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EU environmental updates in 2026: What businesses need to know

Authors

Martín Landa

Senior Consultant

As 2026 begins, it is clear that European Union environmental regulations are no longer theoretical policy ambitions, they are now binding conditions for doing business in the EU market. For companies that import, manufacture, or place products on the EU market, these measures directly affect access, cost structures, and supply chain design. Understanding what has changed, and how to respond, is therefore critical for any organisation operating internationally.

 

CBAM – Full implementation from 1 January 2026

The Carbon Border Adjustment Mechanism (CBAM) enters its full implementation phase on 1 January 2026. From this point onward, operators must comply with all CBAM obligations, including the purchase and management of CBAM certificates, the verification of embedded emissions, and the submission of annual reports, with the first annual report due September 30, 2027, for 2026 imports.

Operators importing less than 50 tonnes of goods subject to CBAM annually will be exempt from CBAM obligations.

What was previously a reporting and transitional framework has now become a financial and operational reality. Importers of covered goods will need to integrate carbon accounting into their procurement and pricing strategies, as well as ensure their suppliers can provide reliable emissions data.

EUDR – Entry into application on 30 December 2026

The EU Deforestation Regulation (EUDR) comes into force on 30 December 2026, with certain simplifications, but its core requirements remain robust. Due diligence becomes a mandatory condition for placing certain products on the EU market.

This regulation introduces structural changes to supply chain management. Companies must demonstrate that their goods are not linked to deforestation or forest degradation and must be able to trace products back to their origin. For many businesses, this will require new data systems, closer supplier engagement, and stronger internal controls.

RoHS and WEEE – Existing controls reinforced

Existing environmental controls, including the Restriction of Hazardous Substances (RoHS) Directive and the Waste Electrical and Electronic Equipment (WEEE) Directive, continue to apply and are being strengthened.

These measures are now firmly embedded in day-to-day customs and compliance processes. Businesses dealing in electrical and electronic products must ensure that restricted substances are properly managed and that waste and recycling obligations are met. Non-compliance can result in delays, penalties, and loss of market access.

Conclusion

The key takeaway for operators in 2026 is clear: compliance with EU environmental regulations is no longer a box-ticking exercise. It is the decisive factor between accessing the EU market or being excluded, and between maintaining resilient supply chains or facing costly disruptions.

In this new regulatory landscape, anticipation becomes a competitive advantage. Businesses that invest early in understanding and implementing these requirements, supported by specialised regulatory expertise, will be far better placed to navigate change, protect their market position, and build long-term resilience.

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