Environmental protection is becoming one of the priorities of the European Union. The legal solutions already introduced and planned will drive many changes that will reduce the negative impact of humans on the environment and achieve climate neutrality in 2050. These activities are primarily intended to make us aware of the environmental cost of manufactured products and to show that we can reduce this cost by making thoughtful choices. The changes also involve the introduction of new obligations for entrepreneurs. Below we present five important initiatives that concern us from this year and in the near future.
What is ESG?On December 14, 2022, the CSRD directive was published - this is the abbreviation of the English name of one of the most important EU legal acts - Corporate Sustainability Reporting Directive. It concerns sustainable development, which defines the directions of transformation and goals that are to constitute a coherent whole for various economic sectors in Europe.
The principle of sustainable development (ESG) is the international community's response to ecological disasters. This is an element of corporate social responsibility that covers three areas:
Climate protection receives the most attention in the field of sustainable development. The European Union's pro-environmental policy covers five areas in this respect:
EU member states have 18 months to implement this directive into national law. The directive imposes ESG reporting obligations on most economic entities. Listed companies and the so-called public interest entities report for 2023, large enterprises should submit their first report for 2024, smaller ones for 2025.
In practice, many large companies already publish their sustainability reports. It also presents a decarbonization policy, i.e. reducing the carbon footprint. Therefore, many of them require data from their contractors regarding the carbon footprint, mainly in scope I and II, i.e. fuel and energy consumption.
Regulation on batteries and accumulatorsThe rapid development of electromobility forced a change in regulations regarding the handling of batteries and accumulators . The aim of the changes is to create a circular economy for the batteries and accumulators sector. The regulations cover all stages of a product's life, from design, through production, reuse and waste processing.
Regulation (EU) 2023/1542 of the European Parliament and of the Council
of July 12, 2023 introduces the following changes:
1. Restrictions have been introduced on substances used in production, an obligation to provide the carbon footprint of batteries for electric vehicles, and a mandatory share of recycled materials
in each product and performance requirements.
2. New battery classification:
a) portable battery, including general-purpose portable batteries,
b) light means of transport battery or "LMT battery",
c) starting, lighting and ignition battery or "SLI battery"
d) industrial battery,
e) battery for electric vehicles.
3. In the case of devices, the end-user can remove and replace portable batteries and LMT batteries at any stage of the product life cycle.
4. A new way of labeling batteries in terms of capacity, power, efficiency and expected battery life cycle, and rechargeability. Battery marking with a QR code (so-called digital passport) and the CE mark, which will be confirmed by an external entity.
5. A number of new obligations have been imposed on battery producers, including: with battery due diligence policy, risk management, extended producer responsibility or registration with the national authority supervising the implementation of obligations.
The first provisions of the regulation enter into force on February 18, 2024, the last - in 2027. We are probably waiting for an update of the Act of April 24, 2009 on batteries and accumulators , because this act is still in force.
Autos , as a company that places car batteries on the market, is obliged to fulfill various obligations related to the recovery and recycling of used batteries. In addition to the necessary activities, we also take steps to reduce the harmful impact of faulty batteries on the environment by enabling our customers to leave old batteries at our branches, collect them safely and send them for proper recycling. Over the last 3 years, we have collected 45,000 kg of used batteries. This number increases from year to year.
Regulation (EU) 2023/956 of the European Parliament and of the Council of 10 May 2023 introduced CBAM. This is a mechanism for adjusting prices at borders taking into account CO2 emissions, also known as a border carbon tax. It was introduced by the European Union to prevent people from escaping emissions-related fees by importing high-emission products from countries outside the EU. Ultimately, it will involve importers bearing costs covering the difference between the lack of emission fees in the country of production and fees under the EU Emissions Trading System (EU ETS). This is the implementation of the assumptions of the European Green Deal and the climate goal included in the Fit for 55 package.
Currently, the CBAM obligation applies to the import of cast iron and steel, aluminum, fertilizers, cement, hydrogen and electricity. Perhaps it will be expanded to include additional product groups. The two-year transitional period is intended to assess the scale of imported high-emission goods and possible subsequent adjustment of the assumptions.
This regulation imposes a number of obligations on importers of goods subject to CBAM, including: determining emissions related to the production of imported products. This information must be obtained from producers and suppliers (which may be difficult and not entirely reliable. The introducer is responsible for its correctness; later, it is planned to introduce the institution of an external verifier of this data.
During the transitional period, i.e. until December 31, 2025, these will be reporting obligations. Later, importers wishing to continue importing CBAM products will be required to become an authorized CBAM notifier, purchase and redeem CBAM certificates as a form of carbon tax payment, and submit annual reports. In Poland, the body authorized to introduce CBAM is the National Center for Emission Balancing and Management (KOBIZE). Unfortunately, so far there are no guidelines and no access to the European CBAM portal, where importers are obliged to register, and the Regulation is in force from October 1, 2023. The deadline for submitting the first report is January 31, 2024.
What does the introduction of the regulation mean in practice for many industries, including the automotive industry? More difficult access to steel and aluminum products, because some current importers will give up importing due to a number of expensive obligations and the increase in prices of these goods caused by the need to purchase CBAM certificates. It is estimated that the price increase may amount to up to 30%.
Urszula Jatczak
Environmental Protection Specialist
