Review of the EU legislation for 12/12/2024

Urban Wastewater Treatment Directive:

The directive creates comprehensive rules for treating urban wastewater across the EU, requiring all towns with over 1,000 inhabitants to collect and treat their wastewater. It mandates secondary treatment (biological), tertiary treatment (nutrient removal), and new quaternary treatment (micropollutants removal) depending on the size of the settlement.

Pharmaceutical and cosmetic companies must now pay for removing their products’ residues from wastewater. Treatment plants must become energy neutral between 2030-2045.

Forced Labor Products Regulation:

The regulation bans products made with forced labor from being sold in or exported from the EU. Authorities can investigate suspected cases, request information from companies, conduct inspections, and order product withdrawals. It creates a database of forced labor risks and establishes a unified system for submitting information.

Poultry Import Restrictions:

Due to bird flu outbreaks, the EU has modified import rules for poultry products from Canada, UK and US. New restrictions apply to specific zones in British Columbia, Manitoba, Norfolk (UK) and 27 US zones. Some previous restrictions in Saskatchewan and Utah were lifted.

ESG Ratings Regulation:

The regulation requires ESG rating providers to obtain authorization, separate ratings from other business activities, and provide individual environmental, social and governance scores. Rating providers must disclose their methodologies and data sources. Small providers get special temporary rules to ease market entry.

NACE Classification Update:

The EU’s economic activity classification system has been updated to reflect modern digital and global economy. New categories were added for digital publishing, broadcasting, telecommunications and IT services. The system maintains two levels – broad sectors and detailed breakdowns.

CPA Product Classification:

Review of each of legal acts published today:

Directive (EU) 2024/3019 of the European Parliament and of the Council of 27 November 2024 concerning urban wastewater treatment (recast) (Text with EEA relevance)

This is a comprehensive new EU Directive on urban wastewater treatment that replaces the previous Directive 91/271/EEC. The main purpose is to protect the environment and human health from adverse effects of urban wastewater discharges while reducing greenhouse gas emissions and improving energy efficiency in the sector.The Directive establishes a detailed framework covering:

• Requirements for collection and treatment of urban wastewater in agglomerations above 1,000 population equivalent (p.e.)
• Standards for secondary, tertiary and new quaternary treatment of wastewater
• Extended producer responsibility for pharmaceutical and cosmetic companies to cover costs of removing micropollutants
• Energy neutrality targets for treatment plants
• Requirements for monitoring, reporting and public access to information

Key new elements compared to the previous directive include:

• Extension of scope to smaller agglomerations (1,000-2,000 p.e.)
• Introduction of quaternary treatment to remove micropollutants
• New requirements for energy neutrality and GHG emissions reduction
• Extended producer responsibility scheme for pharmaceuticals and cosmetics
• Enhanced monitoring and transparency requirements
• Provisions on access to sanitation
• Requirements for integrated urban wastewater management plans

The most important provisions that operators need to comply with include:

• Meeting stricter discharge limits for nitrogen and phosphorus removal
• Installing quaternary treatment in larger plants by set deadlines
• Achieving energy neutrality targets between 2030-2045
• Enhanced monitoring of micropollutants, GHG emissions and other parameters
• Developing integrated management plans for storm water
• Meeting new transparency and reporting requirements
• Ensuring proper maintenance and operation of collection systems

Regulation (EU) 2024/3015 of the European Parliament and of the Council of 27 November 2024 on prohibiting products made with forced labour on the Union market and amending Directive (EU) 2019/1937 (Text with EEA relevance)

Essence of the act:
This Regulation prohibits products made with forced labor from being placed on the EU market or exported from the EU. It establishes a comprehensive framework for investigating suspected cases of forced labor in supply chains, enforcing the prohibition, and requiring the withdrawal of non-compliant products. The Regulation aims to improve the functioning of the internal market while contributing to the global fight against forced labor.Structure and main provisions:
The Regulation consists of 6 chapters covering:- General provisions including scope and definitions- Governance framework establishing a Union Network Against Forced Labor Products- Investigation procedures for suspected violations- Decision-making process for confirmed violations- Enforcement mechanisms including customs controls- Final provisions on penalties and evaluationKey provisions:
1. Economic operators are prohibited from placing or making available products made with forced labor on the EU market or exporting such products2. A risk-based investigation system is established where competent authorities can:- Request information from economic operators- Conduct investigations including field inspections- Order the withdrawal and disposal of non-compliant products- Impose penalties for violations3. Specific measures include:- Creation of a database of forced labor risks- Establishment of a single information submission point- Special support measures for SMEs- Enhanced customs controls at EU borders- International cooperation mechanisms4. The Regulation introduces detailed procedural requirements for:- Conducting investigations- Making and reviewing decisions- Enforcing compliance- Protecting confidential information- Imposing effective penalties

Commission Implementing Regulation (EU) 2024/3141 of 11 December 2024 amending Annexes V and XIV to Implementing Regulation (EU) 2021/404 as regards the entries for Canada, the United Kingdom and the United States in the lists of third countries, territories or zones thereof authorised for the entry into the Union of consignments of poultry and germinal products of poultry, and of fresh meat of poultry and game birds

