The European Parliament endorsed a set of proposed simplifications to the EU’s Carbon Border Adjustment Mechanism (CBAM) on 22 May 2025. They include a new 50-tonne de minimis threshold that would exempt about 90% of importers, mainly small and medium-sized enterprises (SMEs) and occasional traders, while maintaining coverage of an estimated 99% of emissions from targeted imports. Following the parliamentary vote in plenary on 22 May 2025, The Council of the EU adopted – on 27 May – its own negotiating position on the Commission proposal. As a next step, the European Parliament and Council (as the EU’s co-legislators) will start negotiations with a view to a final adoption of the proposed legislative text.

Vietnam’s Ministry of Agriculture and Environment has halved the national import quota for hydrochlorofluorocarbons (HCFCs), a class of ozone-depleting substances, from 2,600 tons in 2024 to 1,300 tons in 2025. Implemented through a directive issued on 18 April 2025, it mainly focuses on HCFC-22, commonly used in seafood processing, refrigeration, air conditioning and foam insulation. The import quota will be maintained at 1,300 tons annually from 2025 to 2029, then decrease to 100 tons per year from 2030, with all remaining HCFC imports set to end by 2040.

Oman has launched a single permit system to simplify the permit approval process for green hydrogen developers. Announced by Hydrom, Oman’s central hydrogen authority on 30 April 2025, the initiative will enable developers to obtain a single automatic permit granting immediate access to the land awarded for project development. The new system removes the need to engage with numerous government agencies and ministries to complete the permit process.

The State Council announced on 18 April that the amended Interim Regulations on Express Delivery will take effect on 1 June. The amended regulations call for efforts to improve comprehensive support policies and promote the use of green, minimal and recyclable packaging. Express delivery enterprises and senders are encouraged to use degradable, reusable and environmentally-friendly packaging materials. Science and technology innovation is encouraged and support will be given to the research, development and production of express delivery packaging that meets environmental protection requirements using new technologies, new materials and new processes. Enterprises engaged in express delivery operations are encouraged to use packaging materials that have been certified as green products. Steps will be taken to promote the development of express delivery enterprises in collaboration with commodity production and e-commerce enterprises, to promote original packaging deliveries and reduce secondary packaging during deliveries. Express delivery enterprises shall report on the use and recycling of single-use plastic products in packaging materials to the postal administration department in accordance with relevant regulations.

Aerosols are both energy-intensive to make and hard to recycle, but one Hungarian duo’s refillable cans may provide a green alternative.

Chinese firms operating in four Southeast Asian countries are facing steep tariffs on solar exports to the United States. The US government announced on 21 April 2025 varying duties on imported solar panels from Cambodia, Malaysia, Thailand and Vietnam, following a US Commerce Department investigation claiming that manufacturers in these countries were taking advantage of Chinese government subsidies and dumping solar panels in the US market at prices below production costs.

On 15 April 2025, the European Commission introduced new guidance and simplification documents to ease the implementation of the EU Deforestation Regulation (EUDR). Hong Kong sellers may recall that the EUDR will become effective at the end of 2025. These updates aim to reduce administrative burdens for companies and ensure consistent application across the EU.

EU Member States are considering relaxing some requirements of proposed EU rules regarding green claims. According to the negotiating document, as reported by MLex, the current subjects under consideration are labelling systems, verification, and information for consumers. These possible changes come ahead of the next round of talks with the European Parliament, scheduled for 24 April 2025.

While global climate issues have become ever more pressing, countries around the world have accelerated their formulation of remedial environmental policies. In the case of China, it has set out to fulfil the commitments it made as part of the Paris Agreement by setting “dual carbon” goals relating to carbon peaking and carbon neutrality. In line with central government policies, the GBA cities are prioritising their development of a green, low-carbon and circular economic system. Against this backdrop, all GBA enterprises will have to comply with the relevant environmental laws and regulations in order to mitigate any legal or financial risks. Many are actively responding to the environmental concerns of consumers by implementing green and environmentally friendly initiatives. At the same time, they are also striving to optimise their ESG adoption process. Overall, 98% of the surveyed GBA-based businesses planned to increase or maintain their level of ESG investment in the next two years, a 4 percentage point increase from 2023 (94%). Of these, 40% said they planned to increase funding for ESG elements, a higher figure than the 30% recorded for the 2023 survey.

To tackle the waste problem and promote sustainable economic development, the EU is pressing ahead with implementing the Packaging and Packaging Waste Regulation (PPWR) to further regulate packaging and packaging materials of importers, manufacturers, suppliers and agents. In a webinar hosted by HKTDC Research, Navigating the EU’s Packaging and Packaging Waste Regulation: What Hong Kong Businesses Need to Know, to help Hong Kong SMEs understand and cope with the major changes.