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Good morning,

This week, the big theme from the EU is practicality. We're seeing a trend of delaying deadlines and simplifying rules to help businesses adapt. Let's look at what's changing and what's still moving forward.

Easing Up on the Rules?

The EU is making life a bit easier for many companies. New measures will ease sustainability reporting and due diligence burdens for businesses, meaning fewer companies will need to report on their social and environmental impact. This practical approach also applies to deforestation rules. The Parliament has approved a one-year delay and simplification of the EU Deforestation Law, giving businesses more time to prepare their supply chains.

The automotive sector is also seeing more flexibility. The EU has decided to ease the 2035 CO2 rules for cars, allowing some hybrid and combustion engine vehicles to be sold after the deadline while also boosting support for European battery production.

What's Next for Products?

But this doesn't mean the push for a circular economy is slowing down. While emissions rules are easing, new End-of-Life Vehicle Rules have been agreed upon. These will require carmakers to use more recycled materials and design cars that are easier to take apart and recycle.

And there's more to come. The EU Environment Council is set to discuss key topics like the carbon border tax (CBAM), ultra-fast fashion, and a potential deposit system for lithium batteries. These talks will shape the next wave of product regulations.