Stay informed on the latest sustainability developments with this weekly update, covering pivotal shifts in environmental policy, energy efficiency, and regulatory frameworks. This edition highlights the European Commission’s 2025 action plan, emphasizing simplification while navigating sustainability commitments, including the Omnibus package for financial reporting and the Clean Industrial Deal. We also explore Brazil’s push for diversity in sustainable investments, Thailand’s advancements in low-carbon rice cultivation, and Algeria’s renewable energy ambitions. Additionally, we cover Africa-Europe energy partnerships, the EU’s ESG scenario analysis guidelines, and the Democratic Republic of Congo’s ambitious conservation initiative.
European Community
The European Commission’s 2025 action plan, presented on February 12th, emphasizes growth and simplification, aiming for “a bolder, simpler, faster Europe.” The work program promotes opportunities, innovation, and growth for a safer, more prosperous EU. While the Green Deal is less prominent, it is still considered. The administration balances initiatives like the Omnibus package for sustainable financial reporting, due diligence, and taxonomy, along with the Clean Industrial Deal to cut emissions by 90% by 2040. The focus is on simplification, with measures like the Industrial Decarbonization Accelerator Act streamlining permits and reporting requirements. Despite the focus on simplification, there are concerns from entities like the European Environmental Bureau (EEB) that this may lead to deregulatory pressures, undermining long-term sustainability and citizen welfare.
Nel piano 2025 della Commissione Ue sostenibilità nelle retrovie
The European Commission is set to unveil an “Omnibus package” on February 26, 2025, aiming to streamline and simplify existing EU sustainability reporting regulations, potentially including the CSRD, CSDDD, and CBAM. Mario Draghi’s 2024 report highlighted inconsistencies in current obligations. The Commission aims to reduce reporting burdens by 25% for all companies and 35% for SMEs with its “Competitiveness Compass.” More details will emerge when the package is unveiled, though its legislative process may lead to further changes. Meanwhile, companies and Member States must prepare for potential adjustments.
https://www.whitecase.com/insight-alert/eu-omnibus-package-coming-what-expect
The European Banking Authority (EBA) has launched a public consultation on its draft Guidelines on ESG scenario analysis, setting expectations for institutions to assess financial and business resilience to ESG risks. These Guidelines complement the EBA’s ESG risk management guidelines published in January 2025.
Given the growing impact of climate change, environmental degradation, and social issues on the financial sector, the Guidelines propose a framework for scenario-based risk assessment, focusing on capital, liquidity, and business model resilience, particularly in achieving EU climate neutrality by 2050.
The consultation is open until 16 April 2025, with a virtual public hearing on 17 March 2025. Feedback can be submitted via the EBA’s consultation page. The Guidelines are part of the EBA’s Sustainable Finance Roadmap and align with EU banking regulations (CRD6, Directive 2013/36/EU).
Consultation paper on draft Guidelines on ESG scenario analysis.pdf
Brazil
Brazil plans to propose social diversity as a global criterion for labeling sustainable investments at the U.N. climate summit it will host this year, according to a senior official. Cristina Reis, deputy secretary for sustainable economic development at Brazil’s Finance Ministry, stated that the government is already incorporating racial and gender equality into national standards for classifying investments as sustainable. This initiative aims to position Brazil as a destination for sustainable investments, featuring a regulated carbon market and “green” sovereign bond issuances. Despite potential challenges, such as the return of U.S. President Donald Trump and his administration’s stance on climate policies, Brazil remains committed to advancing its sustainability goals. The country is prioritizing the development of a national “taxonomy” of sustainable investments and intends to propose elements, including diversity-based standards, for global adoption at COP30 as part of a “supertaxonomy.” Reis emphasized that incorporating diversity as a criterion for labeling corporate investments as sustainable is a feasible approach for other nations
Thailand
Thailand is accelerating low-carbon rice production in the Chao Phraya River basin by adopting wet-and-dry rice cultivation, which reduces greenhouse gas emissions by 30% and increases farmers’ income. Currently, over 3,300 farmers from 22 provinces are participating in this project, covering more than 10 million rai (approximately 3.95 million acres). Additionally, the country is developing microorganisms to decompose rice straw, improving soil fertility. The government is taking actions to help establish Thailand as a leader in the global market for sustainable agricultural products.
Thailand Boosts Low-Carbon Rice Production, Fostering Green Economy & Reducing GHG – THAILAND.GO.TH
Africa and Europe
On January 21, 2025, high-ranking officials from Algeria, Tunisia, Italy, Germany, and Austria convened in Rome to sign a joint declaration of intent. This agreement underscores their commitment to developing the 3,300-kilometer SoutH2 Corridor, which will repurpose existing natural gas pipelines to transport green hydrogen to European markets. The project is expected to deliver up to 4 million tonnes of green hydrogen annually by 2030, contributing significantly to Europe’s clean energy transition.
Algeria
Algeria aims to achieve 4 GW of renewable energy capacity by 2024/2025, currently generating over 600 MW. The country has launched two major projects—2,000 MW and 1,000 MW solar initiatives—under its energy transition strategy, which seeks to reduce reliance on fossil fuels and reach 15 GW by 2035. Mourad Issiakhem from CEREFE noted that with ongoing projects, Algeria’s renewable capacity will increase to around 4 GW by early 2025.
Algeria to Produce 4GW of Renewable Energy by 2025
Congo
A vast new protected area in the Democratic Republic of Congo (DRC), equal in size to France, was announced by President Felix Tshisekedi during the World Economic Forum. This 2,600 km ‘Green Corridor’ aims to protect tropical forests and serve as an important carbon sink, but it has raised concerns among Indigenous and local communities who were not consulted in the planning process. Although the project promises to create 500,000 jobs and improve the lives of 31 million people, local community representatives fear it could infringe on their rights and resources. Criticism has been directed at the lack of an inclusive approach and the perception that the project may serve as a means to promote green investments rather than genuine environmental protection
Green Corridor project at DRC lacks buy-in from forest communities