Reflecting on President Trump’s first 100 days in office
Title
08 July 2025
The drive to simplify and increase competitiveness in the European Union continues apace. Member States have started to implement the “stop-the-clock” directive, the Commission has signalled an intent to provide some limited relief for Wave One companies already complying with the Corporate Sustainability Reporting Directive (CSRD) (the “quick fix” directive) and academics and the European Central Bank have shared their views on the proposed changes to CSRD and the Corporate Sustainability Due Diligence Directive (CSDDD). The Council also shared its negotiated position on the omnibus simplification package for the carbon border adjustment mechanism (CBAM). At the first UK-EU Summit following Brexit, an EU-UK Strategic Partnership was established between the UK and the EU and they also agreed to explore a link between the UK and the EU Emission Trading Schemes.
UK Government launches a Call for Evidence on Greenhouse Gas removals: On 16 May 2025, the UK Government launched a Call for Evidence on how the options for greenhouse gas removals (GGRs) can assist the UK in meeting its net zero targets. As part of this the UK Government is also broadly calling for evidence from the general public, developers and other organisations on several points including:
- potential scale of emissions savings;
- opportunity and barriers to deployment at scale;
- economic cost of deploying greenhouse gas removals;
- approaches to transition away from public investment and attract private investment;
- role and opportunity to support government missions;
- role and options to balance the UK’s residual emissions; and
- how GGRs could contribute to UK’s security of supply.
The Call for Evidence closes on 20 June 2025.
EU-UK Summit leads to new joint agreement: On 19 May 2025, the UK Prime Minister met with President of the European Council and the President of the European Commission for the first UK-EU Summit. The Summit is the first since the UK's withdrawal from the EU. The UK-EU Summit included discussions on strategic priorities, joint concerns as well as a signing of a joint agreement.
During the Summit, the UK and EU also announced plans to work towards linking their Emission Trading Schemes (ETS) and to look at agreeing mutual exemptions on the UK and EU CBAMs. The details of the linkage are not yet clear but the linkage is set to streamline regulatory barriers, particularly for carbon dioxide storage, a growth industry in the UK which will benefit from the increased competitiveness.
In addition, the UK Foreign and Defense Secretaries and EU High Representative have agreed to foreign and security policy dialogues every six months. The Summit will be held on an annual basis as part of their new Strategic Partnership as a means to strengthen its relationship.
INTERNATIONAL DEVELOPMENTS
BIS announces voluntary climate-risk financial disclosure framework: On 12 May 2025, the Bank for International Settlements (BIS) announced that (i) the Group of Central Bank Governors and Heads of Supervision (GHOS) expects to implement Basel III in full and consistently as soon as possible, (ii) the Basel Committee will publish a voluntary disclosure framework on climate-related financial risks for jurisdictions to consider; and (iii) GHOS will prioritise further analysis on financial risk implications of extreme weather events.
The ISSB has previously noted that it has been collaborating with the Basel Committee on Banking Supervision and the International Association of Insurance Supervisors to build interoperability. It notes that previously the Basel Committee had proposed qualitative and quantitative disclosure requirements based on IFRS S2 to “provide a common disclosure baseline for internationally active banks”.
UN body adopts key rules to support the Paris Agreement-aligned carbon market (PACM): On 16 May 2025, the United Nations body responsible for setting up a carbon market under the Paris Agreement adopted new standards to guide how emissions-reducing projects measure their impact. The Paris Agreement Crediting Mechanism (PACM, also known as Article 6.4) exists to allow countries to raise climate ambition and to implement national plans more affordably. Two key standards were agreed:
- A standard for estimating the emissions that would have happened without a project under the mechanism (referred as 'baseline'); and
- A standard for accounting for any unintended increases in emissions that might happen elsewhere as a result of a project (referred as 'leakage').
These standards are key to ensuring that carbon credits issued under the PACM are ambitious, real, additional and verifiable. The Supervisory Body also started a consultation process on how project benefits can be shared equitably with host countries and also focused on capacity building to help countries build the systems they need to take part in the mechanism.
They noted that the first PACM methodologies are expected to be approved by the Supervisory Body by the end of the year.
Chapter 1
TEST
UK Government launches a Call for Evidence on Greenhouse Gas removals: On 16 May 2025, the UK Government launched a Call for Evidence on how the options for greenhouse gas removals (GGRs) can assist the UK in meeting its net zero targets. As part of this the UK Government is also broadly calling for evidence from the general public, developers and other organisations on several points including:
- potential scale of emissions savings;
- opportunity and barriers to deployment at scale;
- economic cost of deploying greenhouse gas removals;
- approaches to transition away from public investment and attract private investment;
- role and opportunity to support government missions;
- role and options to balance the UK’s residual emissions; and
- how GGRs could contribute to UK’s security of supply.
The Call for Evidence closes on 20 June 2025.
EU-UK Summit leads to new joint agreement: On 19 May 2025, the UK Prime Minister met with President of the European Council and the President of the European Commission for the first UK-EU Summit. The Summit is the first since the UK's withdrawal from the EU. The UK-EU Summit included discussions on strategic priorities, joint concerns as well as a signing of a joint agreement.
During the Summit, the UK and EU also announced plans to work towards linking their Emission Trading Schemes (ETS) and to look at agreeing mutual exemptions on the UK and EU CBAMs. The details of the linkage are not yet clear but the linkage is set to streamline regulatory barriers, particularly for carbon dioxide storage, a growth industry in the UK which will benefit from the increased competitiveness.
