The Brussels Effect: How EU policy influences global shipping and trade
Can one region’s environmental law change how the entire world does business? It already has, and it's happening again.
Sometimes, legislation in a single region sets the standard for global compliance. A powerful example comes from the ban on Tributyltin (TBT) — a toxic antifouling substance used to coat ship hulls.
TBT was highly effective at keeping hulls clean, boosting fuel efficiency. But by the 1980s, it became clear that it caused serious ecological harm, including disrupting marine species’ reproductive systems.
The EU banned TBT in 1987 for vessels under 25 metres. Later, when international negotiations stalled, the EU took unilateral action; any vessel coated with TBT would be denied entry to European ports.
This pressure led to a 2003 global ban through the International Maritime Organisation (IMO).
This is what’s known as the Brussels Effect: when the EU’s internal regulations shape global business standards, even beyond its borders.
Some critics argue that the EU’s aggressive environmental policies are veiled protectionism. But companies operating within the EU face strict standards, and it’s only fair that competitors from abroad meet similar expectations.
CBAM is designed to level the playing field. It imposes a carbon cost on goods imported into the EU based on the emissions involved in their production, incentivising cleaner industrial practices globally.
This affects industries like cement, aluminium, steel, and fertilisers, but shipping and logistics are also in the spotlight.
The CSDDD takes things further. It requires large companies to:
To compete in Europe, companies must now prove that their suppliers meet minimum social and environmental standards.
This doesn’t exclude international or developing world companies, but it does demand documented due diligence.
And that’s where Factlines comes in.
We’ve spent over a decade helping companies build sustainable supplier networks that meet laws like the Norwegian Transparency Act, CSDDD, and sector-specific procurement requirements.
With Factlines SRM and Chain Survey tool, your team can:
The shipping industry learned this the hard way with TBT. Today, businesses that understand their value chain footprint, and can prove it, will lead in global markets.
Book a demo or request a free trial to see how Factlines can help you reduce operational risk, and stay relevant in a regulated world.
IMO – Anti-fouling systemsScience
