By GAIL Europe Regional Board

A lot of ink has been spilt over the ever-evolving EU Sustainability Regulations, but far less attention has been paid to how these rules are being received beyond Europe’s borders. GAIL Europe is speaking with international experts from across the GAIL network to explore what these regulations mean for their regions and the potential impact on their local legal and business landscapes.

Join us for a conversation with Navine Karim, an expert in impact law and sustainability and based in the US, as he shares insights from a North American perspective.

Key Topics & Themes

EU Sustainability Regulations: Still a Global Model

  • The sustainability regulations in Europe are a regulatory revolution. Even with a scaling back of ambition, what the EU is proposing still serves as a model for many outside the EU.
  • The EU’s integrated approach (e.g., double materiality, worker rights, biodiversity) provides a valuable framework for jurisdictions like California to consider.

US Regulatory Culture: Self-Regulation and Adaptation

  • The US tends toward self-regulation, particularly in the private sector, making voluntary global standards (like ISSB, TCFD, GRI, B Corp) especially influential.
  • California’s SB260 and SB261 align with global standards, showing bottom-up innovation at the state level.

Global South & Compliance Challenges

  • EU regulations risk unintended consequences for smallholders and commodity producers in the Global South.
  • Similar tensions exist for US companies facing new layers of compliance and cross-jurisdictional friction, echoing earlier struggles with state-level data privacy laws.

The Trump Factor & US Political Landscape

  • Uncertainty remains around the future of ESG and sustainability regulation in the US amid anti-ESG rhetoric.
  • However, long-term structural drivers (climate science, consumer demand, investor risk management) remain strong.
  • Expect continued progress at the state level (e.g., California, NY, NJ, Colorado) and in the private sector.

Outlook for GAIL Community

  • Legal professionals and impact advisors outside the EU can draw lessons from its integrated, mandatory model, even if they operate in more voluntary systems.
  • Ongoing regulatory fragmentation requires agility, but also creates opportunities for leadership, especially through voluntary standards and state-level initiatives.
  • Despite global and domestic headwinds, the sustainability transition is inevitable – driven by science, markets, and consumers.