The European Commission (“Commission”) has launched two public consultations on draft implementing regulations under the Carbon Border Adjustment Mechanism (“CBAM”). The two consultations concern the process of authorising CBAM declarants and establishing the CBAM Registry. The consultations are part of the Commission's ongoing efforts to refine the implementation of CBAM before it becomes fully operational in 2026. The implementing regulations will be of particular interest to operators of installations in Hong Kong or Mainland China as well as importers of CBAM products into the EU.

The Council of the EU (“Council”) has adopted their position agreeing to the proposal of the European Commission (“Commission”) for a Regulation to extend the date of application of Regulation (EU) 2023/1115 on deforestation-free products (“EUDR”) by one year. Among other matters, the EUDR will ban products listed in its Annex I from being placed or made available on the EU market unless they are deforestation‑free from the end of 2024. The Council’s position means that the delay is more likely, though the European Parliament still needs to agree. Therefore, traders from Hong Kong affected by the EUDR should still prepare for EUDR implementation from the end of the year.

The US Commerce Department has imposed preliminary anti-subsidy duties on imported solar panels from four Southeast Asian countries. In an announcement issued on 1 October 2024, the Commerce Department said that anti-subsidy duty rates will be applied to all solar imports from Cambodia (8.25%), Malaysia (9.13%), Thailand (23.06%) and Vietnam (2.85%). It has also determined different rates for specific firms. The duty rates could increase when the Commerce Department announces its final decision in April 2025.

On 14 September, the Ministry of Ecology and Environment unveiled a series of measures to further facilitate private sector development. Four areas are highlighted in the official document, namely support for green development; optimisation of environmental market access; improvements to law enforcement; and increased policy support. More specifically, tasks include promoting green and low-carbon transformation, supporting the development of environmental protection industries, aligning environmental appraisals with pollutant discharge permit issuance, and increasing fiscal support for green finance in the private sector.

On 2 October 2024, the European Commission announced that it was proposing to delay application of Regulation (EU) 2023/1115 on deforestation-free products by one year. The Commission also released additional guidance documents to prepare stakeholders for compliance with the Regulation’s complex rules. Among other matters, Regulation (EU) 2023/1115 will ban the products listed in its Annex I, unless they are deforestation‑free. It also imposes due diligence obligations on operators.

Recent China’s climate policies signal an important commitment to accelerating the country’s path to a green and low-carbon economy. Sustainability is, therefore, increasingly becoming a determinant factor in the decision-making process of those investors and corporations engaging with Chinese businesses.

The recent publication of the EU’s new landmark Regulation, the Net-Zero Industry Act, in the Official Journal of the European Union means that this Act has now finally entered into force throughout the EU Member States. This piece of legislation is envisaged to pave the way for the EU to meet its ambitious climate and energy goals through bolstering the manufacturing of key net-zero technologies across the bloc.

Indonesia has relaxed energy sector local content requirements. Ministry of Energy and Mineral Resources Decree 191/2024, issued on 6 August 2024, sets out new thresholds for each type of electricity infrastructure. Under the new regulations, the minimum local content for solar power plants is now 20%, less than half the previous amount. Solar projects can use imported panels provided ministerial approval is obtained; a power purchase agreement is signed before the end of 2024; the plant starts operation by mid-2026; and the panels are purchased from companies committed to investing in production in Indonesia. The window for importation will close in June 2025.

Jordan will exempt more green technologies from customs duties and general sales tax, according to the Ministry of Energy and Mineral Resources. The country’s new tax exemption system was approved by the Cabinet on 19 August 2024 and will enter into force from its publication date in the Official Gazette. New exemptions will apply to renewable energy and energy efficiency technologies. These include electrical storage from renewable sources (solar, wind, geothermal) and associated charging regulators; concentrated solar power (CSP) systems for steam production; energy audit services; and inputs for bioenergy and geothermal energy systems.

India’s Ministry of New & Renewable Energy (MNRE) has amended the Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirements for Compulsory Registration) Order, 2019. Under that law, solar photovoltaic manufacturers must follow certain processes and provide information to be listed as approved producers. The amendments, issued on 7 August 2024, have modified one clause and introduced two new clauses.