Webinar: Unlocking the potential of CCS technology in the energy transition

Carbon capture and storage (CCS) is becoming a cornerstone of global efforts to advance the energy transition. While the technology itself is not new, scaling it to meet ambitious emission reduction targets is - and that presents unique challenges and opportunities. In the UK, the first CCS projects have come to market. What conclusions can be drawn from the successful financing of these projects and what lessons can be applied to future schemes, both regionally and globally? Across Europe, new schemes are taking shape with the backing of the European Commission. In the Gulf, early initiatives are underway, and across the United States, new projects are gaining momentum. Join us on Wednesday, 11 June 2025 for a webinar, hosted by PFI Editor, Rod Morrison, who will explore these developments from a global perspective. Our expert panel will dive into the key financial, legal, and operational considerations that CCS projects face across various markets. 

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Webinar: Transition Plans in Focus 

Join us on Tuesday, 24 June 2025, for a webinar on transition plans and what the evolving regulatory landscape looks like, including in the UK and under the EU’s CSDDD. Our Linklaters experts will look at practical legal considerations to bear in mind when developing and preparing transition plans, including minimising greenwashing risk and alignment with broader strategies and communications. 

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EU: Stop-the-Clock Directive transposition tracker

As part of the EU Commission’s so-called “Omnibus package”, the “Stop-the-Clock” Directive was published in the Official Journal of the EU on 16 April 2025. Member States must now transpose the Stop-the-Clock Directive into national law by 31 December 2025. In our Stop-the-Clock Transposition Tracker, we track the status of transposition in key EU jurisdictions, including any information about the stage the process is at, for example draft guidelines, any interim communications and any announcements on timing and next steps. For more information, see our Stop-the-Clock Transposition Tracker.

EU: Omnibus tracker

We have published an EU Omnibus tracker where we track key developments in the EU's efforts to simplify existing sustainability rules – including proposed changes to the CSRD, CSDDD, Taxonomy, CBAM, SFDR, EU Deforestation Regulation, Batteries Regulation and more. We will be updating this tracker as and when there are new developments. For more information, see our EU Omnibus Tracker. 

European Commission plans to delay ESRS phased-in requirements

On 13 May 2025, the Committee on Legal Affairs of the European Parliament (also known as the JURI committee) held a public hearing on the EU Omnibus. The recording and presentations can be viewed here. During the meeting, a representative of the European Commission indicated that the Commission intends to adopt a “Quick-Fix” delegated act to revise the existing European Sustainability Reporting Standards (ESRS) to ensure that companies that had to begin reporting under the Corporate Sustainability Reporting Directive (CSRD) for financial year 2024 do not have to report additional information provided in Appendix C to the ESRS when reporting for financial years 2025 and 2026. This was confirmed later in the FISMA Newsletter on 21 May 2025. The timing for the publication and adoption of this delegated act is not yet known. 

EU: Sustainability elements of the Omnibus IV proposal

On 21 May 2025, the European Commission published the Omnibus IV simplification package aimed at simplifying EU rules and reducing administrative burdens. This package forms part of a broader effort announced in the Commission’s Work Programme to cut the administrative burden by at least 25% for all companies and by at least 35% for SMEs. The Omnibus IV includes proposed amendments to the Batteries Regulation 2023 and the F-gas Regulation 2024, as well as measures aimed at a new category of small mid-cap companies (SMCs) but it does not amend the Corporate Sustainability Reporting Directive (CSRD) or the Corporate Sustainability Due Diligence Directive (CSDDD). For more information, see our blog post.

EU Ombudswoman opens inquiry into the legislative process for the first Omnibus package

European Ombudsman Teresa Anjinho has launched an inquiry into the European Commission’s preparation of its first Omnibus simplification package. The inquiry follows a complaint by eight NGOs, which allege that the Commission violated its Better Regulation Guidelines. Specifically, they claim that the Commission failed to justify its decision not to conduct a public consultation or an impact assessment on the draft legislation (see NGO press release). As part of the inquiry, the Ombudswoman has submitted several questions to the Commission. These focus on the stakeholder consultations cited in the explanatory memorandum accompanying the legislative proposal. Among other inquiries, the European Ombudsman has requested more details about which companies and stakeholders were invited to meetings with the Commission in early February 2025 and the criteria used to select them. While the Ombudsman does not have enforcement powers, its inquiries can lead to recommendations for the Commission, potentially influencing future legislative process.

EU Single Market Strategy: dealing with fragmented rules on packaging, labelling and waste

On 21 May 2025, the European Commission published a Single Market Strategy with a series of actions focusing on removing the 10 most harmful barriers to intra-EU trade and investments. One of the 10 most harmful barriers to the free movement of goods and services at the moment, based on feedback from stakeholder consultations, is fragmented rules on packaging, labelling and waste. The Strategy sets out what the Commission plans to do to address this, primarily by making product labels clearer and more accessible and by simplifying extended producer responsibility (EPR) schemes for end-of-life products – with a Circular Economy / Environmental Omnibus expected in Q4 2025. For more information, see our blog post.

