Artificial intelligence is reshaping the economy, influencing decision-making and disrupting traditional ways of working. While it is still unclear whether AI will live up to the hype or whether potential risks will materialise, it is clear that AI’s systemic impact extends to the natural environment. This impact includes the possibility of exacerbating climate risks through increasing demand for natural resources, but also opportunities to utilise AI in innovative climate solutions. Regardless of how these developments take shape, legal and governance frameworks will be vital to managing risks and capitalising on opportunities.
In a new discussion paper, the Centre for Climate Engagement has scanned existing and proposed legislation, alongside broader legal and political trends, to provide a high-level map of how the AI-climate nexus is being regulated. The paper sets out environmental risks and opportunities stemming from AI, examines existing and proposed legislation at the intersection of AI and climate change, and suggests priorities for further research and engagement on this topic. It serves as both a starting point and a calling card: an invitation to partners who want to explore these questions with us and help shape the emerging agenda.
Called ‘Regulating the AI-Climate Nexus: Trends, emerging issues, and ways forward’, the paper covers the following key points:
- While AI’s environmental impacts are not entirely novel, their scale and complexity means both risks and opportunities should receive careful policy attention. Environmental goals should not fall by the wayside when policymakers shape AI regulatory agendas and businesses consider how to navigate them.
- While legislative provisions at the nexus of AI and climate change are relatively sparse, we identified legislation at the national, subnational and international level which address this intersection. This occurs mostly through environmental provisions in emerging AI regulation, but also in certain pieces of broader climate legislation and targeted regulations seeking to minimise energy use in AI infrastructure.
- Certain common approaches are already emerging. Key themes running through multiple pieces of legislation include broader environmental principles embedded in AI legislation, procedural safeguards, and renewable energy requirements for data centres. There is likely further scope to examine how risk-based categorisation in AI legislation could work towards climate goals by accounting for AI’s energy use and ensuring that climate-focused technologies are not stunted by regulatory barriers.
- Outside of specific legislative provisions, AI may impact a wide range of other climate-related legal issues. We considered multiple potential implications for corporate law, financial law, consumer law, planning law, and contract law – but AI’s impacts likely extend far beyond these areas.
- There is great scope for further work in this area built on a dialogue between policymakers, businesses, lawyers and technical experts. In a political environment filled with both extreme hype and serious fears, practical and evidence-based pathways are essential to regulating the AI-climate nexus.
This working paper only scratches the surface of legal and governance issues at the intersection of AI and climate change. In addition to iterating this paper to account for new developments, we are interested in developing this area of work further.
Our approach reflects how we work across all our programmes. We connect experts from academia, law, policy, finance and business to ensure that diverse perspectives inform the conversation. We convene them in focused workshops and broader initiatives to test ideas, align priorities and identify solutions. We create targeted research and guidance that translate collective insights into actionable recommendations for decision makers. We enable and empower the next generation through skills development and capacity-building opportunities. And we communicate widely to ensure that evidence-based perspectives reach those with the influence to act.
We are actively seeking partners – researchers, practitioners, funders and networks – who would be interested in contributing expertise, co-developing projects or exploring aligned opportunities. The discussion paper is now available, and we welcome conversations with those interested in working with us on this critical and fast-moving area.