EU: Commission publishes new guidance and draft Delegated Act to simplify due diligence requirements in Deforestation Regulation

On 15 April 2025, the European Commission published updated guidance, FAQs and a draft Delegated Act on the EU Deforestation Regulation (EUDR). The updated guidance and FAQs provide companies, EU Member States' authorities and third countries with additional simplified measures and clarifications on how to demonstrate that their products are deforestation-free. The documents reflect input from Member States, partner countries, businesses, and industry. According to the Commission, these measures will in the aggregate result in an estimated 30% reduction in administrative costs and burden for companies. The Commission has also published a draft Delegated Act for public consultation until 13 May, focusing on clarifications and scope adjustments requested by stakeholders. The draft Delegated Act includes targeted fixes to the list of in-scope products in Annex I to the EUDR. The Commission is also finalising the country benchmarking system through an Implementing Act, which it says will be adopted no later than 30 June 2025. For more information, see our blog post.

EU: Latest developments on first Omnibus package

“Stop the Clock” Directive

The “Stop the Clock” Directive was published in the Official Journal on 16 April 2025 (see our previous blog post). Member States are required to transpose the Directive into national law by 31 December 2025. Under this Directive, the reporting deadline in the Corporate Sustainability Reporting Directive (CSRD) for the so-called “second wave” and “third wave” companies is delayed by 2 years. Second wave companies will now need to report in 2028 (in respect of 2027 FY) and third wave companies will now need to report in 2029 (in respect of 2028 FY). There is no delay for the first wave companies which started reporting this year. The Directive also delays the transposition date of the Corporate Sustainability Due Diligence Directive (CSDDD / CS3D) by 1 year – to 26 July 2027 (instead of 2026) and delays the date by which the first wave of CSDDD companies need to comply by 1 year – to 26 July 2028 (instead of 2027).

Requirements Proposal – other changes to CSRD and CSDDD

The following is an estimated timeline for the Requirements proposal and so is subject to change. The European Parliament and Council are in the process of agreeing their respective negotiating positions on the Requirements proposal before the “trilogues” (negotiations) can start. The Parliament is expected to agree its negotiating position in October 2025. It is possible the Council may agree its negotiating position sooner than that as internal discussions are underway on a first compromise text produced by the Polish Council presidency. However, it is difficult at this stage to predict when Member States will finalise their negotiating position. Our understanding is that the earliest the trilogues between the Parliament and Council are likely to start is November 2025. This means that a final agreement on the Requirements proposal would be unlikely until sometime in 2026.

Revision of ESRS by EFRAG

The Commission has asked EFRAG to submit their advice on simplification of the European Sustainability Reporting Standards (ESRS) by 31 October 2025 (see our previous blog post). EFRAG agreed its work plan on 25 April (see our blog post). On 8 April, EFRAG published an initial call for feedback on the simplification of the ESRS, which closes on 6 May (see our previous blog post). According to the work plan, EFRAG is aiming to publish the Exposure Drafts of the revised ESRS by the end of July and carry out a 30-45 day public consultation on the Exposure Drafts thereafter so that it can deliver the revised ESRS to the Commission by the 31 October deadline.

Formal complaint against Commission about Omnibus process

On 18 April 2025, a number of NGOs including ClientEarth filed a formal complaint with the European Ombudsman accusing the European Commission of weakening sustainability laws without first consulting the public about the changes or assessing the impact of the first Omnibus package (see NGO press release). The NGOs have accused the Commission of maladministration and of following an “undemocratic and untransparent” process, for example by consulting industry in closed-door meetings before publishing the Omnibus proposal while declining to hold a public consultation. The European Ombudsman must now decide whether to open an inquiry into the complaint. The Ombudsman does not have enforcement powers but can use its inquiries to make recommendations to the Commission, which could possibly affect future lawmaking.

New definition of small mid-caps

In the Competitiveness Compass (which was published on 29 January, see our previous blog post), the Commission indicated that: “To ensure proportionate regulation adapted to companies’ size, a new definition of small mid-caps will soon be proposed. By creating such a new category of company, bigger than SMEs but smaller than large companies, thousands of companies in the EU will benefit from tailored regulatory simplification in the same spirit as SMEs.” This is expected to be published on 21 May. However, it is not yet clear what this will mean in terms of how the CSRD and/or CSDDD would then apply to this new category of company.

Energy Omnibus package

Our understanding is that the Commission is expected to publish an Energy Omnibus package on 21 May but this has not yet been officially confirmed. It is possible this package will cover the Methane Regulation, the Renewable Energy Directive (RED), the Energy Performance of Buildings Directive (EPBD) and the Energy Efficiency Directive (EED).

For further information on the EU’s first Omnibus package, see our EU CSRD demystified materials.

Global: ISSB consults on changes to its climate disclosure standard IFRS S2

On 28 April 2025, the International Sustainability Standards Board (ISSB) published an Exposure Draft proposing targeted amendments to its climate disclosure standard, in response to challenges to the application of IFRS S2 raised by stakeholders (see ISSB press release). The amendments are not focused on reductions in disclosures about GHG emissions but are instead aimed at making it easier for companies to apply the ISSB standard, while retaining the decision-usefulness of information provided to investors. The reliefs are intended to reduce the risk of potential duplication of reporting and the related costs associated with applying the ISSB standards. The Exposure Draft is open for comment until 27 June 2025. The ISSB aims to finalise these amendments by the end of 2025.

The proposed amendments relate to the application of GHG emissions disclosure requirements in IFRS S2, including:

• relief from measuring and disclosing Scope 3 Category 15 GHG emissions associated with derivatives and some financial activities;
• relief from the use of the Global Industry Classification Standard (GICS), in some circumstances, in disclosing disaggregated financed emissions information;
• clarification on the jurisdictional relief to use a measurement method other than the Greenhouse Gas Protocol for measuring GHG emissions; and
• permission to use jurisdiction-required Global Warming Potential (GWP) values that are not from the latest Intergovernmental Panel on Climate Change (IPCC).

Entities can choose whether to apply the reliefs, and jurisdictions can choose whether to adopt them without affecting their degree of alignment with ISSB Standards. Companies currently applying IFRS S1 and IFRS S2 as issued in June 2023 can continue to do so, while jurisdictions that have their own standards that are based on ISSB standards will be encouraged to maintain consistency to make it more straightforward for preparers globally to report on an efficient basis and to ensure the global baseline is maintained. For more information on the ISSB standards, see our previous blog posts here and here.

