LkSG Reform, DRC Export Ban, US-EU Trade & CBAM Rules

 August 21, 2026 | Market Trends for the NQC Community 

Global regulatory & macroeconomic overview

In this edition of The Briefing: four key macroeconomic and regulatory developments impacting international supply chains.

Germany aligns LkSG 1:1 with CSDDD framework following Omnibus I

Under Point 29 of its "Programme for Recovery and Employment" reform package, the German Federal Government announced it will implement the EU Corporate Sustainability Due Diligence Directive (CSDDD) into national law using a 1:1 approach.

As early as autumn 2026, Berlin intends to narrow the scope of the German Supply Chain Due Diligence Act (LkSG). Under current rules, the law applies to all companies with at least 1,000 employees in Germany, regardless of turnover. The proposed reform will significantly restrict this reach, applying only to large entities with at least 5,000 employees and an annual net worldwide turnover exceeding €1.5 billion. Future due diligence duties will be governed by a risk-based approach, explicitly limiting verification and information requests regarding indirect and smaller suppliers to data accessible through reasonable effort.

The commitment to a 1:1 implementation confirms that German lawmakers will not impose additional requirements beyond European minimums. However, this is a significant shift. Beyond reduced company thresholds, core operational structures (including risk management, remedial measures, reporting routines, enforcement penalties, and civil liability) will be restructured to align with the post-Omnibus I EU framework. Legislative drafts are expected during autumn 2026.

DRC issues immediate export prohibition on copper and cobalt concentrates

On 6 August 2026, the government of the DRC published a joint ministerial order banning the export of copper concentrate and cobalt concentrate with immediate effect.

The order, signed on 29 June by the Ministers of Mines, Foreign Trade, and Economy, escalates the DR Congo government's strategy in Kinshasa to force domestic mineral processing and capture a higher share of commercial value within its borders. As the world's dominant cobalt supplier and a top producer of copper, the DRC aims to leverage its resource position to build in-country smelting and refining capacity.

According to the order, the measure was motivated by:

"The need to encourage mining operators to market or export commercial mineral products with high added value."

While previous concentrate bans in 2013, 2019, and 2023 yielded frequent exemptions due to insufficient domestic smelting infrastructure, the new order specifies that discretionary one-year export waivers will be strictly limited to strategic circumstances.

US increases trade pressure on EU over supply chain and carbon rules

On 14 August 2026, the US administration urged the European Union to ease supply chain responsibility laws, alleging that extraterritorial enforcement creates non-tariff barriers that impede transatlantic commerce.

US Ambassador to the EU Andrew Puzder cited commitments under the bilateral Framework Agreement, asserting that Brussels agreed to ensure directives such as CSDDD and CSRD would not impose undue commercial restrictions on foreign enterprises. Washington is also seeking structural modifications to the Carbon Border Adjustment Mechanism (CBAM).

"Now it's time for the EU to deliver... Extraterritorial provisions harm American businesses and workers, but it is not just the US that will suffer."
Andrew Puzder, US Ambassador to the EU

In response, the European Commission reaffirmed its position regarding regulatory independence:

"We have been very clear and consistent on the fact that neither our rules framework nor our regulatory autonomy are up for negotiation."
European Commission Spokesperson

While the EU previously adjusted compliance horizons under deforestation and methane regulations, Brussels officials confirmed no further unilateral concessions are planned ahead of joint autumn talks on non-tariff trade commitments.

European Commission releases 10 CBAM guidance guides for definitive period

On 14 August 2026, the European Commission published a comprehensive suite of 10 guidance documents designed to assist non-EU operators, authorised declarants, and verifiers with CBAM compliance ahead of its definitive implementation phase.

The definitive period introduces mandatory carbon monitoring, reporting, and financial certificate surrender obligations for carbon-intensive imports into the single market. The package divides into four horizontal frameworks and six dedicated sector guides:

• Horizontal guidance (Docs 1–4): Outlines core CBAM milestones, roles, and deadlines; provides an operational roadmap for non-EU installations; details embedded emissions calculation protocols; and explains methods for calculating free allocation adjustments under the EU ETS.
  
  

• Sector-specific guidance (Docs 5a–5f): Establishes tailored monitoring considerations, value chain boundaries, and worked calculation examples across six covered sectors: cement, hydrogen, fertilisers, iron and steel, aluminium, and electricity.