1. Why are you proposing this omnibus legislation on sustainability rules?   

The recent Competitiveness Compass sets the vision for enhancing EU competitiveness and prosperity by simplifying regulations and fostering a conducive business environment. This will help businesses grow, create quality jobs, and transition towards a sustainable economy while achieving the Green Deals objectives.

By recalibrating EU rules, the Commission aims to deliver a 25% reduction in administrative burdens and at least 35% for SMEs. The first series of Omnibus packages addresses overlapping, unnecessary, or disproportionate rules that burden EU businesses.

Todays proposals simplify sustainability and EU investment programs, aligned with the Draghi report and the Competitiveness Compass. The package includes amendments to the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Carbon Adjustment Mechanism (CBAM), and the InvestEu Regulation. It also includes a draft Taxonomy Delegated Act for public consultation, aiming to balance sustainability goals with enhancing EU competitiveness.

2. What changes are you proposing today?

The omnibus package includes:

• Amendments to the CSRD and CSDDD;
• Postponement of reporting requirements for certain companies;
• Draft Delegated Act amending Taxonomy Disclosures for public consultation;
• Regulation amendments to the Carbon Border Adjustment Mechanism and InvestEu Regulation.

3. How will companies benefit from this proposal?

Companies will benefit from reduced administrative costs and increased investment capacity. SMEs will be protected from excessive information requests. Simplified due diligence obligations will support both large companies and their partners, including SMEs.

The package simplifies reporting templates, reduces data points, and introduces materiality thresholds. Importers of small CBAM goods will benefit from exemptions, and simplifications will be made for those still in scope.

4. How does this proposal help achieve the objectives of the Green Deal?

The proposal aligns with the Green Deal by simplifying rules to enhance competitiveness while maintaining sustainability objectives. It reduces complexity and costs, fostering a more favorable business environment for growth and job creation.

Corporate Sustainability Reporting Directive

5. What are the main changes to the CSRD?

Changes include reducing the scope to larger companies, adopting voluntary reporting standards for those out of scope, and postponing reporting requirements for certain companies. The number of data points will be reduced, and sector-specific standards will be removed.

6. What is the scope of the new CSRD?

The CSRD will apply to large companies with over 1,000 employees. Companies outside the scope may voluntarily report using simplified standards.

7. What are the main changes to the CSDDD?

• Postponement of the transposition deadline and simplification of due diligence requirements;
• Reduction in information requests from SMEs and small midcaps;
• Alignment with national civil liability regimes and transition plan requirements.

8. How does the omnibus package protect SMEs?

SMEs are shielded from excessive reporting requests through voluntary standards. Simplifications in due diligence requirements reduce the burden on smaller business partners.

9. Expected benefits of CSRD modifications?

Significant cost savings and enhanced competitiveness through reduced scope and simplified reporting requirements.

10. Expected benefits of CSDDD modifications?

A more harmonized framework with reduced complexity and burden for companies, resulting in annual savings and one-off cost reductions.

11. Is the double materiality principle changing?

No, companies will continue to report on sustainability risks and their impact on people and the environment.

Taxonomy

12. Main changes to the Taxonomy?

Amendments to the CSRD and Taxonomy Disclosures simplify reporting, reduce data points, and introduce voluntary reporting for certain companies.

Companies with non-material economic activities are exempt from assessing Taxonomy-eligibility. The green asset ratio for banks is simplified, and feedback on Do no Significant harm criteria is sought.

CBAM

13. Main changes to CBAM?

• Simplified processes and exemptions for small importers;
• Strengthened anti-abuse measures and joint anti-circumvention strategy.

14. Formula for annual mass-threshold?

The threshold captures at least 99% of emissions, exempting smaller importers.

Investment Omnibus

15. Simplified regulations and their impact?

InvestEU and EFSI regulations are simplified, reducing administrative burdens and improving competitiveness.

16. Benefits for SMEs?

Simplified SME definitions and reporting requirements benefit SMEs directly.

17. Unlocking EUR 50 billion investment capacity?

Increased EU guarantee and streamlined program operations will unlock significant investments in key sectors.