As highlighted in the previous post, despite the rise of far-right parties, pro-European parties will continue to hold a majority in the European Parliament. However, the new members, especially those from parties less focused on environmental issues, may influence certain regulations. There are indeed some regulations that, though approved, will have to be implemented as the legislative process was paused for the elections and will resume in July.
A significant number of these regulations concern sustainability. Recently, the EU adopted new legislation under the "European Green Deal," aiming to turn the bloc into a sustainable economy. For instance, the EU Packaging and Packaging Waste Regulation (PPWR) seeks to enhance the circular economy by banning specific single-use plastics, including those for fresh produce, foods and beverages in eateries, individual portions, toiletry miniatures, and very lightweight carrier bags. It also bans PFAS chemicals in food contact packaging and mandates that most packaging meet recyclability criteria.
The Corporate Sustainability Reporting Directive (CSRD) prohibits products made with forced labor and those linked to deforestation from entering the EU market, with non-compliant products being seized at the border. Additionally, products made using forced labor will be banned from exportation from the EU market. Complementing this, the Corporate Sustainability Due Diligence Directive (CSDD) will require companies to prevent adverse environmental and human rights impacts in their operations and supply chains, with phased implementation from 2027 to 2029.
Both the CSRD and CSDD will apply to all sectors and large companies meeting specific thresholds operating in EU markets. Non-EU companies meeting these thresholds will need to report on environmental, social, and governance (ESG) metrics if they meet certain revenue, asset, or employee thresholds and must assess environmental and social risks within their supply chains.
Other measures aim at waste reduction and capturing environmental impact data, such as those in the EU Packaging Regulation, the Ecodesign for Sustainable Products Regulation, and the Right to Repair Directive. The EU's goal with these regulations is to eliminate "throwaway culture" and ensure that manufacturers provide timely and cost-effective repair services, keeping consumers informed about their rights.
The Ecodesign Regulation introduces new requirements for apparel products concerning durability, reusability, upgradability, and reparability, and it bans the destruction of unsold textiles and footwear. It also includes rules on substances that inhibit circularity, energy and resource efficiency, recycled content, remanufacturing and recycling, as well as carbon and environmental footprints. Additionally, it requires information like the Digital Product Passport.
The "right to repair" regulation proposes that sellers must offer repairs unless it is more expensive than providing a replacement. Producers must inform consumers about the products they are obliged to repair themselves, and must provide a repair form, enhancing in this way transparency in repair conditions and pricing, making it easier for consumers to compare repair offers.
Manufacturers will also have to provide spare parts and tools at reasonable prices and are prohibited from using contractual clauses, hardware, or software techniques that hinder repairs. Specifically, they cannot prevent the use of second-hand or 3D-printed spare parts by independent repairers or refuse to repair a product solely for economic reasons or because it was previously repaired by someone else.
An interesting feature of the right to repair regulation is the inclusion of an online matchmaking platform connecting consumers with repairers and sellers of refurbished goods locally, allowing searches by location and quality standards to help consumers find attractive offers and boost visibility for repairers.
The European online platform will help consumers locate local repair shops, sellers of refurbished goods, buyers of defective items, or community-led repair initiatives, such as repair cafes. This could be of interest to people who are looking for new job opportunities and ventures, as repair shops may be trending more in the next few months.
Companies should take care of these points as the new obligations would increase liability risks for selling products in the EU, potentially leading to more consumer claims. Manufacturers will therefore need to redesign products for safe, long-term use, including compatibility with third-party components. Distributors must adjust warranty rights to favor repair over replacement and provide more repairability information at the point of sale. It is important to note that, while the right to repair typically applies to household appliances and tech devices, this regulation could extend to the fashion industry, covering clothing, shoes, and accessories designed to be repairable.
Will the new regulations awaiting implementation be disrupted by newly elected MEPs? It's too early to tell, but it is also unlikely as the EU's commitment to sustainability and climate action continues to set high standards for global environmental governance. Businesses in the meantime should take note and closely follow the new regulations to ensure compliance and capitalize on opportunities for innovation.
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