For companies, it is sometimes puzzling to navigate through the applicable environmental regulations. We have prepared this simple guide to provide an overview of some of the key regulations, by location and by sector.

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1. Road Transport

Europe:

Renewable Energy Directive III (RED III) – Requires a 14.5%reduction in transport emissions or 29% renewable energy use by 2030.

Euro 7 Emissions Standard – Tightens emission limits for pollutants from vehicles (expected enforcement 2025).

EU Emissions Trading System (ETS) for Road Transport (ETS2)– Carbon pricing mechanism for fuels (starting in 2027).

United States:

Clean Air Act (CAA) – Regulates vehicle emissions at federal and state levels (e.g., California’s stricter CARB standards).

Corporate Average Fuel Economy (CAFE) Standards – Requires vehicle manufacturers to meet fuel efficiency targets.

China:

China VI Emissions Standard – Stringent vehicle emissions regulation to curb nitrogen oxide and particulate matter.

2. Maritime Transport

Global:

International Maritime Organization (IMO) MARPOL Annex VI –Limits sulfur content in fuels and sets energy efficiency requirements for ships.

IMO Carbon Intensity Indicator (CII) Regulations – Ships must improve fuel efficiency and reduce emissions.

Europe:

EU Emissions Trading System (ETS) for Shipping – Ships must purchase allowances for CO₂ emissions (phased from 2024 to 2027).

FuelEU Maritime Regulation – Requires ships to use cleaner fuels, including biofuels and synthetic fuels.

3. Aviation

Global:

Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) – Requires airlines to offset carbon emissions.

Europe:

EU ETS for Aviation – Requires airlines to purchase emission allowances for flights within the EU.

ReFuelEU Aviation Regulation – Mandates increasing shares of sustainable aviation fuels (SAF) starting in 2025.

United States:

FAA Sustainable Aviation Fuel (SAF) Grants – Incentives for airlines using low-carbon fuels.

4. Energy & Industry

Europe:

EU Industrial Emissions Directive (IED) – Requires permits for large industrial polluters and limits emissions.

EU Green Taxonomy – Defines environmentally sustainable activities for energy and industry investments.

United States:

Clean Power Plan (Replaced by Affordable Clean Energy Rule)– Regulates power plant emissions.

Inflation Reduction Act (IRA) – Provides incentives for renewable energy and clean manufacturing.

China:

National Carbon Trading System – Cap-and-trade system for power plants and industrial emitters.

5. Construction & Buildings

Europe:

Energy Performance of Buildings Directive (EPBD) – Requires energy efficiency improvements in buildings.

EU ETS for Buildings (ETS2) – Carbon pricing for heating fuels from 2027.

United States:

Energy Policy Act – Sets energy efficiency standards for buildings and appliances.

LEED Certification & State-Level Codes – Encourages sustainable building practices.

6. Agriculture & Land Use

Europe:

Common Agricultural Policy (CAP) – Green Direct Payments –Farmers receive subsidies for environmentally friendly practices.

EU Deforestation Regulation – Bans imports of commodities linked to deforestation (e.g., soy, palm oil).

United States:

Conservation Reserve Program (CRP) – Pays farmers to remove environmentally sensitive land from production.

Brazil:

Forest Code – Requires landowners to conserve portions ofnatural forests.

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