The European Union Commission has announced a significant postponement of the supply chain law, a decision aimed at easing the regulatory burden on businesses. Originally intended to protect human rights and the environment, the new implementation date is now set for June 2028, providing companies more time to adjust. Alongside this delay, the requirements for compliance have been notably relaxed. Firms will now need to verify adherence to these standards only at direct supplier levels and report compliance every five years.
This move comes as part of the broader Clean Industrial Deal, which seeks to reduce bureaucratic constraints and bolster the competitiveness of European industries. The plan includes reducing energy taxes, simplifying competition rules, and prioritizing EU companies in public tenders. A 100-billion-euro package aims to support climate-friendly industries, highlighting a strategic pivot to sustain economic growth amid global competition from the US and China.
While the initiative receives support from industry leaders, who argue it will alleviate the administrative load and enhance competitiveness, it faces criticism from social democrats and environmental groups. Critics argue that the weakened regulations could undermine the EU's climate and human rights commitments, labeling it as a potential rollback of the Green Deal.
Despite these concerns, the Commission remains committed to achieving climate neutrality by 2050. The debate continues as stakeholders weigh the balance between economic relief and the preservation of stringent environmental and ethical standards. The proposed changes are subject to further negotiations, where revisions are possible before final implementation.
