UK Businesses at a Crossroads With Tightening EU Green Laws

Thursday, 11 April 2024

Recent reports have claimed that UK businesses aiming to operate in Europe will find themselves under strict expectations to comply with the EU's stringent green policies.

Moreover, the EU itself has been accelerating its legislative process to introduce a series of significant reforms in environmental, digital, and supply chain regulations before the upcoming Parliamentary elections in June.

Research reveals that while the EU is rapidly expanding these regulations, the UK's legislative activities appear to be winding down in anticipation of a possible General Election later in 2024.

This difference is likely to make it harder for UK businesses to match EU rules after Brexit, leading to more problems and costs for those wanting to sell in the European market.

The EU's introduction of the Corporate Sustainability Due Diligence (CSDD) rules, aimed at preventing environmental damage and human rights abuses within supply chains, is highlighted as a primary concern.

Furthermore, the EU has already enacted regulations to outlaw imports of products linked to deforestation, a move the UK has considered but not yet finalised.

Other environmental directives in the pipeline include setting targets for recyclable or reusable packaging, mandating repair over replacement for faulty goods, and requiring certain industries to compensate for water pollution caused by their products.

Although such proposals have yet to be defined further, they are still expected to have significant impacts on UK companies looking to export to the EU.

Such organisations will be expected to follow a wide range of rules related to production, administrative regulations, and due diligence.

Despite Brexit, the EU continues to be a key export market for the UK, compelling British businesses to align with these new regulations without having a say in their formulation.

Potential political risks concern Northern Ireland, where many EU rules will still apply under the terms agreed to address post-Brexit border issues. This could ignite further tensions, especially since the Northern Ireland Assembly has the authority to reject new or updated EU legislation.

There are also concerns that the UK might lag in environmental standards compared to the EU, contrary to government assurances.

However, think tank studies have cautioned that the fast-paced changes in EU laws, especially those related to climate and the environment, are a major trend.

This could greatly affect the UK and other countries outside the EU, as successfully entering the EU market might depend on meeting these new regulations.