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Jomec News (41)
- Everything You Need to Know about EU Battery Regulation
Batteries are an essential material in the energy transition, and the need for them from the EU has been growing rapidly in recent years. A new battery regulation was adopted on 12 July 2023 by the European Parliament and Council, to minimize the environmental impact of this exponential growth in light of new socio-economic conditions, technological developments, markets, and battery use. As an important outcome of the European Green Deal, this new law replaces the EU Batteries Directive and applies to all EU Member States in the form of a regulation. This law promotes the EU’s circular economy and zero pollution goals and strengthens the EU’s strategic autonomy. [Legislative history] The first EU legislation dealing with batteries and waste batteries, which is the EU Batteries and Accumulators Directive (2006/66/EC), was entered into force in 2006. All 27 Member States transposed it into national legislation. However, as the environmental, social and economic challenges associated with batteries in the EU continue to grow, the European Commission (EC) has proposed an updated battery law to improve on the shortcomings of the 2006 Directive. In line with the European Green Deal and the EU Action Plan for a Circular Economy, the EC has designed a new battery regulation that not only aims to regulate used batteries but also takes into account the entire lifecycle of batteries from design, production, recycling and disposal. This new regulation was first proposed in December 2020 and the new EU Battery Regulation 2023/1542 came into force on 17 August 2023 after several rounds of negotiations. Some provisions will come into force from 18 February 2024 and others will come into force in the coming years. [Application scope] [1] The regulations cover five battery types, which are classified according to their use and weight: • Portable Batteries • Electric Vehicle (EV) Batteries • Industrial Batteries, Subcategory • Light Means of Transport (LMT) Batteries • Starting, Lighting, and Ignition (SLI) Batteries These obligations and deadlines are defined for specific types of batteries, which means that battery types are subject to different requirements that require vigilance on the part of the manufacturer. Image from the article “New EU Batteries Regulation: what it means for manufacturers” https://www.ramboll.com/insights/resource-management-and-circular-economy/new-eu-batteries-regulation-what-it-means-for-manufacturers [Key changes] 1. Sustainability and safety: carbon footprint and hazardous substance restrictions All EV batteries, LMT batteries, and rechargeable industrial batteries with a capacity of more than 2 kWh must have a “clear, legible, and indelible” carbon footprint statement and labeling that identifies the amount of recycled cobalt, lead, lithium, and nickel used in the production of the battery. By 31 December 2030, the Commission should assess the feasibility of extending the carbon footprint statement requirement to portable batteries and the maximum life cycle carbon footprint threshold requirement to rechargeable industrial batteries with a capacity of 2 kWh or less. In addition, the regulation restricts the use of mercury, cadmium, and lead. 2. Supply chain management: due diligence requirements Except for SMEs, all economic operators selling batteries on the EU market are required to develop and implement a due diligence policy, in line with international standards, to address the social and environmental risks inherent in the sourcing, processing, and trading of raw and secondary materials required for battery production. In particular, economic operators must develop and clearly communicate to suppliers and the public a due diligence policy on the supply of cobalt, natural graphite, lithium, nickel, and other compounds based on listed raw materials, in accordance with recognized international standards, such as the OECD Due Diligence Guidance and the United Nations Guiding Principles on Business and Human Rights. 3. Labelling and information Digital Battery Passport: Electric vehicle batteries, LMT batteries, and rechargeable industrial batteries over 2 kWh will require a “digital battery passport” containing information about the battery model, the specific battery, and its use. More generally, all batteries will be required to have a label and QR code detailing their capacity, performance, durability, and chemistry, and displaying a “collect by sorting” symbol. Labeling changes: All batteries are required to bear the “CE” mark to demonstrate compliance with applicable EU health, safety, and environmental protection standards. The labeling of the batteries included in the device should be directly on the device, clearly visible, and easy to read. This is a departure from the current practice in countries such as the EU and Germany, where the labeling is applied to the battery itself rather than to the whole device. The labeling and information requirements will be implemented in 2026; however, QR codes will not need to be implemented until 2027. 