Report on the development of EU law in 2022 : digital and green transition, supply chain law, and reciprocal market openness

Abstract

The transformation of the EU advanced amidst crises and challenges in 2022. This report is an overview of the development of EU law in 2022, focusing on three dimensions: the digital and green transition, the supply chain law, and reciprocal market openness. In the area of digital transition, the EU strengthened the legal instruments to address emerging issues of competition and data barriers arising from data regulation and the digital market. With regard to green transition, the EU put forward a set of legislative proposals on the green economy in relation to climate objectives, such as the renewed EU Emission Trade System and the Carbon Border Adjustment Mechanism. In terms of the supply chain law, the EU relied on normative power to exert influence on global supply chains and introduced unilateral legal instruments infused with extraterritorial effects, including the Corporate Sustainability Due Diligence legislation and the Forced Labour Ban. It also proposed the Single Market Emergency Instrument and the Chip Act to strengthen the resilience of the internal market and its supply chains. Besides, the EU emphasises reciprocal market openness based on level-playing competition in the internal market. The EU’s International Public Procurement Instrument and the Foreign Subsidies Regulation entered into force, reinforcing its regulatory toolkit and enhancing the thresholds for market access. For bilateral relations, the EU proceeded with the ongoing negotiations on free trade agreements with India and New Zealand, respectively. At the multilateral level, the EU participated in the concluded negotiation on modernising the Energy Charter Treaty, which was later on hold due to disagreements raised by some member states.