Overview of Recent EU Regulatory Developments
Directive (EU) 2024/1785 on Corporate Sustainability Due Diligence (CSDDD)
This directive mandates that large companies identify, prevent, mitigate, and account for adverse impacts on human rights and the environment in their own operations, their subsidiaries, and their established business relationships. It requires firms to adopt and implement a transition plan to ensure that their business model and strategy are compatible with the transition to a sustainable economy and the limitation of global warming to 1.5°C in line with the Paris Agreement.
Regulation (EU) 2024/1689 laying down harmonized rules on artificial intelligence (AI Act)
The regulation establishes a risk-based framework for the development and deployment of AI systems in the Union. It prohibits specific AI practices deemed to pose unacceptable risks, such as biometric categorization based on sensitive attributes or social scoring. High-risk AI systems are subjected to mandatory conformity assessments, transparency requirements, and human oversight obligations. It also imposes specific transparency duties on providers of general-purpose AI models.
Regulation (EU) 2024/1781 establishing a framework for setting ecodesign requirements for sustainable products
This act expands the scope of ecodesign requirements beyond energy-related products to cover a broader range of physical goods. It mandates the implementation of a “Digital Product Passport” to provide information on durability, reusability, upgradability, and repairability. The legislation includes a direct prohibition on the destruction of unsold consumer goods, specifically textiles and footwear, and sets out criteria for the disclosure of environmental sustainability information.
Regulation (EU) 2024/1157 on shipments of waste
The regulation updates the procedures and control regimes for the shipment of waste, with a primary focus on curbing the export of waste to third countries that lack the capacity to manage it in an environmentally sound manner. It introduces a stricter prohibition on the export of plastic waste to non-OECD countries and mandates that receiving facilities in third countries undergo independent audits to ensure adherence to circular economy principles and waste management standards equivalent to those within the Union.
