WR ESG Alert: EU 'Stop the Clock' Directive enters into force, whilst Supreme Court overturns decision on interim relief in landmark climate change case
In this month's ESG alert, we highlight the EU 'Stop the Clock' Directive which entered into force on 17 April 2025, and the recent judgement form the Supreme Court of Norway on the interpretation of the rules on interim measures under the Norwegian Dispute Act.
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In April the EU 'Stop the Clock' Directive, which forms part of the EU 'Omnibus I' package, entered into force postponing the application of important EU sustainability directives. At national level, the Supreme Court of Norway overturned a decision on interim relief in a landmark Climate Change case.
EU 'Stop the Clock' Directive enters into force
On 17 April 2025, the EU 'Stop the Clock' Directive (Directive (EU) 2025/794) entered into force. The proposal postpones:
- By one year the first application phase (covering the largest companies) and the transposition deadline of the Corporate Sustainability Due Diligence Directive (CS3D).
- By two years the application of the Corporate Sustainability Reporting Directive (CSRD) requirements for large companies that have not yet started reporting, as well as listed small and medium enterprises.
The Directive forms part of the 'Omnibus I' package of proposed simplifications to EU sustainability legislation, presented by the EU Commission on 26 February 2025. In addition to the Stop the Clock Directive, Omnibus I consists of proposals for two other legal acts, which have not yet been approved:
- A directive simplifying the CSRD, the CS3D, the Accounting Directive and the Audit Directive.
- A regulation amending the Carbon Border Adjustment Mechanism (CBAM).
The Norwegian Ministry of Finance has submitted a consultation for amendments to the Norwegian Accounting Act to reflect the postponements of the 'Stop the Clock' Directive.
For more information on the Omnibus I package, please see our ESG Alert, as well as our article (in Norwegian), from February 2025.
Supreme Court overturns decision on interim relief in landmark Climate Change case (Norwegian)
On 11 April 2025 the Supreme Court of Norway delivered its decision in a case concerning petroleum fields in the North Sea, overturning the Court of Appeal's previous ruling.
The case involved a claim for interim relief — a temporary injunction — seeking to invalidate a so-called Plan for Development and Operation (PDO) decision and to halt the development and production activities at three petroleum fields in the North Sea. The main issue before the Supreme Court was whether the Court of Appeal had correctly interpreted the rules on interim measures under Section 34-1 of the Dispute Act. The Court of Appeal had found, based on overriding societal considerations, that it lacked the authority to grant interim relief in a case involving greenhouse gas emissions from petroleum production. The Supreme Court concluded that this interpretation of the law was incorrect and annulled the Court of Appeal’s decision.
The case has been remitted to the Court of Appeal for renewed consideration. Until the Court of Appeal issues a new ruling, the Oslo District Court's ruling from January 2024 is in effect. In this ruling, the District Court imposed interim relief on all activity on the three petroleum fields. This entails that for the time being the state is prohibited from granting new permits in relation to the three petroleum fields.
The Norwegian State has also appealed the judgement on the merits and this case is set to be heard by the Court of Appeal in September 2025. A question regarding the interpretation of the European Union Environmental Impact Assessment Directive (2011/92/EU amended by directive 2014/52/EU) regarding scope III emissions has also been heard by the European Free Trade Area (EFTA) Court, which is set to rule in the near future.