November–December 2025 Energy Regulation Roundup

Author photo: Gaven Simon
ByGaven Simon
Category:
Industry Trends

The Global Energy Regulation Roundup captures key regulatory developments shaping climate, energy, and sustainability policy worldwide. This edition highlights major policy shifts across Europe, the US, and Asia, focusing on how governments are responding to energy security, decarbonization, and infrastructure modernization.

Europe: EU Delays Deforestation Regulation and Accelerates Grid Modernization

The European Union has agreed to delay implementation of the EU Deforestation Regulation (EUDR) by one year, following concerns from member states and industry stakeholders about readiness and administrative burden. The updated timeline allows additional preparation time for companies required to comply with new deforestation due diligence and traceability requirements.

Under the revised framework, operators placing regulated commodities—such as palm oil, soy, timber, rubber, coffee, cocoa, and cattle—on the EU market must demonstrate that products are deforestation-free, legally produced, and fully traceable. Responsibility for submitting due diligence statements will rest with the first entity placing goods on the market. The European Commission will conduct a review of the simplified framework and publish its findings by April 30, 2026.

In parallel, the European Union announced plans to accelerate cross-border electricity infrastructure development to strengthen energy security and lower costs. The initiative aims to reduce permitting timelines from up to ten years to just two and mobilize approximately €1.2 trillion in grid investment by 2040. Around €30 billion has already been allocated under the 2028–2034 EU budget.

New requirements will also mandate cybersecurity and physical risk assessments for EU-funded energy projects, alongside screening for foreign ownership risks. Through the European Grids Package and Energy Highways initiative, the EU aims to build a fully interconnected, resilient electricity system capable of supporting large-scale renewable integration.

US: Permitting Reform and Grid Access Take Center Stage

In the US, energy permitting reform advanced as the House Natural Resources Committee moved forward with the SPEED Act, a bipartisan proposal designed to accelerate infrastructure development. The legislation would streamline environmental reviews by narrowing the scope of analysis under the National Environmental Policy Act (NEPA) and establishing firm timelines for project approvals.

The bill also seeks to limit prolonged litigation by setting deadlines for legal challenges and judicial rulings, addressing long-standing delays that have affected energy and infrastructure projects nationwide.

At the same time, the Federal Energy Regulatory Commission (FERC) issued a significant order aimed at resolving grid access challenges for large energy users, particularly data centers. The ruling requires new transmission service categories to accommodate co-located generation and large loads, enabling faster interconnection while permanent grid upgrades are completed.

This move reflects a broader shift toward modernizing grid governance to support growing electricity demand from digital infrastructure, while maintaining system reliability and cost fairness.

Asia: Structural Energy Reform in India and Indonesia

Across Asia, governments continue to advance regulatory reforms to support energy transition goals.

In Indonesia, policy efforts remain focused on expanding renewable energy deployment and reducing reliance on coal. Regulatory updates continue to support emissions reductions, investment incentives, and long-term decarbonization targets aligned with national climate commitments.

Meanwhile, India enacted the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, marking a significant shift in nuclear policy. The legislation opens the nuclear sector to private participation for the first time while retaining government control over sensitive areas such as fuel handling and waste management.

The bill replaces legacy nuclear laws with a unified regulatory framework and strengthens the authority of the Atomic Energy Regulatory Board. It also introduces a graded liability structure designed to support emerging technologies such as small modular reactors, positioning nuclear energy as a key pillar of India’s long-term energy strategy.

Engage with ARC Advisory Group

Representative End User Clients
Representative Automation Clients
Representative Software Clients