Protecting the climate through EU supply chain legislation? Two critiques and a compromise

Abstract

Climate change law faces a serious implementation problem. New instruments promoted by states from the Global North to address the implementation gap come from the sphere of trade and supply chain regulation. This article focuses on corporate climate due diligence legislation and its potential contribution to fulfilling the objectives outlined in the Paris Agreement. By examining the EU’s legislative process towards adopting a Corporate Sustainability Due Diligence Directive (CSDDD), it explores various approaches to regulating the climate impacts of corporations, including along global supply chains. The article critiques both the ultimately adopted climate transition planning requirement and the European Parliament’s alternative proposal, which aimed to incorporate climate mitigation into the general due diligence framework of the Directive but was unsuccessful. It applies two overarching critiques, termed ‘not enough’ and ‘regulatory imperialism’, to the specific context of corporate climate due diligence. Although these critiques may initially appear contradictory, the article endeavours to reconcile them through a compromise approach that fosters greater participation, integrates measures to mitigate impacts on self-determination, and specifies the obligations imposed on corporations regarding climate mitigation. Finally, the article discusses the idea of a decentralised enforcement regime and highlights the importance of regulation in states of the Global South to achieve a truly planetary legal order on corporate climate accountability.