Legal and Policy Debrief: October 22nd – November 5th

Updates:

CSOs, businesses and MEPs react to the EU Parliament's rejection of the Omnibus I, ahead of the Plenary vote on the 13th of November.

Philippa Nuttall: Sustainability Views' Editor on the 'chaos' of the rejected proposal.

European Coalition for Corporate Justice: 'This rejection reopens a negotiating platform that gives pro-EU forces a chance to find common ground - instead of letting the pressure of climate deniers and corporate lobbies dictate the outcome.'

EPs will vote on amendments to the file at the plenary session on 13 November.

Over 140 NGOs sign an open letter calling for the European Parliament to deliver a credible and ambitious approach on Omnibus I.

The letter, published on the 30th of October, puts forward that an 'ambitious compromise on the Omnibus which covers more companies, includes a serious climate commitment, and allows access to justice will deliver real benefits for people, the planet and the EU’s economy.'

Signatories include Human Rights Watch, Fair Trade Advocacy Office (FTAO), Corporate Justice Coalition, Friends of the Earth Europe, and 137 more.

New survey finds most European businesses don’t want weaker due diligence rules.

This survey, conducted by #WeAreEurope, an independent business association, found that almost three-fifths of European companies do not want the original CSDDD to be watered down as part of the Omnibus Simplification Package.

Critically, the survey revealed that companies are at least four times more likely to see the CSDDD as a competitive advantage for EU organisations than not.

Further Reading:

New report on "Human Rights and Competitiveness: reframing the business case for Human Rights” commissioned by the Council of Europe.

This report 'explores the risks and opportunities businesses face when engaging with human rights, particularly in light of emerging human rights due diligence legislation and international and domestic case law.'

Its authors conclude that 'companies are indeed better positioned for long-term success when their business models are grounded in respect for human rights', arguing that 'human rights are not merely an ethical add-on, but an integral part of how the business operates.'

EU Observer article: "Message to MEPs from US 'Cancer Alley' - don't give in on CSDDD."

In this article, New Orleans-based journalist unpacks the reality of living in a global epicentre for the fossil fuel and petrochemical industry in Louisiana, known as 'Cancer Alley'.

She argues that the harms caused by an unregulated fossil fuel industry, including toxic air pollution and cancer risks, 'show why it is so important for the EU to preserve laws that require companies to tackle their pollution and climate impacts.'

She quotes a 2011 report by the US Environmental Protection Agency which attributed Louisiana’s weak enforcement of US air and water quality regulation to the state’s “lack of resources, natural disasters, and a culture in which the [relevant] state agency is expected to protect industry.”

Implementation timeline:

• November 13th: Plenary vote on the Omnibus I
• Late 2025-2026: Trilogue on Omnibus (Parliament, Council and Commission) to negotiate final legal text.
• From 2028 [delayed]: Companies with 5,000+ employees and a net turnover of 1,500 million EUR must comply.
• From 2028 [unchanged]: Companies with 3,000+ employees and a net turnover of 900 million EUR must comply.
• From 2029 [unchanged]: Companies with 1,000+ employees and a net turnover of 450 million EUR must comply.

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EU Deforestation Regulation (EUDR)

Updates:

Austria calls for "stop-the-clock" on deforestation rules at Council.

This week, Austria will lead a push at the Council to “stop the clock” on the bloc’s deforestation rules until the end of 2026, as part of their efforts to 'buy time and secure tweaks that would exempt most European countries from compliance with the sustainability rules.'

In a note dated 31 October and designed to steer debate in Council, Austria said that the Commission’s proposal “falls short of expectations,” criticising them for backtracking on an earlier idea to grant a one-year delay for all companies.

The text will be discussed by EU environment ministers at their Council meeting in Brussels on Tuesday.

According to a source, at least 13 countries could be aligned with Austria’s demands.

86 other civil society organisations urge EU leaders to 'honour their commitments and implement the EUDR in full, without weakening its core provisions.'

The open letter, published this week, rejects the Commission’s 21st October proposal's introduction of far reaching changes to the EUDR and significant rollback on the obligations on EU operators and traders.

The CSOs, 'urge the European Parliament and Member States to ensure the timely implementation of the EUDR on 30 December 2025, as intended, and refrain from weakening the legislative text further, given the changes proposed by the European Commission are already significant.'

Further Reading/Listening:

The Chair of the UK's Environmental Audit Committee is urging the Government to contribute to the Tropical Forests Forever Facility (TFFF), a new anti-deforestation financial mechanism led by Brazil, at COP30.

On the 3rd of November, the Committee wrote to Ed Miliband, Secretary of State for Energy Security and Net Zero calling for the UK making a financial commitment to the deforestation defence fund TFFF.

The letter also repeats the Commission's previous call for the Government to bring forward new rules that would prohibit UK businesses from trading or using commodities linked to deforestation.

Implementation timeline:

• 30 June 2025: Country benchmarking act adopted
• 30 December 2025: Obligations stemming from the regulation will be binding for large operators and traders
• 30 June 2026: Obligations stemming from the regulation will be binding for micro- and small enterprises

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SPOTLIGHT: The Landmark Lafarge Case Begins

On Tuesday the 4th of November, the case against Cement maker Lafarge began in France. Lagarge is on trial for financing armed groups in Syria between 2012 and 2014. It is alleged that these payments indirectly supported terrorist activities. Eight individuals, including former executives, managers, and intermediaries, are due to appear in court. The case is seen as a 'major test of the boundaries of corporate criminal liability' under French and international law. Read Justice-Info's in-depth coverage of the case here.

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EU Forced Labour Regulation (EUFLR)

Update:

None

Further reading:

None

Implementation timeline:

• 2026: EU Commission to publish guidelines, including a forced labour risk database.
• 14 December 2027: law becomes applicable.

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Uyghur Forced Labor Prevention Act (UFLPA)

Updates:

New trade agreements between the US and Malaysia and Cambodia include a forced labor import ban requirement and potential restrictions on goods subject to a U.S. WRO.

In new trade agreements with Malaysia and Cambodia, negotiators built articles to acknowledge U.S. forced labor trade enforcement actions under Section 307 of the U.S. Tariff Act. The agreement indicates that, as well as "implementing a prohibition on the importation of goods mined, produced, or manufactured wholly or in part by forced or compulsory labour" they "may acknowledge U.S. government determinations on entities under Section 307 of the Tariff Act of 1930 and shall take appropriate action to prohibit importation of goods from those entities." The agreement does not include acknowledgement of trade enforcement under the UFLPA.

In an interview, US Labour Expert Laura Murphy said she is, "cautiously optimistic about international commitments to forced labor import bans." She urges stakeholders to "figure out how to make them useful, responsive to workers and stakeholders, and enforced."

Further reading:

World-leading Uyghur forced labour academic's research was halted by UK university after pressure from the Chinese state.

A Guardian investigation has revealed that British university, Sheffiled Hallam complied with a demand from Beijing to halt Professor Laura Murphy's research about human rights abuses in China, leading to a major project being dropped. This news is a shocking example of foreign inference in the UK's academic freedom, and the chilling effect of transnational repression on critical research.

According to Murphy, that it appears that the university “explicitly traded her academic freedom for access to the Chinese student market”.

Beyond's sister organisation Global Rights Compliance was a grantor under this project, eventually publishing the research under its own name. In a Linkedin post they commented, 'From a business and human rights perspective, universities are not exempt from responsibility. They are powerful economic and social actors with clear responsibilities under the UNGPs to 'respect human rights, including by ensuring their own decisions do not contribute to the concealment or downplaying of state-imposed forced labour.'