EU Omnibus Simplification Proposal: What’s Included?
CSRD, CSDDD, CBAM EU Taxonomy
On February 26, 2025, the European Commission announced the ‘Omnibus package’, a proposal that significantly scales back the current EU corporate sustainability obligations.
The directives under scope include Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy Regulation, the Corporate Sustainability Due Diligence Directive (CSDDD) and the Carbon Border Adjustment Mechanism (CBAM).
Key changes from the Omnibus package.
Carbon Border Adjustment Mechanism (CBAM)
- 90% of importers exempt: A 50-tonne annual cumulative threshold instead of €150 per consignment. This will exclude smaller businesses, while still covering 99% of emissions.
- Simplified compliance: Easier emissions calculations, faster authorization, while tightening anti-fraud measures.
- Reduced burden on declarants: The certification requirement for imports has been lowered from 80% to 50%.
- Future expansion: New sectors may be added to CBAM by 2026.
Corporate Sustainability Reporting Directive (CSRD)
- 80% of companies removed from scope: Only large corporations (1,000+ employees, €50M - turnover) remain covered. For mid-sized companies the disclosure is voluntary.
- Extended reporting deadlines: New compliance date will be moved from 2026 or 2027 to - 2028.
- Simplified taxonomy reporting: 70% fewer templates, voluntary reporting for smaller - companies,
- No mandatory sector-specific standards. sector-specific reporting standards, with the first set due by June 2026, will be removed
Corporate Sustainability Due Diligence Directive (CSDDD)
- Limited due diligence scope: Applies only to direct business partners, with indirect assessments required only for known ESG risks.
- Reduced assessment frequency: ESG reviews required every 5 years, not annually.
- Legal liability eased: National laws govern civil liability, with limits on excessive penalties.
- Delayed implementation: New compliance date of July 2028 (previously July 2027), with guidelines available by 2026.
What Next
The Commission asked the Parliament and the Council to fast-track approval of the package, though the regular process takes time. Even with rapid approval, member states will have 12 months to implement the directive, likely delaying implementation until late 2025 or 2026.