On July 14, the European Commission presented its legislative proposal for a Carbon Border Adjustment Mechanism (“CBAM”).  This long-anticipated tool is intended to make importers pay for the greenhouse gas (“GHG”) emissions embedded in the covered goods that they market in the EU.  A Covington webinar on the main elements of the proposal and related policy considerations is available here.
Continue Reading Will the EU CBAM Cover More Than What You Think? Complex Goods, System Boundaries, and Circumvention Under the Commission’s CBAM Proposal

The European Commission is currently discussing a draft of a proposal for a Carbon Border Adjustment Mechanism (“CBAM”) Regulation that it is expected to present on July 14, 2021.  A CBAM was already announced in the European Commission’s Communication for a Green Deal  and is intended to protect the EU’s domestic industry that is at risk of carbon leakage—to create a level playing field—and to serve as a policy tool to encourage third countries to reduce their greenhouse gas (“GHG”) emissions.
Continue Reading Twelve Things to Know About the Upcoming EU Carbon Border Adjustment Mechanism

On April 21, 2021, the European Commission approved “in principle” a Delegated Regulation establishing the criteria under which different economic activities substantially contribute to climate change mitigation and adaptation under Regulation 2020/852 on the Establishment of a Framework to Facilitate Sustainable Investment (“Taxonomy Regulation”).  Among other things, the Delegated Regulation defines the climate mitigation and adaptation criteria that the manufacture of hydrogen must meet to be considered a “sustainable investment” in the European Union.
Continue Reading The European Commission Approves the EU Criteria on Sustainable Hydrogen Activities

In December 2020, the European Commission presented a proposal for a new Regulation on Batteries and Waste Batteries (see Covington’s webinar on the proposal).  The proposed Regulation seeks to achieve the objectives set out in the European Green Deal and subsequent strategies, such as the transition to a carbon neutral and circular economy and the growth of renewable energies and clean mobility.  The European Parliament and Council are currently considering the proposal for its adoption through the ordinary legislative procedure, which is not likely to be completed before mid-2022.
Continue Reading Upcoming EU Environmental and Human Rights Supply Chain Due Diligence Requirements for Rechargeable Industrial Batteries and E-Vehicle Batteries

The COVID-19 pandemic has focused attention on the need for resilient supply chains, including perhaps most importantly, the critical need for sustainable supplies of healthy food.  In line with this, the European Commission (the “Commission”) has published a Communication on a Farm to Fork Strategy (the “Strategy”) where it announces a series of legislative and policy initiatives intended to place sustainability at the center of EU food law and policy by ensuring fair, healthy and environmentally-friendly food systems.  The Strategy is one of the main pillars of the European Green Deal that, in December 2019, the European Commission announced as its policy flagship for the next five years.
Continue Reading The European Commission Announces a Sustainable Food Strategy for Europe