UK: Forthcoming consultations on sustainability disclosure and transition plan requirements

The UK government is expected to consult on the endorsement of the UK version of the ISSB sustainability disclosures standards and on the draft UK Sustainability Reporting Standards (UK SRS) in the first half of 2025. This will be followed by a consultation by the FCA (which is responsible for the Listing Rules) on disclosure requirements for UK listed companies in Q3.

The government is also expected to consult in parallel in the first half of 2025 on transition plans. This will be followed by a consultation by the FCA in Q3 on strengthening expectations for listed issuers’ transition plan disclosures with reference to the TPT Disclosure Framework. In the Labour Party Manifesto, the government pledged to mandate “UK-regulated financial institutions – including banks, asset managers, pension funds, and insurers – and FTSE 100 companies to develop and implement credible transition plans that align with the 1.5°C goal of the Paris Agreement”.

The timings were confirmed in the updated Regulatory Initiatives Grid published by the UK financial regulators in April.

In addition, it has been reported in the press (see here) that the UK government also intends to consult on a sustainability assurance provider framework and consult in the second half of 2025 on how to reduce the compliance burdens of corporate reporting requirements. Deputy Director Andrew Death from the Department for Business Energy and Industrial Strategy (BEIS) is quoted as saying: “We recognise that we have added a lot of different reporting requirements over a number of years, and we haven't reviewed how they fit together, whether they make sense together and how that reporting works. We are looking to review what's there at the moment and try and rationalise and streamline how corporate reporting works. There will be a consultation [...] to review and try and come up with some ideas as to how we can reduce the overarching burden of corporate reporting."

Global: FMSB finalises Statement of Good Practice to support more consistent governance of sustainability-linked products

On 30 April 2025, the Financial Markets Standards Board (FMSB) published its final Statement of Good Practice on the governance of sustainability-linked products (SLPs) to establish globally applicable standards. The statement is intended to apply to service providers or users of SLPs in wholesale financial markets. The statement outlines six Statements of Good Practice intended to help strengthen and standardise governance around SLPs. The FMSB guidance is intended to support voluntary guidelines issued by industry bodies such as ICMA, LMA, ELFA and ISDA (which provide product-specific guiding principles for the issuance of sustainability-linked bonds (SLB), loans (SLL) and derivatives (SLD) etc.) – i.e., the FMSB paper seeks to provide principles of good practice to support firms’ overall compliance framework across the various sustainability-linked products that are issued under these regimes. There is specific good practice guidance for both service providers (i.e. banks or financial intermediaries issuing or structuring sustainability-linked products) and users (defined as borrowers or issuers of, or counterparties to, sustainability-linked products) and include recommendations regarding governance, KPIs, targets, labelling of products as “sustainability-linked” and contract clauses. The Statement of Good Practice is supported by a Risk Register that identifies major risks associated with the issuance of SLPs, for service providers and users to consider. This is a voluntary guide that is not legally binding on firms. The FMSB press release is available here.

Global: IAIS publishes application paper on supervision of climate-related risks in insurance sector

On 16 April 2025, the International Association of Insurance Supervisors (IAIS) published an application paper (together with a press release) on the supervision of climate-related risks in the insurance sector, following four consultations in this area. The application paper provides an overview of how the IAIS’ existing Insurance Core Principles can be applied to address climate-related risks. It builds on and replaces an earlier application paper published in 2021 on climate-related risks. The paper does not contain any new requirements but is intended to support supervisors in effectively integrating climate-related risks into their supervisory practices, thereby strengthening the resilience of the global insurance sector.

It outlines good practices and guidance for supervisors on several areas, including:

• the role of supervisors in assessing climate-related risks;
• integration of climate-related risks into supervisory frameworks with respect to corporate governance, risk management and internal controls;
• the impact of climate-related risks on valuation and investment practices;
• supervisory reporting, public disclosure and macroprudential supervision of climate-related risks;
• group supervisory issues; and
• the role of climate-related risk scenario analysis and important considerations for the impact of climate-related risks on market conduct.

EU: European Commission launches call for evidence to simplify SFDR

On 2 May 2025, the European Commission published a call for evidence to help form an impact assessment on a revision of the Sustainable Finance Disclosure Regulation (SFDR). In particular, the assessment aims to: simplify key concepts; streamline and reduce disclosure requirements focusing on the most essential information for investors; and explore the case for categorising financial products that make sustainability-related claims. The call for evidence closes on 30 May 2025 with a view to incorporating the feedback into the Commission’s SFDR revision work plan which is currently targeted for Q4 2025. For more information, see our blog post.

EU: ESMA consults on proposed rules (RTS) for ESG ratings providers under ESG Ratings Regulation

The ESG Ratings Regulation was published in the Official Journal of the EU on 12 December 2024 and came into force from 1 January 2025. It will apply 18 months following its entry into force – from 2 July 2026. The Regulation is designed to govern the issuance, distribution and (where relevant) publication of ESG ratings, without being intended to regulate their use (see our previous client briefing). On 2 May 2025, ESMA published a consultation paper on the proposed rules (RTS) for ESG ratings providers under the ESG Ratings Regulation. The consultation closes on 20 June. You can read the consultation document and the press release here. We will shortly publish a note on those proposals, along with a webinar.

EU: ESMA consults on remaining RTS for external reviewers of European Green Bonds

On 7 April 2025, the European Securities and Markets Authority (ESMA) published a consultation paper on the remaining technical standards for external reviewers under the EU Green Bond Regulation. The consultation closes on 30 May 2025. ESMA expects to publish a final report in Q4 2025 and submit the draft RTS to the Commission for adoption by 21 December 2025. For more information, see our blog post.

EU: ESMA makes recommendations to simplify ESG disclosure rules for benchmark administrators

On 9 April 2025, the European Securities and Markets Authority (ESMA) published its final report on the outcome of its Common Supervisory Action (CSA) on ESG disclosures under the Benchmarks Regulation (BMR). The purpose of the CSA, which took place during 2024, was to assess how benchmark administrators comply with the ESG disclosure requirements set out in the BMR. ESMA concludes that the comparability of ESG benchmarks is hindered by the fact that there are inconsistencies between: (i) the methodologies that administrators use to calculate the ESG factors; and (ii) the ESG data estimated and used as input data for the purpose of the calculation of the factors. In light of the findings, the report provides clarifications of transparency expectations for administrators as well as guidance on the definitions and methodology used for the calculation of the ESG factors, including good practices identified. The report includes recommendations to the European Commission for potential amendments to BMR Level 2 measures, including streamlining the ESG disclosure requirements to alleviate regulatory burden. For more information, see our blog post.

