As we enter 2025, several key energy and sustainability regulations are set to impact UK businesses. This blog post delves into the most significant changes coming into effect and their implications for businesses in the UK.
ESOS Action Plan Deadline
The Energy Savings Opportunity Scheme (ESOS) is entering a crucial phase in 2025. Businesses that were in scope for Phase 3 of the scheme have until March 5, 2025, to publish their action plans. These plans must outline specific energy-saving measures, their implementation timelines, and estimated energy savings backed by data sources. See our blog on ESOS phase 4 requirements here.
Climate Change Agreements (CCA) Scheme Reopening
May 2025 marks the reopening of the CCA scheme to new entrants. This presents an opportunity for energy-intensive businesses to secure discounts on the Climate Change Levy by setting and meeting energy efficiency targets. The new scheme, launching in January 2026, will introduce facility-level reporting and annual energy and emissions reporting requirements.
Corporate Sustainability Reporting Directive (CSRD)
2025 is a pivotal year for sustainability reporting as the CSRD replaces the Non-Financial Reporting Directive (NFRD). Companies previously under NFRD will need to align their reporting framework with CSRD for the 2024 financial year. This change aims to improve data availability on businesses’ environmental impact.
EU Carbon Border Adjustment Mechanism (CBAM)
From January 1, 2025, businesses exporting to the EU must adopt the “EU methodology” for reporting their products’ embedded carbon footprint. This requires detailed data collection across the supply chain, including raw materials, transport, and manufacturing processes.
International Sustainability Standards Board (ISSB) Standards
The UK-endorsed ISSB sustainability disclosure standards are scheduled for publication in Q1 2025. These standards will serve as the blueprint for all future UK legislation on sustainability-related reporting, providing a clear direction for businesses to plan their sustainability strategies.
Market-wide Half-Hourly Settlement
2025 will see the beginning of the Market-wide Half-Hourly Settlement (MHHS) switchover. This change aims to create a more efficient and flexible energy system, potentially leading to new tariff structures and opportunities for businesses to optimize their energy usage.
As these regulations come into effect, UK businesses must prepare to adapt their energy management and reporting practices. The focus on sustainability, energy efficiency, and carbon reduction is clear, reflecting the UK’s commitment to its net-zero goals. Companies should start reviewing their current practices and planning for these upcoming changes to ensure compliance and capitalize on potential benefits.
In order to ensure you are kept aware of changes to legislation affecting you, and can plan for maintaining future compliance, keep checking our website or socials, and give EHS Management a call on 07764302858, or drop us a line here.
