August 2026 has seen key updates with new sustainability policies in the EU, COP31 announced their 10 priority themes, CBAM updates in the UK, new carbon capture technology, and legal and regulatory updates in Australasia.
International Sustainability Updates
COP31 President’s priorities and targets to be discussed in Turkey this year
10 priority themes detailed from climate education to electrification to food security, covering a large proportion of the world’s sustainability concerns.
The third letter from the COP31 President to the parties was released on 28 August. This details the 2031 Action Agenda and its ten priority themes, building on pervious themes and the 5-year vision for the Global Climate Actions launched last year’s COP30 in Belém.
The ten priority themes put forward are:
- Clean Energy Transition and Electrification – reduction of emissions while ensuring energy security and affordability.
- Zero Waste and Methane Reduction – reduction of waste and reliance on linear consumption production models.
- Climate-Resilient Cities – reduction of exposure to climate-related risks including resilient infrastructure and low-carbon systems.
- Green Industrialization – cooperation and investment to low-carbon production.
- Youth and Education – provision of skills, and knowledge for younger generations to develop climate action with a just transition.
- Food Security – transition to resilient agriculture with improved climate integration within farming systems and water management.
- Oceans and Seas – action on blue carbon and ocean observation and data systems to strengthen marine resilience.
- Dynamic and Resilient Health Systems – development of the ability of health systems to respond to climate shocks.
- Rio Synergies – coordination of sustainable land management, including ecosystem and climate sink protection and restoration, to strengthen climate and biodiversity, building on previous COPs.
- Climate Implementation Bridge – support the development of climate priorities into project portfolios to close the climate ambition-implementation gap.
These are identified by the presidency as “the most pressing global challenges at the intersection of climate action and sustainable development”. It is important to note the importance of technology, climate finance, and capacity building is incorporated across all themes.
European Sustainability Updates
Greece’s $5.6 billion Social Climate Plan approved by EU Commission
Funding to be provided to support businesses and consumers towards a decarbonised future.
The EU commission has announced that it has adopted Greece’s Social Climate Plan. The plan will use revenues collected from emissions allowances alongside funding from the member state. The EU’s commissioner for Climate, Net Zero and Clean growth stated that the plan will support vulnerable consumers and businesses in addition to funding investments in the clean transition in Greece.
Worth $5.6 billion, the scheme is expected to operate from 2026 to 2032 and will be funded 75% from the EU’s social climate fund, with Greece providing the remaining 25%. Initiatives funded by the plan are expected to realise annual emissions reductions equivalent to 811,000 tonnes of CO2 by the end of the scheme.
These reductions are expected to driven by a range of initiatives across the country, including:
- Building energy efficiency and renovations
- Clean Heating and Cooling
- Zero emissions transportation
- Renewable energy
Greece’s social climate plan is the fifth of its kind approved under the EU’s Social Climate Fund to date, joining plans submitted by Latvia, Lithuania, Malta and Sweeden. Each EU member state is required to submit a plan to the commission in order to qualify for funding. Croatia and Slovenia have also both submitted plans and are at time of writing both in the commission assessment phase of consideration.
First elements of the new EU sustainable packaging rules come into effect
Harmonisation and restrictions being places on plastic packaging which will support disposal, recycling and eradication of forever chemicals.
The EU’s revised Packaging and Packaging Waste Regulation (PPWR) came into effect on Wednesday 12th August 2026. At this time the EU commissions stated that the PPWR will help tackle the environmental challenges caused by packaging waste and make Europe less dependent on plastic packaging derived from fossil fuels.
The legislation covers several new rules that are expected to be phased in over the coming years, with some applying from the outset. The most notable rule coming into immediate effect under PPWR are specified limits on ‘forever chemicals’ PFAS materials in food packaging within the EU market. These PFAS materials do not readily break down over time after use and are of concern due to their persistence within the environment and human body.
In future the PPWR will introduce a number of additional rules, including:
- Plastic packaging and overall packaging reduction targets for EU member states (5% by 2030,10% by 2035 and 15% by 2040)
- Bans on certain types of single use plastic packaging by 2030.
- Packaging traceability and identification obligations within the EU market.
- Harmonised labelling system for packaging across the EU to support waste sorting.
- A requirement for packaging to be designed for material recycling by 2030 and for packaging waste to be collected separately and sorted into recyclable waste streams at scale by 2035.
The new updates to the PPWR legislation were adopted by the EU in 2024 to address rising levels of packing waste, the levels of which are expected to increase further by 2030 without additional action.
Italian implementation of new greenwashing and social washing legislation
European legislation has been implemented to provide greater transparency around specific labels which could be used to alter consumer habits based on their claims.
Italy has transposed the EUs Empowering Consumers for the Green Transition into law under Legislative Decree No. 30/2026. From 27th September 2026, companies operating in Italy must align their commercial and environmental claims to the new standard. This includes a prohibition on sustainability labels and claims such as “eco-friendly”, “climate-friendly”, “green” and “bio-degradable” without independent third-party certification or as established by a public authority.
Failure to meet these new standards can incur fines of up to €10,000,000 per infringement.
UK Sustainability Updates
UK CBAM qualifying international schemes
HMRC releases list of qualifying international carbon pricing schemes for discount on CBAM compliance.
