The European Commission's (EC) Omnibus legislative package aims to reduce sustainability-related regulatory burdens while maintaining the European Union's (EU) climate commitments and competitiveness objectives. To this end, it proposes to simplify sustainability reporting, streamline due diligence, simplify carbon border regulation and optimize investment programs.


Omnibus I and II legislative packages

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Executive summary

The EC's Omnibus legislative package includes proposals to amend the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Climate and Environment Taxonomy Delegated Regulations, the Carbon Border Adjustment Mechanism Regulation (CBAM) and the InvestEU Regulation.

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The main modifications foreseen for each of the affected regulations are outlined below:

  • CSRD. The first application date for second- and third-wave institutions would be postponed by two years, to 2027 and 2028, respectively. Additionally, several changes aim to reduce the number of affected companies to those with more than 1,000 employees (an estimated 80% reduction to 7,000 companies). Reporting requirements would be simplified by easing companies' disclosure obligations concerning their value chain, removing sector-specific rules, and eliminating the need for reasonable assurance.
  • CSDDD. Similarly to the CSRD, the deadline for transposition by Member States and adoption by the first companies would be postponed by one year, (to July 2027 and 2028, respectively). In addition, due diligence requirements would be simplified by limiting obligations to direct business partners. Furthermore, financial penalties would no longer necessarily depend on a company's worldwide net turnover.
  • EU taxonomy. Reporting obligations would be limited to large companies with more than 1,000 employees and a turnover of more than 450 million euros, while smaller companies could report voluntarily. The environmental transition would be facilitated by allowing the reporting of partially aligned activities and simplifying the ‘Do No Significant Harm’ (DNSH) criteria. Additionally, banks would be allowed to exclude companies outside the CSRD from the calculation of the Green Asset Ratio (GAR).
  • CBAM. Importers bringing in less than 50 tons annually would be exempt, reducing the number of affected companies by an estimated 90%. Authorization procedures and emissions calculations would be simplified, while measures to prevent circumvention and abuse of the system would be strengthened to ensure that CBAM accurately reflects the carbon content of imported goods.
  • InvestEU. The capacity of InvestEU support programs would be expanded by using returns from previous investments. Access to finance would be streamlined, administrative burdens reduced, and support for SMEs enhanced, unlocking 50 billion euros for innovation, sustainability, and economic growth.

The EC urges the Parliament and the Council to speed up the adoption of these measures, particularly the delay of the CSRD and CSDDD implementation dates. 

Access the technical note on the Omnibus I and II legislative packages in Spanish and English.