In this edition, we cover key EU policy shifts, groundbreaking sustainability strategies, and innovative projects shaping the future of Estonia, Latvia and Lithuania.
As always, our team is here to support you with expertise, advice and tailored solutions to meet your ESG ambitions. Let’s continue working together towards a more sustainable and equitable future.
Legislative news and ESG initiatives in Estonia, Latvia and Lithuania
Lithuania
Vilnius was chosen as European Green Capital 2025 for its strong commitment to sustainability and signed the Green City Accord. This European initiative encourages cities to work towards cleaner air, better water quality, more efficient waste management, biodiversity protection, and less noise.
Latvia: The permitted logging volume in state forests has been reduced by 9.5% for the next five years
On 21 January 2025, the Latvian government approved the maximum allowable logging volume for 2026–2030, reducing it by 9.5% (8,591.5 hectares) compared to the previous period. These limits apply to state-managed forests, including those administered by Latvian State Forests, the Forest Research Station, the National Armed Forces, and vocational education institutions. The regulation aims to ensure sustainable forest management while maintaining a stable wood supply and complying with environmental protection rules.
The State Forest Service will begin issuing logging permits on 1 November 2025.
Estonia
On 17 December 2024, the Estonian Parliament adopted a law transposing the Corporate Sustainability Reporting Directive (CSRD) into national law. It amends the Accounting Act, Auditors Activities Act, Securities Market Act and Employees’ Trustee Act, and entered into force on 17 January 2025.
The adopted law introduces the following main changes into Estonian law:
- provides for the obligation to prepare, submit and have audited sustainability report
- amends the size criteria for micro, small, medium and large enterprises
- specifies the format of the annual report
- provides for two different types of auditor
- raises the thresholds for the statutory audit and review of annual accounts
- reduces the statutory audit requirement for foundations
Large undertakings which are a public interest entity as defined in the Auditors Activities Act and have over 500 employees are obliged to publish sustainability reports as part of their annual reports.
This requirement will be applicable to large enterprises from 2025 and for SMEs (other than micro enterprises) that are public from 2026.
EU-level news
Ensuring accuracy: verification of CO2 emissions from heavy-duty vehicles in service
On 14 January 2025, the European Commission introduced a regulation to verify CO₂ emissions from lorries, buses, and coaches in real-world conditions. This “in-service verification” ensures that the emissions reported by manufacturers match actual on-road emissions.
Starting July 2025, national type approval authorities will conduct annual tests on selected heavy-duty vehicles, checking for discrepancies and ensuring there is no manipulation of certification tests. If deviations are found, the Commission will recalculate manufacturers’ CO₂ emissions to assess compliance with EU targets.
This regulation builds on the 2019 EU CO₂ emission standards and follows the delegated regulation of 8 February 2024, setting verification principles. Heavy-duty vehicles contribute over 6% of the EU’s CO₂ emissions, making this initiative crucial for climate action.
New EU rules aiming to decarbonise the maritime sector take effect
On 1 January 2025, the FuelEU Maritime Regulation took effect, requiring ships over 5,000 gross tonnages calling at EU ports to gradually reduce their greenhouse gas (GHG) emissions. The regulation mandates a 2% reduction in GHG intensity by 2025, increasing to 80% by 2050, and promotes the use of renewable and low-carbon fuels to cut maritime emissions.
From 2030, passenger and container ships at berth must use onshore power supply (OPS) or zero-emission alternatives in major EU ports, extending to all equipped ports by 2035. Companies must monitor onboard energy use from 2025 and submit a FuelEU Report by 31 January 2026 to verify compliance.
This regulation supports the EU’s goal of reducing transport emissions by 90% by 2050 and is backed by EU funding and research initiatives, including EUR 20 million for renewable fuels and EUR 530 million for innovation under Horizon Europe.
EU common charger rules: power all your devices with a single charger
As of 28 December 2024, the EU’s Common Charger Directive mandates USB-C charging for all mobile phones and portable electronic devices sold in the EU. This regulation simplifies charging, reduces electronic waste which totals 11,000 tonnes annually, and helps consumers save EUR 250 million per year by allowing them to buy devices without chargers. It also ensures consistently fast charging speeds across brands.
The rules apply to phones, tablets, cameras, headphones, gaming consoles, e-readers, and more, with laptops required to comply by 28 April 2026. Approved in October 2022, this directive enhances consumer convenience and sustainability.
New rules for more thorough and cost-effective urban wastewater management enter into force
The EU’s revised Urban Wastewater Treatment Directive, effective 1 January 2025, strengthens wastewater management to protect public health and the environment. It extends coverage to smaller urban areas (as low as 1,000 inhabitants) and enforces stricter pollutant removal, including microplastics and PFAS monitoring.
The pharmaceutical and cosmetics industries must cover at least 80% of micropollutant treatment costs, under the “polluter pays” principle, reducing the financial burden on citizens. The directive also requires stormwater management plans for large cities to prevent flooding and pollution, while encouraging wastewater recycling to recover valuable materials like phosphorus for agriculture.
By 2029, member states must have improved sanitation access in urban areas with over 10,000 inhabitants. The European Environment Agency will digitise wastewater reporting, easing administrative work. These measures align wastewater treatment with EU climate goals, ensuring cleaner water, better resilience, and greater resource efficiency.
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Contact the authors:
Co-head of Sorainen ESG team, Counsel, Lithuania
vitalija.impoleviciene@sorainen.com
Senior Associate, Latvia
Associate, Estonia