What does the EU omnibus package say?

Context of the Omnibus Regulation

On February 26, 2025, the European Commission presented a package of rules aimed at simplifying the existing sustainability rules for European businesses. Why? Because they realized that the initial regulations were negatively affecting the competitiveness of businesses in Europe.

Main objective: To enable businesses to be more sustainable without losing growth opportunities. To achieve this, sustainability rules have been reworked, making them easier to comply with and less costly, especially for SMEs.

What regulations does the omnibus package address?

The Omnibus Package focuses on simplifying sustainability regulations, but without losing sight of the original goal: ensuring businesses fulfill their environmental and social responsibilities.

Specifically, it addresses three key regulations:

1. CSRD (Corporate Sustainability Reporting Directive)
2. CSDDD (Corporate Sustainability Due Diligence Directive)‍
3. CBAM (Carbon Border Adjustment Mechanism)

CSRD: fewer requirements for smaller businesses

Reduction of scope for some companies:

Previously, companies with fewer than 250 employees and a turnover under 40 million euros had to comply with the CSRD. With the proposed changes:

• 80% of companies will be exempt from these reporting requirements, particularly those with fewer than 1,000 employees.
• Medium and large businesses (with more than 1,000 employees or turnover above 50 million euros) will still be required to report under the CSRD, but with simplified requirements and easier standards.

Simplification of ESRS

One of the main criticisms of the CSRD was that it required too much qualitative information, which forced businesses to invest a lot of time and resources. With the proposed changes:

• The reporting process will be simplified, with more quantitative data and fewer qualitative reports, reducing the administrative burden.

New Standards

‍The CSRD previously required reports to be aligned with the EU Taxonomy, meaning businesses had to demonstrate how their activities align with the EU's sustainability goals.

• Companies must now address key issues like climate change mitigation, biodiversity, and efficient resource use, providing clearer information about their impact on sustainability.

Audits

In the previous version of the CSRD, sustainability reports had to be audited. With the proposed changes:

• Full audits will no longer be required. Instead, businesses can opt for a simpler and cheaper audit called limited assurance.

Deadlines

• Large companies (with more than 1,000 employees and 50 million euros turnover) will continue to comply with the CSRD starting 2026.
• For companies that previously had to report in 2026 and 2027, compliance is postponed until 2028.

EU taxonomy: more flexibility for businesses

The EU Taxonomy defines what activities are considered sustainable based on environmental criteria set by the EU. The CSRD used to require that all companies reporting on sustainability also include how they align with the Taxonomy. With the proposed changes:

• Large companies will still be required to report their alignment with the EU Taxonomy.
• Small businesses won’t be obligated to report but can do so voluntarily if they wish.
• Companies will also be allowed to report partially. This means businesses can report only the activities that are partially aligned with the Taxonomy, without needing to meet all the criteria.

Due diligence: less administrative burden

In simple terms, due diligence requires businesses to measure the social and environmental impacts in their supply chain. The proposed changes in the Omnibus Package include:

• Simplified assessments: Companies will only need to focus on their direct partners, not the entire supply chain.
• Reduced frequency of evaluations, from once a year to every 5 years.
• Less information required from small businesses, reducing their administrative burden.

What does this mean for businesses?

• Large businesses will still need to measure sustainability impacts across their entire supply chain, but now the process is simplified, and less information will be required.‍
• SMEs will not be required to assess their indirect partners, saving them time and effort. Additionally, they will not be required to respond to excessive information requests from larger companies.

CBAM: adjustments for small importers

The CBAM (Carbon Border Adjustment Mechanism), which regulates imports of products with high carbon emissions, has also been simplified for SMEs:

• SMEs that import less than 50 tonnes per year of products affected by CBAM will be exempt.
• Large companies will still be responsible for the emissions of their imports, but the rules will be simplified and clearer.

Investment: more opportunities for businesses

In addition to sustainability, the Omnibus Package also promotes investment through simplifying the InvestEU program. Simplified requirements will allow SMEs to access sustainable funding more easily, mobilizing up to 50 billion euros in additional investments.

Conclusion: facilitating the green transition for Europe

With the Omnibus Package, the European Commission is making it easier for businesses—especially smaller ones—to transition towards sustainability. By reducing the regulatory burden, they aim to improve the competitiveness of European companies without sacrificing sustainability goals.

This package is a significant step towards a greener and more competitive future, allowing businesses to grow and innovate while contributing to the fight against climate change.

If you want to fully understand all these changes and how they affect you, join us on March 6 at 11:00 AM for our webinar. Register now and we'll explain everything!