The European Commission has adopted a package of proposals to simplify EU rules and boost competitiveness and unlock additional investment capacity. This is a major step forward in creating a more favourable business environment to help EU companies grow, innovate, and create quality jobs.
These first ”Omnibus” packages, bringing together proposals in a number of related legislative fields, cover a far-reaching simplification in the fields of sustainable finance reporting, sustainability due diligence, EU Taxonomy, carbon border adjustment mechanism, and European investment programmes.
Key Novelties
The proposals will streamline EU requirements for all businesses, with a particular focus on reducing the burden on SMEs. By prioritizing regulatory obligations for the largest companies – those with the greatest environmental impact – the framework ensures a more targeted approach while still allowing businesses to access sustainable finance for their green transition.
The package includes amendments to the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Carbon Boarder Adjustment Mechanism (CBAM), and the InvestEu Regulation. The package is accompanied by a draft Taxonomy Delegated Act for public consultation.
The mentioned amendments cover steps to:
- Make sustainability reporting more accessible and efficient;
- Simplify due diligence to support responsible business practices;
- Strengthen the carbon border adjustment mechanism for a fairer trade;
- Unlock opportunities in European investment programmes.
Application
The proposals will further be submitted to the European Parliament and the Council for their consideration and adoption.
In its work programme for 2025, the Commission announced a series of measures to address overlapping, unnecessary or disproportionate rules that create barriers for EU companies. Collectively, with these measures, the Commission wants to reduce administrative burdens by 25%, and by 35% for small and medium-sized businesses, by the end of its mandate in 2029.
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