πŸ‡ͺπŸ‡ΊEU-Applicable

Here, you will find an overview of the regulations, frameworks, and initiatives regarding environmental impacts across all product categories applicable in the European Union.

Regulations

Product level

CBAM | Carbon Border Adjustment Mechanism

Regulation within the EU Green Deal

  • It aims to enforce a carbon tax on importers of specific goods, equivalent to the weekly EU-ETS price

  • Scheduled to take effect in its final form from 2026, with the current transitional phase spanning from 2023 to 2026

  • Currently relevant for cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen

  • Determining fair prices for CO2 emissions in the production of certain carbon-intensive goods imported into the EU, aiming to promote cleaner industrial production in non-EU countries

(more information)

DPP | Digital Product Passport

EU regulation under the EU Green Deal

  • Use digital solutions to reduce product lifecycle impacts and advance EU industrial policy goals for sustainable goods

  • Introduces new responsibilities and rights for various stakeholders, including manufacturers, importers, distributors, repairers, recyclers, consumers, and regulatory bodies.

  • sets mandatory green public procurement criteria within the values and principles advocated by the circular economy

(more information)

Ecodesign for Sustainable Products Regulation

EU regulation to promote circularity

  • Regulation to improve energy- and resource efficiency of products

  • Requirements for eco-design of energy-related (consuming) products, including reduction approaches

(more information)

Green Claims Directive

EU law proposal 03/2023

  • Companies need to substantiate their environmental claims with science-based and verifiable methods.

  • Green claims must be specific and relate directly to the environmental aspect being promoted.

  • Encourages the use of third-party verification or certification schemes to substantiate green claims.

(more information)

CEAP | Circular Economy Action Plan

Adopted in 03/2020 as one of the main building blocks of the European Green Deal

  • Targets product design and promotes circular economy practices, promotes sustainable consumption, and strives to minimize waste while maximizing resource retention within the EU economy

  • Emphasizes sectors with substantial resource usage and significant potential for circularity,

  • It includes electronics and ICT, batteries and vehicles, packaging, plastics, textiles, construction and buildings, food, water, and nutrients

  • Implements a combination of legislative and non-legislative measures to achieve its objectives

(more information)

UCPD | EU Unfair Commercial Practices Directive
  • Overarching EU legislation regulating unfair commercial practices that occur before, during and after a business-to-consumer transaction has taken p

  • Established by the European Union to regulate B2C commercial practices

  • Enable national enforcers to curb a broad range of unfair business practices

(more information)

Organisational level

CSDDD - Corporate Sustainability Due Diligence Directive

EU proposal for regulation

  • It aims to create transparency about the supply chain and identify human and environmental risks.

  • Members of the European Parliament still have to vote on the regulations until 04/2024.

  • The scope of application currently includes companies with 1,000 employees and a turnover of at least EUR 450 million

  • It mandates preventing, identifying, and mitigating negative impacts on human rights and the environment within global value chains.

(more information)

E

Provisional agreement for more sustainable, repairable, and circular products

  • Regulatory framework established by the EU to promote eco-design principles and integrate environmental considerations into the design of products placed on the EU market

  • Products complying with ESPR requirements are granted access to the EU market, while non-compliant products may face restrictions or penalties, incentivizing manufacturers to improve their environmental performance

  • ESPR requires manufacturers to comply with specific eco-design requirements, such as energy efficiency standards, material efficiency targets, recyclability criteria, and the use of environmentally friendly materials and technologies

(more information)

AGEC | Anti-Gaspillage pour une Γ‰conomie Circulaire

French law

  • The goal is to end the marketing of single-use plastic packaging by the year 2040. To achieve this, reduction, reusability, and recycling goals will be established by decree

Next steps:

  • 01.01.2024: Ban on the sale of medical products containing microplastics

  • 01.01.2025: 100% recycling of single-use plastic packaging

  • 31.12.2025: 100% reduction in "unnecessary" single-use plastic packaging

  • 31.12.2025: Reduction of single-use plastic packaging by 20%

  • 01.01.2026: Ban on the sale of rinse-off cosmetic products containing microplastics

