Climate, chemicals, and worker regulations in Europe: End of year trends

New regulations fill the European regulatory landscape as the region continues to work towards meeting 2030 and 2050 climate targets, protect human health and the environment by minimizing dangerous chemicals, and enhance employee wellbeing. In our end of year forecaster webinar, Expert Services Manager Jenny Vuorenlinna highlighted the latest regulations concerning climate change, chemicals management, and protection of workers in Europe.  

In this article, we’ll summarize the key adoptions and proposals shaping the European region from 2024, into 2025 and beyond.

Climate change

Jenny Vuorenlinna shared the key regulations emerging from the European Union to strengthen the fight against climate change impacts.

Europe continues to shape new climate legislation to mitigate the damaging impacts on the environment, and meet ongoing targets to: 

• Achieve climate neutrality by 2050 

• Cut down GHG emissions by 55% by 2030, in comparison to 1990 levels 

• Cut down GHG emissions by 90% by 2040 — this was recommended by the EU Commission, but has not yet been adopted 

In an effort to achieve these climate goals, key regulations mandating stricter requirements for monitoring and reporting emissions, promoting cleaner and greener energy usage, and protecting ecosystems have been adopted.
  

Emissions Trading System 

In September 2024, amendments to the  Commission Implementing Regulation (EU) 2018/2066 on the monitoring and reporting of greenhouse gas emissions (the Monitoring and Reporting regulation) were published, establishing that facilities covered by the EU Emissions Trading System must comply with stricter monitoring and reporting obligations. New provisions on permanent emission storage have also been adopted to supplement the EU Emissions Trading Directive. 

These amendments mandate that any operators of stationary installations under the EU ETS must report emissions from directly associated activities included in the boundaries of the installation. This covers activities which have a technical connection with the activities carried out onsite and which could affect emissions and pollution. In addition, operators must monitor and report emissions from the non-zero rated and zero-rated carbon fraction of fuels like biomass and synthetic low-carbon fuels. These changes came into effect on 1 January 2024.  

Further, any aircraft operators are expected to begin monitoring and reporting usage of alternative aviation fuels annually from 31 March 2025.  

And, finally, facilities operating industrial installations covered by the EU Emissions Trading System won’t have to surrender allowances to cover carbon dioxide emissions that have become permanently bound in a product, as defined in the criteria determined by the Commission Delegated Regulation (EU) 2024/2620 supplementing Directive 2003/87/EC. Products considered as permanently chemically binding CO2 include materials such as carbonated concrete, bricks, tiles, and cement.
 

Renewable Energy Directive 

A key element of reaching the climate targets is to increase the use of renewable energy. The EU has an ongoing target to reach 42.50% renewable energy use by 2030. To progress this, the EU Renewable Energy Directive was revised in 2023. 

The amendments introduce, among many other measures, faster permit granting processes for certain renewable energy projects. From 1 July 2024, Member States must ensure that permit granting procedures don’t exceed the specified deadlines — with the aim of speeding up the EU’s transition to renewable energy.  

For example, the Member States must ensure that permit granting procedures don’t exceed one month for the installation of heat pumps below 50 megawatts and solar energy equipment with a capacity of 100 kilowatts or less.
 

Nature Restoration Law 

The EU Nature Restoration Regulation — more commonly referred to as the EU Nature Restoration Law — recently entered into force in August 2024, with the aim of protecting and restoring ecosystems and biodiversity, as well as contribute to the mitigation of climate change. 

The Regulation lays out a framework requiring Member States to implement national measures to: 

• Restore at least 20% of the land and 20% of the sea areas by 2030 

• Restore all ecosystems in need of restoration by 2050 

EU Member States are required to prepare and submit national restoration plans to the European Commission (EC) by 1 September 2026. Although these binding objectives are exclusively applicable to Member States, many companies operating in and around Europe may also be impacted by measures adopted at the national level, such as measures aimed at reducing pollution from hazardous chemicals and industrial wastewater.

Regulations on emissions reporting, renewable energy use, and the intensified focus on protecting biodiversity will require stricter focus and reporting from companies operating in the European Union.