UK: FCA provides update on extending SDR and investment labels to portfolio managers

The FCA had announced on 14 February 2025 that it no longer intended to publish its policy statement on extending its Sustainability Disclosure Requirements (SDR) and investment labels to portfolio managers in Q2 2025. On 29 April 2025, the FCA provided a further update on its website to confirm its view (following further consideration of feedback from CP24/8) that "now is not the right time to finalise rules on extending SDR to portfolio management”. This does not take the extension off the cards entirely but does seem to push the timing even further back (albeit the FCA is silent on its likely timeline here). Instead, the FCA intends to prioritise its forthcoming multi-firm review into model portfolio services (as announced in the Asset Management & Alternatives February 2025 portfolio letter). The review will focus more broadly on how firms are applying the Consumer Duty to provide confidence that investors are receiving good outcomes from model portfolio services. For more information, see our previous blog post.

UK: PRA consults on updates to Supervisory Statement 3/19 on climate change

On 30 April 2025, the Prudential Regulation Authority (PRA) launched a consultation setting out proposals to update the existing Supervisory Statement SS3/19 on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change. The PRA explains that, since it first set expectations for firms on climate change in 2019, firms have begun to build their climate-related risk management capabilities. However, the PRA believes that progress is uneven and more needs to be done to meet its expectations. The PRA’s proposals are designed to facilitate better management of climate-related risk by setting out clearly how firms should assess the risk and helping ensure that these assessments are incorporated into firms’ decision-making. The PRA says that its proposed expectations also combine PRA guidance from various letters to firms over recent years and reflect recent international standards for banks and insurers. The draft Supervisory Statement which will replace SS3/19 contains a considerably more detail than SS3/19 and covers topics including governance, risk management, climate scenario analysis, data and disclosures, and also provides further detail on the specific climate-related issues insurers face. The consultation closes on 30 July 2025. The PRA has also published a speech which provides useful background to, and highlights certain aspects of, its consultation. For more information, see our blog post.

UK: What’s on the ESG horizon for financial services?

The UK financial services regulators have updated their Regulatory Initiatives Grid for April 2025 setting out the UK regulatory pipeline for the next 24 months. This includes updates on the next steps for Sustainability Disclosure Requirements (SDR) and investment labels, the UK Green Taxonomy, the UK Sustainability Reporting Standards (SRS) and transition plans. For more information, see our blog post.

EU: Commission consults on Industrial Decarbonisation Accelerator Act

On 16 April 2025, the Commission launched a consultation to gather feedback from energy-intensive industries to inform the upcoming Industrial Decarbonisation Accelerator Act. The aim is to increase sustainable industrial production in energy-intensive sectors in the EU by: speeding up permitting procedures for industrial decarbonisation; identifying and promoting priority industrial decarbonisation projects and clusters; and creating lead markets for European low-carbon products, which could include introducing sustainability requirements in public and private procurement for some sectors and the creation of a low-carbon EU label. The initiative will focus on energy-intensive industries (chemicals, steel, pulp and paper, refineries, cement, non-ferrous metals, glass and ceramics) and (where relevant) consider related downstream industries. The consultation closes on 8 July and the legislation (which is likely to take the form of a Regulation) is expected to be adopted by the Commission in Q4 2025. For more information, see Consultation landing page and Consultation document. The Industrial Decarbonisation Accelerator Act is key component of the Commission’s wider Clean Industrial Deal (see our previous blog post).

EU: Commission adopts working plan for Ecodesign for Sustainable Products Regulation

On 16 April 2025, the European Commission published its 2025-2030 working plan under the new Ecodesign for Sustainable Products Regulation (ESPR) and Energy Labelling Regulation (see EU press release). The plan provides a list of products that should be prioritised to introduce ecodesign requirements and energy labelling over the next five years. The priority products for ecodesign and energy labelling requirements are steel and aluminium, textiles (with a focus on apparel), furniture, tyres and mattresses. These were selected based on their potential to deliver on the circular economy. In addition, the Commission will introduce horizontal measures to requirements on repairability for products such as consumer electronics and small household appliances. This will include the introduction of a repairability score for products with the most potential, and requirements on recyclability of electrical and electronic equipment.

Future ecodesign and energy labelling requirements for the selected products will cover two elements:

• product performance, such as minimum durability, minimum energy and resource-efficiency, availability of spare parts or minimum recycled content; and/or
• product information, including key product features such as the products' carbon and environmental footprint. Product information will mainly be made available via the Digital Product Passport or, for products with energy labels, via the European Product Registry for Energy Labelling (EPREL).

Ecodesign and energy labelling requirements will be set via delegated acts on a product-by-product basis or for groups of similar products. The relevant requirements will be adopted no later than 31 December 2026.

The Commission is also consulting on the Digital Product Passport, which will be required under the Ecodesign for Sustainable Products Regulation. The objective is to gather stakeholders' views on how data should be stored and managed by service providers and on the need for a certification scheme for such service providers. The consultation closes on 1 July 2025.

For further information on the Ecodesign for Sustainable Products Regulation, see our previous blog post.

UK: Government consults on draft UK CBAM legislation

On 24 April 2025, HM Treasury published a consultation on the draft primary legislation for the UK Carbon Border Adjustment Mechanism (CBAM), a supporting policy update and a high-level factsheet. The technical consultation seeks views on whether the draft legislation delivers CBAM policy correctly and effectively. It is not a consultation on the policy design. The draft legislation sets out the scope of the CBAM, how CBAM liability will be calculated and how the CBAM will be administered. The consultation closes on 3 July 2025. The UK CBAM is due to commence on 1 January 2027 and will apply a carbon price to in-scope imported goods to ensure they are subject to a carbon price that is comparable to what would have been incurred had they been produced in the UK. The UK CBAM will apply to imports of goods (identified by commodity codes) from the following sectors: aluminium; cement; fertilisers; hydrogen; iron and steel.

UK: Government publishes updated guidance on modern slavery reporting

On 25 March 2025, the UK government published updated guidance on the content of modern slavery statements published pursuant to section 54 of the Modern Slavery Act 2015 (MSA 2015). This updated guidance reflects a commitment in the UK government’s response to the House of Lords Select Committee Report on the MSA 2015 in December 2024. Despite the various recommendations in the Select Committee Report, the updated guidance does not go so far as to alter the core requirements of the MSA 2015 or make reporting on the current six suggested reporting areas mandatory. However, it does provide more detailed and practical information on what the UK government (and broader stakeholders) expect to be disclosed in statements and sets out how organisations can comply with the spirit of the MSA 2015 reporting requirement, and not just the letter of the law. For more information, see our blog post.

Germany: What next for the Supply Chain Due Diligence Act?

