The European Union has agreed on a legally binding target to reduce net greenhouse gas emissions by 90 percent by 2040 compared with 1990 levels, reinforcing its long-term trajectory toward climate neutrality by 2050.

Lawmakers from European Parliament and Council of the European Union have reached a provisional agreement to simplify and postpone the EUDR, the EU’s landmark regulation aimed at rooting out deforestation from supply chains.

The EU’s sustainability-reporting framework has been substantially updated. Under the mandate from the Corporate Sustainability Reporting Directive (CSRD), EFRAG has published a draft simplified ESRS — the revised version reduces complexity and lowers compliance burden for companies.

The BoE has released a new supervisory statement — SS 4/25 — replacing its 2019 guidance, with significantly strengthened expectations for how banks and insurers manage climate-related financial risks.

The UK’s Financial Conduct Authority (FCA) has released a consultation outlining new rules to regulate ESG (environmental, social, governance) ratings providers. The proposed framework aims to strengthen transparency, improve governance standards, and reduce conflicts of interest within the rapidly expanding ESG-ratings industry.

On 1 December 2025, the government of the United Kingdom announced that its updated green-finance framework will now include nuclear energy — meaning that proceeds from “green gilts” and green savings bonds can be used to fund nuclear-power projects, effective 27 November 2025.

According to a report published on 1 December 2025, England’s water utilities have issued £10.5 billion (≈ US$13.3 billion) in “green bonds” since 2017, yet sector-wide environmental performance worsened last year.

On 26 November 2025, the United Arab Emirates announced a commitment of US$1 billion to rebuild Yemen’s devastated electricity sector, to be implemented by Abu Dhabi-based Global South Utilities (GSU).