The much-anticipated proposal is expected to bring relief to many businesses concerned about complying with complex environmental reporting requirements. Many companies have complained that these regulations overlap and require significant investments to ensure compliance.
However, green and center-left groups are likely to push back against the proposed changes, potentially setting up a clash in the European Parliament and among member states.
“If confirmed, this is reckless,” said Maria van der Heide, head of EU policy at the NGO ShareAction, on Saturday. “Laws designed to address urgent crises—climate change, human rights violations, corporate exploitation—are being dismantled behind closed doors and at record speed. This is not simplification; it’s pure deregulation.”
Key Details
Set to be unveiled on February 26, the omnibus bill seeks to simplify three major EU environmental regulations affecting businesses:
– Corporate Sustainability Reporting Directive (CSRD): Requires businesses to disclose their environmental impact and climate-related risks.
– Corporate Sustainability Due Diligence Directive (CSDDD): Mandates companies to assess and address human rights and environmental abuses within their global supply chains.
– EU Taxonomy: Establishes criteria for what qualifies as a sustainable investment.
Additionally, the bill may include revisions to the carbon border tax, though this was not confirmed in the leaked draft.
The draft also suggests eight major changes to due diligence rules, significantly weakening them. One key revision would require companies to examine only their immediate suppliers, rather than assessing their entire supply chains.
Leave a Reply