On 3 December 2024, the European Commission announced that it welcomed the (informal) agreement reached between the European Parliament and the Council on the Commission's proposal to grant a 12-month additional phasing-in period for implementation of the EU Deforestation Regulation (EUDR). This will come as a relief to industry, as it will ensure more time for ensuring compliance and a more proper and effective implementation of the rules.

The Ministry of Ecology and Environment released its 2024 Report on China’s Policies and Actions for Addressing Climate Change on 6 November. The report sums up China’s progress and achievements in addressing climate change this year, including its progress in climate change mitigation and adaptation, its establishment of a national carbon market, improvements to policy systems and support guarantees, and the country’s active participation and leadership in global climate change governance. China’s new deployments and requirements for addressing climate change are summed up, and the basic positions and propositions of the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change are explained.

Chinese solar-panel manufacturers Wuxi Suntech Power and Zhejiang Sunflower have suffered legal defeats in their challenges against European Union decisions that removed them from a pricing arrangement designed to avoid punitive trade duties. The EU’s General Court, in separate rulings issued on 20 November 2024, upheld the European Commission’s actions, affirming that the Commission acted within its legal authority.

The People’s Bank of China, the Ministry of Ecology and Environment and several finance-related authorities have jointly published their Opinions on Maximising the Role of Green Finance and Serving the Construction of a Beautiful China. These Opinions call for optimising the allocation and supply of finance, expanding new forms and models of green finance, and strengthening financial regulation and risk prevention. Suggested measures include increasing support for key fields, enhancing green finance professional service capabilities, and introducing more green financial products and services.

On 14 November 2024, the European Parliament (“Parliament”) adopted their position on 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”). The European Parliament agreed to the Commission’s proposed one-year delay in applying the EUDR. However, it also voted for substantive amendments to the EUDR which could put at risk the timely adoption of the delay, i.e., before 30 December 2024.

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.