The proposals, referred to as the fist "Omnibus" packages, consolidate legislative changes in several key areas, including sustainable finance reporting, due diligence, the EU Taxonomy, the carbon border adjustment mechanism (CBAM) and European investment programmes. This unified approach significantly reduces the complexity of regulatory requirements, aiming to benefit companies of all sizes, particularly small and medium-sized enterprises (SMEs) and small mid-caps (SMCs).

Some of the proposed changes entailed in the first “Omnibus” packages are set out below:

1. Improving the accessibility and efficiency of sustainability reporting

• Approximately 80% of companies will be excluded from the Corporate Sustainability Reporting Directive’s (CSRD) scope, focussing the sustainability reporting obligations on the largest companies.
• The EU Taxonomy reporting obligations will be limited to the largest companies.
• By focussing on the largest companies with significant environmental impact, the proposals aim to alleviate unnecessary burdens on smaller businesses while maintaining access to sustainable finance for green initiatives.
• The reporting requirements for companies currently in the scope of CSRD will be postponed until 2028.
• The option of reporting on activities that are partially aligned with the EU Taxonomy will be introduced.
• A financial materiality threshold for the Taxonomy reporting will be introduced.
• Simplifications to the most complex “Do no Significant harm” (DNSH) criteria will be introduced.
• The main Taxonomy-based key performance indicator for banks, the Green Asset Ratio (GAR) will be adjusted.

2. Simplifying due diligence

• Sustainability due diligence requirements will be simplified to help in-scope companies to avoid unnecessary complexities and costs.
• The burden and trickle-down effects for SMEs and SMCs will be minimised by limiting the volume of information large companies may request during value chain mapping.
• The harmonisation of due diligence requirements will be enhanced to ensure a level playing field across the EU.
• The application of the sustainability due diligence obligations for the largest companies will be postponed by one year (26 July 2028), while accelerating the adoption of the guidelines by one year (July 2026).

3. Simplifying CBAM

• Small importers will be exempted from CBAM obligations by introducing a new cumulative annual threshold of 50 tonnes per importer. This change will remove CBAM obligations for around 182,000 importers (about 90%), while still covering over 99% of the emissions in scope.
• Requirements will be simplified for companies that remain under CBAM, including simplified procedures for CBAM declarant authorisation, emission calculation, and reporting obligations.
• Long term effectiveness will be enhanced by reinforcing rules to prevent circumvention.

4. InvestEU programme

• The EU’s investment capacity will be increased. This approach is expected to unlock around €50 billion in additional public and private investments, with a focus on supporting projects aligned with key priorities like the Competitiveness Compass and the Clean Industrial Deal.
• Member State contributions to the programme will be facilitated, enabling them to better support their own businesses and attract private investment.
• Administrative burdens for implementing partners, financial intermediaries, and final beneficiaries, particularly SMEs will be simplified. The proposed simplification measures are anticipated to deliver cost savings of €350 million.

For SMEs and SMCs navigating sustainability regulations, the updated framework attempts on streamlining compliance processes.

The press release can be found here and relevant publications here.