According to the German coalition agreement (German) presented on 9 April 2025, the German Supply Chain Due Diligence Act (LkSG) is set to be abolished and replaced by the national act that will transpose the EU Corporate Sustainability Due Diligence Directive (CSDDD) into German law. However, the LkSG will not be abolished immediately. Instead, the coalition agreement suggests to only remove the LkSG reporting obligation immediately. This aligns with current practice: guidance by the Federal Office for Economic Affairs and Export Control (BAFA) already sets out that it will not enforce the LkSG reporting obligations before 1 January 2026. In addition, the application of the LkSG is envisaged to be suspended until the CSDDD implementation law is enacted in such a way that breaches of due diligence obligations are not penalised "except for severe human rights violations". However, the definition of "severe human rights violations" remain undefined in both the LkSG and the coalition agreement, leaving its criteria unclear. Companies subject to the LkSG should thus adhere to their legal obligations until the measures outlined in the coalition agreement are enacted and effective and provide more clarity on what exactly is being expected from them. For more information, see our blog post.

UK: New greenwashing rulings from advertising regulator in respect of oil & gas companies and banks

On 9 April 2025, the UK’s Advertising Standards Authority (ASA) handed down three new rulings on adverts for low carbon investments by two oil & gas companies and a bank which provide useful guidance on where the regulator will draw the line on green / low carbon claims. The rulings highlight the following:

• Giving a balanced account of where your business is on its decarbonisation and sustainability journey is crucial, especially if you are in a high-carbon emitting sector. The significance of a business' lower carbon activities and adverts which focus on specific lower carbon initiatives should explain where the initiatives fit in the business' wider activities and net zero plan.
• The less prominent any qualifying information is, and the further away it is from any main claim being made, the more likely it is the claim will mislead consumers. The information does not have to dominate ads, but it must not be hidden away.
• Always put yourselves in the shoes of the reader. For retail (non-expert) consumers, you should assume a low level of knowledge when marketing green claims.
• The general rule of thumb is that claims should be truthful, accurate, clear and unambiguous and not mislead by omission.

For more information on these three decisions and the ASA’s tips on avoiding greenwashing, see our blog posts here and here.

For more detailed coverage of other recent greenwashing decisions and wider ESG litigation globally, sign up for the quarterly Linklaters ESG Disputes Bulletin here.

UK: Supreme Court decision on the meaning of “sex” under Equality Act 2010

The Supreme Court has handed down judgment in the case For Women Scotland Ltd v The Scottish Ministers [2025] UKSC 16, providing clarity on the interpretation of “woman” and “sex” for discrimination purposes under the Equality Act 2010. Rejecting the prevailing interpretation that a “woman” includes a trans woman with a Gender Recognition Certificate, the Supreme Court held that the definition of “woman” under the Act is limited to biological women and does not include certificated sex. For more information, see our publication.

UK: Government launches call for evidence on equality legislation

The government launched a call for evidence on 7 April 2025 looking for views on a number of proposed equality policies that form part of their legislative agenda, including extending equal pay rights to disabled and ethnic minority workers, introducing combined discrimination and pay transparency provisions, and strengthening protection against sexual harassment. The call for evidence closes on 30 June 2025. Responses will help to shape the Equality (Race and Disability) Bill, a draft of which is awaited and expected before the end of the current parliamentary term. For more information, see our blog post.

PRC government issues its inaugural RMB-denominated green sovereign bonds issuance

Linklaters acted as the international legal advisor of the Ministry of Finance of the People’s Republic of China (MOF) on its offshore issuance of RMB6bn sovereign green bonds, marking the Chinese central government’s first-ever sovereign green bonds issuance. The issuance comprised two tranches, including 3-year and 5-year bonds with a coupon rate of 1.88% and 1.93% respectively, each in RMB3bn. Both tranches have been listed on The Stock Exchange of Hong Kong Limited and admitted to trading on the London Stock Exchange’s International Securities Market and are cleared through the Central Moneymarkets Unit in Hong Kong SAR. These green bonds are issued under the People’s Republic of China Sovereign Green Bond Framework, which was released in February 2025. This transaction marks another milestone in the PRC government's efforts to promote green transition and the RMB internationalisation. For further information, see our press release.

China expands its national carbon emissions trading scheme

On 26 March 2025, China’s Ministry of Ecology and Environment (MEE) released the Work Plan for the National Carbon Emissions Trading Market Covering the Steel, Cement, and Aluminum Smelting Industries (Chinese) (the Work Plan). The Work Plan is based on the Interim Regulations on the Management of Carbon Emissions Trading which was effective from 1 May 2024 (see our March 2024 ESG newsletter). The Work Plan expands the scope of emitters under China’s national carbon emissions trading system to cover the steel, cement, and aluminium smelting industries. This expansion increases China’s total carbon emissions which are subject to the National Program from 40% to 60%. The expansion will add approximately 1,500 new “major emission entities” which equates to an additional three billion tons of carbon dioxide equivalent emissions. The Work Plan also clarifies the threshold for “major emission entities” in the newly covered industries as 26,000 tons carbon dioxide equivalent emissions per year. The Work Plan, as the first industrial expansion since the launch of China’s carbon trading market in 2021, is expected to add 1,500 enterprises to the carbon trading market, facilitate the achievement of China’s carbon peak and carbon neutrality targets, accelerate the elimination of outdated production capacity, and enhance the application of innovative low-carbon technologies.

China releases plan to upgrade coal electricity generation

On 14 April 2025, the National Development and Reform Commission and the National Energy Administration jointly released the Implementation Plan for the Special Action to Upgrade the New-Generation Coal Electricity (2025-2027) (Chinese) (the Implementation Plan). The Implementation Plan allows the construction of new coal-fired power plants in China until 2027 in targeted areas where the plants are needed to meet power demands or stabilise the grid. The newly constructed coal-fired power plants are contemplated to serve as backups for renewable energy generation and must have 10% to 20% lower CO2 emissions per unit of power output than the 2024 fleet. The Implementation Plan also encourages existing coal-fired power plants to undergo upgrades to meet new efficiency standards and improve load-following capabilities. The Implementation Plan represents China’s careful balancing between its growing energy needs and longer-term climate commitments.

