The European Commission (EC) has just published a Call for Evidence to collect opinions on an upcoming “environmental omnibus” proposal, aiming to simplify the environmental legal system and reduce the administrative burden for businesses, especially in areas such as the circular economy, industrial emissions and waste management.
The initiative is part of a broader EU reform effort to simplify regulation, following the launch in January of the “Competitiveness Compass” – a roadmap to improve Europe’s productivity and global competitiveness. It aims to reduce reporting obligations by at least 1% for all companies, and by 25% for small and medium-sized enterprises (SMEs).
The first package of proposals under this reform process is “Omnibus I”, launched in February 2, with the aim of significantly reducing the burden of sustainability reporting and regulation on businesses. The package proposes a series of regulatory changes, such as the Corporate Sustainability Reporting Directive (CSRD), the Corporate Responsibility Due Diligence Directive (CSDDD), the Taxonomy Regulation and the Carbon Border Adjustment Mechanism (CBAM).
The “reopening” of reporting and due diligence rules could lead to more far-reaching changes than initially proposed, with some EU MEPs proposing a significant increase in the size threshold for companies to fall within the scope.
However, the EC’s approach to Omnibus I is also under scrutiny. The EU Ombudsman recently asked the Commission for information after receiving complaints that the package of proposals was rushed through, skipping the required steps of public consultation and regulatory impact assessment.
In its new call for comments, the Commission is assessing areas that could be included in the next omnibus proposal to reduce administrative burden, including:
Circular economy,
Industrial emissions,
Waste management.
Specifically, measures under consideration include:
Streamline reporting obligations in Waste Framework Directive,
Harmonization of Extended Producer Responsibility (EPR) regulations,
Simplify reporting obligations in the above areas,
Overcoming bottlenecks in the licensing process related to environmental assessment.
The Commission said the aim of these policy measures was to reduce costs for business in reporting, monitoring, notification and auditing – but not undermine the environmental objectives for which the legislation is intended.
The new proposals are expected to be published by the EC on Fourth quarter of 2025.
The Commission emphasized:
“Reducing the administrative burden in environmental laws will make these regulations more effective and ensure better environmental protection in the long term.”