CSRD transposition status in Lithuania, Latvia and Estonia

On 5 January 2023, the Corporate Sustainability Reporting Directive (the CSRD) entered into force. The CSRD requires large companies and all listed companies (except listed micro-enterprises) to disclose information on what they see as the risks and opportunities arising from social and environmental issues, and on the impact of their activities on people and the environment. A broader set of large companies, as well as listed SMEs, will now be required to report on sustainability. Some non-EU companies will also have to report if they generate over EUR 150 million in the EU market. EU member states were required to transpose the CSRD by 6 July 2024.

Lithuania is the first country in the Baltics to have transposed the CSRD into its national laws. On 25 June 2024, the parliament approved the package of laws transposing the CSRD, which entered into force on 1 July 2024. The package contains more than 10 laws, of which the main ones are the new Law on the Accountability of Enterprises and Enterprise Groups of the Republic of Lithuania (the text of the law in the Lithuanian language can be accessed here) and the revised Law on the Audit and other Assurance services of Financial Statements of the Republic of Lithuania (the amended text of the law in the Lithuanian language can be accessed here). No significant deviations or stricter rules are envisaged in Lithuania compared to the CSRD directive text. A couple of topics of interest for business: Lithuania requires website publication of the sustainability disclosures, and allows for non-disclosure of commercially sensitive information under ongoing negotiations.

In Latvia, the law transposing the CSRD passed its first reading in the parliament, but the parliament has since gone on a summer break and will resume with this matter only in September. Proposals for amendments can be submitted before the second reading, but only by a limited number of persons (such as the president of Latvia, members of the parliament or government, or the ombudsman). The deadline for proposals is 3 September 2024, and the second reading is scheduled for 26 September 2024.

In Estonia, consultations are ongoing, but the draft law has not yet been passed by the parliament. Meanwhile, the Ministry of Climate has launched a website containing information on all aspects of sustainability reporting. The website is currently available in Estonian.

What happens when an EU member state fails to implement a directive on time? The EU Commission may initiate infringement proceedings and bring proceedings against the country before the Court of Justice of the European Union (the non-enforcement of a judgement resulting from this may lead to a new conviction, which may result in fines). Hopefully, the delays in transposing the CSRD will not be significant and will not lead to consequences of this kind.

EU-level news

Commission decides to register European Citizens’ Initiative on taxation  of greenhouse gas emissions

On 13 May 2024, the European Commission decided to register a European Citizens’ Initiative (ECI) entitled “Save the Planet by shifting taxation from labour to greenhouse gas emissions”.

As the European Citizens’ Initiative fulfils the formal conditions established in the relevant legislation, the Commission considers that it is legally admissible. The Commission has not analysed the substance of the proposals at this stage.

Following this registration, the organisers have six months to begin signature collection. If a European Citizens’ Initiative receives one million statements of support within one year, with the minimum figures being reached in at least seven different member states, the Commission will have to react. The Commission will have to decide whether or not it will take action in response to the request, and will be required to explain its reasoning.

Commission presents guidance and recommendations on accelerating renewable energy roll-out ahead of REPowerEU anniversary

According to a press release from the European Commission on 13 May 2024, the Commission is providing additional support to member states to further accelerate the deployment of renewable energy and reduce Russian fossil fuel imports. The Commission has adopted a series of new and updated recommendations and guidance documents to improve and streamline permitting procedures and auctions for renewables. These documents will help to implement the EU framework for renewable energy by improving the conditions for a rapid deployment of home-grown renewable energy. By boosting demand for clean technologies made in Europe, this initiative will also help reinforce industrial competitiveness, increase the resilience of the energy system, and deliver on the European Green Deal.

European consumers and industry to benefit from clean, secure and stable energy supplies with key market reforms now adopted

On 21 May 2024, the Commission welcomed the adoption of important electricity and gas market reforms and a new regulatory framework to boost the development of hydrogen and other decarbonised gases. These reforms highlight Europe’s determination to pursue the clean energy transition while enhancing its security of supply and consumer protection, and building on the lessons learnt from the energy crisis.

Future-proof energy markets will stimulate investments in clean energy and facilitate lower and more stable prices, which are key to making European industry more competitive on the global stage. With the adoption of the revised electricity market design and the decarbonised gas and hydrogen package, the EU has obtained further tools for reaching its energy and climate targets under the European Green Deal. The updated gas market framework gives member states the possibility to stop or limit imports of both piped gas and LNG from Russia and Belarus, in line with the REPowerEU objectives.

Following today’s adoption, the revised legislation will now be published in The Official Journal of the European Union and its provisions will enter into force according to specific timelines.

Net-Zero Industry Act makes the EU the home of clean tech manufacturing and green jobs

On 27 May 2024, the Commission welcomed the final adoption of the Net-Zero Industry Act (NZIA), which puts the EU on track to strengthen its domestic manufacturing capacities for key clean technologies. By creating a unified and predictable business environment for the clean tech manufacturing sector, NZIA will increase the competitiveness and resilience of the EU’s industrial base and support the creation of quality jobs and a skilled workforce.

By boosting the EU domestic production of net-zero technologies, NZIA will reduce the risk of simply replacing fossil fuel dependency with dependency on technology from external actors. This will in turn help to make our energy system cleaner and more secure, with affordable and home-produced clean energy sources replacing volatile fossil fuel imports.

Commission clarifies support for farmers in case of exceptional weather events

On 30 May 2024 the Commission adopted a communication clarifying the use of force majeure and exceptional circumstances for the EU agricultural sector in case of unforeseeable and extreme weather events. By clarifying the legal interpretation of this concept, the Commission aims to provide certainty for affected farmers regarding their Common Agricultural Policy (CAP) payments, while also ensuring uniform application by national administrations across the Union. This communication forms part of the package to reduce administrative burdens for EU farmers.

The communication clarifies that force majeure can apply to any farmer working in a delimited area that is affected by severe and unforeseeable natural disasters or meteorological events. This means that farmers located in the impacted area will not need to fill out individual requests or provide evidence to fulfil the conditions of force majeure. This enlarged scope of application will reduce the administrative burden for farmers and national authorities, thus facilitating a swift response by member states.

Commission launches Destination Earth system in Finland to help climate change adaptation

On 10 June 2024, the Commission activated the initial Destination Earth (DestinE) system in the presence of Executive Vice-President Margrethe Vestager and the Finnish minister for employment, Arto Satonen. DestinE is a flagship initiative of the Commission, aiming to develop a highly accurate digital twin of the Earth. Deployment of the DestinE system means that the European High-performance computers (EuroHPC) – including the LUMI supercomputer in Kajaani, Finland – are now tasked with simulating the effects of climate change and extreme weather events. Thanks to this initiative, Europe will be better prepared to respond to major natural disasters, adapt to climate change and assess the potential socioeconomic and policy impacts of such events.

DestinE has access to unprecedented modelling capabilities thanks to EuroHPC computers and artificial intelligence capacities. The initiative also represents a key component of the European strategy for data by consolidating access to valuable sources of data across Europe. DestinE is now operational and it is expected to evolve constantly, extending its operations and developing further components. By 2030, DestinE should have completed a full digital replica of the Earth.

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Contact the authors:

Vitalija Impolevičienė

Co-head of Sorainen ESG team, Lithuania







Agita Sprude,

Senior Associate, Latvia







Elina Mizerova,

Associate, Estonia