In this issue, we bring you a selection of the most important developments shaping the sustainability agenda — both in the Baltics and across the EU.
We cover recent decisions in Estonia on sustainability reporting and gender balance rules, Latvia’s new long-term energy strategy and AI initiatives, and Lithuania’s efforts to improve investor access to company data. At the EU level, we highlight new guidance on green bond disclosures, measures to reduce compliance burdens for companies, and a notable court ruling related to climate litigation.
Whether you’re adapting to new regulations or planning your ESG priorities, we’re here to help you stay informed and prepared.
News from Lithuania
A package of draft laws (including 16 draft laws) has been registered to transpose the provisions of Directive (EU) 2023/2864 of the European Parliament and of the Council of 13 December 2023. These amendments stem from EU legislation adopted in 2023, which established the European single access point. The aim of this draft laws package is to establish a one-stop platform at EU level to provide investors with information on EU companies (listed companies, credit institutions, funds and fund managers, brokerage firms, insurance companies, audit firms, etc.) related to their financial data and sustainability performance, as well as to make companies, especially SMEs, more visible to investors by providing easier access to their financial and sustainability information.
Updates from Latvia
- On 3 June, the Latvian Cabinet of Ministers approved the National Energy Strategy 2050, developed in collaboration with experts and stakeholders. Its goal is to reach sustainable economic development and energy independence. The strategy aims to reduce reliance on fossil fuels, lower electricity prices by about a third, cut imported energy by half, and boost the use of local renewable resources such as biogas, biomass, hydrogen, solar and wind, while ensuring energy security, economic competitiveness, and flexible adaptation to future economic or geopolitical changes.
- On 3 June, the Latvian Cabinet of Ministers approved an increase in funding for the NATO Strategic Communications Centre of Excellence in order to fulfil host nation obligations and expand its activities, including establishing a new Artificial Intelligence (AI) laboratory. The AI lab, aimed at strengthening NATO’s resilience against modern information threats, will begin development in 2025 and reach full capacity by the end of 2026, with additional funding allocated through Latvia’s national defence budget.
Developments in Estonia
- The government approved a delay in sustainability reporting obligations for some companies. Meanwhile, the EU is continuing efforts to simplify reporting, with Estonia advocating for collecting only essential data. Estonia also proposes making reporting voluntary for companies; if not possible, reports should be submitted no more than once every three years.
- The Estonian Parliament finally adopted amendments to the Securities Market Act and related laws, implementing the so-called EU Women on Board Directive. Under the new rules, at least 40% of supervisory board members – or 33% of management and supervisory board members in large listed companies – must be from the underrepresented gender.
- The government has also approved an update to the National Energy and Climate Plan (REKK). This update is necessary to close an infringement procedure initiated by the European Commission due to delays. REKK 2030 reflects the existing goals, laws and development plans, with input from various stakeholders. Once the upcoming Climate-Resilient Economy Act (Kliimaseadus) is adopted, REKK 2030 will be updated again with new targets.
- The government approved the expansion of the greenhouse gas emission trading system into Estonian law, extending it to the maritine sector and refining rules for aviation and industrial installations. Being gradually introduced starting from 2025, more and more ships will be required to pay for their emissions, while revenue from the system will support green investments, such as retrofitting ships and funding public transport projects.
EU-level news
EuGBS guidelines
The European Commission has published “Communication from the Commission“, which establishes guidelines for pre-issuance disclosure templates for issuers of bonds marketed as environmentally sustainable or of sustainability-linked bonds. The Commission has also published a delegated regulation supplementing Regulation (EU) 2023/2631 by establishing the content, methodologies and presentation of the information to be voluntarily disclosed by issuers of bonds marketed as environmentally sustainable or of sustainability-linked bonds in the templates for periodic post-issuance disclosures. Official publication will follow after the end of the scrutiny period (16 July 2025). Issuers who decide to use the templates should include relevant optional disclosures in the relevant prospectus (in those cases where they are required to issue a prospectus under the Prospectus Regulation). Issuers of bonds marketed as environmentally sustainable or of sustainability-linked bonds who use the voluntary templates for pre-issuance disclosure should publish these disclosures on their websites.
Omnibus IV package
The European Commission has proposed a package of measures to reduce annual administrative costs for companies by EUR 400 million, supporting its broader goal of cutting such costs by 25% overall and by 35% for SMEs. This proposal is the fourth Simplification Omnibus package presented by the European Commission. Key steps include creating a new “small mid-cap” (SMC) category to ease compliance for growing firms, simplifying GDPR and F-gas obligations, accelerating digitisation of product documentation, and delaying the implementation of battery due diligence rules. These reforms aim to boost competitiveness, reduce red tape, and encourage investment and innovation across the single market.
Omnibus I and II focused on sustainability reporting and due diligence rules. Omnibus III focused on simplifying the Common Agricultural Policy.
Net-Zero Industry Act to further accelerate manufacturing of decarbonisation technologies in the EU
The European Commission has adopted four new legislative acts and communication to implement the Net-Zero Industry Act (NZIA), aimed at boosting the EU’s clean tech manufacturing, enhancing resilience, and reducing carbon emissions. These measures define which projects qualify for strategic status, clarify applicable non-price criteria in public tenders and auctions (e.g. resilience, sustainability), and list key components and technologies subject to NZIA rules. The reforms are designed to accelerate the deployment of net-zero technologies, reduce supply chain dependencies, and create a more competitive and sustainable industrial base across the EU.
CO2 emissions: European Parliament adopts flexibility measures for carmakers
The European Parliament has approved a targeted change to CO₂ emission standards for new cars and vans, allowing manufacturers to take an average of their emissions for 2025–2027 rather than having to meet annual targets each year. This flexibility aims to support the automotive sector amid rapid technological shifts and rising global competition. The measure, part of the EU’s broader industrial action plan, now awaits formal approval by the Council before entering into force.
Climate litigation spotlight: German energy company fights off case regarding damages caused by climate change
The Higher Regional Court of Hamm (Germany) has officially dismissed the lawsuit brought by Peruvian farmer Saúl Luciano Lliuya against German energy company RWE. The case, which began in 2015, sought to hold RWE partially liable for the risk of flooding in Lliuya’s hometown of Huaraz, Peru, due to glacial melt allegedly accelerated by the company’s historical greenhouse gas emissions. The court found no imminent danger for the plaintiff’s property. NGOs’ attempt to create a legal precedent failed before the second-instance court to prove the civil liability of German companies for global climate change.
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Contact the authors:
Co-head of Sorainen ESG team, Counsel, Lithuania
vitalija.impoleviciene@sorainen.com
Counsel, Latvia
Senior Associate, Estonia
