By Urszula Szalkowska, Managing Director, Europe, EcoEngineers

Across Europe and globally, companies are navigating a storm of regulatory shifts, Environmental, Social, and Governance (ESG) expectations, and operational realities. The landscape has become increasingly complex: regulations are overlapping, transparency is no longer optional, and the gap between corporate strategies and day-to-day operations continues to grow.

The Challenges We Face

1. Regulatory complexity
   New and overlapping frameworks are creating uncertainty for industries trying to decarbonize. Consider the automotive sector, where tightened rules arrive in quick succession and compliance systems struggle to keep pace.
2. Rising demand for ESG accountability
   Stakeholders—from investors to consumers—demand traceability and credible reporting. Renewable energy providers, for example, must not only meet volumetric or greenhouse gas (GHG)-based targets, but also demonstrate that sustainability criteria are certified, verified, and registered. Similarly, decarbonization claims in energy and industrial sectors now require rigorous proof under mandatory frameworks like the European Union (EU) Emissions Trading System (ETS), and voluntary ones such as the Science-Based Targets initiative (SBTi).
3. Strategy vs. operations disconnect
   Ambitious goals often outpace implementation. A utility may announce a “climate positive by 2035” commitment, certified by SBTi, only to discover that newly emerging frameworks, such as EU Renewable Fuels of Non-Biological Origin (RFNBOs) for green hydrogen or the Carbon Removal Certification Framework (CRCF) for Bioenergy with Carbon Capture and Storage (BECCS), require entirely new layers of certification and verification that weren’t envisioned when strategies were set.

Which Strategic Pathway Forward?

Organizations have options for how to respond:

• Wait for regulatory clarity – Conserve resources and learn from early movers.
  • This is a higher risk option, vacating a leadership position and potentially waiting for a clarity that may never come
• Choose one pathway – Focus energy and gain an early market position.
  • Also carries risks – opening up a chance that the winning pathway is not ultimately picked would not be a recommended approach
• Engage proactively – Map decision-makers, influence policy direction, and test ideas with your partners and other stakeholders. This option is often the most resilient, helping companies shape the very systems they must comply with.
  • The most pragmatic and practical approach, and one that has a proven track record of converting risk to strategic advantage

Actionable Solutions

Moving from chaos to clarity requires discipline and adaptability:

1. Map the environment – Position your company within the broader European decarbonization strategy, considering political, economic, and sectoral contexts.
2. Define your system – Set boundaries, clarify expected outcomes under each regulation, and assign roles inside and outside the organization.
3. Invest in adaptable tools – Implement data management, traceability, and life-cycle assessment systems that meet today’s frameworks and anticipate tomorrow’s.
4. Collaborate continuously – Build ongoing bridges between policy, manufacturing, and innovation teams, while monitoring regulatory shifts in real time.

Turning Complexity into Opportunity

While the pressure is high, these challenges also create opportunities. Companies that embrace adaptable systems, proactive engagement, and rigorous traceability will not just stay compliant—they will become leaders in shaping a sustainable, circular economy.

At EcoEngineers, we work alongside clients to ensure they can meet today’s requirements and prepare for tomorrow’s. By helping organizations turn compliance into a competitive advantage, we create clarity in the face of complexity.

About the Expert

Urszula Szalkowska is managing director, Europe, and leads EcoEngineers’ European practice, supporting both European-based clients and international clients doing business in the EU. Ms. Szalkowska has more than two decades of experience working in renewable energy, fuels, climate change, and transportation. She has a deep understanding of regulations, business impact, and strategic communications in the EU. She advises businesses on compliance with national regulations in EU MS and helps navigate the highly regulated renewable energy markets. Ms. Szalkowska coordinates global climate policy and regulations in the U.S. and the EU.

For more information about how we help clients navigate the energy transition in Europe and globally, contact:

Urszula Szalkowska, Managing Director, Europe | uszalkowska@ecoengineers.us