EU Commission proposes amendments to the CSRD, CSDDD, and EU Taxonomy, and introduces its Clean Industrial Deal to enhance the Union’s competitiveness.In brief
Today (26 February 2025), the European Commission published multiple policy documents and legislative proposals, following through on its commitment to improve the EU’s competitiveness under the European Commission’s Competitiveness Compass published on 29 January 2025.
Key takeaways
The following proposals are likely to be particularly relevant for businesses:
- The “Simplification Omnibus package“, which proposes amendments to the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Taxonomy Regulation (“EU Taxonomy“). Key proposals include the postponement of reporting obligations for CSRD and delayed implementation of CSDDD, reduction in applicability scope for CSRD and far-reaching amendments to the obligations under the CSDDD. Please see a detailed analysis of the proposal here.
- The “Clean Industrial Deal” seeks to promote EU industrial competitiveness, particularly in energy-intensive sectors, whilst maintaining the goal of achieving climate Net-Zero by 2050 – an important part of the package is a Commission proposal that the EU commits to a 90% GHG by 2040. The key actions of the Clean Industrial Deal include revision of the Public Procurement Directive offering protection for EU manufacturers, a significant redesign of the Carbon Border Adjustment Mechanism, the establishment of an ‘Industrial Decarbonisation Bank’ providing funding for industrial decarbonisation (with a funding target of EUR 100 billion, and a first EUR 1 billion pilot auction already set for 2025) and an ‘Affordable Energy Act’ (introducing a number of changes to the functioning of the EU’s energy markets, a strategy to reduce taxes on electricity, default guarantees for long-term power purchase agreements and changes to grid planning). Please see a detailed analysis of the communication here.
- The announcement of an important reform of the State aid rules, aimed at simplifying and making clearer the rules, especially those regarding aid to assist industry to decarbonise. This will be published by the Commission in Q2 2025.
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