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The European Green Deal

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This is part of a series recapping sessions from AIAG’s 2025 Responsible Materials Conference. Registration is now open for the 2026 conference on August 26 in Southfield, Michigan, and virtually.

As Europe pushes forward with an ambitious environmental transformation, the European Green Deal stands as one of the most sweeping policy frameworks of the modern era. During his presentation, “European Union Green Deal,” at AIAG’s 2025 Responsible Materials Conference, Chuck LePard outlined what the initiative means not only for Europe, but also for U.S.-based manufacturers whose products and supply chains intersect with European Union markets.

LePard is a compliance and sustainability executive consultant at DXC Technology as well as the Americas Representative for the International Material Data System (IMDS) and Compliance Data Exchange (CDX). He explained that at its core, the European Green Deal is a roadmap to make Europe the world’s first climate-neutral continent by 2050. Backed by the European Climate Law, this commitment is now a legal obligation, not simply a political aspiration. The plan aims to decouple economic growth from resource use, restore biodiversity, reduce pollution, and accelerate the shift to a circular economy.

LePard started with a stark assessment of the environmental challenge driving the legislation: “We are poisoning our world – our air, food, and water,” he said. “I believe we in the U.S. haven’t seen the impact as strongly as Europe because we have a much larger land mass, and we don’t usually grow our food where we live, but in the places we do, such as California, we are seeing the same problems.”

A Legal Commitment to Climate Neutrality

That urgency underpins the EU’s aggressive approach. Through the Circular Economy Action Plan, lawmakers are targeting a projected doubling of global material consumption by midcentury and a 70% increase in annual waste by 2050. The Green Deal calls for durable, repairable, and recyclable product design; reduced hazardous chemical use; higher recycled content; and digital product passports to improve transparency across value chains.

LePard highlighted that up to 80% of a product’s environmental impact is determined during the design phase. As a result, forthcoming legislation will drive sustainability requirements across broad product categories — from electronics and textiles to high-impact industrial materials such as steel and chemicals. The “take-make-dispose” model is being systematically replaced with a regenerative system that emphasizes reuse, remanufacturing, and recycling.

Responsible Sourcing and Market Pressure

Responsible sourcing also plays a central role. EU conflict minerals rules align with OECD due diligence guidance and extend expectations beyond the U.S. Dodd-Frank Section 1502 framework. Investors are increasingly incorporating environmental, social, and governance metrics into corporate evaluations, reinforcing the regulatory push with market pressure.

Another powerful lever is government purchasing. Public procurement accounts for roughly 14% of EU GDP, and new Green Public Procurement criteria will require sustainability benchmarks in purchasing decisions. Consumer law revisions will further empower buyers with repair rights and reliable environmental information at the point of sale.

What It Means for U.S. Manufacturers

While the Green Deal’s 2050 climate-neutral target remains intact, LePard acknowledged that geopolitical events have shifted near-term momentum.

“The current world political situation has taken some of the short-term emphasis away from environmental topics, yet Europe continues to evolve in its requirements and capabilities,” he said. “U.S.-based manufacturers need to keep these topics in mind.”

Indeed, recent global disruptions — including pandemic aftershocks, supply chain strains, and shifting political landscapes — have slowed certain implementation timelines. Still, the 2030 emissions-reduction targets and broader climate objectives remain legally binding.

For manufacturers, especially in automotive and advanced industrial sectors, the message is clear: Compliance will require granular visibility into materials, chemicals, and lifecycle impacts. Hazardous substances must be reduced, clean material cycles promoted, and recycling quality improved. Waste directives, plastics collection mandates, and stricter labeling rules are already reshaping operational expectations.

LePard emphasized that Europe’s scale allows it to influence global standards. By setting sustainability requirements for products entering its single market, the EU effectively raises the bar worldwide. Companies that anticipate and integrate these requirements early will be better positioned competitively.

In the end, LePard’s presentation underscored urgency and inevitability. The European Green Deal may face periodic slowdowns, but its structural direction is set. For global manufacturers, understanding the chemical composition of products, embracing circular design principles, and aligning with evolving EU standards are no longer optional strategies — they are essential components of doing business in a rapidly transforming regulatory environment.

SAVE THE DATE FOR AIAG’S 2026 RESPONSIBLE MATERIALS CONFERENCE

AIAG’s 2026 Responsible Materials Conference will be held on August 26, 2026, at the AIAG offices in Southfield, Michigan, and virtually. Registration is now open.

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