EU Commission Presents Draft of Omnibus Regulation – Relief for Businesses, but Green Deal stays

The EU Commission has published a draft for the so-called Omnibus Regulation (Press Reliease EU-Commission), aiming to relieve small and medium-sized enterprises (SMEs) and reduce bureaucracy. Despite the planned adjustments, the EU remains committed to the Green Deal and its associated climate goals.

Key Adjustments in the Omnibus Regulation Draft

The Omnibus Regulation seeks to modify the timelines and requirements of essential sustainability and climate regulations. The most important changes include:

  1. Corporate Sustainability Reporting Directive (CSRD)

Companies with more than 1,000 employees and an annual turnover exceeding €50 million or a balance sheet total of at least €25 million must comply with CSRD requirements starting in 2028. Originally, the second phase of CSRD was scheduled for an earlier rollout for the business year 2025.

  1. EU Taxonomy

The obligations under the EU Taxonomy have also been revised: Companies with more than 1,000 employees and an annual turnover of €450 million or more will only have to comply starting in 2028. These regulations are intended to increase transparency in sustainable business activities and direct capital flows toward environmentally friendly investments.

  1. Corporate Sustainability Due Diligence Directive (CSDDD)

The due diligence requirements for corporate supply chains have been relaxed. Instead of assessing the entire supply chain, companies are only required to examine the next downstream entity. Furthermore, the review cycle has been extended from one year to five years. These regulations apply to large companies starting in July 2028.

  1. Carbon Border Adjustment Mechanism (CBAM)

The obligation to account for CO2 emissions on imported goods has been eased. In the future, only importers whose imported goods exceed 50 tons of CO2 emissions per year are supposed to be subject to the CBAM regulations. The mechanism aims to ensure fair competition between European companies and importers by balancing CO2 costs globally.

Relief for SMEs and Bureaucracy Reduction

A key focus of the Omnibus Regulation is reducing administrative burdens for small and medium-sized enterprises. These measures are intended to maintain SME competitiveness without excessive reporting obligations and regulatory constraints. At the same time, the EU Commission emphasizes that these relief measures will have only a minor impact on the overall effectiveness of climate protection measures.

Next Steps and Further Adjustments

The Omnibus Regulation draft must now pass through the EU Parliament and the EU Council. Following this, national governments will need to implement the directive into their respective legal frameworks, with further modifications expected in the process.

Conclusion

The EU Commission’s Omnibus Regulation demonstrates a clear commitment to reducing bureaucracy and easing burdens on SMEs while maintaining the climate targets of the Green Deal. It remains to be seen in what final form the regulation will be adopted and what further changes may be introduced during the upcoming political negotiations.