In addition, the UK Foreign and Defense Secretaries and EU High Representative have agreed to foreign and security policy dialogues every six months. The Summit will be held on an annual basis as part of their new Strategic Partnership as a means to strengthen its relationship.
INTERNATIONAL DEVELOPMENTS
BIS announces voluntary climate-risk financial disclosure framework: On 12 May 2025, the Bank for International Settlements (BIS) announced that (i) the Group of Central Bank Governors and Heads of Supervision (GHOS) expects to implement Basel III in full and consistently as soon as possible, (ii) the Basel Committee will publish a voluntary disclosure framework on climate-related financial risks for jurisdictions to consider; and (iii) GHOS will prioritise further analysis on financial risk implications of extreme weather events.
The ISSB has previously noted that it has been collaborating with the Basel Committee on Banking Supervision and the International Association of Insurance Supervisors to build interoperability. It notes that previously the Basel Committee had proposed qualitative and quantitative disclosure requirements based on IFRS S2 to “provide a common disclosure baseline for internationally active banks”.
UN body adopts key rules to support the Paris Agreement-aligned carbon market (PACM): On 16 May 2025, the United Nations body responsible for setting up a carbon market under the Paris Agreement adopted new standards to guide how emissions-reducing projects measure their impact. The Paris Agreement Crediting Mechanism (PACM, also known as Article 6.4) exists to allow countries to raise climate ambition and to implement national plans more affordably. Two key standards were agreed:
- A standard for estimating the emissions that would have happened without a project under the mechanism (referred as 'baseline'); and
- A standard for accounting for any unintended increases in emissions that might happen elsewhere as a result of a project (referred as 'leakage').
These standards are key to ensuring that carbon credits issued under the PACM are ambitious, real, additional and verifiable. The Supervisory Body also started a consultation process on how project benefits can be shared equitably with host countries and also focused on capacity building to help countries build the systems they need to take part in the mechanism.
They noted that the first PACM methodologies are expected to be approved by the Supervisory Body by the end of the year.
UK Government launches a Call for Evidence on Greenhouse Gas removals: On 16 May 2025, the UK Government launched a Call for Evidence on how the options for greenhouse gas removals (GGRs) can assist the UK in meeting its net zero targets. As part of this the UK Government is also broadly calling for evidence from the general public, developers and other organisations on several points including:
- potential scale of emissions savings;
- opportunity and barriers to deployment at scale;
- economic cost of deploying greenhouse gas removals;
- approaches to transition away from public investment and attract private investment;
- role and opportunity to support government missions;
- role and options to balance the UK’s residual emissions; and
- how GGRs could contribute to UK’s security of supply.
The Call for Evidence closes on 20 June 2025.
EU-UK Summit leads to new joint agreement: On 19 May 2025, the UK Prime Minister met with President of the European Council and the President of the European Commission for the first UK-EU Summit. The Summit is the first since the UK's withdrawal from the EU. The UK-EU Summit included discussions on strategic priorities, joint concerns as well as a signing of a joint agreement.
During the Summit, the UK and EU also announced plans to work towards linking their Emission Trading Schemes (ETS) and to look at agreeing mutual exemptions on the UK and EU CBAMs. The details of the linkage are not yet clear but the linkage is set to streamline regulatory barriers, particularly for carbon dioxide storage, a growth industry in the UK which will benefit from the increased competitiveness.
In addition, the UK Foreign and Defense Secretaries and EU High Representative have agreed to foreign and security policy dialogues every six months. The Summit will be held on an annual basis as part of their new Strategic Partnership as a means to strengthen its relationship.
INTERNATIONAL DEVELOPMENTS
BIS announces voluntary climate-risk financial disclosure framework: On 12 May 2025, the Bank for International Settlements (BIS) announced that (i) the Group of Central Bank Governors and Heads of Supervision (GHOS) expects to implement Basel III in full and consistently as soon as possible, (ii) the Basel Committee will publish a voluntary disclosure framework on climate-related financial risks for jurisdictions to consider; and (iii) GHOS will prioritise further analysis on financial risk implications of extreme weather events.
The ISSB has previously noted that it has been collaborating with the Basel Committee on Banking Supervision and the International Association of Insurance Supervisors to build interoperability. It notes that previously the Basel Committee had proposed qualitative and quantitative disclosure requirements based on IFRS S2 to “provide a common disclosure baseline for internationally active banks”.
UN body adopts key rules to support the Paris Agreement-aligned carbon market (PACM): On 16 May 2025, the United Nations body responsible for setting up a carbon market under the Paris Agreement adopted new standards to guide how emissions-reducing projects measure their impact. The Paris Agreement Crediting Mechanism (PACM, also known as Article 6.4) exists to allow countries to raise climate ambition and to implement national plans more affordably. Two key standards were agreed:
- A standard for estimating the emissions that would have happened without a project under the mechanism (referred as 'baseline'); and
- A standard for accounting for any unintended increases in emissions that might happen elsewhere as a result of a project (referred as 'leakage').
These standards are key to ensuring that carbon credits issued under the PACM are ambitious, real, additional and verifiable. The Supervisory Body also started a consultation process on how project benefits can be shared equitably with host countries and also focused on capacity building to help countries build the systems they need to take part in the mechanism.
They noted that the first PACM methodologies are expected to be approved by the Supervisory Body by the end of the year.
View more insights and analysis
