Can one region’s environmental law change how the entire world does business? It already has, and it's happening again.
How one EU regulation changed the entire shipping industry
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.
Today’s Brussels Effect, from climate policy to supply chain law
Sustainability rules or hidden protectionism?
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.
Carbon Border Adjustment Mechanism (CBAM)
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.
Corporate Sustainability Due Diligence Directive (CSDDD)
The CSDDD takes things further. It requires large companies to:
- Identify and assess human rights and environmental risks
- Act to prevent or mitigate negative impacts
- Monitor effectiveness over time
- Report transparently across their entire value chain
Why supply chain insight is becoming non-negotiable
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.
How Factlines helps suppliers meet EU expectations without consultants
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:
- Map and assess suppliers globally
- Collect key ESG and compliance data
- Follow-up risks automatically
- Share documentation with EU buyers or partners
The future of global trade is transparent
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.
Sources and further reading
IMO – Anti-fouling systemsScience
