Updated Industrial Emissions Directive: Key changes and challenges for industry

Directive (EU) 2024/1785 fundamentally overhauls the Industrial Emissions Directive (IED), combining stricter environmental performance limits with leaner, digital processes. The deadline for transposing the new Directive expired on 1 July 2026, and Germany is doing so by means of an omnibus act containing amendments to the Federal Immission Control Act (Bundes-Immissionsschutzgesetz, “BImSchG”), the Circular Economy Act (Kreislaufwirtschaftsgesetz, “KrWG”), and the Federal Mining Act (Bundesberggesetz, “BBergG”) together with an omnibus ordinance that, in particular, expands the 4th Ordinance on the Implementation of the Federal Immission Control Act (Bundes-Immissionsschutzverordnung, “BImSchV”) and introduces a new 45th BImSchV on mandatory environmental management systems. Lawmakers hope the changes will more effectively limit emissions from industrial installations and accelerate planning and permit procedures. The Bundesrat has now approved the omnibus act but made its approval of the omnibus ordinance conditional on specified amendments. It has also passed resolutions relating to both instruments. The omnibus act was published in the Federal Law Gazette on October 19, 2026, and will generally take effect on October 21, 2026. The omnibus ordinance has not yet been published and has therefore not yet taken effect. Following on from our previous articles, this update explains the implementation package that has been adopted and highlights the key obligations and challenges for businesses at this stage of the implementation process. In particular, it remains to be seen whether and how the federal government will respond to the Bundesrat’s proposed amendments.

Policy background and objectives

The Industrial Emissions Directive (Directive 2010/75/EU) is the most important European regulatory framework for the approval and operation of environmentally relevant industrial installations. By amending the Directive, the EU aims to improve the environmental performance of industrial installations – specifically by curbing CO₂ emissions and increasing resource efficiency – while supporting the extensive shift towards a climate-neutral economy as part of the European Green Deal.

The revised Directive establishes the obligation to implement an environmental management system (EMS) as a core regulatory tool, placing new obligations on operators of IED installations and increasing their accountability for environmental protection and resource conservation. The amended IED also introduces a comprehensive measurement and data collection system that will enable continuous monitoring by authorities and reduce subsequent requests for information. The digitalisation of communication with authorities, introduced under section 64a BImSchG (new version), serves to further another key objective of the amendment: accelerating (permit) procedures.

The Directive also establishes an Innovation Centre for Industrial Transformation and Emissions (INCITE), which is to collect and analyse information on technologies for decarbonisation, resource efficiency and the circular economy. Its findings will help update the BAT reference documents. Monitoring INCITE’s publications will allow companies to identify future technological requirements well in advance.

Implementation and timeline

• EU level: The Industrial Emissions Directive entered into force on 4 August 2024. The transposition deadline for Member States expired on 1 July 2026.
• National level (Germany): The Bundestag passed the omnibus act on 9 July 2026. On 25 September 2026, the Bundesrat approved the omnibus act without reservation, but made its approval of the accompanying omnibus ordinance contingent on amendments (“conditional approval decision”). In its legally non-binding resolution on the omnibus act, the Bundesrat calls for further refinements (clarification that the emission limit values are based on the operator’s assessment; provisions under which exceptions should generally be granted; inclusion of “geographical location” as a ground for exemption in section 12a BImSchG) and criticises the direct applicability of BAT conclusions and the increasing scope of publication obligations. The Bundesrat also considers the newly introduced sections 43a to 43c and section 47a KrWG to be overly long and complex. It proposes, moreover, an evaluation of the new provisions and the creation of a structured exchange mechanism between the federal government, the federal states and industry stakeholders.
  The amendments required by the Bundesrat concern, among other things, the list of installations set out in the 4th BImSchV (wind turbines, biogas plants (no. 1.17), direct reduced iron (DRI) plants, hot- and cold-rolling mills), legal definitions in the 45th BImSchV and the deletion of the publication requirement under section 4 45th BImSchV. In its resolution on the omnibus ordinance, the Bundesrat suggests creating an environmental management system (EMS) exemption for renewable energy installations and advocating for this at EU level. It also requests a review, once the Environmental Omnibus package has been adopted, of whether restricting eligible environmental management systems to those fulfilling the EMAS or ISO 14001 requirements remains justified if the external audit obligation no longer applies.
• Transition periods: Pursuant to section 3(1) draft 45th BImSchV, the obligation to establish and implement an EMS (referred to in the Bundesrat’s decision as an “operator obligation” to make clear that it rests with the installation operator rather than the competent authority) must be fulfilled no later than 30 June 2030. For installations commissioned after that date, the obligation must be fulfilled by the time of commissioning. Under section 6(1) draft 45th BImSchV, operators of existing installations must submit proof of conformity for the required environmental management system by 1 July 2030, with an initial internal audit by the operator being sufficient. The option of conducting an initial internal audit is also available for newly commissioned installations and installations brought within the IED scope at a later date. Proof of conformity must be provided upon commissioning for any new installations put into service on or after 1 July 2030. Section 67 BImSchG (new version) sets out transitional provisions for installations that fall under the scope of the IED for the first time following its expansion. For example, cold rolling mills and textile and fibre finishing plants commissioned before 1 July 2026 must likewise comply by 1 July 2030. For certain pyrolysis plants, the compliance requirements will only apply from the date on which an implementing decision on certain pyrolysis BAT conclusions is published in the Official Journal of the European Union, but no later than 1 September 2034. Installations that were first granted a licence before the date of publication must comply with the requirements within four years of publication, but no later than by 1 September 2034. The same applies to hammer or drop-forging installations with an impact energy of more than 50 kJ, forging installations equipped with forging presses exceeding a capacity of 30 MN per press, and battery manufacturing installations with an annual production capacity of at least 15,000 t of battery cells. Furthermore, the Bundesrat’s resolution calls upon the federal government to (i) provide greater clarity on the interplay between the dates on which the various elements of the EMS must be implemented in accordance with section 3(1), sentence 1 and section 12 draft 45th BImSchV, (ii) examine whether section 12 draft 45th BImSchV transposes the Industrial Emissions Directive on a one-to-one basis, and (iii) implement any amendments resulting from the Environmental Omnibus package before the requirements of the 45th BImSchV take effect and review the provisions promptly following its adoption. The specific deadlines may therefore still change.

