals.
OPEN QUESTION
Can new finance avoid loan-heavy climate debt?
Developing-country finance remains constrained by limited grant access, weak bankable project pipelines, and a climate-finance mix still dominated by loans.