This Regulation amends the EU rules regarding the entry of poultry products into the EU from Canada, the United Kingdom, and the United States due to outbreaks of highly pathogenic avian influenza (HPAI). It modifies the lists of authorized zones for importing poultry, germinal products, and fresh meat from these countries.The act consists of two main articles and an annex that introduces changes to Annexes V and XIV of Implementing Regulation (EU) 2021/404. The changes reflect new restrictions on imports from specific zones where HPAI outbreaks were confirmed, as well as lifting previous restrictions in areas where the situation has improved.The key modifications include:

• Suspension of imports from three new restricted zones in Canada (British Columbia and Manitoba)
• Addition of a new restricted zone in Norfolk, UK
• Implementation of restrictions for 27 new zones in various US states affected by HPAI
• Reauthorization of imports from previously restricted zones in Saskatchewan (Canada) and Utah (US) where appropriate control measures were completed

The regulation provides detailed geographical coordinates and descriptions of all affected zones, specific requirements for different types of poultry products, and precise dates when restrictions begin or end. The changes are implemented as urgent measures to prevent the spread of HPAI while maintaining necessary trade flows.

Regulation (EU) 2024/3005 of the European Parliament and of the Council of 27 November 2024 on the transparency and integrity of Environmental, Social and Governance (ESG) rating activities, and amending Regulations (EU) 2019/2088 and (EU) 2023/2859 (Text with EEA relevance)

This Regulation establishes a comprehensive framework for regulating Environmental, Social and Governance (ESG) rating activities in the European Union. It aims to enhance transparency, integrity, and reliability of ESG ratings while preventing greenwashing and ensuring high levels of investor protection.The Regulation introduces mandatory requirements for ESG rating providers operating in the EU, including authorization by ESMA, organizational requirements, transparency obligations, and conflict of interest management. It establishes three regimes for third-country providers: equivalence, endorsement and recognition.Key provisions include:

• Mandatory separation of ESG ratings from certain other business activities like consulting, credit ratings and auditing
• Requirements to provide separate E, S and G ratings rather than just aggregated ESG ratings
• Detailed disclosure obligations regarding methodologies, data sources, and potential conflicts of interest
• Supervision and enforcement powers granted to ESMA, including ability to impose fines
• Special temporary regime for small ESG rating providers to facilitate market entry

The Regulation will apply from July 2026, with existing providers required to apply for authorization within specified timeframes. It represents a landmark initiative to regulate the ESG ratings market and improve the quality and reliability of sustainability-related information available to investors.The act is particularly significant as it establishes the first comprehensive regulatory framework for ESG ratings globally and aims to address concerns about transparency, conflicts of interest and reliability in this rapidly growing market segment.

Commission Implementing Regulation (EU) 2024/3148 of 11 December 2024 amending for the 344th time Council Regulation (EC) No 881/2002 imposing certain specific restrictive measures directed against certain persons and entities associated with the ISIL (Da’esh) and Al-Qaida organisations

This Commission Implementing Regulation is the 344th amendment to Council Regulation (EC) No 881/2002, which imposes restrictive measures against persons and entities associated with ISIL (Da’esh) and Al-Qaida organizations. The regulation updates the information about three individuals in the sanctions list.The regulation consists of two articles and an annex. Article 1 introduces amendments to Annex I of the basic Regulation 881/2002, while Article 2 establishes immediate entry into force. The Annex contains detailed amendments to the identifying data of three persons: Muthanna Harith Al-Dari, Maysar Ali Musa Abdallah Al-Juburi, and Salim Mustafa Muhammad Al-Mansur.The main changes in the regulation include:

• Updated personal information, including alternative names and spellings
• Addition of Arabic script versions of names
• Updated status information (e.g., death of Maysar Ali Musa Abdallah Al-Juburi on April 2, 2024)
• Additional identification details such as parents’ names
• Current status information (e.g., detention status of Salim Mustafa Muhammad Al-Mansur)

Commission Delegated Regulation (EU) 2024/3104 of 2 September 2024 amending Regulation (EC) No 184/2005 of the European Parliament and of the Council, as regards references to the statistical classification of economic activities NACE established by Regulation (EC) No 1893/2006 of the European Parliament and of the Council

This Commission Delegated Regulation amends the statistical classification system NACE, which is used for categorizing economic activities in the European Union. The regulation updates the existing classification system to reflect changes brought about by globalization and digitalization in the way economic activities provide goods and services worldwide.The regulation introduces NACE Rev. 2.1, which replaces NACE Rev. 2 that has been in use since 2008. The main change is the modification of Annex I to Regulation (EC) No 184/2005, specifically Table 8, which contains the detailed economic activity breakdown levels.The new classification system maintains a similar level of detail (granularity) as the previous version but introduces updated categories and descriptions that better reflect modern economic activities. Key changes include new sections for ‘Publishing, Broadcasting, and Content Production and Distribution Activities’ and ‘Telecommunication, Computer Programming, Consulting, Computing Infrastructure and Other Information Service Activities’.The regulation introduces a two-level classification system where Level 1 provides broad economic sectors and Level 2 offers more detailed breakdowns within these sectors. For instance, the manufacturing sector is broken down into specific categories such as food products, textiles, wood activities, and petroleum products. The services sector is extensively detailed with separate classifications for various activities including wholesale and retail trade, transportation, accommodation, financial services, and professional activities.The regulation will become applicable from January 1, 2025, giving Member States and data providers time to adapt to the new requirements. To facilitate the transition, a correspondence table and explanatory notes have been made available to classification users since August 2023.

