Omnibus Package: key changes for EU competitiveness and climate protection

The European Union faces the challenge of reconciling ambitious climate goals with the need to enhance business competitiveness. The Omnibus Package, announced on February 26, 2025, aims to address these needs. The new regulations seek to simplify sustainability-related legislation and adapt it to economic realities, particularly for small and medium-sized enterprises (SMEs).

What legal acts does the Omnibus Package cover?

During the announcement of the Omnibus Package, Commissioner Valdis Dombrovskis highlighted the rapidly changing world and geopolitical situation. His key message emphasized the need to boost Europe’s competitiveness.

The Omnibus Package introduces amendments to key legislative acts, including:

• CSRD (Corporate Sustainability Reporting Directive) – regulations on sustainability reporting,
• CSDDD (Corporate Sustainability Due Diligence Directive) – rules on corporate due diligence,
• EU Taxonomy – classification of environmentally sustainable activities,
• CBAM (Carbon Border Adjustment Mechanism) – a system for adjusting carbon emission costs at the EU’s borders.

These changes aim to reduce excessive bureaucracy and facilitate business operations while maintaining high environmental standards.

Why was the Omnibus Package introduced?

The reform was prompted by Mario Draghi’s report “The Future of Europe’s Competitiveness”. Experts pointed out that overly complex regulatory requirements hinder innovation, economic growth, and the competitiveness of European companies. In response, the EU decided to create a more business-friendly regulatory environment that fosters dynamic corporate growth.

Opinions on the Omnibus Package – benefits and risks

The reform has sparked mixed reactions:

• Businesses – many welcome the simplifications, though some are concerned about uncertainties surrounding the new regulations.
• ESG experts – warn about risks related to voluntary reporting, which may impact data transparency and comparability.
• Climate advocates – fear that regulatory simplifications could weaken the implementation of the Green Deal and the Paris Agreement goals.

Will the Omnibus Package impact the EU’s climate goals?

European Commission President Ursula von der Leyen assures that the EU remains committed to its ambitious climate targets. She emphasizes that regulatory simplifications do not equate to deregulation but rather more efficient regulatory management. However, frequent legislative changes may lead to uncertainty and hinder the implementation of long-term climate strategies.

Conclusion

The Omnibus Package represents an attempt to balance the competitiveness of European businesses with environmental protection. Will it prove effective? A final assessment will only be possible in 2030, when the EU reviews the progress of its Fit for 55 package.

***

Want to know #MORE? >> Check our solution webiste >> https://www.mddp.pl/esg-en/.