EU: Council and Parliament ready to start trilogues on CBAM simplification

As part of the first Omnibus simplification package published on 26 February 2025, the European Commission proposed changes to the Carbon Border Adjustment Mechanism (CBAM) (see our previous blog post). The proposed changes include introducing a cumulative annual threshold of 50 tonnes of imported goods per importer and simplifying certain rules for companies that remain within the scope of CBAM. The new CBAM threshold is intended to eliminate CBAM obligations for 90% of importers. 

The European Parliament adopted its negotiating position on the CBAM proposal on 22 May 2025 (see press release), suggesting only technical amendments aimed at clarifying the text. The Council adopted its negotiating position (also known as “general approach”) on 27 May 2025 (see press release and general approach document), proposing additional changes to the Commission proposal. Both the Parliament and the Council supported the introduction of the 50-tonne de minimis mass threshold proposed by the Commission. The European co-legislators are now ready to begin negotiations on the proposal (trilogues). 

EU: ESMA consults on rules for ESG rating providers with important details for those seeking authorisation

The European Securities and Markets Authority (ESMA) has published a consultation paper on a draft Regulatory Technical Standard (RTS) under the ESG Rating Regulation (ERR). These will be an important RTS for any groups planning on establishing a new ESG rating provider, which will need to be authorised and regulated by ESMA. Overall, ESMA is proposing introducing extensive requirements for ESG rating providers, so any EU entities wishing to become authorised will need to take these into account as part of their ERR implementation plans. In addition, the RTS will still be of interest to users of ESG ratings, to understand what the transparency and authorisation landscape will look like for ESG ratings providers. For more information, see our webinar recording. 

EU: ESMA guidelines on enforcement of sustainability information to help issuers get it right

The European Securities and Markets Authority (ESMA) has delivered final guidelines under the Corporate Sustainability Reporting Directive (CSRD) to ensure consistent enforcement of sustainability information. The key thing to note when approaching these guidelines is that “enforcement” in fact means “supervision”.  The goal of the guidelines is to support a consistent and robust approach to how national authorities monitor sustainability disclosures. It is anticipated that this will facilitate connectivity between the reporting of listed companies' sustainability and financial information. For more information, see our blog post.

EU: European Banking Authority consults on draft ITS on disclosures on ESG risks

The European Banking Authority (EBA) has launched a consultation on draft implementing technical standards (ITS) amending the European Commission Implementing Regulation (EU) 2024/3172 (see EBA press release). The proposals amend the Pillar 3 disclosures framework by incorporating the requirements under the Capital Requirements Regulation 3 (CRR 3) regarding ESG related risks, equity exposures and the aggregate exposure to shadow banking entities. 

The key changes proposed include:

• A proportionate ESG disclosure framework aligned with the European Commission’s initiative to simplify sustainability reporting. This framework tailors reporting obligations to an institution’s size, type and complexity.
• Simplified disclosure requirements for small and medium-sized banks, with large, listed banks receiving clarifications rather than additional obligations.
• Fully aligning the Pillar 3 disclosure requirements with the Taxonomy Regulation.
• The introduction of transitional measures and supervisory flexibility, including the potential issuance of a no-action letter, to mitigate the initial compliance burden. During the interim period (which will last until the ITS are in force), the EBA encourages competent authorities to provide institutions with the flexibility envisaged in the transitional provisions.

In addition, the EBA has provided an updated mapping tool between Pillar 3 and supervisory reporting to support implementation by institutions. The consultation closes on 22 August 2025 and a public hearing is scheduled for 26 June 2025. The ITS is expected to be finalised and submitted to the Commission during Q4 2025.

UK: PRA consultation on significant changes to Supervisory Statement 3/19 on managing climate-related risks

On 30 April 2025, the Prudential Regulation Authority (PRA) published a consultation paper proposing the replacement of its existing Supervisory Statement on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (SS3/19) with a new Supervisory Statement setting out updated, more detailed supervisory expectations on this topic. The proposed expectations focus on the following five themes: governance, risk management, climate scenario analysis, data and disclosure. The consultation closes on 30 July 2025. For more information, see our blog post. 

Global: B Lab updates B Corp certification requirements and makes significant changes

B Lab (the non-profit network and administrator of B Corp certification) recently released new certification standards to strengthen accountability and clarity for B Corps. Companies seeking new certification will be required to use the revised standards from 2026 onwards. The revised standards introduce significant changes to the way B Corps are certified (and recertified) going forward, with major impacts for the almost 10,000 strong network of B Corps. For more information, see our blog post. 

Global: Voluntary Carbon Markets Integrity Initiative publishes Scope 3 Action Code of Practice

On 30 April 2025, the Voluntary Carbon Markets Integrity Initiative (VCMI) published its Scope 3 Action Code of Practice. The Code sets out a practical step-by-step framework to help companies with how to use carbon credits to close the “scope 3 emissions gap”. The Code is also intended to give governments a blueprint for setting best-practice policy and incentivising increased corporate action for this complex emissions reduction challenge. 