Commission Delegated Regulation (EU) 2024/3102 of 2 September 2024 amending Regulation (EC) No 138/2004 of the European Parliament and of the Council, as regards references to the statistical classification of economic activities NACE established by Regulation (EC) No 1893/2006 of the European Parliament and of the Council

This Commission Delegated Regulation amends Regulation (EC) No 138/2004 on economic accounts for agriculture to align it with the updated statistical classification of economic activities (NACE Rev. 2.1). The amendment is necessary due to changes in the way economic activities provide goods and services worldwide, particularly influenced by globalization and digitalization.The regulation consists of two main articles and an annex. Article 1 introduces amendments to Annex I of Regulation 138/2004, while Article 2 sets the entry into force and application dates. The regulation will apply from January 1, 2028, for data transmissions relating to reference periods starting from that date.The key modifications include:

• Replacing all references to ‘NACE Rev. 2’ with ‘NACE’ throughout the document
• Updating definitions related to local kind-of-activity units (local KAU)
• Revising provisions regarding animal husbandry and hunting activities
• Updating references to statistical classifications and their interconnections

The regulation maintains similar granularity to the original classification, ensuring that the amendments do not impose significant additional burdens on Member States or respondents. The changes primarily focus on technical updates to statistical classifications while preserving the core framework for agricultural economic accounts.

Commission Delegated Regulation (EU) 2024/3103 of 2 September 2024 amending Regulation (EC) No 451/2008 of the European Parliament and of the Council as regards updating the classification of products by activity (CPA)

This act updates the Classification of Products by Activity (CPA) in the European Union, establishing a new version called CPA Ver. 2.2.The CPA is a detailed statistical classification system that categorizes products (both goods and services) by economic activity. It provides a common framework for collecting and presenting statistical data on products in the EU.The new classification reflects changes in the economic environment since 2015, particularly due to globalization, digitalization, and increased environmental awareness. It maintains consistency with the EU’s NACE classification system and international CPC classification.

Structure and Main Changes:

• The classification is hierarchical with sections (letters A-V), divisions (2 digits), groups (3 digits), classes (4 digits), categories (5 digits) and subcategories (6 digits)
• New categories added for emerging products and services like digital services, environmental products, and technological innovations
• Updated to better reflect modern economic activities and new types of goods and services
• Maintains links to international classification systems while addressing EU-specific needs

Key Provisions:

• Comprehensive product classification covering all economic activities
• Detailed breakdown of products in areas like digital economy, environmental services, and modern manufacturing
• Implementation dates: January 1, 2025 for most data transmissions; September 1, 2029 for certain national accounts data
• Mandatory use by all EU Member States for statistical reporting

Judgment of the General Court (Tenth Chamber, Extended Composition) of 11 December 2024.Unione Italiana Vini Servizi Soc. coop. arl (UIV Servizi) v European Research Executive Agency.Arbitration clause – Grant agreement concerning the project TTD.EU (‘European Quality Wines: Taste the Difference’) – Information provision and promotion measures concerning agricultural products implemented in the internal market and in third countries – Suspension of the grant agreement – Suspicion of fraud in the context of a criminal investigation relating to another grant agreement – Contractual liability.Case T-440/22.

This is a judgment of the EU General Court concerning a dispute between an Italian wine industry association (UIV Servizi) and the European Research Executive Agency (REA) regarding the suspension of a grant agreement for promoting European wines. The key aspects of the judgment are:

• The case concerned Grant Agreement No 874904 for a project called ‘European Quality Wines: Taste the Difference’ aimed at promoting Italian and Spanish wines in China and the US markets
• REA suspended the grant agreement in May 2022 due to suspicions of fraud involving UIV Servizi’s executives in a separate grant agreement
• The Court found that REA improperly suspended the agreement under Article 33.2.1(a)(i), as suspicions of fraud in a different grant agreement could not justify suspension under that provision

The main provisions examined by the Court were:

• Article 33.2.1 of the grant agreement regarding grounds for suspension
• The interpretation of what constitutes ‘suspicions of fraud’ justifying suspension
• The distinction between suspending an agreement due to fraud in that agreement versus fraud in other agreements

The Court declared REA’s suspension decision invalid but dismissed claims for damages as UIV Servizi failed to prove actual financial losses. The judgment clarifies the proper interpretation of grant agreement suspension provisions and limits on agencies’ power to suspend agreements based on fraud suspicions in unrelated projects.