Slovakia, like other countries in the Central and Eastern Europe and Central Asia region, is undergoing dynamic developments in the area of ESG regulations. These changes are part of a broader trend of strengthening requirements for management of ESG risks in the financial sector and the introduction of stricter environmental compliance rules and permitting regimes. Recent legislative initiatives and significant financial investments clearly signal Slovakia's commitment to sustainability and decarbonization.

Changes in environmental impact assessment and permitting processes

It is currently in the legislative process in Slovakia. Amendment to the Environmental Impact Assessment ActIts main objective is simplify and harmonize environmental permitting procedures, especially for renewable energy infrastructure projects. The amendment also revises the competences of state authorities involved in these processes. This reform is expected to significantly will improve the investment environment, will ensure better public participation in environmental assessments and help Slovakia meet national and European climate targets, including those defined in the National Energy and Climate Plan 2021-2030 (NECP). These steps are in line with the requirements of the EU Council Implementing Decision (CID) and the Slovak Recovery and Resilience Plan (Component 19 – REPowerEU).

Tightening air protection rules

Several key laws came into force in Slovakia on 1 April 2025. amendments to Act No. 146/2023 Coll. on air protection, which have a significant impact on the permitting framework for emission sources. According to the new provisions, for the issuance of zoning decisions for large and medium emission sources requires binding approval from the air protection authority. This consent becomes a legally enforceable position throughout the permitting procedure. It is important to note that administrative procedures that were initiated before April 2025 will continue to be governed by the previous legal framework. Certain provisions, such as those concerning small emission sources, automated monitoring systems, approval of emission parameters and special technical exemptions, will remain in force throughout 2025.

Financial support for decarbonization and modernization of heating systems

The Slovak Ministry of the Environment announced a significant allocation of funds: EUR 440 million from the EU Modernisation FundThese resources are focused on supporting the decarbonization of industry and the modernization of district heating systemsSpecifically, almost EUR 300 million has already been approved for 60 district heating projects, with additional funding available for future industrial initiatives. There has also been significant demand for applications for renewable energy projects and energy-efficient public buildings, with applications already exceeding the available budgets.

Slovakia is working intensively to implement and strengthen its legal and regulatory framework in the area of ESG. From tightening environmental regulations and streamlining permitting processes to allocating significant funds for green infrastructure and decarbonization, the country is demonstrating a strong commitment to sustainability and meeting national and European climate goals. These steps not only increase environmental responsibility across sectors, but also open up new opportunities for companies and investors striving for sustainable business and development. Spring