4. Recycling - end-of-life management The legislation aims to ensure that batteries are recycled separately and of a high quality. For example, a recent change made by the Council states that battery management systems for electric vehicle batteries should include a software reset function to prevent economic operators from needing to upload different battery management system software when preparing to reuse, repurpose, or remanufacture electric vehicle batteries. This may lead to certain risks, for example for cyber security reasons. Therefore, the Regulation provides that if a software reset function is used, the original battery manufacturer shall not be liable for any impairment of the safety or functionality of the battery that may be attributable to the uploading of the battery management system software after the battery has been placed on the market. [1] https://www.ramboll.com/insights/resource-management-and-circular-economy/new-eu-batteries-regulation-what-it-means-for-manufacturers
- EU adopts landmark law “Nature Restoration Law” at plenary session of EU Parliament on 14th June
【Highlights】 The EU Parliament voted to adopt the Nature Restoration Law on 14 June 2024 at a plenary session of the EU Parliament in Luxembourg, and the Council of the EU formally adopted the Act on 17 June. As the first continent-wide, comprehensive law of its kind, the Nature Restoration Law covers the whole continent and is an important part of the EU's biodiversity strategy. The law aims to take measures to restore at least 20% of the EU's land and sea areas by 2030 and all ecosystems in need of restoration by 2050. Furthermore, it sets specific, legally binding targets and obligations for the natural recovery of terrestrial, marine, freshwater, forest, agricultural and urban ecosystems. Specific measures include the protection of pollinators and grassland butterflies, the protection of urban green spaces and the planting of at least 3 billion additional trees by 2030 across the EU. Alain Maron, Minister for Climate Transition, Environment, Energy and Participatory Democracy of the Government of the Brussels-Capital Region mentioned The EU has seized a unique opportunity to reverse biodiversity loss and to open this rapidly closing window, securing a liveable future for the generations to come. Today we also agreed on three key EU directives for circular economy and soil health in the EU: we showed our commitment to a green transition, by protecting our consumers from greenwashing, targeting food and textile waste and protecting our soils from degradation. The EU is steadily moving forward with its environmental and climate objectives and the target of achieving climate neutrality in the EU by 2050. 【Legal Analysis of Nature Restoration Law】 - The State of Nature Today Nature in the EU is severely declining. Species populations and the natural areas they inhabit are shrinking and degrading, leading to serious consequences for people and the planet. 80% of habitats are in poor condition 10% of bee and butterfly species risk extinction 70% of soils are in an unhealthy condition - The Importance of Restoring Nature Nature depends on essential interrelations between species and their habitats. It is a fine balance which ensures a healthy and well-functioning natural environment. Moreover, nature is the foundation of the world’s economy. Over half of global GDP is dependent on materials and services that are delivered by ecosystems. For example, raw materials are key for industry and construction, and genetic resources are needed in farming and medicine. Restoring nature means supporting the recovery of degraded or destroyed ecosystems by improving their structure and functions, with the overall goal of improving resilience and biodiversity in nature. Healthy ecosystems can ensure, among other things: increased agricultural productivity; greater resilience to climate change; improved biodiversity; reduced risk of floods, droughts and heat waves. - The EU Nature Restoration Rules The nature restoration law requires EU countries to develop national restoration plans. These plans should define the restoration measures required to meet the binding targets set in the law and specify the total area to be restored, as well as a timeline. The restoration plans should cover the period up to 2050. The measures should be aligned with other relevant legislation, such as rules on nature protection, renewable energy and agriculture. Examples of restoration measures include: removing non-native plants on grasslands, wetlands and in forests; rewetting drained peatlands; improving connectivity between habitats; stopping or reducing the use of chemical pesticides and fertilisers; promoting wilderness preservation. The proposed regulation requires the Commission to review and assess the application of the rules and their impacts on the agricultural, fisheries and forestry sectors, as well as its wider socio-economic effects in 2033.