The Code sets out: 

• guardrails that ensure the use of high-quality carbon credits is a temporary, transparent, and accountable measure - not a substitute for decarbonisation; 
• clear disclosure requirements for companies to report their emissions gap, barriers they face, and actions taken to get back on track with net-zero commitments; and 
• a time-bound approach - guidance provided in the Code is time-bound so that companies can eliminate their scope 3 emissions gap by 2040 and align with their climate commitments. 

Council of Europe adopts first international convention on the protection of the environment through criminal law

On 14 May 2025, the Council of Europe’s Committee of Ministers adopted a groundbreaking Convention on the Protection of the Environment through Criminal Law. This treaty, whose provisions must be implemented by the Council of Europe’s member states into their national laws, forms the foundation for a stronger, harmonised criminal justice response to environmental crimes across national borders. The Convention is the first legally binding international instrument to specifically target environmental crime. For more information, see our blog post.

UK-EU Emissions Trading Scheme (ETS) linkage: a new era for carbon markets

The renewed agenda for EU-UK cooperation common understanding published on 19 May 2025 may prove to be the start of a new era for EU and UK carbon markets. Although the detail is still to be worked through, the commitments set out in the common understanding represent a significant shift in post-Brexit climate policy relations and support for a common carbon market. The common understanding confirms that the European Commission and UK government have formally agreed to “work towards linking emission trading systems” as part of their renewed cooperation agenda. We anticipate that a linking agreement could be agreed before the next UK general election, with an interim agreement likely to be put in place while negotiations are ongoing. For more information, see our blog post. 

EU: Commission consults on integrating sustainability considerations in merger reviews

On 8 May 2025, the European Commission launched a public consultation on the review of the horizontal and non-horizontal merger guidelines. One of the questions is how the Commission’s merger assessments could give “adequate weight” to sustainability considerations. This move reflects the growing need to align competition policy with the EU’s broader climate neutrality and sustainability objectives. Businesses navigating the green transition stand to benefit from clearer guidance on how mergers can support green innovation, facilitate decarbonisation, and enhance circular economies without distorting competition. The consultation seeks to address concerns around “green killer acquisitions” or mergers that undermine sustainability efforts, and to explore which mergers have a positive impact on clean innovation, driving greener technologies and resource-efficient practices. Draft guidelines are expected to be published in 2026, with adoption of the final guidelines planned for Q4 2027. The consultation closes on 3 September 2025.

EU Deforestation Regulation: country risk classification adopted by the Commission

On 22 May 2025, the European Commission adopted an Implementing Regulation classifying countries under the EU Deforestation Regulation (EUDR) into three risk categories: low, standard, or high risk. Four countries have been designated as “high risk”: Belarus, Myanmar, North Korea, and Russia. 140 countries have been classed low risk, including all EU Member States, the UK, the U.S., Canada, China, Japan, Australia and South Africa. Around 50 countries, including Indonesia, Malaysia or Brazil, are classified as standard risk. This classification determines whether operators can benefit from simplified due diligence obligations under Article 13 of the EUDR, and the level of annual compliance checks to be conducted by supervisory authorities on imports and exports of EUDR-relevant commodities (cattle, cocoa, coffee, oil palm, rubber, soya and wood) and derived products. For more information, see our blog post.

EU: Commission launches consultation on the Gender Equality Strategy

The European Commission has launched a public consultation to gather input on the forthcoming Gender Equality Strategy for 2026–2030. The Roadmap for Women’s Rights, adopted in March 2025, outlines a long-term vision for advancing women’s rights across Europe. Achieving a “Union of Equality” remains a priority, as reaffirmed in President Von der Leyen’s Political Guidelines 2024-2029. The new strategy will detail the Commission’s planned measures for the next five years, building on the progress accomplished under the Gender Equality Strategy 2020 - 2025. It will continue to follow a dual approach, combining targeted actions to promote gender equality with more effective gender mainstreaming across all EU policies. The strategy is anticipated to feature in the Commission’s work programme for 2026. The consultation closes on 19 August 2025.

EU: Parliament starts monitoring implementation of the Platform Work Directive

The Platform Work Directive (PWD), which aims to regulate the rapidly expanding digital platform work sector, entered into force on 1 December 2024. On 20 May 2025, MEPs from the European Parliament’s Employment and Social Affairs Committee launched a monitoring group on the Platform Work Directive (see press release). The group is tasked with scrutinising the implementation and enforcement of the PWD by organising debates with the European Commission, national authorities, social partners and other stakeholders. For more information on the Platform Work Directive, see our previous blog post. 

