Within the framework of the Green Pact, the European Union has already adopted two of the three planned packages: 1) a new proposal on eco-design on sustainable products (textiles and circular), and 2) a proposal on the packaging and its waste. On March 21st, it adopted the third and final package, an 80-page proposal on environmental declarations.

The proposal complies with article 38 of the Charter of Fundamental Rights, according to which the EU must guarantee a high level of consumer protection.

With this directive, it is sought that the claims made by producers about their products are reliable, comparable, and verifiable throughout the EU, and that consumers and investors can choose their products more consciously, to accelerate the green transition.

What is also expected from this regulatory framework is that companies, especially transnationals, begin to adopt sustainable practices and include transparent and verifiable information regarding the entire supply chain.

The information will have to cover from third-party certifications to product life cycle analysis and applies to all types of companies: small, medium and large that operate in EU territory.

It should be noted that these EU measures will have a global effect for all those products whose supply chain is developed, partially or totally, in non-European territories. In addition, this will encourage cooperation between countries to better understand the scope of the Green Deal’s three packages and implement them properly.

It is not yet clear which authorities will be authorized to issue company certifications, their associated costs, and how this process will be carried out. What is clear is that our jurisdictions anticipate more regulation with extraterritorial effects related to sustainable issues, coming from the EU, which have the potential to impact the value chains of products that are exported to the European community territory.