Hong Kong Monetary Authority (HKMA) sets out its 2025 key sustainability initiatives

On 25 April 2025, the Hong Kong Monetary Authority (HKMA) published its Sustainability Report 2024 which sets out the HKMA’s “strategy and priorities in embedding sustainability at the core of Hong Kong’s financial system”. The HKMA’s key priority actions for 2025 includes: (i) conducting a new round of thematic examinations on banks’ climate risk management practices and the third series of consultative sessions to review banks’ implementation of the HKMA’s supervisory requirements; (ii) optimising the integration of climate risk stress testing into the HKMA’s supervisor-driven stress testing framework; (iii) continuing the work of incorporating climate considerations into the HKMA’s Supervisory Review Process; (iv) preparing the groundwork for formulating relevant regulatory requirements to implement the Pillar 3 disclosure framework for climate-related financial risks to be issued by the Basel Committee on Banking Supervision and the ISSB Standards in the local banking sector; (v) finalising a new Supervisory Policy Manual module, GS-2, to provide guidance to banks on transition planning; and (vi) sharing with the industry good practices on climate risk management and green fintech adoption. The HKMA will also expand the Hong Kong Taxonomy for Sustainable Finance by introducing transition elements, adding new green activities, and incorporating the climate change adaptation objective. HKMA confirmed that it will continue to assist the Government in implementing the Government Sustainable Bond Programme, provide subsidies through the Green and Sustainable Finance Grant Scheme as well as incentives to prospective issuers of digital green bonds through the Digital Bond Grant Scheme.

Hong Kong government gazettes the Gas Safety (Amendment) Bill 2025 to regulate the safe use of hydrogen

On 3 April 2025, the Hong Kong government gazetted the Gas Safety (Amendment) Bill 2025 (the Bill) to regulate the safe use of hydrogen used, or intended to be used, as fuel. The Bill aims to amend the Gas Safety Ordinance (Cap. 51) to establish a regulatory framework governing the importation, manufacture, storage, transport, supply and use of hydrogen that is used, or intended to be used, as fuel. This follows the publication of the Government’s Strategy of Hydrogen Development in Hong Kong in June 2024 which aims to promote the development of hydrogen energy in Hong Kong. The Bill was introduced into the Legislative Council on 16 April 2025.

Singapore: SGX RegCo and CGS review shows issuers made modest progress in climate reporting

The Singapore Exchange Regulation (SGX RegCo) and the National University of Singapore Business School’s Centre for Governance and Sustainability (CGS) have published a review which found that most listed issuers have made initial steps towards climate reporting. In this regard, most listed issues carried out climate reporting by having at least one disclosure based on the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. However, only 28% of all issuers provided all 11 disclosures that the TCFD recommends. Amongst other findings, it also revealed that disclosures on climate scenario analysis, integration of risk management processes and climate targets were among the most lacking across the review.

Singapore enters into carbon credit agreements with Peru and Chile

On 1 April 2025, Singapore signed a carbon credits agreement with Peru and, on 7 April 2025, Singapore also signed a carbon credits agreement with Chile, allowing for the transfer of carbon credits from carbon mitigation projects aligned with Article 6 of the Paris Agreement. In both cases, Singapore has agreed to voluntarily contribute 5% of proceeds from the carbon credits it purchases to help Peru or Chile (as applicable) finance ways to reduce the impact of climate change. These are Singapore’s fourth and fifth agreements (with Peru and Chile, respectively), adding to similar pacts with Bhutan, Ghana, and Papua New Guinea, as part of the country’s efforts to achieve its 2030 and 2050 climate targets.

Malaysia passes Carbon Capture, Utilization and Storage Bill 2025

On 6 March 2025, the Carbon Capture, Utilisation, Storage Bill 2025 (CCUS Bill 2025) was passed by Malaysia’s Lower House of Parliament. The CCUS Bill 2025 outlines responsibilities for storage site operators, including environmental protection, risk management, and liability aimed at ensuring safe, responsible, and internationally compliant operations. It also proposes the establishment of the Malaysian Carbon Capture, Utilisation, and Storage Agency (CCUS Agency). The CCUS Agency will oversee licensing, compliance, and industry development, while ensuring the safe capture, transportation, utilisation, and permanent storage of carbon. Under the proposed framework, carbon capture facilities must be registered, and operators are required to obtain permits for both offshore and onshore carbon storage sites. Monitoring and safety protocols will be enforced aimed at preventing leaks and environmental damage. A key aim of the CCUS Bill 2025 is to secure long-term investment opportunities, and it is reported that that several potential customers have already expressed interest in transporting carbon dioxide to offshore storage sites. The CCUS Bill 2025 has been referred for debate and voting, before being presented for Royal Assent and gazettement into law.

ASEAN ministers endorse key sustainability initiatives in the region

In April 2025, ASEAN finance ministers and central bank governors endorsed several sustainable finance initiatives in the region. As set out in the press release, the ministers endorsed the ASEAN Power Grid Transition Finance Facility (ASEAN TFF) to support the development of the ASEAN Power Grid (APG). ASEAN ministers also supported (i) the release of the ASEAN Greening Value Chain Playbook (a practical guide to support SMEs accelerate decarbonisation and strengthen supply chain resilience); and (ii) the launch of the ASEAN Simplified ESG Disclosure Guide (Version 1) for SMEs in supply chains (see ACMF’s press release). The ministers also highlighted progress in this area with the finalisation of Version 3 of the ASEAN Taxonomy for Sustainable Finance (ASEAN Taxonomy), as well as the ASEAN Sustainable Investment Guidelines (ASIG). They noted that the publication of Version 4 of the ASEAN Taxonomy is targeted for the end of 2025. They also welcomed the launch of the All-Countries Common Equivalence Platform for Taxonomies (ACCEPT) and its use in facilitating the use of, and interoperability between, the ASEAN Taxonomy and national taxonomies.

Australia: Unpacking ASIC's sustainability reporting regulatory guide

The Australian Securities and Investment Commission (ASIC) recently published its Regulatory Guide 280 Sustainability Reporting (RG 280) for entities required to prepare a sustainability report under Australia's new climate-related financial disclosure regime that came into operation on 1 January 2025 (the CRFD Regime). For more information, see Allens briefing.

Federal Agency Actions

On 23 April 2025, the U.S. Department of the Interior (DOI) issued a press release, announcing that it will be utilizing emergency authorities under existing regulations for the National Environmental Policy Act (NEPA), Endangered Species Act (ESA), and National Historic Preservation Act (NHPA) to enable faster permitting timelines. The press release includes documents for the new processes under NEPA, ESA, and NHPA. Under the new NEPA process, projects analyzed in an environmental assessment are required to be reviewed within approximately 14 days and projects requiring a full environmental impact statement are to be reviewed within approximately 28 days. The press release states that these processes previously took up to one year and two years, respectively. The new ESA process requires the appropriate bureau to notify the U.S. Fish and Wildlife Service (FWS) that it is using emergency consultation procedures, after which the appropriate bureau can proceed with making a decision on whether to approve the action. The new compliance procedure with Section 106 of NHPA affords an opportunity to comment within a seven-day notice-and-comment period upon notice to the Advisory Council on Historic Preservation, relevant State Historic Preservation Officers, Tribal Historic Preservation Officers, and “Indian tribes.” According to each of the documents detailing the new processes linked in the press release, these expedited permitting processes only apply to projects relating to energy resources as defined by President Trump’s executive order titled “Declaring a National Energy Emergency,” specifically: “crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals as defined by 30 U.S.C. § 1606(a)(3).”

