04/03/2024
Brussels, 1 March 2024
MEMBER STATES PUSH BACK AGAINST CORPORATE SUSTAINABILITY DUE DILIGENCE LAW
Following weeks of uncertainty and speculation, the Council failed to endorse the inter-institutional agreement on the Corporate Sustainability Due Diligence Directive (CS3D) that was reached in December 2023. The initiative aims to improve the protection of human rights and the environment by requiring companies to conduct due diligence checks across their global value chains. As many as 14 Member States did not support the deal, forcing the Belgian Presidency to reopen negotiations with the Parliament. While a text could still be adopted before the EU elections, it seems increasingly likely that the file will have to be picked up again (or not) in the next legislative term.
EUROPEAN PARLIAMENT APPROVES NATURE RESTORATION LAW
A split European Parliament endorsed the final text on the controversial Nature Restoration Law, despite a renewed push from some parliamentary groups to derail the initiative. Overall, the law sets a target to restore 20% of the EU’s land and sea areas by 2030 and all ecosystems by 2050, aiming to meet the EU’s climate and biodiversity objectives. Furthermore, the new rules introduce measures for agricultural ecosystems, peatland rewetting, forest rejuvenation, and urban green spaces enhancement. Notably, an “emergency brake” provision allows for the temporary suspension of agricultural targets in exceptional situations to protect food production. The law will now enter into force, subject to Council endorsement.
COUNCIL ADOPTS KEY LEGISLATION FOR THE FINANCIAL SERVICES SECTOR
The Council adopted two pieces of legislation aiming to foster the functioning of a Single Market for financial services. The first initiative, known as the revision of the Alternative Investments Fund Managers Directive, amends the EU’s existing framework governing the activities of hedge funds, private equity and real estate funds. Notably, the revision seeks to ensure fund managers have the tools to navigate financial instability, while increasing investor protection. The second initiative, known as the Instant Payments Regulation, aims to foster the widespread adoption of fast money transfers in euros. As such, the new rules should foster the adaptation of the European payments’ ecosystem to the digital age.
EUROPEAN PARLIAMENT PUSHES TO RESHAPE POLITICAL ADVERTISING
In light of the upcoming EU elections, the European Parliament adopted new rules regulating political advertising in the EU. The initiative aims to increase transparency towards voters and safeguard the democratic processes from foreign interference. Notably, the rules prohibit sponsorship of ads from outside the EU preceding elections. Furthermore, the new rules will impose explicit consent requirements when personal data is used for targeted ads. Lastly, political advertisings will have to be clearly labelled, citizens will have to be notified whether they are being targeted by a political ad, and promoters will have to disclose who and how much is paying for said ad, as well as which election the ads are meant to target.
AGREEMENT ON REVISED FRAMEWORK TO SUPERVISE SHIPPING VESSELS
The European Parliament and the Council reached provisional agreements on critical elements of the ‘maritime safety’ legislative package. Overall, the package aims to improve safety and environmental standards in European maritime transport, by aligning European standards with international rules, and ensuring a coherent and harmonised approach by EU Member States. Notably, the new rules aim to facilitate the supervision over and uptake of the increased shipping standards, by providing flag states with the adequate resources and powers to monitor compliance. Additionally, the new rules modernise the framework governing inspections of vessels by port states, aiming to ensure clarity and coherence across EU and international standards.
COMING UP NEXT WEEK
Karl Isaksson, Managing Partner Brussels, Kreab
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Kreab • Tel: +32 2 737 6900 • karl.isaksson@kreab.com • www.kreab.com/brussels • Twitter: @KreabEU.