Environmental Law 2024

Global Overview

The year 2024 has been marked by significant global events that have had profound implications for environmental law and policy. Among these, the conflicts between Russia and Ukraine, and between Israel and pro-Palestinian groups, have not only caused immense human suffering but have also been reported as causing substantial environmental degradation, such as widespread pollution and long-term ecological damage. In environmental terms, the destruction of natural habitats in wartime is a critical concern.

This past year has also been characterised by numerous natural disasters around the world. Hurricanes, floods and wildfires have occurred, leading to devastating consequences. Climate change, loss of biodiversity, and various types of pollution are just some of the major challenges we face today. The United Nations Environment Assembly (UNEA-6), which took place from 26 February to 1 March 2024, concluded with the adoption of 15 resolutions aimed at promoting joint actions against climate change, loss of nature and biodiversity, as well as pollution and waste. The EU has also adopted a range of measures throughout the year to address climate change and achieve resource efficiency. This is evident in the numerous regulations, directives and negotiations that have been relevant within the EU over the past year. Examples include the Corporate Sustainability Reporting Directive (CSRD), the Critical Raw Materials Act (CRMA) and the Net-Zero Industry Act (NZIA), to name just a few.

However, it must be emphasised that the challenge of addressing climate change is a complex task without simple or obvious solutions. Managing climate change and protecting natural resources often lead to conflicts of interest and difficult trade-offs between different priorities. For example, new environmental initiatives and regulations may require balancing the need to build more mines to increase the supply of critical raw materials against other environmental interests, including protecting important species and biotopes and water quality. Additionally, the protection of minority rights can be affected.

Furthermore, it should be noted that various elections that have taken place have had, or could have, significant effects on environmental policy and legislation, making them a prominent feature of 2024. These include the presidential election in the US and the EU elections, which have a major impact on which environmental initiatives will be undertaken and which interests will be prioritised over others. Additionally, the development of artificial intelligence must be considered, as this is having significant effects on society, and thereby also on the environment regarding, for example, improved monitoring and analysis methods.

It can be concluded that sustainability today is both a given and a necessity that drives change across the world. Some frequent themes that have recurred in relation to sustainability issues in 2024 include sustainability reporting, the circular economy, renewable energy, and biodiversity.

Sustainability Reporting

A particularly relevant issue this year has been sustainability reporting. The purpose of sustainability reporting is to provide the financial market with comparable and reliable information from companies regarding social responsibility, environmental impact, and corporate governance. In the area of sustainability reporting, the EU’s Corporate Sustainability Reporting Directive (CSRD) should be mentioned. The CSRD came into force in 2023 and is currently being incorporated into the national legislation of EU member states. The CSRD has raised the requirements for companies to report on the environmental and social impacts of their operations.

The CSRD applies to many companies, including large companies as well as small and medium-sized listed companies that meet certain criteria. The rules became applicable in 2024, which means that the first reports will be published in 2025. The CSRD increases transparency, which allows capital to be directed towards sustainable investments. It also facilitates the management of financial risks resulting from climate change. Another potential consequence of the CSRD is a reduction in the occurrence of greenwashing. The directive links to the Paris Agreement, and by expanding the requirements for sustainability reporting, the directive is a step towards achieving the goal of climate neutrality by 2050.

Natural Resources and the Importance of the Circular Economy

Introduction

Climate change is an increasingly significant problem as human use of natural resources continues to grow. Consequently, the management and regulation of the use of natural resources are crucial for achieving a sustainable future. Many global measures have been taken to protect the world’s natural resources and promote the circular economy, which is a powerful tool in the transition to a resource-efficient society.

Critical Raw Materials Act

In this context, the Critical Raw Materials Act (CRMA) should be mentioned. In May 2024, the CRMA came into force in the EU. Through this act, the EU Commission has taken the initiative to make the EU more self-sufficient in critical raw materials. The aim is to ensure a stable and sustainable supply of critical raw materials within the EU to meet its climate and digitalisation goals. To achieve the regulation’s objectives, the European Commission has set benchmarks for 2030. These include that at least 10% of the raw materials consumed in the EU should be mined in the EU, at least 40% should be processed within the EU, and at least 25% should come from recycling. Additionally, the EU should import no more than 65% of a specific raw material from a single third country. The regulation includes provisions on recycling to increase the circulation and sustainability of critical raw materials released on the EU market. A central part of the act is also to create efficient permitting processes. Projects involving critical raw materials can be designated as strategic projects by the Commission, which, among other things, means that there are concrete time limits for how long the permitting processes can take.