On 21 April 2025, the U.S. Environmental Protection Agency (EPA) issued reduction-in-force notices to employees of its recently disbanded Office of Environmental Justice and External Civil Rights, effective 31 July 2025. This decision aligns with President Trump’s executive orders eliminating diversity, equity, and inclusion (DEI) initiatives across all federal agencies. On 6 February 2025, the EPA placed over 170 employees working in environmental justice on administrative leave.

On 18 April 2025, DOI issued a press release announcing the 11th National Outer Continental Shelf (OCS) Oil and Gas Leasing Program. In the press release, Secretary of the Interior Doug Burgum directed the Bureau of Ocean Energy Management (BOEM) to initiate the first step in the “public engagement process to develop a new schedule for offshore oil and gas lease sales on the U.S. Outer Continental Shelf.” BOEM is to publish a Request for Information and Comments on the preparation of the program in the Federal Register, which will trigger a 45-day public comment period. The press release also noted that a separate Federal Register notice will be published with details on the changes to BOEM’s jurisdiction on the OCS, including the establishment of a new planning area in offshore Alaska as the 27th OCS planning area and the updating of boundaries of other existing planning areas. No timeline for future lease sales or determinations about what areas may be included have been proposed or made yet—DOI is instead welcoming “stakeholders to provide insight and recommendations for leasing opportunities, raise concerns[,] and identify other existing uses that may be affected by offshore leasing.”

On 16 April 2025, Secretary of the Interior Doug Burgum issued a memorandum (DOI Memorandum) ordering a halt on all construction activities on the Empire Wind 1 offshore wind energy project (Empire Wind 1). In the DOI Memorandum, Burgum cited President Trump’s memorandum titled “Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind Leasing and Review of the Federal Government’s Leasing and Permitting Practices for Wind Projects” that was issued on 20 January 2025 and the comprehensive review Burgum is undertaking pursuant to President Trump’s memorandum. The DOI Memorandum states that during the comprehensive review DOI received “information that raises serious issues with respect to the project approvals” and “suggest[s] that approval for the project was rushed through by the prior Administration without sufficient analysis or consultation among the relevant agencies as relates to the potential effects from [Empire Wind 1].” As such, Burgum directs all construction activities to cease on the Empire Wind 1 until “further review is completed to address these serious deficiencies.” Empire Wind 1 is an 810-megawatt offshore wind project off the coast of New York that was approved in late 2023 and began construction earlier this month. Empire Wind 1 is one of five U.S. offshore wind projects under active construction. This action marks the first time the Trump administration has targeted an offshore wind project that has already been approved.

On 11 April 2025, the SEC approved the Green Impact Exchange (GIX) for its registration as a national securities exchange, following a review process that included amendments and an extension earlier this year. Aimed at sustainability-focused investors and companies, the GIX will initially operate as a dual-listing platform but plans to eventually offer primary listings. Companies dual-listed on the GIX will adopt its sustainability principles, which emphasize leadership, accountability, clear long-term goals, strategy alignment, and transparent reporting. The GIX is the nation’s first- ever “green” stock exchange.

On 10 April 2025, the Governors of four states – Iowa, Nebraska, South Dakota, and Missouri – asked EPA to establish standards to boost the biofuel industry and rural economy. In particular, the Governors are calling for EPA to establish a 2026 Renewable Volume Obligation (RVO) of no less than 15 billion gallons for conventional ethanol and 5.25 billion gallons for biomass-based diesel. They cited the current administration’s aims to secure U.S. energy dominance in support. This comes in the wake of a bipartisan group of 16 U.S. Senators from 10 states also urging EPA to also raise the RVO levels for biomass-based diesel and advanced biofuels.

On 8 April 2025, the Supreme Court of the United States (SCOTUS) stayed a preliminary injunction issued by the U.S. District Court for the Northern District of California that reinstated about 16,000 of probationary federal workers who were fired from the U.S. Departments of Agriculture, Defense, Energy, the Interior, the Treasury, and Veteran Affairs. SCOTUS found that the nonprofit groups challenging the firings lacked standing. Until the U.S. Court of Appeals for the Ninth Circuit reviews the preliminary injunction, the stay will remain in effect.

On 2 April 2025, EPA postponed by 90 days the implementation of certain provisions of its December 2024 final rule on managing risks associated with trichloroethylene (TCE), citing ongoing litigation. Initially rejecting administrative stay requests, EPA reversed its position after court interventions, including a temporary stay by the U.S. Court of Appeals for the Third Circuit. Petitioners argued that compliance with the rule’s interim conditions, such as reducing TCE exposure to 0.2 ppm, would require unfeasible use of personal protective equipment, potentially halting operations.

On 31 March 2025, the U.S. Treasury Department’s Office of the Comptroller of the Currency (OCC) withdrew its participation in the interagency principles for providing guidance to banks for climate-related financial risk, describing them as overly burdensome and duplicative. The Acting Comptroller stated that existing OCC guidance already requires banks to maintain sound risk management frameworks, which covers potential exposures to severe weather events and natural disasters. It emphasized that all banks should maintain risk management processes appropriate for their size, complexity, and level of risk associated with their activities.

Presidential Actions

On 8 April 2025, President Trump issued a proclamation titled “Regulatory Relief for Certain Stationary Sources to Promote American Energy” that granted a two-year extension to coal-fired power plants to comply with an air toxics regulation published by EPA last year. The proclamation cited an annex with a list of identified plants that received the exemption from compliance with the regulation, however the annex was not published until the following week and included a list of 47 power plants. The EPA regulation in question made more stringent the national emission standards for hazardous air pollutants (NESHAP) for the coal- and oil-fired electric utility steam generating units (EGUs) source category, specifically the more-than-a-decade-old Mercury and Air Toxics Standards (MATS).

