Catch up on the main nature policy news from January
In a nutshell: EU Omnibus proposal / China’s standards for sustainability disclosure / Davos 2025 / COP30 President / Climate litigation
European Union pulling back on corporate sustainability reporting
As the European Commission sets out its priorities for the coming term, concerns grow that an increased focus on competitiveness might lead to dismantling crucial sustainability measures agreed upon in the previous legislative period.
A leaked draft strategy for regulatory simplification outlines the Commission’s aim to significantly reduce reporting burdens on businesses. This includes an “Omnibus Simplification Package”, announced last November to streamline and simplify corporate sustainability regulations in the EU.
This is raising concerns about previously adopted legislation, including the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), being significantly watered down. According to Responsible Investor, the proposal could cut the scope of the Corporate Sustainability Reporting Directive (CSRD) by about 85% and shift its focus exclusively to addressing single (financial) materiality. Implementing these agreed-on reporting requirements is essential to ensure the implementation of Target 15 of the Global Biodiversity Framework.
While a few governments and industry associations have supported the move and asked for delays or indefinite postponement of reporting requirements in this context, others are highlighting the need for stringent requirements and the danger of creating uncertainty through constantly changing rules. Companies like Nestlé, Unilever, L’OCCITANE, and the Cocoa Coalition (which includes Ferrero, Mars, and Tony Chocolonely) have urged the European Commission to move forward with the implementation of these directives. This call has also been echoed by the Institutional Investors Group on Climate Change (IIGCC), the European Sustainable Investment Forum (Eurosif), the Principles for Responsible Investment (PRI) and over 160 investors.
China releases first set of standards for corporate sustainability disclosure
Meanwhile, China has introduced its first standards for corporate sustainability disclosure. The Ministry of Finance and nine other departments released the "Guidelines on Corporate Sustainable Disclosure - Basic Standards."
According to China Briefing, these are intended to guide businesses in disclosing sustainability-related information. The standards outline the general reporting requirements, as well as their principles and objectives. They are part of a larger effort to create a national framework for sustainability reporting in China.
The Ministry of Finance clarified that businesses can voluntarily adopt these standards until the details on how to use them mandatorily are established
Davos 2025 takeaways
The theme for the 2025 World Economic Forum (WEF) Annual Meeting in Davos was "Collaboration for the Intelligent Age," where nature and climate were featured at the center of various discussions. Several announcements underscored the importance of the private sector participation in accelerating action.
These included the creation of the Kivu-Kinshasa Green Corridor in the Congo Basin, aiming to restore and protect 540,000km² of land through an innovative public-private partnership.
Additionally, TNC, Conservation International, and carbon markets developer Silvania launched the “Race to Belém” initiative. This program aims to bring private sector finance to forest conservation projects that help reduce deforestation rates. Silvania has committed to investing $1 in upfront capital for every ton of carbon purchased from nature-based projects in Brazil.
Brazil names COP30 president
Brazil has appointed Ambassador André Aranha Corrêa do Lago, a veteran climate negotiator, as the President of the upcoming UN Climate Change Conference (COP30) in the Amazon city of Belém do Pará. This signals Brazil’s intention to use its diplomatic track record to mobilize efforts and unblock difficult topics. During the conference, countries will seek to establish updated targets under the Paris Agreement.
Key challenges at COP30 include aligning commitments on climate finance and ensuring that new emissions targets are consistent with best available science. The summit also offers an opportunity to advance towards climate and nature goals in an integrated way, especially as the Brazilian presidency has named halting deforestation and ecosystem degradation as some of its priorities. Over 70 global leaders from the private sector, civil society, science, and Indigenous Peoples have urged governments to align their climate plans and national biodiversity strategies in the run-up to COP30.
Developments in climate litigation
The International Court of Justice (ICJ) recently held its largest hearing ever regarding the obligations of states related to climate change. A total of 96 countries and 11 international organizations presented their arguments about the responsibilities of nations to address climate change. The hearings primarily focused on the duties of major greenhouse gas-emitting countries and examined the legal frameworks that could hold them accountable for the climate-related harm they have caused. The ICJ’s advisory opinion on several topics, including fossil fuel production, the interpretation of mitigation obligations under the Paris Agreement, and the right to a healthy environment, among others, will likely be delivered in open court sometime in 2025.
Meanwhile, the European Court of Human Rights (ECHR) ruled that Italy violated residents' rights to life and private and family life due to its delay in addressing illegal waste dumping, which led to pollution in the Land of Pyres.
Read the November news update to catch up on previous nature policy stories from around the world.