Companies involved in carbon farming projects, industrial carbon removal technologies and binding carbon in long-lasting products and materials will be able to have their products or services certified under the first EU-wide voluntary framework for the certification of high-quality carbon removals.

Companies that develop net-zero technology manufacturing projects identified as having a greater potential for decarbonisation will benefit from fast-track permit procedures for construction or expansion and guidance in accessing finance, under new legislation set to be passed at EU level.

Proposed changes to the UK’s ETS are set to place pressure on businesses to reduce their carbon emissions by reinforcing the mechanisms that incentivise emission reductions, mitigate market risks, and promote sustainable practices.

The implementation of sustainability reporting standards for certain sectors and for third-country companies in the EU will be delayed by two years following concerns by industry that there is not enough time to embrace them.

Financial institutions will be required to adhere to minimum standards and reference methodologies for the identification, measurement, management, and monitoring of ESG risks under guidelines for ESG risk management released by the European Banking Authority (EBA).

The use of generic environmental and climate claims which are not based on fact and supported by evidence will be banned in the EU by 2026 and added to the list of unfair commercial practice, under new legislation agreed by EU legislators.

The UK government has announced plans to implement a Carbon Border Adjustment Mechanism (CBAM) by 2027 as it seeks to keep the UK on track to meet its carbon reduction efforts.

Companies required to disclose and publish sustainability information under the EU Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy Regulation have the opportunity to comment on the European Securities and Markets Authority’s (ESMA) approach to enforcement when the requirements take effect from 1 January 2025.

Growing consensus on the need to create regulated standards on ESG data has been given a boost with the publication of a set of recommendations by the international securities standards setting body for global regulators.