The UK’s Carbon Border Adjustment Mechanism (CBAM) is a scheme designed to prevent heavy industry from relocating outside of the UK to places where the electricity grid’s generation mix is of a more carbon intensive makeup. The mechanism by which this is enacted is by an effective ‘carbon tax’ being applied to specific products being imported from other locations based on the carbon emissions associated with that product.
Now, the UK Government has provided the list of qualifying schemes which are applied to the CBAM’s calculations to ensure no business is doubling up on the cost of carbon pricing schemes. Examples of this include:
- EU Emissions Trading System (EU ETS)
- China National Emissions Trading System
- New Zealand Emissions Trading Scheme (NZ ETS)
If a product is subject to a carbon fee in relation to the above, or other qualifying schemes, relief is made to the importing carbon tax.
First regional breakdown of solar installation across the UK
Multiple UK regions recording double digit percentage increases of solar PV installation in the past 12 months.
With the recent legislative changes to the UK allowing plug-in solar panels, analysis has been undertaken to provide oversight of regional breakdowns in solar installation. In total, since the beginning of 2026 there has been nearly 172,000 new installations with approximately 28,000 alone happening in July. This year has seen the top 3 highest monthly installations of solar in the UK on record, in July this equated to 1 every 2 minutes on average.
Over the previous 12 months there has been an 18% rise in Wales, 17% in the East Midlands, 16% in the Northwest and 15% in the East of England, amongst many other high-percentile changes.
UK Government consults on ZEV mandate targets
Mid-point review of the zero emissions mandate to assess feasibility of reaching 2030 and 2035 targets.
In August the UK Government launched a consultation on the targets and timeframes of the Zero Emission Vehicle (ZEV) mandate. The ZEV mandate sets out the proportion of new cars and vans sold required to be zero emission by key milestones. These are currently 80% of applicable vehicles by 2030 growing to 100% by 2035. The legislation also requires UK car and van manufactures to increase the proportion of EV’s built as part of their overall output out to 2030.
The new consultation is considering if the 80% 2030 target for newly sold vehicles should be weakened or held as is, with proposed alternate sales targets of 50-70% under consideration.
The consultation is also considering the treatment of plug-in hybrid vehicles (PHEVs) with respect to their assessed carbon impact and applicability under the ZEV targets. The primary discussion surrounds the decision to either maintain the use of the Euro 6 regulation for emissions calculation, which results in lower figures for PHEVs, or to newly align with the Euro 7 standard. Aligning with Euro 7 standard, which places stricter emissions standards on vehicles, would result in higher but more representative carbon figures for PHEVs.
The consultation is slated to close on the 23 rd of October. Following this the government is committed to publishing a mid-point review of the ZEV mandate no later than 2027, which should clarify its chosen approach to the legislation.
Alternative, first of its kind carbon capture technology in pilot phase by Veolia
Although limited, this new kind of carbon capture can be used to reduce the amount of carbon dioxide released into the atmosphere.
On 4 August, Veolia released a press statement announcing the success of a new type of carbon capture. The project, at their Sheffield Energy Recovery Facility, has demonstrated the ability of the new technology to capture up to 1 tonne daily at the plant. This plant uses a non-amine solvent which can be both regenerated and reused to capture flue gas from the waste facility before it is released into the atmosphere.
The process is much less energy intensive than the typical process which requires significant heating to separate CO2 from the amine solution. As this is still in the initial 2-year pilot stage, testing will be done on the carbon and process to ensure safety and efficiency.
Veolia state that this is a complementary measure to reducing waste, through prevention, recycling and innovative product design, and not an alternative.
Australasia Sustainability Updates
New Zealand carbon liability lawsuit rules in favour of businesses
Amendments to current legislation allow for ruling that businesses cannot be held legally responsible for effects of climate change.
A vote in New Zealand Parliament on 18 August agreed in favour of the Climate Change Response (Tort Liability) Amendment Bill.
This amendment applies to any emission causing activity ensuring there is no tort liability (legal responsibility for a civil wrong) for the subsequent effects of climate change regardless of whether the emissions and effects occurred within New Zealand; how the activity is carried out; whether the activity or impacts occurred before the amendment; and whether the contribution is direct or indirect.
This amendment does not extend to non-climate environmental impacts such as ash residue or odour in surrounding areas. This legislation had an impact on an ongoing court hearing, where a lawsuit had been initiated against 6 New Zealand companies due to their contributions to climate change.
Australia proposes changes to reduce climate reporting burden
An open consultation for feedback on proposed changes to lessen requirements in relation to climate disclosure compliance.
The Australian Government has launched a consultation on proposed measures to reduce the compliance costs and reporting burden associated with its mandatory climate-related financial disclosures.
The proposals include delaying or possibly removing the transition from limited to reasonable assurance, providing clearer guidance on Scope 3 information requests from companies within the value chain, and increasing the availability of emission factors to reduce the need for complex data requests.
The consultation also aims to provide clearer clarity on reporting requirements and flexibility mechanisms, particularly for SMEs. The consultation will remain open for feedback until the 2nd October 2026.
Next Steps
If you would like to discuss how legislation and policy is impacting decarbonisation strategies and requirements across the UK, Europe, and global markets please contact us online or email contact@nusconsulting.com.