Stay Ahead: Navigate Policies, Regulations & Standards with Confidence

The EU Nature Restoration Law (Regulation (EU) 2024/1991) establishes legally binding restoration targets for degraded ecosystems across the EU. In force since August 2024, it requires Member States to develop national restoration plans by 2026, restoring at least 20% of the EU’s land and sea by 2030 and all degraded ecosystems by 2050. The regulation covers forests, wetlands, rivers, agricultural soils, and marine habitats, promoting biodiversity recovery and enhancing natural carbon sinks. By reconnecting rivers, restoring peatlands, and improving soil and forest health, the law contributes to climate adaptation, resilience, and food security under the European Green Deal.

The Germany Supply Chain Due Diligence Act (Lieferkettengesetz – LkSG), in force since January 2023, makes it mandatory for companies operating in Germany to prevent human rights and environmental violations across their supply chains. It applies to firms with more than 3,000 employees (and 1,000 from 2024) and requires them to identify and mitigate risks such as child labour, forced labour, unsafe working conditions, and pollution. Companies must establish risk management systems, complaint procedures, and publish annual due diligence reports. Enforcement is handled by BAFA, which can issue fines of up to 2% of global turnover or exclude companies from public contracts. The LkSG is a cornerstone of corporate accountability in Europe and a direct precursor to the EU Corporate Sustainability Due Diligence Directive (CSDDD).

The EU Corporate Sustainability Due Diligence Directive (CSDDD) — adopted in May 2024 — creates binding obligations for companies to identify, prevent, and mitigate human rights and environmental impacts throughout their global value chains. It applies to large EU and non-EU companies operating in the Single Market and requires the adoption of risk management systems, climate-aligned transition plans, and grievance mechanisms for affected stakeholders. Penalties can reach 5% of global turnover, and firms may face civil liability for damages caused by negligence. The directive complements the Corporate Sustainability Reporting Directive (CSRD) and EU Taxonomy Regulation, embedding sustainability into business strategy, governance, and operations.

The Effort Sharing Regulation (ESR), Regulation (EU) 2023/857, sets legally binding national greenhouse gas reduction targets for EU Member States in sectors not covered by the EU Emissions Trading System (ETS). These include transport, buildings, agriculture, small industries, and waste. The regulation, part of the Fit for 55 Package, raises the overall EU target to a 40% reduction by 2030 from 2005 levels. Member States must remain within annual emission limits and can trade or bank allocations to meet goals. Oversight is provided by the European Commission and EEA, with penalties for non-compliance. The ESR ensures fair burden-sharing across the EU, complementing the Climate Law and LULUCF Regulation on the path to net-zero emissions by 2050.

The European Climate Law (Regulation (EU) 2021/1119) enshrines the EU’s commitment to climate neutrality by 2050 and an interim 55% emissions reduction by 2030 into binding legislation. In force since July 2021, it ensures all Member States align their national measures and investments with the EU’s climate trajectory. The law establishes governance mechanisms, scientific oversight, and accountability systems to monitor progress, forming the legal basis for subsequent legislation such as Fit for 55, ESR, CBAM, and LULUCF. It transforms the EU’s climate ambition into enforceable law, making Europe the first continent with a comprehensive, legally binding framework for achieving net-zero greenhouse gas emissions.

The EU Critical Raw Materials Act (CRMA), Regulation (EU) 2024/1252, establishes binding 2030 targets to strengthen Europe’s access to key materials for clean energy and digital technologies. Adopted in April 2024, the law requires at least 10% of the EU’s annual consumption of critical raw materials to be extracted domestically, 40% processed, and 25% recycled, while limiting dependence on any single non-EU supplier to 65%. It promotes strategic projects across extraction, processing, and recycling, supported by streamlined permitting and financing. The CRMA aims to reduce external dependencies and create resilient, sustainable value chains crucial for wind turbines, batteries, and electric vehicles, anchoring Europe’s industrial sovereignty under the Green Deal Industrial Plan.

The EU Net-Zero Industry Act (NZIA), Regulation (EU) 2024/1106, is the EU’s industrial backbone for achieving climate neutrality. Adopted in May 2024, it sets a binding target for 40% of the EU’s annual deployment needs for net-zero technologies to be produced domestically by 2030. The law accelerates permitting, financing, and skills development for clean-tech sectors such as solar, wind, batteries, hydrogen, and carbon capture. It also creates the Net-Zero Europe Platform to coordinate investments and designate “strategic projects” eligible for fast-track approvals. Together with the Critical Raw Materials Act, the NZIA strengthens Europe’s resilience, industrial competitiveness, and leadership in sustainable manufacturing.

New York’s Climate Leadership and Community Protection Act (CLCPA), enacted in 2019, sets legally binding goals for net-zero greenhouse gas emissions by 2050, 100% zero-emission electricity by 2040, and 70% renewable electricity by 2030. The law also ensures that 35–40% of climate and clean-energy benefits reach disadvantaged communities, embedding social equity at the heart of the transition. The Climate Action Council oversees implementation through the Scoping Plan, detailing pathways for decarbonising power, transport, and buildings. Managed by the Department of Environmental Conservation (DEC) and NYSERDA, the CLCPA positions New York as a global leader in integrating climate ambition with community protection and inclusive economic growth.

The California Global Warming Solutions Act (AB 32), enacted in 2006, established the first legally binding statewide framework in the U.S. to reduce greenhouse gas emissions to 1990 levels by 2020, achieving this goal ahead of schedule. The law authorises the California Air Resources Board (CARB) to design and enforce climate policies across energy, transport, and industry, including the creation of North America’s largest cap-and-trade programme. Under subsequent updates such as SB 32, the state now targets 48–50% emission reductions by 2030 and carbon neutrality by 2045. AB 32 has made California a global climate policy leader, integrating carbon pricing, clean technology investment, and environmental justice initiatives into a unified strategy for sustainable growth.

The Canada Net-Zero Emissions Accountability Act (Bill C-12), enacted in June 2021, makes the country’s commitment to net-zero greenhouse gas emissions by 2050 legally binding. It requires the federal government to set and publish five-year emissions-reduction targets beginning with 2030, supported by detailed climate plans and progress reports. Oversight is provided by an independent Net-Zero Advisory Body, which monitors policy alignment and advises on corrective action if milestones are missed. The law strengthens accountability by mandating public reporting to Parliament and embedding transparency across federal policymaking. It underpins Canada’s 2030 Emissions Reduction Plan and long-term strategy under the Paris Agreement, ensuring continuity across governments and sectors.