On 24 April 2025, President Trump issued an executive order titled “Unleashing America's Offshore Critical Minerals and Resources” that directed various federal agencies to take certain actions to prioritize and accelerate the nation’s development of deep seabed critical mineral resources, such as cobalt, copper, manganese, nickel, platinum, zinc, and other rare earth minerals. In particular, the executive order requires the Secretary of Commerce to, among other things, expedite the process for reviewing and issuing seabed mineral exploration licenses and commercial recovery permits for activities beyond U.S. jurisdiction under the Deep Seabed Hard Mineral Resources Act, produce a report identifying private sector interest and opportunities for seabed mineral resources exploration, draft a plan to map priority areas of the seabed, and collaborate with key partners and allies abroad to develop the same internationally. The executive order also requires the Secretary of the Interior to establish an expedited permit review and approval process for granting leases for seabed mineral resources exploration on the U.S. OCS and identify which critical minerals can be derived from seabed resources. The executive order further requires the Secretary of Defense and Secretary of Energy to, among other things, produce a report addressing the feasibility, benefits, and drawbacks of using the National Defense Stockpile to assist seabed mineral resources exploration and review/revise existing regulations to enable the same. Because many of the known nodule-rich areas are in international waters, the executive order may lead to deep seabed critical mining that may conflict with international customs, treaties, and international agreements.

On 9 April 2025, President Trump issued a memorandum titled “Directing the Repeal of Unlawful Regulations” that directed federal agencies to prioritize repealing regulations that do not comply with decisions issued by SCOTUS. The 10 SCOTUS decisions specifically listed in the memorandum primarily targeted regulations focused on the environment, affirmative action, and restrictions on religious institutions. The memorandum further directed federal agencies to forego notice-and-comment rulemaking, citing the “good cause” exception in the Administrative Procedure Act (APA). Federal agencies have 30 days after the 60-day review period previously ordered in President Trump’s executive order issued on 19 February 2025 titled “Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Deregulatory Initiative” to submit a one-page summary to the Office of Information and Regulatory Affairs identifying these noncompliant “unlawful and potentially unlawful” regulations.

On the same day, President Trump issued an executive order titled “Zero-Based Regulatory Budgeting to Unleash American Energy” that directed certain federal agencies to incorporate sunset rules into regulations governing energy production. The executive order requires four federal agencies—EPA, the Department of Energy, the Federal Energy Regulatory Commission, and the Nuclear Regulatory Commission—as well as six agency subcomponents—the Office of Surface Mining Reclamation and Enforcement, the Bureau of Land Management, BOEM, the Bureau of Safety and Environmental Enforcement, FWS, and the U.S. Army Corps of Engineers—to issue sunset rules into regulations promulgated under specific statutes listed in the executive order. These sunset rules will set a deadline on each regulation at which the regulation will “cease to be effective and be removed from the Code of Federal Regulations” unless extended by the relevant agency. An agency is only permitted to extend the deadline for up to five years following a public notice-and-comment period with the purpose of providing input on the “costs and benefits of each regulation” to determine if an extension is warranted.

On 8 April 2025, President Trump issued an executive order entitled “Protecting American Energy From State Overreach” which directs the Attorney General to take all appropriate action to stop the enforcement of state and local laws and continuation of civil actions that purport to address “climate change”, “environmental, social and governance” initiatives, “environmental justice,” carbon or “greenhouse gas” emissions, and funds to collect carbon penalties or carbon taxes. The order states that these state laws and policies attempt to dictate interstate and international disputes over air, water, and natural resources; unduly discriminate against out of state businesses; contravene the equality of states; and retroactively impose arbitrary and excessive fines without legitimate justification. The order specifically targets laws and policies believed to “regulate energy beyond their constitutional or statutory authority” and focuses on those that burden oil, natural gas, coal, hydropower, geothermal, biofuel, critical mineral, and nuclear energy resources.

Climate Change Litigation

On 31 March 2025, environmental groups filed a complaint in a New York state trial court against the New York State Department of Environmental Conservation (NYDEC) alleging the NYDEC failed to implement the Climate Leadership and Community Protection Act, which was passed by the New York legislature in 2019. The plaintiffs argue that despite a rise in greenhouse gas emissions in New York, the NYDEC has yet to implement regulations that transition the state away from fossil fuels and to renewable energy, in violation of the state constitution and state environmental conservation laws. The plaintiffs seek declaratory and injunctive relief requiring the state agency to establish regulations that go towards achieving the law’s mandatory 40% reduction of GHG emissions by 2030.

On 26 March 2025, a federal judge in the U.S. District Court for the Western District of Washington ordered that two tribes’ separate actions filed against multiple large fossil fuel companies must be remanded back to the state trial court. The plaintiff tribes brought state common law causes of action, namely public nuisance and failure-to-warn, against the fossil fuel companies and allege that the fossil fuel companies deceived consumers about the climate impacts of burning fossil fuels. The District Court ruled that federal law does not preempt the tribes’ common law claims, as complete preemption requires congressional intent through federal statutory law. Moreover, the District Court relied on precedent which holds that ambiguities in federal law should be construed to “comport with” tribal sovereignty.

Oil & Gas Litigation

On 4 April 2025, a major oil and gas company was ordered by a jury to pay approximately US$745m to restore damages caused to southeast Louisiana’s coastal wetlands as a result of harmful drilling and dredging activities in a case initially brought by a Louisiana parish in 2013. The jury awarded the parish US$575m to compensate for lost land, US$161m to compensate for contamination, and US$8m for abandoned equipment.

On 2 April 2025, two environmental organizations filed a lawsuit in the U.S. District Court for the Central District of California against BOEM and the Secretary of the Interior, alleging that the defendants failed to comply with the Outer Continental Shelf Lands Act (OCSLA) and the APA in managing oil and gas activities off the coast of southern California. The plaintiffs claim that BOEM is allowing oil and gas production to resume based on outdated plans that were in place during a harmful oil spill that led to a complete production shutdown in 2015 despite the OCSLA mandating that plans be revised prior to restarting production.

Climate Disclosure Legislation and Regulations

On 26 March 2025, NYDEC announced the release of draft regulations that would require GHG emissions reporting from certain GHG emitters, with reporting to begin in June 2027 on the previous year’s emissions data. However, certain large emitters would further be required to verify their emissions data reported annually using NYDEC-accredited third-party verification services. The draft regulations are an integral part of NYDEC’s mandate from Governor Kathy Hochul to establish a planned cap-and-invest system requiring large emitters to purchase allowances to cover their emissions beyond a declining cap. The announcement also states that the draft regulations serve as a “backstop to ensure ongoing availability of GHG information” considering EPA’s recent announced intention to reconsider key federal air quality and GHG regulations.

