Postponed is not abandoned – current developments at EU level

At the end of the year, the European Commission made another push: With the so-called Environmental Omnibus, several proposals were presented that are intended to partially relax, postpone, or simplify existing energy and environmental regulations. The aim is to strengthen the competitiveness of European companies and reduce administrative burdens.

This overview is fully up-to-date, does not claim to be exhaustive, and focuses on particularly practice-relevant aspects of energy and environmental law.

1. CSRD – sustainability reporting with new thresholds

With regard to the Corporate Sustainability Reporting Directive (CSRD), the Commission proposes a substantial narrowing of its scope of application. In the future, only companies with more than 1,000 employees and revenues exceeding €450 million will be required to report.

As a result, a substantial number of companies that are currently covered would once again fall outside mandatory sustainability reporting. The measure is explicitly justified by the aim of strengthening the Union’s competitiveness. Critics, however, speak of a de facto hollowing out of the CSRD.

2. CSDDD – supply chain obligations significantly narrowed and postponed

The Commission is also planning a noticeable easing of the Corporate Sustainability Due Diligence Directive (CSDDD), the European Supply Chain Act. In the future, the obligations will only apply to large companies with more than 5,000 employees and an annual turnover of at least €1.5 billion.

In addition, the start of application will be postponed further: Companies will have to comply with the requirements from 2029 at the earliest. Originally, significantly lower thresholds had been envisaged.

3. EU Deforestation Regulation (EUDR) – postponed again

The EU Deforestation Regulation (EUDR) has been postponed once more. The Council and the European Parliament have agreed to delay its application for all businesses by one year and to simplify it at the same time.

Large companies are now scheduled to start on December 30th, 2026, and small and medium-sized enterprises on June 30th, 2027. In addition, a comprehensive review is planned by April 2026 to further simplify the regulation. For example, the due diligence statement will only have to be issued by the company that manufactures the products in the EU or imports them into the EU. Substantively, however, the objective remains the same: In the future, only deforestation-free products (e.g., wood, cocoa, coffee, palm oil, or rubber) may be placed on the EU market.

4. Battery law – simplification instead of tightening

In battery law as well, the Commission is focusing on relief. The key innovation is the simplification of extended producer responsibility (EPR): Until 2035, European manufacturers will no longer be required to appoint an authorized representative in every member state in which they market batteries or battery-powered products, provided they are not established there.

This suspends administrative and financial burdens that have so far been considerable. Further harmonization and streamlining of EPR systems is to take place only within the framework of a future Circular Economy Act. The core sustainability objectives of the Battery Regulation, particularly with regard to recycling, carbon footprint, and supply chains, remain unaffected, but implementation is to become much more practical.

A central innovation is the simplified reporting obligations. The Commission will no longer have to review and publish data from member states every four years, but will instead review data as needed and determine publication at its discretion.

5. Climate protection instruments: CBAM remains, ETS2 is postponed

In the area of climate protection, a differentiated picture emerges: The Carbon Border Adjustment Mechanism (CBAM) remains unchanged in substance. Companies must continue to prepare for its gradual introduction and full effectiveness starting in 2026.

By contrast, ETS2, the new emissions trading system for road transport and buildings, is being postponed. The start date is being pushed back to avoid social and economic disruptions.

Outlook: so far, so good – but implementation is what counts

The Commission’s proposals may provide short-term relief, but one thing is clear: Postponed is not abandoned. Many measures still need to be implemented through the legislative process, and political resistance is already becoming apparent.

What is particularly striking is the uniqueness of the approach: Such far-reaching, partly activist intervention in legal acts that have already been adopted is unusual and shows how much pressure current geopolitical and economic developments are putting on European legislators. Whether the chosen course will in fact lead to greater planning certainty will only become clear in the years to come.

Disclaimer

This article is for general information only and does not replace legal advice. Haslinger / Nagele Rechtsanwälte GmbH assumes no liability for the content and correctness of this article.

 

22. December 2025

 

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