Key changes resulting from the transposition of the Industrial Emissions Directive

The changes described below only apply to industrial activities specified in the Industrial Emissions Directive (IED installations). The rules still primarily apply to large-scale, environmentally relevant industrial installations, such as those for generating electricity or manufacturing chemical products.

Environmental management systems (EMSs)

IED installation operators are obliged pursuant to section 58e BImSchG (new version) to establish an environmental management system in line with the DIN EN ISO 14001 standard or the EU’s eco-management and audit scheme (EMAS). Livestock-rearing installations are exempted from this requirement and will be covered by a separate regulation. The requirements derive from sections 3 and 6 of the draft 45th BImSchV. The operator’s EMS must realise environmental policy objectives for the improvement of environmental performance, for example by taking action to prevent waste generation, optimise energy and water use, and increase the use of renewable energies. The action taken needs to be documented. Using an EMS allows public authorities to access structured documentation, thus accelerating official reviews and measures. Consistent with the objectives of the EU’s Environmental Omnibus package, the draft 45th BImSchV provides for a significantly simplified EMS and transitional arrangements. The draft originally provided for a full chemicals inventory and risk assessment of all hazardous substances present in or emitted from each installation. However, implementation of the obligation to explicitly include a chemicals management module in the EMS (inventory, risk assessment and substitution check for hazardous substances) has been deferred until further notice in view of the planned EU Environmental Omnibus package.

Transformation plans 

The IED obliges operators of affected industrial installations to include a transformation plan in their EMS, describing what action they plan to take between 2030 and 2050 to help achieve a climate-neutral and circular economy.
Germany is holding back on implementing this obligation, however, because the EU’s Environmental Omnibus package envisages changes to the requirements. The draft 45th BImSchV provides for later regulation once the EU legal provisions have been updated.
Operators can obtain extensions to BAT emission limit deadlines by showing that their installations are in the process of deep industrial transformation. To do this, they will need to deliver a binding commitment, a timeline with milestones, and annual progress reports.

Audits

IED installation operators must audit their EMS for conformity with the provisions in section 2 draft 45th BImSchV. For existing installations, section 6(1) draft 45th BImSchV requires the first audit to be performed by 1 July 2030 and its results then sent to the competent authority. New installations must be able to produce proof of conformity at the time of commissioning (section 6(1) draft 45th BImSchV). It should be noted that the initial review of the EMS may also be carried out by means of an internal audit, with confirmation of the internal audit by the operator being sufficient evidence of this. Following the first audit, operators must arrange for their EMS and implementation of its measures to be externally audited every three years as a minimum. After that, only valid certification under DIN EN ISO 14001 or an EMAS registration certificate count as proof of conformity. In its conditional approval decision, the Bundesrat calls in particular for a revision of section 6 draft 45th BImSchV. Under the proposed amendment, proof of conformity may also be provided independently of the EMAS system and ISO 14001 certification by an environmental verifier authorised pursuant to section 9 Environmental Audit Act (Umweltauditgesetz), or by means of external verification by authorised environmental verifiers or, in certain cases, accredited certification bodies (section 6(3) and (4) draft 45th BImSchV).

