Sustainability Watch: Monthly Regulatory Highlights – April 2025

In April, global sustainability efforts gained momentum with key developments across regions—from strengthened regulatory frameworks in Asia and Oceania to policy shifts in the Americas and Europe. Countries such as Japan, China, and Australia introduced new standards and reporting mechanisms aimed at reducing carbon emissions and enhancing transparency. Meanwhile, Latin American nations pursued both environmental innovation and faced regulatory challenges, and North America saw a mix of progressive and regressive moves on climate policy. Europe continued refining its sustainability directives, focusing on simplifying compliance and aligning with broader climate goals. These collective actions reflect a dynamic and evolving global landscape in the pursuit of a more sustainable future.

Europe

The European Parliament has voted to approve a “stop-the-clock” Directive to delay the implementation of the second and third waves of reporting under the CSRD to 2027 and 2028, and the first wave of the CSDDD till 2028. Legislation will be finalized by the European Parliament and the Council, and the “stop-the-clock” Directive will enter into force once it has been published in the Official Journal. Member States of the European Parliament will have until 31st December 2025 to transpose the delay provisions into national law.

North America

April has been consistent with the trends observed throughout this year in the United States. President Trump has signed several executive orders aimed at reactivating the economy, which is beneficial for U.S. citizens. However, some of these orders could negatively impact the environment and have social implications, not only locally but also globally, considering the U.S. is the second-largest contributor of GHG emissions after China. In Mexico, the green tax was introduced this month, targeting companies that emit over one ton of CO2 annually. Lastly, Canadian regulators have paused the development of mandatory climate-related disclosure rules and amendments to diversity-related disclosure requirements, considering recent regulatory changes in the EU and U.S. Additionally, it is important to highlight the Federal General Election in Canada on April 28th. The outcome will shape the direction of Canada's policies across various domains, with anticipated impacts on sustainability regulations and initiatives.

South America

This month, Colombia has launched initiatives focused on white hydrogen and the protection of coastal ecosystems. In Ecuador, the ecolabelling project is progressing, aiming to protect consumers and establish clear regulations to prevent greenwashing in sustainability claims. Conversely, concerns have arisen in Peru due to an amendment to the Forest and Wildlife Law, which could accelerate deforestation in the Amazon. This is a significant issue, as Peru encompasses approximately 13% of the Amazon, making it the second-largest holder of Amazonian territory after Brazil.

APAC & Oceania

Japan and China are following the latest global sustainability standards while setting up regulatory frameworks with a sector-specific focus. Japan issued guidelines for food, and agriculture industries to advance the goal of carbon reduction. Meanwhile, China also completed the GHG accounting standard for food-related companies and continues its plan for green transition via policies aimed at the energy segment.

Yulia Khisamova
Senior Consultant, Insights & Advisory ESG team   Posts
Priyanka Sankhla
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Maritza Soto
Manager, Professional Services   Posts
Adityam Dutta
Senior Analyst, Insights & Advisory ESG team   Posts
Tanishq Chawla
Consultant, Insights & Advisory ESG team   Posts
Wendy Wen
Junior Analyst, Insights & Advisory ESG team   Posts

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