Issue Balancing the EU's global regulatory reach with business competitiveness

Summary

The EU has broadened rules on personal data, digital platforms, artificial intelligence, carbon emissions, deforestation, batteries and supply-chain due diligence, while also pursuing simplification to ease accumulated burdens on business. The Battery Regulation strengthens life-cycle management through carbon footprint rules, recycled content requirements, a battery passport and supply-chain due diligence. The Carbon Border Adjustment Mechanism requires reporting and verification of embedded emissions in covered imports and an adjustment for their carbon cost. At the same time adjustments reflecting firms' readiness, such as postponing the battery due-diligence obligation, are being made. Because the EU is trying to keep its global normative influence while improving competitiveness, the report advises distinguishing carefully between the scope and timetable of each obligation.