WR ESG Alert: Norway follows up on Omnibus-package, whilst the EFTA Court issues advisory opinion on interpretation of EU Water Framework Directive

Environmental

The Omnibus package - Norway's follow-up actions (Norwegian)

Following the releases of the Omnibus package from the European Commission on 26 February 2025, which proposes significant simplifications to EU legislation on ESG and due diligence requirements, Norwegian authorities have provided some information on their perspective regarding the process moving forward. 

The Ministry of Finance will assess how any potential narrowing of the scope and simplifications should be implemented in Norway after an agreement is reached in the EU. The Ministry states that the fundamental principle is for Norwegian companies to always be subject to the same requirements as those in the EU. 

Until the proposals are adopted in the EU and implemented into Norwegian law, Norwegian companies must adhere to the current regulations on sustainability reporting in the Norwegian Accounting Act and the transitional rules for the implementation of these regulations.

You can also read more in our experts' article on this in Dagens Næringsliv (article in Norwegian).

Advisory opinion from the EFTA Court on conditions under the Water Framework Directive

On March 5, the EFTA Court issued its advisory opinion in the lawsuit brought by two Norwegian NGOs against the state regarding the permit to deposit mining waste in the Førdefjord. The case stems from a 2016 royal decree granting the company Nordic Mining a discharge permit to deposit 250 million tons of mining waste in the fjord.

The state initially won the case in the Oslo District Court in January 2024. The ruling was appealed, and before the appeal proceedings, the Borgarting Court of Appeal sought an advisory opinion from the EFTA Court, as the core issue concerns the interpretation and Norwegian implementation of the Water Framework Directive.

The EFTA Court assessed the conditions under the WFD for permitting water body deterioration, particularly what qualifies as an overriding public interest. It ruled out purely economic factors like shareholder profits, wages, and tax revenues but acknowledged that employment effects could be relevant in regions facing significant depopulation and social distress. Security of supply for critical raw materials within the EEA may also be considered, but only if the mineral's scarcity and actual use are thoroughly assessed. Global supply security, however, does not qualify as an overriding public interest.

The appeal case will be heard in the Borgarting Court of Appeal in June.

Public consultation on new ESG Regulation (Norwegian)

On 12 March 2025, the Norwegian Ministry of Finance submitted for consultation the implementation of the expected EEA regulations on ESG ratings following EU's recent adoption of the ESG Regulation (Regulation (EU) 2024/3005). 

The Regulation relates to ESG ratings, where rating agencies assess the extent to which companies consider factors related to the environment, social responsibility and governance. The reason for adopting the ESG Regulation is because the European Commission and OECD have found that there are often large variations in different rating agencies' assessments of the same company, and there is generally a low correlation between the various assessments offered. The Regulation therefore aims to increase the reliability and comparability of ESG ratings, and to make the methodology behind the ratings more transparent. 

The deadline for submitting consultation responses is 13 June 2025.