In March 2025, the main trends in ESG regulation in Central and Eastern Europe were regulatory uncertainty in connection with the expected Omnibus I package, the implementation of the European Union directives CSRD and CSDDD, delays in the implementation of the CSRD, transposition of the CSDDD, alignment of energy and climate policies through the NECP, cross-border green initiatives, preparation for the CBAM mechanism, progress in the circular and waste economy, green finance initiatives and regulation of industrial emissions.

Key trends and specific examples include:

• Regulatory uncertainty and the impact of Omnibus I: The end of 2024 and the beginning of 2025 brought uncertainty to the ESG regulatory landscape as stakeholders awaited the Omnibus I package, which was expected to bring significant changes. Its release in February 2025 and the implementation of the CSRD and CSDDD directives brought new uncertainties and led to a reassessment of legislative plans with possible delays.
• Delay in CSRD implementation: IN Bulgaria there was delaying the implementation of the CSRD by one yearOn the contrary, Romania adopted legislation to transpose Article 2 of the CSRD. In Czech Republic The discussion on the amendment to the Accounting Act transposing the CSRD has begun. From 2025, the Hungary extended the obligation to prepare sustainability reports to large private companies. Croatia introduced mandatory sustainability reporting for selected 50 companies. In Serbia there were reporting obligations for large enterprises under the Accounting Act, but without direct implementation by the CSRD.
• Transposition of CSDDD: The Czech government has approved a legislative plan for 2025, within which the Ministry of Justice is preparing a draft law to transpose the CSDDD Directive.
• Efforts to align energy and climate policies (NECP): Romania, Serbia a Slovakia have been working on revising their National Energy and Climate Plans (NECPs). The Czech Republic has approved its updated NECP for 2021-2030. Bulgaria has prepared a draft of its updated NECP.
• Cross-border green initiatives: Project development continued Green Energy Corridor, connecting Azerbaijan, Georgia, Romania a HungaryIn January 2025, Transelectrica from Romania announced the registration of a joint venture for this project. Bulgaria has been involved in negotiations on possible participation in this project.
• Adapting to the CBAM mechanism: Serbia was preparing for the impact of the EU's Carbon Border Offsetting Mechanism (CBAM), which will affect exports to the EU.
• Progress in the circular and waste economy: Croatia presented a comprehensive Waste Management Plan for 2023-2028, including a regulation on waste management fees based on the principle of extended producer responsibility (EPR). In Hungary selective collection of textile waste has become mandatory from 2025. Serbia adopted a new Waste Prevention Plan.
• Green finance initiatives: The European Investment Bank (EIB) provided Croatia a loan of EUR 200 million to support green SME projects. Serbia expanded its green bond market with a new corporate green bond issuance.
• Industrial emissions regulation: Serbia was preparing a draft of a new law on integrated pollution prevention and control in order to align with the EU Industrial Emissions Directive (IED).
• Specific national initiatives: Slovakia dealt with the possibilities of modernizing water reservoirs, solving the mechanism for determining the person responsible for eliminating environmental burdens, and cooperated with Switzerland on supporting national parks. Hungary implemented changes to the system of environmental product charges and extended producer responsibility (EPR).

Overall, CEE countries were actively responding to evolving ESG requirements in March 2025, with the implementation of EU directives and efforts to align national policies with sustainability and emission reduction goals playing a key role. However, uncertainty surrounding the Omnibus I package persisted and affected the pace of adoption of new regulations. Spring