China issues draft climate disclosure guidelines for companies

On 30 April 2025, the Ministry of Finance and the Ministry of Ecology and Environment jointly released the draft Guidelines for Corporate Climate-related Disclosures (Chinese language) (the Draft Guidelines) for public comments. The Draft Guidelines aim to standardise the approach that companies use to report on climate risks, opportunities, and impacts and is based on the sustainability disclosure requirements for entreprises issued in May 2024 (see our May 2024 ESG newsletter). Drawing heavily from the ISSB’s IFRS S2 climate-related disclosure standards, the Draft Guidelines incorporate unique Chinese characteristics and cover climate-related information regarding the four pillars of (i) governance, (ii) strategy, (iii) risk and opportunity management, and (iv) metrics. Apart from the Draft Guidelines, sector-specific guidelines for key industries such as power, steel, and cement are also being drafted so as to provide specific guidance for applying the basic climate standards within these industries. The Draft Guidelines are expected to facilitate the creation of a standardised climate information management system, encourage low-carbon innovation and contribute to China’s sustainability objectives. Recognising the varying disclosure capabilities of companies, the Draft Guidelines will initially be implemented on a voluntary basis. The consultation closed on 31 May 2025.

China publishes guidelines for integrating transport and energy sectors

On 25 April 2025, the Ministry of Transport (MOT), the National Development and Reform Commission (NDRC) and eight other government departments in China jointly issued the Guidelines to Accelerate the Integration of the Transportation and Energy Sectors (Chinese language) (the Guidelines). The Guidelines aim to promote the deep integration of and establish a modern energy system for the transportation and energy sectors by 2035. The Guidelines focus on advancing the use of clean and low-carbon energy, technological innovation and green development. Key measures aim to establish electric vehicles as the mainstream of new vehicle sales; promote the use of new energy heavy-duty trucks; and develop a nationwide green fuel supply system. According to the Guidelines, by 2027, a coordinated development mechanism across multiple departments is expected to be in place. The target is for electricity to account for 10% of the transport sector's final energy consumption, with the installed capacity of non-fossil energy power generation along major transport infrastructure projected to exceed 5,000,000 kilowatts.

China publishes a draft Ecological and Environmental Code

On 30 April 2025, China’s Standing Committee of the National People’s Congress released a draft of China’s first-ever Ecological and Environmental Code (Chinese language) (the Draft Code) for public comments. The Draft Code consists of 1,188 articles in five chapters including general provisions, pollution prevention and control, ecological protection, green and low-carbon development, legal liability and supplementary provisions. As a significant step in China’s legislative efforts towards green development, the Draft Code aims to integrate the existing environmental regulations and sets out principles and guiding provisions, for the purpose of tackling climate change, achieving carbon peaking and carbon neutrality, and balancing international commitments with domestic priorities for climate action. Once adopted, the Ecological and Environmental Code will become the second formal statutory code in China after the Civil Code.

Hong Kong SAR launches public consultation on updating Biodiversity Strategy and Action Plan

On 12 May 2025, the Hong Kong SAR Government launched a public consultation on updating Hong Kong's Biodiversity Strategy and Action Plan (BSAP). Taking into account the latest global and national biodiversity initiatives, including the Kunming-Montreal Global Biodiversity Framework and the China National Biodiversity Conservation Strategy and Action Plan (2023-2030), local circumstances and conditions, and views received during the consultation period, the Government will complete updating the BSAP later this year. The consultation closes on 11 July 2025. 

Thailand’s Securities and Exchange Commission (SEC) consults on tokenised carbon credits

The Securities and Exchange Commission of Thailand (SEC) has launched a consultation on regulatory amendments that would allow tokenised carbon credits and other products to be traded through licensed digital asset exchanges, brokers and dealers. These changes aim to expand trading options for businesses, enabling the business operators to trade carbon credits through regulated intermediaries in addition to over-the-counter methods. The eligible products are (i) Tokenised Carbon Credits, (ii) Tokenised Renewable Energy Certificates (REC) and (iii) Tokenised Carbon Allowances. The proposed regulatory amendments were introduced to support Thailand’s goals for carbon neutrality by 2050 and net-zero emissions by 2065, while positioning Thailand as a regional hub for carbon credit trading in ASEAN. The consultation period has now concluded, and the SEC is currently reviewing and summarising the feedback received.

Singapore’s Gprnt launches national ESG utility for Scope 1 and 2 reporting

On 22 May 2025, Gprnt (“Greenprint”), the sustainability reporting and data platform company, announced the world’s first nationwide utility which enables companies in Singapore to automatically generate their basic sustainability metrics. Using Gprnt, Singapore-based companies will be able to retrieve utilities data – comprising their water, town gas, and electricity consumption values – from PUB, Singapore’s National Water Agency and the Energy Market Authority. This is enabled by Gprnt’s integration with the Government Technology Agency of Singapore’s (GovTech) Myinfo business service, which allows companies to use their Corppass accounts to securely retrieve data with consent. Companies will be able to automatically convert their utilities data into basic sustainability metrics, such as Scope 1 and 2 emissions values. The digital platform supports Singapore based companies disclose their baseline sustainability metrics, leveraging government-source data, with minimal intervention and at no cost; and matches them to government and industry partners willing to incentivise such disclosures.