  • 01.01.2028: reducing the number of single-use plastic bottles by 50%

NFRD | Non-financial Reporting Directive

EU regulation for companies with more than 500 employees

  • Encourage transparency and accountability by requiring companies to sustainability reporting at regular intervals and outline their specific policies on them

  • Companies that are obligated to comply with the NFRD must provide information on both their non-financial disclosures and operations and any third parties that contribute to their supply or value chain

(more information)

ESRS | European Sustainability Reporting Standards
  • Applies to all companies subject to the Corporate Sustainability Reporting Directive (CSRD)

  • Cover the full range of environmental, social, and governance issues, including climate change, biodiversity and human rights

  • Take up existing frameworks such as GRI, SASB and TCFD and set new standards for mandatory reporting

  • Companies will have to disclose how material ESG impacts, risks, and opportunities are identified and managed, including policies, targets, action plans, and others

(more information)

Country specific - France:

Loi Climat et RΓ©silience

  • Comprehensive legislative framework aimed at combating climate change and enhancing societal resilience

  • Sets ambitious targets for reducing greenhouse gas emissions across various sectors of the economy

  • Promotes the transition to renewable energy sources and the implementation of energy efficiency measures

  • Mandates regular reporting and monitoring of progress towards climate goals, ensuring accountability and transparency in implementation

Next steps:

  • end of 2024:

    • Flights are prohibited if there is an alternative by train in less than 2.5 hours (with the exception of flights that are mainly operated by passengers with a connecting flight to a more distant destination)

  • 2025

    • Create low-emission zones in urban areas with more than 150,000 inhabitants

    • Rental of the least insulated thermal filters (classification G) prohibited

  • 2028:

    • Rental of the least insulated thermal filters (classification F) prohibited

    • Advertising for the most polluting vehicles prohibited

  • 2030:

    • Ban on the sale of cars that emit more than 95 g CO2/km

    • 20% of the space in large stores (businesses with more than 400 mΒ² of sales area) is reserved for mass sales

(more information)

Country specific - Germany:

LkSG | Lieferkettensorgfaltspflichtengesetz

German law since 01/2023

  • For more than 3000 employees, 01/2024 for more than 1000 employees

  • Regulation about human rights risks in the supply chain

  • Aims to create transparency about the supply chain, identify risks for humans and the environment

(more information)

Framework and standards

Product level

PEF(CR) | Product Environmental Footprint (Category Rules)
  • supports the objectives of the β€œEuropean Green Deal”

  • PEF is a standardized methodology developed by the European Commission for assessing the environmental impact of products throughout their life cycle.

  • Category rules (CR) provide specific guidelines for applying the PEF methodology to a particular product category, ensuring consistency and comparability between different assessments within the same product category.

  • It is aligned with the principles of LCA.

  • PEF has gained international recognition as a leading methodology for assessing product environmental footprints, with the potential for global adoption and harmonization

  • Applies to: All companies and sectors, rules are sector-specific (Apparel & footwear, Chemistry based final products, Construction products, Electronics, Food & Beverage products (including products not for human consumption, Energy production and transmission etc.)

(more information)

DNK | Deutscher Nachhaltigkeitskodex

German Standard

  • Includes a set of 20 criteria covering areas such as sustainability strategy, environmental impact, social responsibility, and corporate governance

  • Companies that adopt the DNK are required to report on their sustainability performance using a set of standardized indicators that align with these criteria -> make sustainability reporting more transparent, comparable, and credible

(more information)

Organisational level

OEF(SR) | Organization Environmental Footprint (Sector Rules)
  • A consistent and specific set of rules to calculate the relevant environmental information of the organizations belonging to the sector in scope

  • Requirements: System boundaries shall include organizational boundaries (direct) and organization environmental footprint boundaries (indirect) --> specification of supply chain stages, all indirect (upstream and downstream) activities

(more information)

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