In February 2025, the European Commission presented its “Omnibus” package aiming to delay application as well as simplify certain obligations under the CSRD, CSDDD and the EU Taxonomy with the ultimate goal of reducing administrative burden and thus addressing concerns that the rules would hamper European competitiveness (see our summary of the Omnibus here). Following the approval of the “stop the clock” Directive, which delays application of the CSRD and CSDDD for certain companies, the EU institutions are now focusing efforts on the substantive proposal to simplify and streamline certain obligations under these rules. In parallel, the EU Commission is also working to publish updates to the EU Taxonomy.

In February 2025, the EU Commission introduced the Omnibus Simplification Package to streamline sustainability regulations. This package includes two proposed Directives: the “Stop-the-clock” Directive, which proposes delaying the CSRD and CSDDD compliance timelines, and a second Directive that suggests substantive changes to both the CSRD and CSDDD. The “Stop-the-clock” Directive is now close to being approved, giving businesses more certainty on the timeline for compliance.