Key highlights from December 2024 in the sustainability space.
1- EU to Unveil “Omnibus” Sustainability Reporting Law
The European Commission is considering streamlining three major sustainability regulations—the EU Taxonomy, CSRD, and CSDDD—into a single “Omnibus Simplification Package.” Announced by Commission President Ursula von der Leyen in November 2024, the proposal appears on the Commission’s indicative agenda and may be published as early as February 2025.
The move responds to business concerns over regulatory complexity, which some cite as a barrier to investment. While von der Leyen supports the substance of existing laws, climate activists fear potential deregulation. The initiative also raises uncertainty for businesses preparing CSRD reports in 2025, particularly in countries that have yet to transpose the directive, as they may delay implementation pending the final Omnibus package.
2- EU Forced Labor Regulation Takes Effect
On December 13, the EU’s Forced Labour Regulation (FLR) officially entered into force, with enforcement beginning December 14, 2027. Unlike the CSRD and CSDDD, the FLR applies directly without requiring national implementation.
The regulation bans products made wholly or partly with forced labor from being sold or exported in the EU. It adopts the International Labor Organization’s definition, including forced child labor, and applies across all supply chain stages, regardless of location. Businesses must now prepare for compliance as enforcement approaches.
3- New York Passes Climate Law Fining Fossil Fuel Companies
On December 26, Governor Kathy Hochul signed the Climate Change Superfund Act, making New York the first U.S. state to impose financial penalties on fossil fuel companies for past greenhouse gas emissions.
The law targets companies responsible for over 1 billion tons of emissions from 2000 to 2018, requiring them to pay a total of $3 billion annually for 25 years into a Climate Superfund. The fund will finance climate damage repairs and infrastructure adaptation, shifting costs from taxpayers to polluters.
4- EU Carbon Removal Certification Framework Takes Effect
On December 26, the EU Carbon Removal Certification Framework (CRCF) entered into force, establishing a voluntary EU-level certification framework for permanent carbon removals, carbon farming and carbon storage in products. Finalized in November, the regulation aims to promote high-quality carbon removal while complementing the EU’s emission reduction goals and voluntary carbon markets alongside the EU Emissions Trading System (EU ETS).
To qualify for certification, carbon removal activities must meet four key criteria: (i) demonstrating net carbon removal benefits, (ii) exceeding legal requirements, (iii) ensuring long-term storage, and (iv) avoiding environmental harm. Certified activities will require third-party verification.
5- AI Data Centers Move Toward Sustainability
December saw a surge in efforts to make AI data centers more sustainable. Key initiatives include:
Schneider Electric & NVIDIA collaborating on energy-efficient cooling systems
AWS & Orbital Materials advancing decarbonization technology
Google, Intersect Power & TPG Rise Climate developing scalable renewable energy solutions
Investor and government backing is also growing. As momentum builds, AI’s alignment with global sustainability goals strengthens.
- Content prepared with the help of Defne Fresko Tasci.