In connection with the discussion on efficiency of permitting processes, it should also be mentioned that amendments to EU directives, such as 2010/75/EU on industrial emissions as well as 1999/31/EG on the landfill of waste, were adopted in 2024 with the aim, among other things, of creating efficient permitting processes. This includes, for example, requiring member states to establish electronic permitting systems (e-permits) by 2035. Additionally, the amendments broadly aim to reduce harmful emissions from industrial installations, thereby benefiting human health and the environment while contributing to energy efficiency, a circular economy, and the phase-out of fossil fuels.

Waste management

Waste management was a significant issue during the UNEA-6, as waste management is a crucial part of the transition to a circular economy. Waste has also been an important issue within the EU. The Battery Regulation and the Waste Shipment Regulation are examples of new regulations which have been particularly relevant during 2024. The Commission also took new measures under the REACH Regulation in September 2024 to protect human health and the environment by restricting the use of a subgroup of synthetic chemicals known as PFAS. It is also worth mentioning that in 2022, the UN began negotiations in UNEA for a global agreement to combat plastic pollution. At the time of writing, in late 2024, negotiations for a global agreement to reduce plastic pollution are still ongoing, with the hope that an agreement will be in place by 2025.

Renewable Energy

Updated regulation to accelerate the expansion of renewable energy

When discussing the importance of working towards a circular economy, renewable energy should also be addressed. As a result of the conflict between Russia and Ukraine and its impact on the EU’s energy supply and energy prices, the European Council adopted a regulation in 2022 to accelerate the production of renewable energy. The regulation essentially involves upgrading existing facilities to produce renewable electricity and setting deadlines for permitting procedures for certain types of solar energy equipment. In 2024, the regulation was amended and supplemented, and parts of it were extended until 30 June 2025. A noteworthy development in the field of renewable energy is a new proposal from the Commission, which has recently been adopted, regarding the design of the EU’s electricity market. The proposal is being developed to promote renewable energy sources and enhance industrial competitiveness while better protecting consumers.

Net-Zero Industry Act

In May 2024, the European Council adopted the Net-Zero Industry Act (NZIA). The purpose of the NZIA is to improve the EU’s manufacturing capacity for zero-emission technology and its key components, as well as to remove barriers to scaling up production in Europe. The NZIA creates a legal framework that enables increased competitiveness in zero-emission technology. A goal established in the NZIA is that by the year 2030, zero-emission manufacturing capacity should meet at least 40% of the EU’s annual deployment needs. This would lead to increased security and predictability, and would be a long-term signal for manufacturers and investors. The regulation aims to support the transition to clean energy and a sustainable industrial sector while improving the EU’s energy resilience. The NZIA is part of the effort to achieve climate neutrality by 2050.

Given political investments and strong demand, it is highly likely that the increased use of fossil-free energy will continue worldwide.

Biological Diversity

Finally, the topic of biological diversity should be highlighted. Biological diversity is a prominent issue, and numerous efforts are under way at the global level to restore it. The subject of biological diversity was a central issue during the UNEA-6 and is equally significant in the EU. A regulation aimed at restoring nature came into force in the EU in 2024. This new regulation is part of the efforts under the European Commission’s Biodiversity Strategy for 2030. By restoring ecosystems, natural habitats and living environments for endangered species, the overarching goal of the regulation is to enable nature to recover, adapt to changes, and once again become rich in biological diversity.

Furthermore, because land is a source of food and habitat, both humans and ecosystems depend on the land being in a good condition. Since land is a non-renewable resource, it must therefore be protected and restored. For this reason, there is a proposal within the EU for a Soil Directive, with the goal that all land in the EU should be in a good condition by 2050. The proposal is part of the European Commission’s Soil Strategy for 2030. The directive includes provisions on how, for example, contaminated land should be managed. In June 2024, the Council of Ministers adopted its proposed version of the Soil Directive. The next step is for the directive to be negotiated in a so-called trilogue between the European Parliament, the Council of Ministers, and the European Commission.

Summary

Overall, environmental law is a dynamic and complex field, and the year 2024 has underscored the critical importance of global co-operation and robust policy frameworks in addressing environmental challenges. As lawyers in this field of law, we hope this guide will be a valuable resource in navigating the legal landscape of today.