EU Watchdog Contests Commission's Procedure for Rollback of Sustainability Measures
The European Commission's Omnibus I package, a set of legislative proposals aimed at simplifying and reducing the compliance burden associated with key sustainability regulations in the EU, has come under scrutiny from the European Ombudsman.
The Ombudsman, Teresa Anjinho, has formally asked the European Commission for an explanation on the lack of public consultation, impact assessment, and climate review in preparing the Omnibus I proposal. This inquiry suggests that the Commission did not adequately conduct or consider broader stakeholder engagement, thorough impact assessments, or compliance with climate objectives while formulating the package.
The Omnibus I package, published in February 2025, includes proposals to ease corporate sustainability reporting and due diligence requirements under the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the EU Taxonomy Regulation, and the Carbon Border Adjustment Mechanism (CBAM). The Commission and supporting bodies justify the Omnibus package primarily as a response to over-regulation and administrative burdens on companies, aiming to exclude around 80% of firms from CSRD’s scope, potentially saving about €4.4 billion annually in compliance costs.
However, the streamlined legislative approach has raised concerns regarding the bypassing of key procedural steps, such as public consultation, comprehensive impact assessment, and climate review mechanisms. Specifically, only two stakeholder meetings were held in February 2025, primarily with business groups, excluding other affected stakeholders and failing to justify bypassing public input.
Anjinho's inquiry also questions the Commission's justification of "critical urgency" in advancing the Omnibus I package. The Commission relied on a staff working document instead of a full impact assessment, citing economic urgency but no sudden or unexpected event was cited to justify this. The Ombudsman's intervention raises concerns about the Commission's commitment to a transparent, inclusive, and evidence-based law-making process.
The European Commission has until 15 September 2025 to respond to the inquiry, with Anjinho stating she will not grant an extension. The final outcome will depend on the ongoing negotiations within the EU legislative bodies throughout 2025.
The Ombudsman's inquiry is not the first time the Commission's approach to the Omnibus I package has been questioned. The proposals must still be negotiated and adopted by the European Parliament and Council, with the legislative process ongoing through late 2025 and into 2026. The European Parliament’s rapporteur released a draft report in June 2025 advocating for further cutbacks to sustainability reporting and due diligence obligations, pushing for higher thresholds and fewer mandatory climate-related requirements. The Council of the European Union has also endorsed its negotiating mandate, favoring reductions in scope and softer due diligence rules.
The controversy surrounding the Omnibus I package is not limited to this single proposal. The Commission has indicated that more such proposals are planned, raising serious transparency and accountability questions. The Ombudsman's inquiry will likely shed light on the Commission's approach to these proposals and its commitment to adhering to the EU's Better Regulation Guidelines and European Climate Law.
- The European Ombudsman, Teresa Anjinho, has raised questions about the European Commission's preparation of the Omnibus I package, specifically concerning the lack of public consultation, impact assessment, and climate review.
- The Ombudsman's inquiry reveals potential issues with the Commission's approach to corporate sustainability, such as the ease of reporting and due diligence requirements under the Corporate Sustainability Reporting Directive and other regulations, which could impact environmental-science, policy-and-legislation, and general-news.
- The streamlined legislative approach taken by the Commission in the Omnibus I package, justifying it as a response to over-regulation and administrative burdens, has led to concerns about the bypassing of key procedural steps and transparency in the decision-making process, particularly in light of the Commission's focus on finance and industry.
- The Ombudsman's inquiry implies that the Commission may need to reconsider its approach to future policy proposals if it wishes to maintain trust and adhere to the principles of evidence-based, inclusive, and transparent law-making, which are crucial for promoting corporate sustainability and combating climate-change.