Congressional Legislation

On 26 March 2025, U.S. Congressman Andy Barr, a senior member of the House Financial Services Committee, reintroduced the Ensuring Sound Guidance Act, which would ensure that investment advisors prioritize financial returns over “non-pecuniary” factors such as environmental, social, and governance (ESG) objectives when managing client portfolios and making investment decisions.

DEI Developments and Litigation

On 28 March 2025, news sources reported that the Trump administration ordered U.S. embassies in Europe (including France, Spain, Italy, Belgium, and Eastern Europe) to send letters to several European companies holding contracts with the Department of State, ordering them to comply with President Trump’s executive order regarding certain diversity, equity and inclusion programs in order to keep their contracts. The letters reportedly state that the President’s orders “appl[y] to all suppliers and service providers for the US government, regardless of their nationality or the country in which they operate," and ask respondents to sign a form for compliance within five days.

Greenwashing Litigation

On 21 April 2025, the Superior Court of the District of Columbia issued four separate orders (first order, second order, third order, and fourth order) against various major oil and gas companies, denying four separate motions to dismiss a 2020 lawsuit brought by the District of Columbia (D.C.) accusing the company defendants of misleading consumers about climate change. The complaint alleges that the company defendants misled the public for decades in a coordinated fashion and concealed climate change risks posed by their fossil fuel products, including engaging in “greenwashing campaigns” related to alleged investments in alternative and lower carbon fuels such as natural gas. In denying the motions to dismiss, the Superior Court of the District of Columbia held, among other things, that D.C. has asserted viable causes of action that the company defendants have violated various provisions of D.C.’s Consumer Protection Procedures Act (CPPA). In particular, the court held that statements made by the company defendants do not have to be linked to good or services offered for sale to D.C. consumers and can be both true and misleading to be actionable under the CPPA.

EPA and SEC Litigation

In April 2025, environmental groups filed suit against EPA in several district courts to challenge the withdrawal of funds to various programs established through the Inflation Reduction Act (IRA):

• On 21 April 2025, an environmental fund sued EPA in the U.S. District Court for the District of Columbia for withdrawing funding it received from the Greenhouse Gas Reduction Fund under the Clean Communities Investment Accelerator program which sought to promote energy independence in communities. The complaint alleges that the rescinding of funds was arbitrary, capricious, and unlawful since the grants were already awarded.
• On 16 April 2025, the D.C. Circuit – after a federal judge in the U.S. District Court for the District of Columbia on 15 April 2025 enjoined EPA from suspending US$20bn in climate grants and ordered a major U.S. bank to disburse federal grant money to grant recipients – granted EPA’s emergency motion for stay pending appeal. The order means the climate grant funds remain frozen until the appeal is heard and decided on. This is just the latest development in a series of cases filed with the U.S. District Court for the District of Columbia the over the last few weeks regarding the Biden administration-era Greenhouse Gas Reduction Fund – a grant program which provides for climate projects and green community investment – which have been consolidated in this appeal.
• On 15 April 2025, a federal judge in the U.S. District for the District of Rhode Island issued a preliminary injunction, preventing three federal agencies from freezing grant funds to grantees of green investment programs under the Infrastructure Investment and Jobs Act (IIJA) and the IRA. Moreover, the order requires the federal agencies to resume grant processing and disbursement of already-awarded funds and prevents the federal agencies from further freezing of funds on a “non-individualized basis.”
• On 2 April 2025, three environmental nonprofit organizations filed a lawsuit in the U.S. District Court for the District of Maryland against EPA, challenging the agency’s termination of their initial grant awards under the Thriving Communities Grantmaking Program (TCGP), a program established through the IRA. The plaintiffs assert that the EPA’s termination of the TCGP constitutes (1) arbitrary and capricious agency action in violation of the APA; (2) agency action exceeding statutory authority given by the Clean Air Act; and (3) violations of the First and Fifth Amendments of the U.S. Constitution. The plaintiffs seek preliminary and permanent injunctive relief directing the EPA Administrator to reinstate the TCGP and administer funds to its grantees.
• On 26 March 2025, several nonprofits and municipalities sued EPA among other defendants in the U.S. District Court for the District of South Carolina. Plaintiffs sued to disburse funds granted to them under the IRA and Infrastructure Investment and Jobs Act which were then rescinded. The complaint alleges various violations including alleging that the withholding of funds was arbitrary and capricious and that the First Amendment was violated since the government is targeting organizations for their viewpoints.

On 24 April 2025, the U.S. Court of Appeals for the Eighth Circuit (the Eighth Circuit) ordered that the litigation over the validity of the U.S. Securities and Exchange Commission’s (SEC) climate disclosure rule (“Rule”) be stayed until the SEC informs the court within 90 days of whether it “intends to review or reconsider the rules at issue in this case.” The Rule required companies to disclose certain climate-related information. The order was issued in response to a motion to hold the case in abeyance by Democratic states that intervened in the case. The Democratic states intervened to defend the Rule after the SEC stated in a press release and letter to the Eighth Circuit on 27 March 2025 that it would no longer defend the Rule. Further, the Eighth Circuit requires the SEC to address “whether [it] will adhere to the rules if the petitions for review are denied and, if not, why the [SEC] will not review or reconsider the rules at this time” if it decides not to defend or enforce the Rule.

On 14 April 2025, an environmental conservation nonprofit sued EPA in the United States District Court for the District of Arizona for violating the Freedom of Information Act (FOIA) by withholding records in a request for information related to its plans to reconsider the Obama administration’s “endangerment finding” from 2009 that GHGs (particularly carbon dioxide and methane) endanger public health, which underpins various current EPA GHG regulations. The complaint alleges that the EPA has failed to (1) comply with FOIA’s mandatory determination deadline; (2) conduct an adequate search for responsive records; and (3) promptly disclose all responsive records.

On the same day, several environmental organizations sued EPA and other federal agencies in the Unites States District Court for the District of Columbia for removing webpages that provided information on environmental justice and climate change in late January and February 2025. Plaintiffs allege that removal of these online tools is “causing and will cause substantial harm” to them because it hampers their ability to convey accurate information on impacts to human health and the environment from pollution. Plaintiffs further allege the removals are arbitrary, capricious, and an abuse of discretion.

• New Greenwashing hub on Linklaters website: see our materials 
• The German coalition agreement: opportunities and challenges for ESG management: read our briefing
• The energy and climate politics of the German coalition agreement: Having the cake and eating it, too? read our briefing
• Super-batteries – a look at Ofgem’s new cap and floor regime: read our briefing
• Linklaters acts as legal counsel on behalf of the joint lead managers on the European Investment Bank’s record-breaking €3bn European Green Bond: read our press release