- within Corporate/Commercial Law topic(s)
- with Finance and Tax Executives
- in European Union
- in European Union
- in European Union
- in European Union
- in European Union
- in European Union
- in European Union
- in European Union
- with readers working within the Banking & Credit, Technology and Media & Information industries
In a surprising move on 22 October 2025, the European Parliament rejected the mandate for the proposed Omnibus Regulation, creating a pause in the EU's sustainability reform agenda. The proposal will now return to the plenary session on 11–13 November, where Members of Parliament will debate and vote on the package in full and possibly reopen parts of it for amendment. The rejection highlights growing political tensions around the future of EU sustainability legislation and raises critical questions about the direction of the European Green Deal.
What happened at the vote?
Parliament voted against giving the green light to move the Omnibus compromise forward, meaning the proposal will undergo another round of discussion in November. This decision has added a layer of uncertainty to the legislative process. Instead of being fast-tracked, it now heads back to plenary, where it will be debated and voted on in full. A new deadline for amendments will be set, which means parts of the compromise could be reopened, potentially reshaping the proposal. This also risks delaying progress and unravelling agreements that had already been reached.
What is the Omnibus Regulation?
Introduced by the European Commission on 26 February 2025, the Omnibus package is a simplification initiative aimed at easing compliance with the EU's sustainability framework.
It proposes amendments to three cornerstone laws of the European Green Deal:
The main objective is to reduce reporting burdens, particularly for mid-sized companies, while maintaining consistency and competitiveness in the EU's sustainability agenda.
Key changes proposed
1. CSRD
The Omnibus proposes a narrower scope for CSRD, limiting mandatory reporting to companies with:
As a result...
2. EU TAXONOMY
- Reduced scope aligned with CSRD thresholds.
- Gradual adoption through partial alignment.
- Materiality thresholds (e.g., 10% of turnover or assets).
- Simplified DNSH criteria and fewer reporting templates.
2. CSDDD
The directive's scope is significantly reduced to companies with:
These proposals were intended to shift the focus from the quantity of reporting to its quality and proportionality — an aim that will now be reconsidered as Parliament revisits the file in November.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
