January 2023

Provisional and conditional agreement on the CBAM

The Council of the European Union reached a provisional and conditional agreement on the Carbon Border Adjustment Mechanism (CBAM) regulation.  CBAM was proposed by the European Commission („EC”) in July 2021 to prevent the risk of carbon leakage. The products of the following sectors will be covered by CBAM; iron and steel, cement, fertilizers, aluminium, electricity, and hydrogen, as well as some precursors and a limited number of downstream products. Indirect emissions would also be included in the regulation in a well-circumscribed manner. 

Negotiation position on the corporate sustainability due diligence directive was adopted by Council of the European Union

On December 1, 2022, the Council of the European Union adopted its negotiation position on the corporate sustainability due diligence directive. 

Similar regulations of supply chain due diligence have been enacted or implemented in multiple member states, such as Germany and France.  This directive will unify, if it would be implemented, supply chain acts regulations of the Member states. 

CSRD was approved by the Council of the European Union

On November 28, 2022, the Council of the European Union approved the corporate sustainability reporting directive („CSRD“). There have been no significant updates from the version which was provisionally agreed upon by the Council and European Parliament in June 2022.