March 2025 Energy Regulation Round-Up

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 EU Commission is seeking to streamline reporting standards through its upcoming “Omnibus” package. Key changes include reducing companies’ reporting obligations, delaying the reporting deadline, and requiring less data. The primary goal is to boost Europe’s competitiveness, which could be affected by the burden of sustainability reporting.

The Omnibus package aims to simplify key areas such as sustainability due diligence, the EU Taxonomy, carbon border adjustments, and investment programs. According to the EU Commission, these changes are expected to cut the overall administrative burden by around 25 percent—and by 35 percent for small and medium-sized enterprises. Upcoming negotiations will determine whether to exempt an estimated 80 percent of companies initially covered by green reporting rules, limiting the requirements to firms with more than 1,000 employees.

In the latest update, the European Parliament voted to postpone reporting obligations by two years for most companies. As a result, firms with fewer than 500 employees and larger companies not classified as “public interest entities” will not be required to report on their sustainability impact until 2027. Additionally, the Parliament agreed to delay the enforcement of the EU’s supply chain law by one year, moving its start date to 2027. The EU also plans to revise its due diligence law (CSDDD) and shift annual reporting requirements to a five-year cycle.

United States

The US Environmental Protection Agency (EPA) Administrator Lee Zeldin announced 31 deregulatory actions in line with President Trump's executive orders.

Key Areas of Focus

Power Plants: Reconsidering regulations to lower operational costs.

• The announcements feature a series of deregulatory moves, including the rollback of reporting requirements for power plants. The “reconsideration” of standards centers on Mercury and Air Toxics Standards. Additionally, the EPA stated it is prioritizing the coal ash program to speed up state permit reviews and revise existing coal ash regulations. 

Oil and Gas Industries: Rolling back regulations to boost production and reduce costs.

• Reconsideration of several National Emission Standards for Hazardous Air Pollutants is underway, along with a review of regulations for light-duty, medium-duty, and heavy-duty vehicles. The administration is also considering dismantling the technology transition rule, which would give companies greater freedom to choose their preferred energy sources. 

Environmental Standards: Modifying various standards to alleviate economic burdens.

• The reconsideration of multiple National Emission Standards for Hazardous Air Pollutants is underway, alongside efforts to restructure the regional haze program. The administration also plans to end the “Good Neighbor Plan,” which was designed to reduce smog-forming pollution from power plants and industrial sources in 23 upwind states, aimed at improving air quality in downwind states. 

Most of the announcements will require further clarification through detailed action items. Since many of them use “reconsideration” as the primary action, it remains uncertain what specific changes or outcomes this will ultimately involve.

Asia

The head of China’s energy regulator met with his Chilean counterpart in Beijing to discuss collaboration on renewable energy, electricity, and energy storage. Wang Hongzhi, recently appointed as Head of the National Energy Administration, told Chile’s Diego Pardow that China is willing to support enterprises from both countries in strengthening bilateral energy cooperation. Chile aims to learn from China’s experience in clean energy and energy security to refine its policies and attract Chinese investment.

In addition, China recently announced its annual energy sector targets, mandating that non-fossil fuel sources make up 60 percent of its total power capacity—an increase of 5 percent from the previous year. According to the NEA's 2025 guidance, China's total installed power generation capacity is expected to exceed 3,600 GW in 2025, up from approximately 3,170 GW in 2024, with newly added renewable power capacity projected to surpass 200 GW this year.

Kazakhstan, Uzbekistan, Turkmenistan, Tajikistan, and Kyrgyzstan are currently facing a heatwave, with temperatures ranging from 5 to 10°C above pre-industrial levels. This 10°C rise is already affecting agricultural harvests across the region.