The European Commission has adopted a new package of proposals to simplify EU rules, 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.

By bringing our competitiveness and climate goals together, we are creating the conditions for EU businesses to thrive, attract investment, achieve our shared goals – such as the European Green Deal objectives – and unlock our full economic potential.

The Commission has a clear target to deliver an unprecedented simplification effort, by achieving at least 25% reduction in administrative burdens, and at least 35% for SMEs until the end of this mandate. 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.

These proposals will reduce complexity of EU requirements for all businesses, notably SMEs and small mid-caps, focus our regulatory framework on the largest companies which are likely to have a bigger impact on the climate and the environment, while still enabling companies to access sustainable finance for their clean transition.

If adopted and implemented as set out today, the proposals are conservatively estimated to bring total savings in annual administrative costs of around €6.3 billion and to mobilise additional public and private investment capacity of €50 billion to support policy priorities.

“Simplification promised, simplification delivered! We are presenting our first proposal for far-reaching simplification. EU companies will benefit from streamlined rules on sustainable finance reporting, sustainability due diligence and taxonomy. This will make life easier for our businesses while ensuring we stay firmly on course toward our decarbonisation goals. And more simplification is on the way”, says President Ursula von der Leyen.

Key Measures for Transport and Mobility:

  • Sustainability reporting: Around 80% of companies will be exempted from the Corporate Sustainability Reporting Directive (CSRD), easing obligations for SMEs while maintaining transparency for major firms. Taxonomy reporting will also be simplified, reducing compliance costs.
  • Sustainability due diligence: Businesses will face fewer reporting burdens, focusing on direct partners rather than entire supply chains. SMEs will benefit from reduced administrative requirements.
  • Carbon border adjustment mechanism (CBAM): Small importers (mostly SMEs) will be exempt from CBAM obligations, eliminating requirements for 90% of importers while still covering 99% of emissions.
  • Investment opportunities: The InvestEU programme will be optimised, mobilising up to €50 billion in additional public and private investments, with a focus on innovation, decarbonisation, and sustainable transport.

These measures promise to cut annual administrative costs by €6.3 billion while enhancing sustainable business practices across Europe. The proposals will now be reviewed by the European Parliament and the Council for adoption.

Read the full press release here.

Next steps

The legislative proposals will now be submitted to the European Parliament and the Council for their consideration and adoption. The changes on the CSRD, CSDDD, and CBAM will enter into force once the co-legislators have reached an agreement on the proposals and after publication in the EU Official Journal. In line with the Communication on simplification and implementation published on 11 January 2024, the Commission invites the co-legislators to treat this omnibus package with priority, in particular the proposal postponing certain disclosure requirements under the CSRD and the transposition deadline under CSDDD, as they aim to address key concerns identified by stakeholders.

The draft Delegated Act amending the current delegated acts under the Taxonomy Regulation will be adopted after public feedback and will apply at the end of the scrutiny period by the European Parliament and the Council.

Source: European Commission