European Commission Proposes Changes to Sustainability Regulations: Possible CBAM Delay Until 2027

On February 26, 2025, the European Commission presented the simplification package known as "Omnibus," which proposes significant modifications to various directives and mechanisms related to sustainability.

Regulatory Framework on Sustainability in the European Union

The Corporate Sustainability Reporting Directive (CSRD) of the European Union establishes a mandatory framework for companies to measure and disclose their environmental, social, and governance (ESG) impact. This regulation requires supply chain transparency and promotes the implementation of green logistics.

To comply with the CSRD, companies can use recognized standards, such as:

• Global Reporting Initiative (GRI): Provides a framework for assessing sustainability and improving supply chain transparency.

• Sustainability Accounting Standards Board (SASB): Focuses on sustainability reporting with financial impact.

• Task Force on Climate-related Financial Disclosures (TCFD): Helps integrate climate risks into business and logistics strategies.

  
  

What Changes Were Made as a Result of Omnibus?

The Omnibus package introduces several key modifications to sustainability regulations, aiming to reduce administrative burdens and enhance the competitiveness of businesses in the EU. The main changes include:

Corporate Sustainability Reporting Directive (CSRD):

• It is proposed that only companies with more than 1,000 employees be required to comply with the CSRD and the EU taxonomy standards.

• Small and medium-sized enterprises (SMEs) may refuse to provide data for CSRD compliance by larger companies.

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Corporate Sustainability Due Diligence Directive (CSDDD):

• The implementation of the CSDDD could be delayed until mid-2028.

• Supply chain due diligence obligations would focus only on direct suppliers, with assessments conducted every five years instead of annually.

  
  

Carbon Border Adjustment Mechanism (CBAM):

• A proposal to exclude 182,000 importers by setting a minimum threshold of 50 metric tons per year for importers covered by the CBAM.

• The full implementation of the CBAM could be postponed until 2027.

  
  

These proposals aim to reduce regulatory burdens and improve the competitiveness of European companies but require approval from the European Parliament and a majority of EU member states.