Omnibus Directive: the Commission's proposals for EU competitiveness

The "Omnibus" package comprises two proposals for directives aimed at :

• Easing sustainability reporting requirements, in particular by postponing certain obligations imposed by the Corporate Sustainability Reporting Directive (CSRD) to 2028;
• Focus sustainability due diligence obligations more sharply on direct business partners;
• Clarify the rules for applying the green taxonomy, to make it easier to understand and implement in practice;
• Simplify conditions of access to sustainable European financing, in particular through InvestEU and other strategic instruments;
• Reduce the obligations associated with the border carbon adjustment mechanism (MACF), particularly for small, low-emission structures.

These proposals are part of a drive to rationalize standards, with the overall objective of reducing administrative burdens by 25%, which would represent annual savings of over €6 billion for economic players.

• The Corporate Sustainability Duty of Care Directive (CSDDD): while the basic idea remains, the duty of care will now focus on direct business partners, rather than the entire supply chain;
• The Sustainability Reporting Directive (SRD): adopted to increase corporate transparency on environmental and social impacts, the SRD has been scaled back. The revised framework removes 80% of companies from its scope, limiting reporting obligations to those with more than 1,000 employees and sales in excess of €50 million or balance sheet total in excess of €25 million;
• The border carbon adjustment mechanism (MACF): a central element is the introduction of a new de minimis MACF threshold, which will exempt occasional importers of small quantities of products covered by the scheme. For exempted importers, MACF-related administrative costs - i.e. all costs associated with MACF compliance other than the MACF financial obligation - would be reduced by almost 100%.
• The regulation establishing the taxonomy: the green taxonomy that applied to all companies will now apply to companies with more than 1,000 employees and sales in excess of 450 million euros, while remaining optional for other companies;
• InvestEU Fund: the European Commission is proposing to increase by €2.5 billion the guarantee provided by InvestEU, the European Union's flagship program to support sustainable investment.

While the aim of simplification is commendable, the FNTP deplores the lack of ambition in the proposals put forward by the European Commission:

The Omnibus package proposals will now have to be examined by the European Parliament and the Council of the European Union. Adoption could take place by the end of 2025, with gradual entry into force from 2026.