In 2026, the EU will fully implement multiple new product regulations that will have far-reaching impacts on Chinese export enterprises. These regulations involve not only the safety and environmental protection of the products themselves but also extend to carbon emissions during production and supply chain management.
Overview of Key Regulations
- EU General Product Safety Regulation (GPSR): Requires all products sold in Europe to have a digital product passport containing information such as materials, production processes, and recycling methods.
- Carbon Border Adjustment Mechanism (CBAM): Imposes carbon tariffs on imported high-carbon products, covering steel, aluminum, cement, fertilizers, electricity, and hydrogen.
- Corporate Sustainability Due Diligence Directive (CSDDD): Requires large enterprises to conduct due diligence on human rights and environmental issues in their supply chains.
Specific Impacts on Enterprises
Taking MIKA as an example, our products are exported to the EU market and need to:
- Establish a digital product passport system to ensure every product is traceable
- Calculate the full life cycle carbon emissions of products and purchase corresponding carbon quotas
- Conduct ESG audits on upstream suppliers to ensure compliance with EU standards
Response Strategies
Facing new regulations, enterprises should adopt a “proactive compliance” strategy:
- Conduct carbon footprint calculations in advance to identify emission reduction potential
- Select suppliers with ESG certification and establish a green supply chain
- Invest in clean production technologies to reduce carbon emissions per unit of product
- Collaborate with third-party certification bodies to obtain internationally recognized compliance certificates
Compliance is not only a challenge but also an opportunity. Enterprises that plan ahead will gain significant competitive advantages in the EU market.
