Omnibus I and II, Clean Industrial Deal, CBAM Modifications: Key Takeaways from the EC’s Announcements

As scheduled, on February 26 the European Commission (EC) presented a set of measures aimed at creating a ‘simplification shock’ to strengthen the competitiveness of the European Union while facilitating the transition to a sustainable economy. This initiative has materialized by the presentation of two Omnibus packages, first one including proposals to amend several existing directives and the other one modifying regulations. In parallel, the EC unveiled a new plan, the Clean Industrial Deal, as well as some adjustments to the Carbon Border Adjustment Mechanism (CBAM). Among the announced measures, there is a significant reduction in the number of companies subject to reporting requirements, with the CSRD now only applying to large companies with more than 1,000 employees, resulting in an approximately 80% decline in the number of affected companies. Furthermore, to lighten the burden for businesses , reporting obligations will be simplified and the deadlines extended for the implementation of the reporting and due diligence requirements. The modification of the InvestEU regulation (Omnibus II) also aims to facilitate access to investments, mobilising around €50 billion in additional public and private investment, while reducing administrative burdens. Additionally, delegated acts will be developed to improve the transparency and standardization of the content and presentation of sustainability reports.