2025 Carbon Mitigation Mandates: A Global Overview of Climate Regulations
Key Ideas
  • Europe has implemented the FuelEU Maritime regulation to target decarbonization in the maritime sector, encouraging the adoption of sustainable fuel alternatives like biofuels and hydrogen-based fuels.
  • Australia and the EU have enforced mandatory climate reporting policies to promote transparency and integrate sustainability into corporate decision-making, focusing on reducing emissions and aligning with global climate initiatives.
  • Singapore and the US have introduced climate mandates and regulations, emphasizing the importance of carbon accounting, renewable energy adoption, and cleaner fuel alternatives like biofuels and hydrogen products.
  • The US has seen changes in sustainability policies, such as the exclusion of imported used cooking oil from the 45Z Clean Fuel Production Credit, aiming to prioritize domestic resources and support American farmers.
In 2025, various carbon mitigation reporting and blending mandates have been officially put into effect worldwide to reduce greenhouse gas emissions and promote sustainable practices. Europe has introduced the FuelEU Maritime regulation targeting decarbonization in the maritime sector, emphasizing the use of sustainable fuel alternatives like biofuels and hydrogen-based fuels. The EU's ReFuelEU Aviation SAF 2% Blending Mandate aims to increase the integration of sustainable aviation fuel. The Corporate Sustainability Reporting Directive (CSRD) in the EU now requires companies to expand their sustainability reporting, emphasizing transparency and adherence to stricter guidelines on GHG emissions. Australia has implemented mandatory climate reporting policies to enhance sustainability integration into corporate decision-making and reduce emissions. Singapore's 2025 Climate Mandate focuses on increasing penalties for non-compliance with carbon tax policies and incentivizing renewable energy adoption. In the US, California's SB 253 enforces stricter corporate carbon accounting practices, while the 45Z Clean Fuel Production Credit incentivizes the adoption of cleaner fuel alternatives like biofuels and hydrogen products. The US has seen changes in its sustainability policies, with the exclusion of imported used cooking oil from the 45Z tax credits. This change aims to prioritize domestic resources and support American farmers. These global mandates and regulations reflect a positive shift towards climate transparency, renewable energy adoption, and the promotion of cleaner fuel alternatives, including biofuels and hydrogen.
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