The EU has finalized measures to simplify and delay the application of key sustainability regulations, providing businesses with greater clarity and planning certainty. The changes follow the Omnibus package introduced earlier in 2025 and include amendments to the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and related frameworks. The EU Parliament approved the amendments, and EFRAG released revised European Sustainability Reporting Standards (ESRS) to streamline reporting obligations. Updates to the EU Taxonomy, adopted in July 2025, will apply from January 2026, and targeted simplifications and delays to the EU Deforestation Regulation (EUDR) were also endorsed.

On 9 December 2025, the European Parliament and Council agreed on the EU Deforestation Regulation (EUDR), which aims to prevent products linked to deforestation from entering or leaving the EU market.
The Regulation introduces a due diligence system requiring operators and traders to ensure products are “deforestation-free,” provide geolocation data, and submit compliance statements. Non-compliance may result in fines of up to 4% of EU turnover. The main obligations will apply from 30 December 2024.

On 23 September 2025, the EU Environment Commissioner proposed delaying the EU Deforestation Regulation (EUDR) by another year due to IT system challenges. Originally set for 30 December 2025, the compliance deadline may be extended to 30 December 2026. The delay aims to reduce uncertainty for authorities and stakeholders and ensure the IT infrastructure can handle operational demands. Further discussions among EU institutions are expected before a formal announcement.