Chemicals management

Jenny noted that the global chemical production is only set to grow, with more countries and regions increasing efforts to implement stricter regulations. This is evident in the EU, with tighter mandates on regulating PFAS in various products, moderating F-gases, and stricter provisions on reporting, labeling, and certifications.
 

PFAS restrictions 

PFAS regulations have been at the forefront of chemicals management decisions for the recent years, and the EU regulatory landscape moderating these chemicals is starting to shift.  

In September 2024, new restrictions on the use of PFHxA were adopted under the REACH regulation. PFHxA is a type of per- and polyfluoroalkyl substance (PFAS) and often used as a substitute for PFOA, an already banned PFAS chemical.  

The updated regulations restrict the use and sale of PFHxA in various consumer products, including: 

• Consumer textiles (such as raincoats) 

• Food packaging 

• Consumer mixtures (such as waterproofing sprays) 

• Cosmetics 

• Certain firefighting foam applications (such as those used for training and testing) 

The restrictions enter into force after a transition period ranging from 18 months to five years, depending on how quickly safer alternatives can be found for products.  

In addition, further PFAS restrictions in the EU are expected in the future, particularly as EU Commission President, Ursula von der Leyen, has prioritized this in her political guidelines for 2024 to 2029. In September 2024, the European Chemicals Agencies Committees held meetings to discuss proposed PFAS restrictions made by five Member States in 2023. The Committee for Risk Assessment consequently adopted 13 opinions on harmonized classification of labeling of hazardous substances. 

Further committee meetings to discuss PFAS in construction products will be held in November 2024.
 

Fluorinated greenhouse gases (F-gases) 

Known to contribute vastly to the impacts of global warming in the EU, the new F-Gas Regulation (EU) 2024/573, effective from March 2024, introduces stricter requirements for producers, importers, exporters, and users of F-gases, as well as products and equipment containing F-gases. This includes heat pumps and refrigeration systems, for example.  

Recently, further updates have been adopted to supplement this new regulation. From March 2025, companies will be required to submit F-gas reports, complying with an updated reporting format. And as of January 2025, companies selling products containing F-gases will need to comply with updated labeling requirements. Finally, certification rules for companies handling F-gases have been revised.

Protection of workers

Finally, Jenny discussed how evolving areas in worker protection is impacting businesses across Europe, placing employee wellbeing at the forefront of sustainability.  

All EU countries have some kind of national regulations that apply to teleworking, but these may vary widely across Member States. In April 2024, the EC launched a public consultation on fair telework practices and the right to disconnect, with the aim of exploring new legislation to protect worker health and safety, and work-life balance, while working remotely. As of the time of writing, we’re still awaiting further developments on this EU initiative.
 

Worker wellbeing across Member States 

In the meantime, some EU Member States have already begun adopting legislation clarifying the legal frameworks on teleworking and the right to disconnect. 
 

Austria 

In Austria, for example, new rules have been adopted to clarify the definition of teleworking to clarify that accident insurance coverage and companies reporting obligation related to such will, as of 1 January 2025, also apply to work outside the employee’s home. In practice, this means that, for example, co-working spaces or other locations chosen by the employee are considered as teleworking locations.  

As a result of this expansion, employers will be required to report occupational accidents that occur in other spaces than the employees’ home, for example in or on the way to a co-working space. 
 

Bulgaria 

In Spring 2024, Bulgaria passed legislation that establishes a right to disconnect for employees. The regulations ensure that remote workers aren’t obligated to communicate, or respond to communications, with their employer or colleagues during regulated breaks or outside their contracted working hours.  

Further, as of September 2024, companies in Bulgaria can conduct their health and safety training fully remote, rather than in-person as previously mandated.
 

Exposure to hazardous radiation 

In June 2024, France established stricter rules on the exposure of workers to radon from the ground. The new order requires companies with workers exposed to radon exceeding certain limit values to implement stricter protection measures.  

For example, the affected employers must take measures such as drawing up an action plan detailing the measures that need to be taken to reduce exposure, for example, improving the air renewal of buildings. If it’s not possible to lower the concentration level of the radon, employers will have to set up a radon zone and, in some cases, are required to implement individual dosimetric monitoring.