Orgalim - January 2024 Bulletin and Legislative Update

Orgalim have released a Bulletin and Legislative update covering developments in the areas of the Internal Market, Environment, Energy, Decarbonisation & Climate Change.   A Summary of the updates is outlined here:

INTERNAL MARKET
Construction Products Regulation (CPR)

• Provisional agreement reached in December.
• Highlights include a standardization system, digital passport, green public procurement, transition period until 2039.

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• Different articles apply at different intervals after entry into force. Critical Raw Materials
• European Parliament adopted the proposed regulation for a secure and sustainable supply of critical raw materials.

 Artificial Intelligence (AI) Act

• Provisional political agreement reached in December.
• Scope, high-risk AI categorization, foundation models, governance, banned AI, penalties, and transitional period outlined.
• Technical work pending; expected to apply earliest in spring 2026.

Artificial Intelligence Liability Directive (AILD)

• Progress stalled in the European Parliament; impact assessment proposed.

Chips Act

• EU Chips Act entered into force on September 21, 2023.
• Pillars include the Chips for Europe initiative, security of supply, and monitoring and crisis response.

Cyber Resilience Act

• Provisional agreement reached in November on critical products categorization, support period, reporting obligations, and transition period.

Data Policies

• Data Act published on December 22; effective from January 12, 2024.
• Radio Equipment Directive (RED) amendment proposed, RED Guide revision ongoing.

Electromagnetic Fields

• SCHEER Working Group meeting in December discussed technical advice for amending Council Recommendation 1999/519.

Product Liability Directive

• Political agreement reached in December, extending liability to software, addressing circular economy concerns, and defining the right to compensation.

 
ENVIROMENT
Substances of Very High Concern (SVHC) Intention:

• New intentions to identify substances of very high concern have been received.
• Examples include Bis(α,α-dimethylbenzyl) peroxide, Triphenyl phosphate, and others.
• The Candidate List of substances of very high concern contains 235 entries.

Calls for Comments and Evidence:

• ECHA opened calls for comments and evidence on potential restriction proposals for certain chromium (VI) substances and Octocrilene.
• Public consultations on Occupational exposure limits for Bisphenol A are ongoing.

PFAS Restriction Proposal:

• Denmark, Germany, The Netherlands, Norway, and Sweden proposed restrictions on per- and polyfluoroalkyl substances (PFAS).
• Two options for restrictions are considered: a full ban or a ban with use-specific and time-limited derogations.
• Challenges in enforcement and the need for improvement were highlighted.

Revision of CLP Regulation:

• The Regulation on Classification, Labelling, and Packaging of Chemicals (CLP) is being revised.
• Amendments include changes to classification procedures, safety in refilling and online sales, and customer-friendly labeling.
• Provisional agreement reached, and the vote in Plenary is scheduled for March 2024.

RoHS Directive:

• A review of the Restriction of Hazardous Substances (RoHS) Directive is in progress.
• Proposed measures include reassigning technical assessment to ECHA and introducing circular economy requirements.

WEEE Directive:

• Revision of the Waste Electrical and Electronic Equipment (WEEE) Directive is underway.
• Amendments address legal inconsistencies and principles of producer responsibility.

Circular Economy Policy:

• Agreement reached on the Ecodesign for Sustainable Products Regulation.
• Priority products include iron, steel, textiles, furniture, and others.
• Reporting obligations and bans on the destruction of unsold consumer products are included.

Packaging and Packaging Waste Regulation (PPWR):

• The PPWR aims to make all packaging recyclable by 2030 and promote reusable solutions.
• First trilogue negotiation took place in January 2024.

Consumer Empowerment Legislation:

• Political agreements reached on empowering consumers for the green transition.
• Right to repair and common rules promoting repair of goods discussed.

Environmental Claims and EU Ecolabel:

• Proposals for Green Claims Directive and EU Ecolabel are in progress.
• Legislative positions and trilogue negotiations are ongoing.

 
ENERGY
Energy Performance of Buildings (EPBD) Directive Recast:

• The European Commission proposed a directive recast on the energy performance of buildings, leading to a provisional agreement in trilogue negotiations. Key elements include making all new buildings zero-emission by 2030 (2028 for public buildings) and phasing out fossil fuel standalone boilers by 2040. Renovation targets for non-residential and residential buildings were set, and national plans for building decarbonization are required.

Ecodesign Directive Updates:

• Several stakeholder meetings and consultations are ongoing for specific lots, such as power transformers, air conditioners, and heating products. Preparatory studies focus on measures related to scarce materials, environmentally relevant materials, critical raw materials, and recycled content.

Energy Efficiency Directive (EED):

• The Commission recommended transposing Article 30 of the EED, emphasizing national energy efficiency funds, financing, and technical support. Recommendations include streamlining the regulatory framework, coordinating financing sources, setting up one-stop-shops, and establishing expertise in national promotional banks. A Joint Declaration was signed for the European Energy Efficiency Financing Coalition with various workstreams.

 
These initiatives aim to enhance energy efficiency investments, align with EU 2030 targets, and facilitate financing solutions for different markets.
 
DECARBONISATION & CLIMATE CHANGE
F-Gases: 

• The legislative text on F-gases has received positive evaluations and is set for adoption in the Parliament on January 16.

Sustainable Finance - Corporate Sustainability Reporting Directive (CSRD): 

• The CSRD proposal, introduced in April 2021, extends sustainability reporting requirements to a broader range of companies. The rules will be applicable between 2024 and 2028.

EU Taxonomy:

• A draft report on EU taxonomy-aligning benchmarks has been published for feedback, proposing two voluntary benchmarks. The feedback process is open until March 13, 2024.

Revision of EU Emissions Trading Scheme:

• The Carbon Market Report reviews the EU Emissions Trading System's performance in 2022 and the first half of 2023, highlighting Member States' use of ETS revenue and emissions levels. The report also notes the extension of the EU ETS scope to the maritime sector in 2024.

ORGALIM BULLETIN

LEGISLATIVE UPDATE