A series of important environmental regulations that cover everything from water quality to carbon emissions and biodiversity preservation are on their way of implementation. The European Union is proactively taking steps towards these regulations that are most likely to be implemented in 2024. This makes businesses operating from within or exporting to the EU market to be more aware of and prepare for these changes to ensure continued compliance.
- The Carbon Border Adjustment Mechanism (CBAM)
The European Union’s Carbon Border Adjustment Mechanism commonly referred to as CBAM is designed to prevent carbon leakage into the environment by imposing a carbon price on imports of certain goods from outside Europe. CBAM initially targets a certain set of industrial sectors that are more deemed at risk of carbon leakage. These include cement, aluminium, iron and steel, fertilizer, hydrogen, and electricity. CBAM requires businesses to purchase carbon certificates or pay a carbon price based on the emissions associated with their products. Though full implementation is expected by 2026, the initial transitional phase of reporting requirements already started on Oct 21st, 2023.
Impact on businesses and industries:
All businesses, particularly those exporting carbon-intensive products to the EU market, should take steps to reduce their carbon emissions, re-evaluate and adjust their supply chains to meet EU standards, and enhance transparency in reporting their carbon data. Adapting to this new mechanism is crucial for ensuring continued market access and leveraging opportunities within the EU market.
- The Drinking Water Directive
The Drinking Water Directive adopted in December 2020 and fully implemented as of January 2023 is aimed at protecting public health by improving water quality standards. Now this directive expands its scope and sets new safety standards to ensure the quality of all water, whether in its original state or after treatment. The key goal of this directive focuses on preventive measures against pollution caused by endocrine disruptors, PFAS and microplastics by introducing a Drinking water watch list. From December 31st, 2026, only materials and products that comply with EU drinking water safety standards will be eligible for EU declarations of conformity and unrestricted sales across the EU market.
Impact on businesses and industries:
All businesses, particularly those involved in water supply and treatment, the food industry, and manufacturing of products that come into contact with drinking water should take proactive measures to meet the revised directive’s standards. They must also stay informed about the directive’s reporting requirements, updates on water quality, risk assessments and measures to improve water access.
- Packaging reduction Regulation
The new Packaging Reduction Regulation is going to significantly influence the packaging industry as the European Union takes drastic measures to reduce packaging waste. The aim of this regulation is to ensure that all products sold within the EU meet the same environmental standards, contributing to the reduction of packaging waste and the promotion of recycling. The key goals of this policy are to enhance the recycling rate of packaging by setting certain clear criteria, a ban on PFAS in food packaging and restrictions on plastic carrier bags. Encouragement of bio-based plastics is also part of this policy’s goals. Targets set for waste reduction in plastic packaging are 10% by 2030, 15% by 2035, and 20% by 2040. By the end of 2025, targets and criteria will be set for bio-based plastics and by 2029, EU countries are expected to ensure that 90% of materials contained in packaging are collected separately.
Impact on businesses and industries:
As this regulation applies to all packaging that enters the EU market, companies should closely monitor the progress of this regulation and prepare for these changes by reviewing and adjusting their packaging strategies. Businesses that operate outside of the EU will need to comply with the new Packaging Reduction Regulation to sell their products within the EU. Early preparation and adaptation can help ensure compliance and minimize disruption to business operations.
- Biodiversity Strategy for 2030
The European Union’s Biodiversity Strategy for 2030 is an effort to reduce alarming trends in biodiversity loss and ecosystem degradation. This strategy is part of the European Green Deal and takes active steps to ensure ongoing global conversation around safeguarding biodiversity and the eco system. The key initiatives in the strategy include expansion of the EU-wide network of protected areas, implementation of EU nature restoration plan that prevents degradation of ecosystems and restores specific habitats and species. Businesses should stay alert about the development and implementation of related laws and guidelines that may arise from the strategy, as these could directly or indirectly impose new compliance and monitoring requirements.
Impact on businesses and industries:
Businesses should stay alert about the development and implementation of related laws and guidelines that may arise from the strategy for 2030, as these could directly or indirectly impose new compliance and monitoring requirements.
Compliance XLÂ provides sustainability consulting services to companies. We also help customers to stay compliant with new regulations. We share knowledge and experience to provide the highest quality service to our clients to ensure they are up to date as part of their compliance and data management strategy.