- The European Commission launches the first investigation under the EU International Procurement Instrument (IPI)
The European Commission launches the first investigation under the EU International Procurement Instrument (IPI) on “Discriminatory practices in China's medical device procurement market against European companies and products” News Bulletin On April 24th, 2024, the European Commission initiated an investigation into China’s procurement market for medical devices under the International Procurement Instrument (IPI), focusing on discriminatory measures against European companies and products. The Commission’s evidence suggests that Chinese policies increasingly restrict European and foreign companies and EU products in this market, due to unfair distinctions between domestic and foreign companies, and between locally produced and imported medical devices. The Commission stated that previous concerns expressed to Chinese authorities had not been satisfactorily addressed, prompting action under the IPI regulations. Investigation Summary According to the EU Official Journal, this investigation was autonomously initiated by the EU under Article 5(1) of Regulation (EU) 2022/1031, enacted by the European Parliament and Council on June 23, 2022. The investigation targets measures and practices in China's public procurement market for medical devices, which create significant barriers for EU economic operators, goods, and services. A. Description of "Chinese Measures and Practices" by the EU: The European Commission identifies measures and practices implemented at both central and local levels in China, applicable to all entities procuring medical devices, including state-owned enterprises like public hospitals, comprising three main categories: a) Prioritizing domestic medical devices and services through: - The "Buy Chinese" policy under Article 10 of the Government Procurement Law (GPL) of the People’s Republic of China, mandates procurement of domestic goods, services, and works unless unavailable or unreasonable to obtain domestically. - The “Made in China 2025” strategy requires hospitals to procure 50% of domestic mid-to-high-end medical devices by 2020, and 70% by 2025. - The 2021 Notification No. 551 on the Review and Guidance Standards for Government Procurement of Imported Products, mandating increased domestic procurement rates for 315 products, including 178 medical devices, 137 of which require 100% domestic procurement. - The Opinions on Deepening the Reform of the Medical and Health System (State Office Issuance [2015] No. 34), requiring public hospitals to prioritize domestic medical devices, encouraging centralized procurement of high-value domestic medical devices. b) Restricting the procurement of imported goods, including medical devices, through: - The Measures for the Administration of the Procurement of Imported Goods, imposing stricter regulations for imported products compared to domestic ones, such as stringent application and approval processes, mandatory contract clauses protecting national and public interests, and offset measures favoring suppliers transferring technology to Chinese enterprises. c) Imposing conditions during centralized procurement of medical devices, leading to abnormally low bids unsustainable for profitable companies. The Commission reserves the right to investigate additional relevant measures or practices that significantly and recurrently hinder EU economic operators, goods, and services from accessing China's public procurement market for medical devices, to be elucidated during the investigation. B. Preliminary Assessment of Chinese Measures and Practices: The European Commission’s preliminary assessment indicates that Chinese measures systematically disadvantage EU economic operators, goods, and services. These measures, through prioritizing domestic products and restricting imports, significantly reduce foreign companies’ market share. Additionally, China’s support for domestic companies in centralized procurement and stringent bidding and approval procedures further exclude foreign suppliers, increasing their market entry costs and risks, and undermining a fair competitive market environment. C. Investigation Procedure and Timeline under IPI: Based on the preliminary assessment, the Commission initiates the investigation under Article 5(1) of the IPI regulation to determine if Chinese measures severely and recurrently obstruct EU economic operators, goods, and services from entering the Chinese market. The Chinese government is invited to submit its views and provide relevant information to resolve the issue through consultations with the Commission. EU member states and other stakeholders are also invited to participate in the investigation and provide information within 30 days of the notification’s publication. As per Article 5(3) of the IPI regulation, the investigation must be completed within nine months from the notification’s publication date, extendable by five months if necessary. Introduction to the International Procurement Instrument (IPI) Within the WTO framework, 22 members have signed the Government Procurement Agreement (GPA), a multilateral accord granting national treatment to member countries' companies in government procurement markets. The EU and all its member states are GPA members, with the EU further opening its government procurement market to companies from all nationalities, including non-GPA members. Overview of the International Procurement Instrument (IPI): The EU’s International Procurement Instrument (IPI), promulgated in June 2022 as Regulation (EU) 2022/1031, aims to foster fair competition in international procurement markets. The IPI’s primary goal is to eliminate procurement discrimination through dialogue, providing the European Commission with a legal framework to investigate whether measures by non-GPA members severely impair EU companies' access to those countries' government procurement markets. Investigation Procedure: The European Commission can initiate investigations autonomously or following complaints. After a preliminary assessment, if a formal investigation is decided upon, a notification is published in the EU Official Journal. The formal investigation lasts a maximum of nine months (extendable by five months), during which the EU consults with relevant parties and seeks non-EU countries' opinions. If no severe damage is found, the investigation terminates; if corrective measures or commitments are made by the third country, the investigation can be suspended. Remedial Measures: If market access barriers persist, the European Commission may implement measures such as: - Adjusting the scoring of bids from third-country companies. - Excluding certain third-country companies' bids. - Exclusion measures apply to EU procurement projects valued at €5 million or more, or concession or works contracts worth €15 million or more. Measures can target specific industries, products, services, or government entities. The IPI requires ensuring bidders cannot circumvent exclusion measures. Exclusion measures are valid for five years, and subject to review for potential continuation. Expert Insight from Sinowing Law Firm - The investigation's short initiation period leaves future developments uncertain, mainly targeting state enterprises and public hospitals, with minimal initial impact on private hospitals and enterprises. - Given the complexity of international political dynamics, lengthy investigation and regulatory cycles mean short-term substantial impacts are unlikely. Even if future policies emerge, domestic companies can mitigate them through joint ventures, local manufacturing, or collaborative labeling. - Currently, high-end foreign products hold a significant market share domestically, with medical device exports to Europe far lower than imports, suggesting a limited long-term impact on China's medical device development from the EU’s IPI investigation.
