Recent EU regulatory updates to watch in 2025

10 minutes01/21/2025

Author: Jenny Vuorenlinna - Expert Services Manager for Enhesa - a trusted Quentic partner

With 2030 and 2050 climate targets looming, the European regulatory landscape continues to see considerable change — especially to protect human health and the environment by minimizing dangerous chemicals, and enhance employee wellbeing. In this article, Jenny Vuorenlinna, Expert Services Manager at Enhesa, highlights some recent regulations and proposals concerning climate change, chemicals management, and protection of workers in Europe.

More specifically, this article will summarize the key adoptions and proposals published in the European region in 2024, and look into what companies should be aware of in 2025 and beyond.

Climate change 

Climate change remains one of the most urgent global challenges, with 2024 recorded as the warmest year to date. Europe continues to shape new climate legislation to mitigate the damaging impacts on the environment, and meet ongoing targets to:

• Achieve climate neutrality by 2050  
• Cut down GHG emissions by 55% by 2030, in comparison to 1990 levels  
• Cut down GHG emissions by 90% by 2040 compared to 1990 levels — this was recommended by the previous EU Commission, but has not yet been adopted

In an effort to achieve these climate goals, key regulations mandating stricter requirements for monitoring and reporting emissions, promoting cleaner and greener energy usage, and protecting ecosystems have been adopted. Below are the key regulations emerging from the European Union to strengthen the fight against climate change impacts.
 

Emissions Trading System

With the aim to further cut emissions in the EU, steps have been taken to further strengthen the EU Emissions Trading System. In September 2024, amendments to the Commission Implementing Regulation (EU) 2018/2066 on the monitoring and reporting of greenhouse gas emissions (the Monitoring and Reporting regulation) were published, establishing that facilities covered by the EU Emissions Trading System must comply with stricter monitoring and reporting obligations.

These changes require any operators of stationary installations under the EU ETS to report emissions from directly associated activities included in the boundaries of the installation. This covers activities which have a technical connection with the activities carried out onsite and which could affect emissions and pollution.

Operators must also monitor and report emissions from the non-zero-rated and zero-rated carbon fraction of fuels like biomass and synthetic low-carbon fuels. These changes came into effect on 1 January 2024 and apply as part of the annual reporting due 31 March. Finally, aircraft operators are expected to begin monitoring and reporting usage of alternative aviation fuels annually by 31 March each year, starting in 2025.

Sustainability and ESG

In 2024, we observed an increase in regulations concerning ESG and sustainability targeting companies.

Under the Corporate Sustainability Reporting Directive (CSRD), adopted in 2023, large companies and listed companies will now have to disclose reports on social and environmental risks and opportunities affecting their operations. This includes how their business activities impact the environment and people. EU Member States were obliged to transpose the CSRD into their national legislation by 6 July 2024. At the start of 2025, some were yet to publish these transpositions. With repercussions likely for those that haven’t yet transposed, swift legislation is a real possibility for many Member States — potentially meaning companies will need to quickly react to requirement changes.

Another significant update that will impact companies in the future is the Corporate Sustainability Due Diligence Directive (CSDDD), which entered into force in July 2024. This directive introduces mandatory human rights and environmental due diligence for companies meeting specified thresholds. Although these obligations will only become applicable in 2027, companies will need to begin preparing for the changing regulatory landscape well in advance to ensure compliance.

2025 could mark a defining moment for sustainability initiatives in the EU. It remains to be seen how European Commission President Ursula von der Leyen's announced plan to consolidate provisions under the CSRD, CSDDD, and the EU Taxonomy Regulation will shape the regulatory landscape and affect the implementation of these obligations. The aim of this so-called “omnibus” approach is to streamline reporting obligations and reduce the burden on companies, but how this will play out in practice remains to be seen.

Nature Restoration Law

The EU Nature Restoration Regulation — more commonly referred to as the EU Nature Restoration Law — entered into force in August 2024, with the aim of protecting and restoring ecosystems and biodiversity, as well as contribute to the mitigation of climate change.

The Regulation lays out a framework requiring Member States to implement national measures to:

• Restore at least 20% of the land and 20% of the sea areas by 2030
• Restore all ecosystems in need of restoration by 2050

EU Member States are required to prepare and submit national restoration plans to the European Commission (EC) by 1 September 2026. Although these binding objectives are exclusively applicable to Member States, many companies operating in and around Europe may also be impacted by measures adopted at the national level, such as measures aimed at reducing pollution from hazardous chemicals and industrial wastewater.
  
Regulations on emissions reporting, renewable energy use, and the intensified focus on protecting biodiversity will require stricter focus and reporting from companies operating in the European Union.

