February 2025 Global Energy Regulation Round Up

Author photo: Gaven Simon
ByGaven Simon
Category:
Technology Trends

The Global Energy Regulation Roundup is dedicated to capturing and understanding emerging climate, energy, and reporting measures. Currently, international governments are increasingly establishing stricter policies on emissions reporting, trade, and energy. The purpose of this periodic report is to highlight approaching regulations and educate key stakeholders about their effects on a range of industries.

European Union

The European Union is considering scaling back its Corporate Sustainability Reporting Directive (CSRD) as part of the Omnibus Simplification Package. This amendment would significantly reduce the number of companies required to comply with CSRD, focusing only on those with 1,000 or more employees, down from the current threshold of 250. The proposed changes have sparked criticism from industry professionals who argue that this move is more about deregulation than simplification. If adopted, the amendment would also delay the implementation of the Corporate Sustainability Due Diligence Directive and reduce its scope, limiting due diligence to direct stakeholders only. This rollback could potentially weaken the EU’s efforts to enforce corporate transparency and accountability in environmental and human rights impacts. The final version of the package is expected to be released soon, with significant implications for corporate emissions disclosure requirements.

The European Commission on Wednesday proposed allocating 100 billion euros to boost EU-based clean manufacturing under its Clean Industrial Deal. In collaboration with the European Investment Bank, it plans to introduce guarantee schemes to lower costs for long-term renewable energy contracts and support grid manufacturers.

The US

The US Senate’s decision to repeal the Biden administration’s methane fee highlights the ongoing tension between environmental policy and economic concerns. Introduced under the Inflation Reduction Act, the fee sought to cut methane emissions—one of the most potent greenhouse gases—by imposing financial penalties on major oil and gas producers. While supporters viewed it as a crucial measure to combat pollution, critics argued it would increase costs for an already heavily regulated industry. With its repeal, attention now turns to how market dynamics, technological innovations, and existing EPA regulations will influence emission reduction efforts moving forward.

EPA Administrator, Lee Zeldin is urging the US government to rescind its 2009 finding that greenhouse gases threaten public health, a move aimed at undermining the legal basis for key climate regulations. If adopted by President Donald Trump, this decision could significantly weaken federal climate policies, impacting rules on power plant, vehicle, and oil industry emissions. The recommendation is part of a broader push to roll back environmental protections from previous administrations.

Asia

China must cut its steel production capacity by 15 percent this year—about 200 million tons—to meet its 2025 climate goals and enhance profitability, according to clean energy analysts. This reduction matches the EU's entire steel industry, with an additional 150 million tons needing to be phased out by 2030 to stay on track.

Indonesia has launched IDXCarbon, its international carbon market, enabling foreign investors to trade carbon credits to support emission reduction targets set by President Prabowo Subianto. However, concerns persist over credit quality, as many are tied to fossil fuel projects, and the risk of double counting emissions reductions. Despite these challenges, Indonesia remains committed to reaching net zero emissions by 2050 and phasing out coal by 2040, though substantial renewable energy investment will be necessary to achieve these goals.

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