Singapore: ACRA launches a Body of Knowledge to guide training providers in designing programmes for sustainability reporting

On 19 May 2025, Singapore’s Accounting and Corporate Regulatory Authority (ACRA) launched the Sustainability Reporting Body of Knowledge (SR BOK) to guide training providers in developing programmes that equip professionals with sustainability reporting skills. The SR BOK is designed to equip professionals with technical skills and competencies in greenhouse gas accounting and sustainability / climate reporting, enabling them to take on roles as specialists in preparing sustainability reports. It covers essential topics in accordance with key global standards, such as the application of the ISSB’s IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, and the Greenhouse Gas (GHG) Protocol for specialists preparing sustainability reports for their organisations. The initiative aims to build a strong talent pipeline to meet growing market demands for sustainability disclosures and climate-related reporting.

Singapore enters into carbon credit agreement with Paraguay

On 23 May 2025, Singapore signed a carbon credit agreement with Paraguay, its seventh such partnership following earlier deals with Papua New Guinea, Ghana, Bhutan, Peru, Chile, and Rwanda (see our May 2025 ESG newsletter). The agreement provides a framework for generating and transferring carbon credits from carbon mitigation projects aligned with Article 6 of the Paris Agreement.

Japan launches the JCM Agency

On the 1 April 2025, the Global Environment Centre was designated as the Implementation Agency for the Joint Crediting Mechanism (JCM) (see MOE’s Press Release). The Implementation Agency is responsible for implementing and facilitating the JCM, including the operation of the JCM from project registration to credit issuance, as well as coordination with partner countries.

Japan publishes the “Guideline of Green Enabling Projects”

Japan’s Ministry of the Environment published the “Guideline of Green Enabling Projects” (see MOE’s Press Release (Japanese language)) (the Guidelines). In June 2024, ICMA launched the “Green Enabling Projects Guidelines” (the ICMA GEP Guidance). The Guidelines published by the MOE provides (i) an analysis of each criteria set out in the ICMA GEP Guideline; (ii) the points that need to be discussed further; and (iii) the effective way of using green enabling projects to encourage green financing. The expectation is that industry can use the Guidelines as a supplemental resource to the ICMA GEP Guidance when they issue green bonds or provide green loans for “green enabling projects”.

Japan announces 2025 feed-in tariff and feed-in premium prices

Japan’s Ministry of Economy, Trade, and Industry announced the 2025 feed-in tariff and feed-in premium prices for renewable energy (Japanese language). The new rates include adjustments for solar, wind, geothermal, and biomass energy, reflecting the costs and market conditions for efficient energy supply.

Japan’s Financial Services Agency publishes new guidance on sustainability disclosure in securities reports

On 1 April 2025, Japan’s Financial Services Agency (FSA) issued guidance for the preparation of 2025 securities reports with a focus on the disclosure of corporate initiatives related to sustainability (Japanese language). Seeking clearer disclosure on sustainability and corporate governance, it comes after a review of the 2024 reports and the Amended Disclosure Ordinance. In particular, the FSA has noted insufficient disclosures around some listed companies’ strategies, metrics and goals regarding the sustainability-related risks and opportunities identified by them.

Federal Agency Actions

On 22 May 2025, the U.S. Department of Justice (DOJ) and the Federal Trade Commission filed a statement of interest in the U.S. District Court for the Eastern District of Texas in a lawsuit by several Republican states against asset managers that allegedly used energy holdings to reduce coal output and increase the price of coal under the guise of ESG concerns. In the statement of interest, both federal agencies expressed concerns about the impact of anticompetitive behavior that allegedly reduces the production of domestic energy and results in higher prices. The asset managers argue that the investments fall under an exemption because they were passive minority investments that cannot violate antitrust law, while both federal agencies assert that the exemption being used by the asset managers does not apply if initially passive investments are used to hurt competition.

On 20 May 2025, the U.S. Department of Energy (DOE) announced the first step in its largest deregulatory effort in its history by proposing the weakening or eliminating of 47 regulations, including energy conservation standards for both household appliances and buildings and various diversity, equity, and inclusion (DEI) requirements for DOE grant recipients. These actions seek to lower costs, increase consumer freedom, and promote American energy dominance in accordance with the executive order President Trump issued on 24 April 2025 titled “Unleashing America's Offshore Critical Minerals and Resources”.

On 19 May 2025, the U.S. Department of the Interior (DOI) lifted its stop-work order on the Empire Wind 1 offshore wind energy project, located south of Long Island, New York, allowing construction to resume after a month-long freeze initiated by Secretary of the Interior Doug Burgum on 16 April 2025 for further review of project approvals. The freeze was prompted by concerns over whether the Biden administration conducted sufficient analysis or consultation with relevant federal agencies before issuing the project’s approvals. Equinor ASA, the sponsor of the project, announced that in light of the reversal, it plans to still have the project reach its planned commercial operation date in 2027 and will work with suppliers and regulatory bodies to reduce the impact of the stop work order.