Chemicals management

Global chemical production is only set to grow through 2025, which is resulting in more countries and regions increasing efforts to implement stricter regulations. The EU has seen stricter mandates regarding the regulation of PFAS in various products, the moderation of F-gases, and tighter provisions on reporting, labelling, and certifications.

PFAS restrictions  

In 2025, the demand for EU-wide restrictions on per- and polyfluoroalkyl substances (PFAS) will continue to be a major focus.

In September 2024, new restrictions on the use of PFHxA were adopted under the REACH regulation. PFHxA is often used as a substitute for PFOA — an already banned PFAS chemical.

The updated regulation restricts the use and sale of PFHxA in various consumer products, including:

• Consumer textiles (such as raincoats)
• Food packaging
• Consumer mixtures (such as waterproofing sprays)
• Cosmetics
• Certain firefighting foam applications (such as those used for training and testing)

The restrictions enter into force after a transition period ranging from 18 months to five years, depending on how quickly safer alternatives can be found for products. Further PFAS restrictions in the EU may become a reality in the future. The REACH restriction proposal, initially submitted by the authorities of five EU Member States, aims to restrict more than 10,000 substances and is currently being evaluated in the European Chemicals Agency. The ECHA Risk Assessment Committee (RAC) and for Socio-Economic Analysis Committee (SEAC) are continuing to prepare their opinions on the proposal in 2025. Thereafter, it would be up to the European Commission to move forward with the proposal, in consultation with the Member States.

Updated classification, labelling, and packaging requirements for chemicals

Another recent update in the chemicals field is the revision of the EU CLP Regulation (EC) 1272/2008, which entered into force in December 2024. Following the amendments, manufacturers, importers, and downstream users of substances and mixtures will be subject to revised classification, labelling, and packaging obligations — mainly as of 1 July 2026.

In practice, this introduces

• Harmonized classification and labeling for additional substances (such as endocrine disruptors)
• Mandatory deadlines for updating chemical labels
• Minimum requirements for digital labeling
• Specific conditions for the online sale of substances and mixtures

These measures are aimed at further strengthening the protection of workers, consumers, and the environment from hazardous chemicals, as well as promoting a more sustainable chemical industry.

Fluorinated greenhouse gases (F-gases)

F-gases are well known to contribute vastly to the impacts of global warming in the EU. Hence why the new F-Gas Regulation (EU) 2024/573 that came into effect in March 2024 introduces stricter requirements for producers, importers, exporters, and users of F-gases — as well as products and equipment containing F-gases. This includes heat pumps and refrigeration systems, for example. Recently, further updates have been adopted to supplement this new regulation…

• As of January 2025, companies selling products containing F-gases need to comply with updated labelling requirements
• From March 2025, companies required to submit F-gas reports must comply with an updated reporting format
• Certification rules for companies handling F-gases have also been revised

Protection of workers

Businesses across Europe are also being impacted by evolving areas relating to worker protection.

Aligning teleworking regulations

All EU countries have some kind of national regulation that applies to teleworking, and most EU states have statutory definitions of “telework”. However,  the approaches to regulating telework may vary widely across Member States.

In April 2024, the European Commission launched a consultation on fair telework practices and the right to disconnect, with the aim of exploring new consistent legislation to protect worker health and safety — and work-life balance — while working remotely. While the future of EU-level developments on telework practices remain uncertain under the new EU Commission, progress continues at the Member State level.  

Worker wellbeing across Member States

Some EU Member States have already begun adopting legislation to clarify the legal frameworks on teleworking and the right to disconnect.

Austria

As of 1 January 2025, new rules have been adopted to redefine the term “teleworking”. Accident insurance coverage and companies' reporting obligations now also apply to work outside the employee's home. In practice, this means that, for example, co-working spaces or other locations chosen by the employee are considered teleworking locations. As a result of this expansion, employers will be required to report occupational accidents that occur in spaces other than the employees’ home, including in or on the way to a co-working space.

Bulgaria  

In spring 2024, Bulgaria passed legislation establishing employees’ right to disconnect. The regulation ensures remote workers aren’t obligated to communicate with, or respond to, their employer or colleagues during regulated breaks or outside their contracted working hours.

As of September 2024, companies in Bulgaria can also conduct their health and safety training entirely remotely, rather than in-person, as previously mandated.

About the author

Jenny Vuorenlinna is an Expert Services Manager for Enhesa. She holds a Master’s Degree in Law from the University of Helsinki. As an Expert Services Manager, she focuses on regulatory compliance and sustainability. With experience as a senior environment, health and safety regulatory consultant (for Finland, Sweden, and other Nordic countries), she helps companies better understand and stay up to date with regulatory compliance questions across jurisdictions. Read more from Jenny