Other Pages (34)
- Roman Jüngling
< Back Roman Jüngling Legal Partner @Germany Working Languages German, Polish, English Email roman.jungling@jomec.nl Roman C. Jüngling studied law at the Universities of Erlangen-Nuremberg, Giessen, Jagiellonian and the Catholic University of America, worked as a law clerk at the Oberlandesgericht in Frankfurt and passed the Hessian State Judicial Examination with honors, and received his LL.M. degree in American commercial law from the Catholic University of America in 2008 and his J.D. degree from the University of Giessen in 2009. Roman worked as a trainee, clerk and attorney in the field of international commercial law at international law firms in Germany, Poland and the United States, such as Allen & Overy in Frankfurt, Gibson in Washington, D.C. and Baker & McKenzie in Berlin. He was admitted to the Frankfurt Bar in 2007 and to the Berlin Bar in 2008/2009. Since 2010, he has been admitted to the bar in Nuremberg, and in 2016 he received the title of Certified Specialist in Tax Law. Jomec News 1 day ago Important Announcement: We Move to a New Office Location! Dear Valued Clients, We are thrilled to announce that our office has relocated to a new, more spacious location in Rotterdam as of 1 May... 2 days ago 2024 Aero Friedrichshafen Dutch Pavilion: Jomec Group Leads 20 Dutch Companies Developing Sustainable/ Electric Aviation Participating in the 2024 Germany Friedrichshafen General Aviation Exhibition From April 17th to 20th 2024, the Aero Friedrichshafen in Germany once again became the focus of the aviation industry, while the... Apr 8 Calling for Participation to Join Dutch Pavilion of Electric Aviation at AERO Friedrichshafen 2024 Jomec Investment Group is organiszing Dutch Pavilion of Electric Aviation at AERO Friedrichshafen 2024 from April 17th to 20th. AERO.... See All Our News
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- Yadhira Stoyanovitch
< Back Yadhira Stoyanovitch Legal Partner @France Working Languages French, English, Spanish, Italian Email yadhira.stoyanovitch@jomec.nl Attorney Yadhira Stoyanovitch is a doctor of law with a French higher studies diploma in private international law (international commercial and contract law) and a graduate of the European School of Higher International Studies. Yadhira has almost 10 years of professional experience as a researcher in biotechnology legal protection (French Ministry of Research and Higher Education) and as a corporate lawyer (head of the Legal and General Affairs Department of ADEME) head) before founding her own firm and joining the Paris Bar in 1992. Areas of specialization: commercial law and international contracts, construction and real estate law, international family law, environmental law (treatment and disposal of industrial waste) and energy (energy production, new and renewable sources of energy, self-generation and cogeneration). Jomec News 1 day ago Important Announcement: We Move to a New Office Location! Dear Valued Clients, We are thrilled to announce that our office has relocated to a new, more spacious location in Rotterdam as of 1 May... 2 days ago 2024 Aero Friedrichshafen Dutch Pavilion: Jomec Group Leads 20 Dutch Companies Developing Sustainable/ Electric Aviation Participating in the 2024 Germany Friedrichshafen General Aviation Exhibition From April 17th to 20th 2024, the Aero Friedrichshafen in Germany once again became the focus of the aviation industry, while the... Apr 8 Calling for Participation to Join Dutch Pavilion of Electric Aviation at AERO Friedrichshafen 2024 Jomec Investment Group is organiszing Dutch Pavilion of Electric Aviation at AERO Friedrichshafen 2024 from April 17th to 20th. AERO.... See All Our News