On 16 May 2025, DOE announced emergency actions to address Puerto Rico’s ongoing energy crisis and strengthen its fragile power grid following a recent island-wide blackout. U.S. Secretary of Energy Chris Wright authorized two emergency orders under the Federal Power Act Section 202(c), enabling immediate measures to improve grid security and resiliency and perform vegetation management activities. These actions are supported by $365 million from the Puerto Rico Energy Resilience Fund and taken in accordance with the executive order President Trump issued on 20 January 2025 titled “Declaring a National Energy Emergency”.

On 14 May 2025, the U.S. Environmental Protection Agency (EPA) announced it will roll back much of the nationwide drinking water standard introduced under the Biden administration to address toxic "forever chemicals" per- and polyfluoroalkyl substances (PFAS), but will uphold existing limits for two specific PFAS chemicals – perfluorooctanoic acid (PFOA) and perfluorooctane sulfonic acid (PFOS). The original rule set limits for six PFAS chemicals and required public water systems to monitor and reduce their presence by 2029. Under the new proposal from the Trump administration, the EPA will rescind and reconsider the drinking water limits for four of the regulated PFAS substances and the timeline for addressing PFOA and PFOS will be extended, giving water systems until 2031 to comply.

On 12 May 2025, the U.S. Department of Agriculture (USDA) announced that it would restore climate change-related webpages that had been removed since President Trump’s inauguration. This action followed a lawsuit filed in February by farm and environmental groups. The webpages included materials on climate-friendly funding and loans, investments under the Inflation Reduction Act (IRA), and policy documents. The lawsuit alleged these were removed after a directive on 30 January 2025 to delete climate-focused content, aligning with the Trump administration's priorities. USDA announced it would complete the webpage restoration within two weeks.

On 7 May 2025, 16 states and the District of Columbia filed suit in the U.S. District Court for the Western District of Washington against several federal agencies for withholding funds under the Infrastructure Investment and Jobs Act’s National Electric Vehicle Infrastructure Formula Program. These congressionally approved funds were to be disbursed to states to develop electric vehicle infrastructure. In their complaint, the state plaintiffs allege that the federal government’s actions of revoking State Electric Vehicle Infrastructure Deployment Plan approvals and withholding approved funds were unlawful and constituted final agency action exceeding the scope of the agencies’ statutory authority in violation of the Administrative Procedure Act. The plaintiffs seek preliminary injunctive relief.

On 5 May 2025, the Supreme Court of the United States (SCOTUS) declined to review challenges from commercial fishing groups against approvals by the Bureau of Ocean Energy Management and other federal agencies of the Vineyard Wind offshore wind energy project off the Massachusetts coast, which they argued jeopardizes the fishing industry. The groups claimed the Biden administration improperly applied the Outer Continental Shelf Lands Act and ignored risks to fisheries, safety, and the environment. The fishing groups also criticized the First Circuit's interpretation of statutory obligations and invoked a recent ruling in Loper Bright Enterprises et al. v. Raimondo, which eliminated Chevron deference. Chevron deference gave federal agencies broad authority to interpret laws and determine how best to apply them. For additional information on the Loper decision, see our August 2024 U.S. Energy and Infrastructure Update here. 

Presidential Actions

On 23 May 2025, President Trump issued an executive order titled “Restoring Gold Standard Science” (the Gold Standard Science Order) that requires the Director of the Office of Science and Technology Policy (OSTP Director) to “issue guidance for agencies on implementation of ‘Gold Standard Science’ in the conduct and management of their respective scientific activities” within 30 days of the Gold Standard Science Order. The Gold Standard Science Order directs the head of each federal agency to update agency policies and processes relating to the use of scientific or technological information to implement the guidance and ensure that scientific activities by the federal agency are conducted in accordance with the Gold Standard Science Order. Federal agency heads are also required to report to the OSTP Director within 60 days of the Gold Standard Science Order with the actions taken to implement the same at their respective federal agencies. Further, the Gold Standard Science Order provides a list of stringent rules governing the use, interpretation, and communication of scientific data that federal agency heads and employees are directed to adhere to within 30 days of the Gold Standard Science Order. Federal agency heads are also required to return to policies regarding scientific integrity that were in place when President Trump left office in January 2021 and to review all applicable regulations issued during the Biden administration.

On the same day, President Trump issued four separate executive orders to address domestic nuclear energy production. Collectively, the executive orders aim to ramp up domestic nuclear energy production, distribution, and use:

• “Reinvigorating the Nuclear Industrial Base” orders the DOE, in coordination with other federal agencies, to issue a report that includes recommendations for national policy to support the management of spent nuclear fuel,  efficient uses for the uranium, plutonium, and other recycled and reprocessed products, and disposal of wastes. Further, it requires the Secretary of Energy to prioritize certain activities that support nuclear energy, including restarting, completing, uprating, or constructing nuclear power plants.
• “Reforming Nuclear Reactor Testing at the Department of Energy” instructs the Secretary of Energy to revise DOE regulations, guidance, procedures, and practices in order to “significantly expedite the review, approval, and deployment of advanced reactors under the [DOE]’s jurisdiction.” Further, it establishes a pilot program for reactor construction and operation and directs the Secretary of Energy to take action to streamline environmental reviews for any and all authorizations, permits, approvals, etc. for such reactors, including reforming rules governing compliance with the National Environmental Policy Act.
• “Ordering the Reform of the Nuclear Regulatory Commission” reduces and reorganizes the workforce at the Nuclear Regulatory Commission (NRC). Further, it instructs the NRC, in collaboration with other federal agencies, to review and revise its regulations and guidance documents, and issue notice(s) of proposed rulemaking(s) implementing the proposed revisions within nine months of the date of the executive order. 
• “Deploying Advanced Nuclear Reactor Technologies for National Security” calls for the Secretary of Defense to establish a program to utilize nuclear energy for both installation and operational energy and to start operation of a nuclear reactor at a domestic military base by 30 September 2028. Further, among other things, it directs the Secretary of State to take various actions to promote nuclear exports.

On 9 May 2025, a federal judge in the U.S. District Court for the Northern District of California granted a two-week restraining order blocking the Trump administration’s efforts to lay off employees and restructure federal agencies. The decision came after a group of labor unions, non-profit organizations, and local governments sued to halt federal agencies and the Department of Government Efficiency from enforcing an Executive Order directing large-scale reductions in workforce. The judge noted that to “make large-scale overhauls of federal agencies, any president must enlist the help of his co-equal branch and partner, the Congress,” and found that neither the legislative branch nor plaintiffs were informed of the President’s decision.  

On the same day, President Trump issued a presidential memorandum titled “Rescission of Useless Water Pressure Standards,” further deregulating America’s energy sector. The presidential memorandum directs DOE to stop enforcing water conservation standards for home appliances including bathtubs, faucets, and showerheads. This is one of many recent actions by President Trump directing federal agencies to halt the enforcement of rules and implementation of programs that do not align with the Trump administration’s policies, with other Executive Orders affecting DOL, DOJ, and EPA.

On 2 May 2025, the Office of Management and Budget (OMB) released its budget request for fiscal year 2026, making steep cuts to various non-defense programs. Among the cuts, EPA would lose more than half of its funding compared to 2025, with proposed cuts to drinking water infrastructure grants for states amounting to $2.4 billion and funding for the agency’s categorical grant programs—which fund various water, air, waste, pesticide, and toxic substances programs—facing a $1 billion reduction. The proposed cuts would eliminate all environmental justice programs and include a $231 million cut to the Office of Research and Development. The OMB stated that these programs have become “a crutch for States at the expense of taxpayers—many of whom receive no benefit from these grants."

Congressional actions

On 22 May 2025, the U.S. House of Representatives’ (the House) passed a bill, recently coined as the “One Big Beautiful Bill” (the Bill) which, if ultimately enacted into law, would impose significant changes to clean energy tax credits established by the IRA. The provisions of the Bill would, for example, effectively terminate both the investment tax credit (ITC) and production tax credit (PTC) for projects that do not both (1) begin construction within 60 days after the Bill is enacted and (2) are not also treated as having been placed in service for tax purposes by January 1, 2028. Additionally, the Bill would terminate the $7,500 tax credits under the IRA for the purchase of electric vehicles as well as tax credits for businesses purchasing or leasing certain electronic vehicles. Thirdly, the Bill would repeal a 10-year incentive for clean hydrogen, block wind energy components from being eligible for the Advanced Manufacturing Production tax credit, and impose new and burdensome “foreign entity of concern” rules designed to prevent components and investors with respect to eligible projects from being sourced to China, among other jurisdictions. The Bill is already receiving widespread criticism from the renewables industry due to expectations that if passed, developers and investors alike would stand to lose hundreds of millions of dollars in sunk costs with respect to early-stage projects that will no longer be eligible to qualify for PTCs and ITCs, thereby becoming uneconomical. In order to become law, the Bill would need to also be approved by the Senate before being signed by President Trump. Notwithstanding the state of alarm the Bill has created for many in the renewables industry, many renewable energy pundits are finding some comfort in the fact that the Senate appears to be unwilling to pass the Bill in its current form. Such proponents are fiercely advocating that future amendments to the Bill will save the PTC and ITC, thereby preserving the economics of numerous solar, wind and battery energy storage system projects.

On 30 April 2025, the House passed two Congressional Review Act (CRA) resolutions that could change Biden-era clean vehicle laws in California. The first resolution would reverse EPA’s waiver that allows California to mandate the sale of zero-emissions trucks, while the second resolution would repeal EPA’s waiver that allows California to implement emissions standards for nitrogen oxides. On 1 May 2025, the House passed a third resolution that would undo EPA’s waiver allowing California to ban the sale of gas-powered vehicles by 2035 under the Clean Air Act (CAA). However, all three resolutions face uncertainty in the Senate, as the Senate Parliamentarian has generally ruled that these types of waivers are not eligible for revocation under the CRA.