Measurements and data

Under section 5 draft 45th BImSchV, IED installation operators must carry out detailed measurements and collect extensive data with regard to their environmental performance. Consumption and re-use of energy, water, raw materials and other resources, for example, need to be documented such that the operator and the competent authority can assess from the EMS whether the environmental policy objectives have been met.

Reporting obligations

Under section 7 draft 45th BImSchV, operators of IED installations must report annually to the competent authority on their progress towards achieving the environmental policy objectives set in the EMS. Reporting is to be performed electronically and can also be done by providing the location on the internet where the relevant information from the EMS is published (section 4 draft 45th BImSchV).

Environmental performance limits

Under section 8 draft 45th BImSchV, companies will have to comply with binding environmental performance limit values. These limits concern the consumption of material resources (especially raw materials) and water and are derived from the so-called BAT conclusions. BAT stands for “best available techniques” and refers to the most effective measures for reducing emissions, taking into account economic feasibility and the current state of the art. BAT conclusions are adopted by the European Commission in the form of implementing decisions. The BAT concept was already a component of the Industrial Emissions Directive 2010/75/EU.
Compliance with the limit values will be monitored by the authorities in accordance with section 9 draft 45th BImSchV. Operators must disclose their environmental performance data on request. In its conditional approval decision, the Bundesrat calls for the wording of the provision to be revised and proposes that it be given the title “Monitoring of environmental performance limits”. As no environmental performance limits have yet been set, the phrase “to be determined” in section 9, sentence 1 draft 45th BImSchV is to be replaced by “applicable to the main activity”. According to the Bundesrat, the monitoring obligation of the competent authority arises only once such limits have been set and extends solely to installations whose main activity is covered by BAT conclusions that set out BAT-associated environmental performance levels in the form of ranges. Furthermore, the Bundesrat’s conditional approval decision proposes that where an installation’s main activity is not subject to monitoring, this is also expressly to apply to ancillary activities that directly serve that main activity.

BAT conclusions

The implementation period for BAT limit values is generally four years following publication of the BAT conclusions (section 52a(1) BImSchG (new version)). That period can be extended to up to eight years for existing installations if supported by robust transformation plans (section 52a(2) BImSchG (new version)).
The table attached as Annex 1 lists those BAT conclusions whose sector-specific requirements operators are obliged to use as a basis for their EMS. According to the Bundesrat’s proposed amendments, the following references are to be inserted after the entry “IS C(2012) 903”: REF C(2014) 7155 (mineral oil and gas refining), CLM C(2013) 1728 (cement, lime and magnesium oxide production) and GLS C(2012) 865 (glass manufacture). The Bundesrat also calls for a clarifying amendment to section 3(4) draft 45th BImSchV to cover cases where an installation carries out several activities subject to different BAT conclusions. In that case, the EMS would have to comply with the requirements set out in all relevant BAT conclusions. In the event of overlapping or inconsistent requirements, the more specific requirement is to apply.

New regulation of installations requiring permits under the BImSchG

The omnibus ordinance aligns the list of industrial installations requiring permits under the 4th BImSchV more closely with Annex I to the IED. Its scope is expanded to include gigafactories for battery cell production, certain smitheries with forging presses, and textile plants. This alignment reduces definition issues and procedural loops during the permitting procedure.
The Bundesrat’s conditional approval decision notably calls for wind turbines exceeding a total height of 50 metres to be made subject to the simplified procedure under section 19 BImSchG (new no. 1.6). Biogas plants for methane production (up to 25 tonnes per day) are added in a new no. 1.17. In the case of DRI (direct reduced iron) plants, the IED designation “E” in no. 3.2.3.1 is to be removed on the basis that their classification as IED installations goes beyond a strict transposition of the Industrial Emissions Directive. For hot- and cold-rolling mills, performance capacities are to be adapted to the IED; organometallic chemicals are to be added to nos. 4.1.4 and 4.1.5. CO₂ capture plants (no. 10.3) are only to be classified as “E” plants where geological storage is involved; including them across the board would unnecessarily hinder CCS/CCU projects. Where anaerobic digestion is the only waste treatment activity, the IED-compliant threshold of 100 tonnes per day (instead of 75 tonnes per day) is to apply in future. Soil washing plants treating soil, dredged material and railway ballast intended for quality-assured recovery are reclassified under no. 8.3.2 and are therefore subject to less stringent requirements. In future, the simplified procedure is to apply uniformly to the storage of non-hazardous waste or inert waste up to a total storage capacity of less than 25,000 tonnes (no. 8.7.3.2).

