Civil society and investors urge the EU Commission to protect CSRD, CSDDD, and Taxonomy in the upcoming Omnibus proposal, expected in February
Safeguarding Green Deal Achievements Amid Concerns Over New EU Omnibus Law
Preserving the gains of the Green Deal, enhancing corporate accountability, and ensuring the protection of the environment and human rights should guide the European Commission as it simplifies the regulatory framework for ESG requirements and sustainability reporting. However, the upcoming EU Omnibus law appears to be moving in the wrong direction.
This concern is outlined in a letter sent to the European Commission on January 14, signed by 168 organizations and investors. The Omnibus package, set to be unveiled by the end of the month, aims to merge the three pillars of EU sustainability policies: the CSRD, the CSDDD, and the Taxonomy Regulation. The stated goals are to eliminate redundancies, reduce administrative burdens, and improve policy clarity.
Risks Associated with the EU Omnibus Law
The signatories argue that the proposed legislation poses more risks than opportunities. Chief among these is the potential weakening of existing protections. Revisiting key Green Deal laws could jeopardize human rights, environmental safeguards, and climate goals. Moreover, the proposal risks creating confusion in countries that have already begun implementing existing laws, effectively rewarding companies that have not yet prepared for compliance.
Another significant concern is the possibility of a “race to the bottom” in value chain standards, leading to increased human exploitation and environmental damage. Reopening these regulatory chapters could give opponents of the Green Deal a chance to push for weaker standards.
The broader implications? Damage to European competitiveness, increased pressure on the manufacturing sector in the medium and long term, and global repercussions on human rights and environmental protections.
Recommendations to the European Commission
In response, the letter outlines the following urgent recommendations:
- Protect Existing Laws: Avoid altering key Green Deal regulations and focus on supporting their implementation.
- Adhere to Timelines: Uphold the official schedule for transposing and implementing directives.
- Ensure Transparency: Provide clear and transparent guidelines regarding the process, impact, and consultations for the EU Omnibus proposal.