Climate change litigation

On 19 May 2025, the U.S. District Court for the Northern District of Illinois ordered that the City of Chicago’s lawsuit against several major oil producers must be litigated in state court. The plaintiff’s complaint argues that for decades the defendants deceived the public about fossil fuel consumption, including through misleading advertisements allegedly portraying themselves as “climate-friendly energy companies.” The judge remanded the case back to state court, finding the district court lacked subject-matter jurisdiction. 

On 16 May 2025, a Pennsylvania trial court dismissed a lawsuit filed by a local county against various oil and gas companies alleging they engaged in a decades-long climate disinformation campaign to deceive the public about the climate change impacts of fossil fuels. The court determined that it lacked subject matter jurisdiction over the claims, because the alleged causes of action were intertwined with emissions, which are solely within the province of the federal government. The court’s decision follows a trend of rulings dismissing claims against oil companies because of federal preemption, with states courts in New Jersey and Maryland dismissing similar claims. However, other courts have permitted such cases to move forward, including claims in Vermont, Colorado (see below), and the District of Columbia.

On 12 May 2025, the Colorado Supreme Court issued an opinion affirming the lower court’s ruling which found that federal law does not preempt a Colorado municipality and county from filing tort claims against two large fossil fuel companies for allegedly misleading the public about climate and human health-related risks of the use of their fossil fuel products. In the complaint, the plaintiffs seek monetary damages and remediation and/or abatement of the hazards resulting from the companies’ allegedly unlawful activity.

DEI developments and litigation

On 27 May 2025, the U.S. District Court for the District of Columbia permanently enjoined federal government from enactment of President Trump’s 27 March 2025 executive order targeting a major law firm.  The court held that the executive order violated the firm’s First, Fifth, and Sixth Amendment rights, and ordered the federal government to issue guidance instructing all agencies to disregard the executive order.  The executive order had directed federal agencies to suspend security clearances for the firm’s employees, restrict their access to federal buildings, and review all contracts both with the firm and with other contractors who do business with the firm. 

Similarly, on 23 May 2025, the same court permanently blocked the targeting of a major law firm by an executive order issued by President Trump on 25 March 2025. The District Court ruled that the executive order violated the firm’s First Amendment rights by suspending security clearances of firm employees, restricting access to federal buildings, and directing federal agencies to review and potentially terminate contracts with the firm in retaliation for the firm’s work and its clients. To date, three law firms (including the two detailed herein) have obtained injunctions permanently blocking President Trump’s executive orders targeting them.

On 16 May 2025, the Federal Communications Commission (FCC) cleared a major telecommunications company’s $20 billion acquisition after the company agreed to terminate its DEI policies in a letter on 15 May 2025 to the FCC, promising to remove DEI from employee training guides, take down its DEI website, do away with its corporate DEI goals, eliminate supplier DEI goals, and stop binding executive bonuses to DEI metrics. The letter came after pressure from the FCC to stall the acquisition, which had been pending for eight months. Similarly, the FCC cleared another major telecommunication company’s merger in April after that company also agreed to eliminate its DEI policies.

On 14 May 2025, the U.S. District Court for the Northern District of Texas ordered an American nonprofit to accept $0.01 in damages to end a lawsuit against a major U.S. airline alleging that a now-discontinued program providing free flights to Hispanic college students was discriminatory. The order comes after the airline unconditionally and irrevocably eliminated the program and agreed to let the court enter a judgement for complete relief in favor of the nonprofit-plaintiff. The court determined that granting an “obstinate plaintiff total victory upon the defendant’s unconditional surrender is a reasonable response to the problems and needs confronting the court’s fair administration of justice.”

On 12 May 2025, 44 of the nation’s largest law firms were the subject of a complaint filed with the Equal Employment Opportunity Commission (EEOC) alleging that the firms use an outside staffing agency and joint employer to hire pre-law fellows based on race. The complaint was filed by an American nonprofit group on behalf of several members who were rejected from a fellowship program despite allegedly meeting or exceeding all academic and professional qualifications, in violation of “traditional, merit-based hiring practices.” As we covered in our April 2025 ESG newsletter, the EEOC previously sent letters to 20 “representative large, influential, or industry leading” law firms, stating concerns over their employment and hiring practices and requesting data on the firms’ participation in the fellowship program at issue.

EPA litigation

On 16 May 2025, a three-judge panel for the Fifth Circuit ruled that EPA erred in designating portions of two counties in Texas as failing to meet air quality standards for sulfur dioxide, siding with Texas and a Texas-based power generation company. The panel reversed its 2024 decision, invoking SCOTUS's ruling in Loper Bright Enterprises v. Raimondo, which allowed federal courts to interpret statutes without deferring to agency expertise. The panel found that EPA violated the CAA by relying on modelling data submitted by an environmental nonprofit, which had acknowledged limitations, instead of properly considering air quality monitoring data showing sulfur dioxide levels below federal standards. The panel ruled that EPA should have classified the areas as "unclassifiable" if the evidence was inconclusive and remanded the decision for further review. While the panel rejected some claims, it ultimately concluded that EPA acted arbitrarily by disregarding more reliable data and forcing a conclusion based on questionable evidence.

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