Carbon news roundup February/March 2025

European Parliament kicks off discussions around Omnibus Simplification Package

The European Parliament held its first discussion on the Omnibus Simplification Package on March 10. This is the first part of the second step in the legislative process, where the Commission’s proposal is reviewed before the vote in the parliament. 

While most speakers acknowledged the need for simplification, there were concerns raised as to whether the proposal weakens the Green Deal or still places too many administrative burdens on companies. Some MEPs also warned that the timing of the proposal risks undermining trust in EU regulation, particularly for businesses that have already invested in compliance. 

Despite the discussions, no formal decisions are made during these sessions and negotiations are expected to continue in the coming months.

What does this mean for my business?

Right now there are no definite outcomes from the Omnibus proposal. Companies are still expected to maintain their current sustainability reporting obligations and may face legal penalties for non-compliance. It’s essential to continue meeting reporting requirements from a compliance perspective, but there are also wider business benefits to be had. A commitment to carbon accounting can play an important role in winning new business, improving supply chain resilience, and opening up access to funding.

UK’s net-zero sector growing faster than overall economy

The UK’s net-zero sector grew by 10% in 2024, a rate that is 3x faster than the overall UK economy. According to a report from the CBI (Confederation of British Industry), the sector contributed £83 billion in Gross Value Added (GVA).

The report highlights the sector’s role in job creation, energy security, and high-wage employment, with nearly 1 million workers earning above-average salaries. The UK’s chancellor, Rachel Reeves, said “There is no tradeoff between economic growth and net zero. Quite the opposite.”

The Energy and Climate Intelligence Unit commissioned the report, and found that net-zero businesses make up 1.1% of the UK’s total GVA. The report focused on businesses in renewable energy, electric vehicles, heat pumps, energy storage, green finance, and waste management. 

What does this mean for my business?

This is further proof that businesses can benefit greatly from embedding sustainability at the heart of their growth strategies. This isn’t a cost-center, it’s an opportunity, allowing businesses to drive crucial innovation, build resilience across supply chains and take the lead in a world where investors and customers increasingly value sustainable practices.

GHG Protocol delays Land Sector and Removals Standard and Guidance

The Greenhouse Gas (GHG) Protocol has announced a delay in the publication of its Land Sector and Removals Standard and Guidance, which is now expected in Q4 2025. This updated timeline is due to unresolved discussions on two key issues:

• Agricultural leakage quantification
• Forest carbon accounting

To address these, the GHG Protocol’s Independent Standards Board (ISB) is tasked with making final decisions. It requires additional time to resolve both issues, which is the primary reason for the revised timeline.

As part of this effort, the GHG Protocol has established a dedicated Forest Carbon Accounting Technical Working Group (TWG). This TWG will develop proposals or options for how to account for CO₂ emissions and removals from forest land and forest product consumption in corporate GHG inventories. The ISB will consider these recommendations to finalize guidance.

What does this mean for my business?

Many businesses rely on GHG Protocol guidance for emissions reporting and target setting. While the SBTi has already set requirements to account for Forest, Land, and Agriculture (FLAG) emissions, this delay in finalizing the Land Sector and Removals Standard means there will be a gap in official accounting guidance. Businesses will need to monitor developments closely to understand when this guidance will be available – stay tuned to this blog where we’ll keep you updated as the situation progresses.