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What New Carbon Mandates and Reporting Are Now in Effect for 2025?

What New Carbon Mandates and Reporting Are Now in Effect for 2025?

Now that 2025 is here, many new carbon mitigation reporting and blending mandates are officially in effect. These mandates aim to reduce greenhouse gas emissions across various industries, create sustainable practices, and ensure global collaboration in meeting climate goals.

In this post, we'll examine several regulations and blending mandates now in motion, with a breakdown of what businesses can expect in the coming months.

Europe

FuelEU Maritime

The European Union's FuelEU Maritime regulation officially became effective, targeting decarbonization within the maritime sector. The mandate requires ships over 5,000 gross tons to report all greenhouse gas (GHG) emissions. It’s intended thatthe transparency will compel these companies to adopt sustainable fuel alternatives and reduce their carbon intensity.

Focused on vessels within and entering EU ports, this rule marks another step toward aligning EU shipping practices with global climate goals.

Compliance is expected to drive investment into cleaner maritime fuels, including biofuels, hydrogen-based fuels, and LNG (liquefied natural gas). Shipowners should prioritize these options while monitoring the alignment of their fleets with the regulation's annual reporting standards.

ReFuelEU Aviation SAF 2% Blending Mandate

Under the new ReFuelEU 2025 regulation, aviation fuel suppliers must meet a 2% blending mandate for sustainable aviation fuel (SAF). This obligation is part of the broader EU strategy to ensure a steady shift toward reduced aviation emissions in line with Europe's Fit for 55 climate initiative.

Airline companies and fuel producers are expected to integrate SAF further into their fueling processes, driving demand for sustainable production technologies. European airports are also implementing storage and infrastructure systems to accommodate SAF compliance.

EU CSRD

The Corporate Sustainability Reporting Directive (CSRD) now requires companies in the EU to expand their sustainability and carbon impact data in annual reports. Businesses must now align with CSRD standards. This includes adhering to stricter guidelines on GHG emissions, waste management, and energy sources.

The new mandate emphasizes transparency above all. Companies must develop detailed ESG (Environmental, Social, and Governance) strategies to meet these reporting thresholds.

Australia

Australia's Mandatory Climate Reporting

Australia has also joined the global push for climate transparency, enforcing mandatory climate reporting policies as of 2025. These measures aim to better integrate sustainability into corporate decision-making while addressing risks associated with climate change.

Australian entities meeting specific revenue and employee thresholds must report Scope 1, 2, and increasingly Scope 3 emissions under standardized frameworks such as the Task Force on Climate-Related Financial Disclosures (TCFD). For businesses already tracking operational emissions, this represents an opportunity to refine reporting systems to meet mandatory expectations.

Firms should focus on auditing their carbon footprint and aligning reporting strategies with new compliance frameworks to avoid penalties.

Asia

Singapore 2025 Climate Mandate

Singapore continues to demonstrate its leadership in sustainability through its 2025 Climate Mandate. This includes increased penalties for non-compliance with its carbon tax policy and an expanded focus on incentivizing renewable energy adoption.

Industries with high carbon intensity, like manufacturing, must adapt their processes to account for rising regulatory costs tied to non-compliance. Singapore has also introduced incentives for companies adopting innovative green technologies, positioning itself as a center for sustainability-driven solutions in Asia.

For businesses operating in Singapore, remaining competitive in the market requires close adherence to these mandates and investments in long-term decarbonization strategies.

United States

California SB 253

California's Senate Bill 253 establishes stricter corporate carbon accounting practices among US companies, particularly those generating over $1 billion in revenue. Businesses must now disclose their total Scope 1, Scope 2, and partially Scope 3 emissions.

SB 253 seeks to create full transparency on climate impact for major corporations and holds organizations accountable to California's ambitious carbon neutrality goals. Companies under SB 253 are encouraged to engage in carbon offset initiatives and renewable energy procurement to reduce their reported emissions.

US 45Z Climate Reporting Future

The 45Z Clean Fuel Production Credit incentivizes US-based fuel producers to adopt cleaner fuel alternatives like biofuels and hydrogen products. Companies that utilize this tax credit have benefited both environmentally and economically while staying aligned with long-term federal sustainability objectives.

Since Trump’s return to the White House, some changes have occurred in terms of what 45Z covers and how the tax credit is applied. The most significant of those changes so far relates to the exclusion of imported used cooking oil (UCO) from the tax credit.

The US Treasury clarified that imported UCO is no longer eligible for the 45Z tax credits, which are designed to support the production of transportation fuels with lower lifecycle greenhouse gas emissions. The goal of this change is to prioritize domestic resources and support American farmers by restricting the eligibility of imported UCO for the tax credit.

Read More: 45Z Update: Imported UCO Now Excluded from Tax Benefit

We will likely see other changes in US biofuel and sustainability policy under the Trump administration. Be sure to subscribe to the ResourceWise blog and newsletter for routine updates and how they will impact renewable fuels.

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