Overall: strengthened public rights

The Directive strengthens public rights in several respects. In future, authorities must publish online the information available to them on whether an industrial installation complies with applicable limits (section 31(5) BImSchG (new version)). The same applies to operators of IED installations regarding key information from their environmental management system and proof of conformity (section 4 draft 45th BImSchV). However, in its conditional approval decision, the Bundesrat calls for the deletion of section 4 draft 45th BImSchV since this obligation is expected to be removed at EU level in accordance with the Council’s mandate on the Environmental Omnibus. In its resolution on the omnibus act, the Bundesrat also calls on the federal government to reassess the online publication requirements (section 10(3), sentence 5 BImSchG), citing both security risks in the context of hybrid warfare and companies’ interests in protecting commercially sensitive data. However, participation rights in approval decisions, in particular for granting, updating and reviewing permits following the publication of new BAT conclusions, are restricted to the affected public (section 10(3), sentence 8 BImSchG (new version)). Furthermore, pursuant to section 10(6) BImSchG (new version), a consultation meeting will now be held only at the request of the project developer. Member States must also guarantee effective access to justice. For businesses, all this means greater public scrutiny, although limiting participation to the affected public is also likely to speed up procedures.

Future penalties and liability risks

The implementation package sets out various penalties for the event that operators fail to comply with their new obligations:

• Breaches of the publication, audit and reporting obligations will in future constitute administrative offences within the meaning of section 62 BImSchG, see section 11 draft 45th BImSchV. Fines of up to EUR 50,000 may be imposed.
• For serious administrative offences – including breaches of EMS obligations – the reform introduces turnover-based fines of up to 3% of EU turnover for legal entities with total turnover of more than EUR 1.67 million.
• A new basis for civil law damages claims is introduced in section 65 BImSchG (new version). If the operator of an IED system breaches the central operator obligations in section 5(1), nos. 1 and 2, or sections 5(3) to 5(5) BImSchG and the health of another person is injured as a result, the operator becomes liable for damages. Under the Directive, damages claims procedures must be structured in such a way that they do not make it impossible or excessively difficult to assert claims. Consistent with Article 79a Industrial Emissions Directive, the fault element is dogmatically linked to the breach of conduct-related duties of care. A provision imposing liability on public authorities for breaches of air-quality-plan requirements (former section 65(2) draft BImSchG) was dropped during the legislative process as it would have gone beyond the strict transposition of EU law.
• Regulatory oversight will include adherence to the future binding environmental performance ranges and limits (section 52a(7) BImSchG (new version)). Operators who do not comply with reporting and disclosure obligations concerning their environmental performance (part 2 and section 9 draft 45th BImSchV) will face fines.
• EU law background: The aforementioned penalty provisions transpose Article 79(1) and (2) of the new Industrial Emissions Directive, under which Member States must adopt penalties that are effective, proportionate and dissuasive and, in the case of serious breaches by legal entities, impose turnover-based fines.

Outcome: Compared to current law, the risk of significant turnover-based penalties will increase. The new regime will be considerably stricter, particularly for larger companies.

Recommended action

• EMS roadmap for 2030: Design an environmental management system (EMS) in accordance with DIN EN ISO 14001/EMAS, implement a data and measurement concept, prepare internal auditing and assign responsibilities.
• Environmental performance analysis: Identify shortcomings in environmental performance (consumption of material resources and water above BAT limits); track BAT monitoring and updates to environmental performance limits.
• Establish transformation plans to ensure that extensions of up to eight years can be sought for existing installations requiring high investment and if there is deep industrial transformation with respect to their adherence to environmental performance limits.
• Check the BImSchG list of installations: Check whether your industrial activity requires a permit under the amended IED (e.g. pyrolysis plants, smitheries, battery plants).
• Documentation, reporting and publication: Implement recurring processes for publication obligations and disclosure/reporting obligations.
• Given the pending EU omnibus relief measures, companies can defer their establishment of chemicals management components in their EMSs for now, while monitoring legislative developments.
• Further mitigation of liability risks is generally advisable.

Implementation overview – before-and-after comparison

Interim conclusions

• National transposition of the IED through the omnibus act and the omnibus ordinance will mark a fundamental update of German industrial emissions law. Key elements include the expansion of the list of installations, the mandatory introduction of environmental management systems with clear reporting, measurement and documentation obligations, and the setting of stricter, BAT-based limits.
• Companies should use the time available to establish an EMS, identify environmental performance gaps and plan transformation pathways. Transformation plans are especially advisable in view of the potential to use transition periods in justified cases.The omnibus act will generally take effect on October 21, 2026. 
• The Bundesrat has conditionally approved the omnibus ordinance subject to amendments being made. Whether and when the federal government will incorporate them remains to be seen.
• The Bundesrat has also approved a further ordinance introducing changes to the 13th BImSchV (large combustion plants), the 17th BImSchV (waste incineration plants) and the 31st BImSchV (VOC installations) subject to amendments.
• The resolutions – which are merely advisory in nature – call, among other things, for changes to publication requirements and for the Environmental Omnibus to be taken into account. Here too, it remains to be seen whether and how the federal government will respond.