August 2025 Energy Regulation Roundup

The Global Energy Regulation Roundup is dedicated to capturing and understanding emerging climate, energy, and reporting measures. International governments are increasingly establishing stricter policies on emissions reporting, trade, and energy. The purpose of this monthly blog is to spotlight upcoming regulations and inform key stakeholders about their impact on various industries.

European Union

The European Union proposed an Omnibus bill in February that would reduce the number of companies liable under the CSDDD’s original scope. Following the bill, the European Parliament and the European Council decided to delay reporting for the next wave of CSRD reporting companies and the first wave of CSDDD reporting companies until 2028, while further changes to the sustainability reporting laws were worked out.

The current CSDD requires companies to execute due diligence in ensuring that businesses along the value chain comply with environmental and human rights requirements. Parliament is currently debating changes to reporting thresholds and obligations of non-EU companies. In April, during the wave of Trump placing tariffs and modifying “reciprocal” tariff rates, EU leaders initially pushed back but eventually began trade deal discussions. An agreement with EU President Ursula von der Leyen was reached, and it addressed multiple trade topics, including the CSDD.

In a joint statement between the EU and the US, the EU announced a framework for an agreement on reciprocal, fair, and balanced trade. Within this statement, the European Union “commits to undertake efforts to ensure that the CSDDD and the CSRD do not pose undue restrictions on transatlantic trade. In terms of the CSDD, this includes undertaking efforts to reduce administrative burdens on businesses and to propose changes to the requirement for a harmonized civil liability regime for due diligence failures and to climate transition-related obligations. The European Union commits to working to address US concerns regarding the imposition of CSDD requirements on companies of non-EU countries with relevant high-quality regulations.”

In a following Q&A, it was stated, “This cooperation does not lead to any changes to EU domestic rules, nor will we grant US companies more favorable treatment under this regulation or any EU regulation.”

While nothing has been set in concrete, the language of the statement and Q&A is carefully crafted. It states that US companies will not get favorable treatment, but it does not prohibit the exclusion of all non-EU-based companies from CSDDD requirements. This opens the door for the possibility of all international companies avoiding any responsibility under the CSDDD and possibly the CSRD.

US

Maine has enacted significant energy policy reforms aimed at accelerating its transition to clean energy. The state’s Net Energy Billing (NEB) program will stop accepting new participants after December 31, 2025, and existing commercial users will see reduced compensation and new fees starting in 2026. A successor program focused on front-of-the-meter distributed energy resources is in development, while rooftop solar systems remain unaffected. Maine also updated its Renewable Portfolio Standard, requiring 90 percent of electricity to come from renewable sources and 10 percent from clean resources like nuclear and hydro by 2040. A new Clean Energy Standard introduces tradeable clean energy credits and expands the Public Utilities Commission’s authority.

Additionally, Maine is creating a cabinet-level Department of Energy Resources to oversee energy planning, procurement, and rulemaking. Emergency legislation includes new procurement preferences, rate design changes, expanded data access for regulators, and studies on transmission infrastructure and thermal energy networks. These changes reflect Maine’s commitment to a low-carbon energy future.

Asia

China has submitted the third draft of its atomic energy law for review, introducing stricter regulations to enhance nuclear safety, security, and international cooperation. The draft includes legal accountability for illegal exports of nuclear and dual-use items, mandates cybersecurity measures for nuclear facilities, and emphasizes the peaceful use and global collaboration in atomic energy. It also promotes the development of national and international standards and ensures that all stages of nuclear reactor development comply with legal and administrative regulations. This legislative move reflects China’s commitment to safe and reliable nuclear energy.