EU Omnibus proposal faces political battle in parliament

The European Commission’s Omnibus simplification proposal, aimed at scaling back and delaying sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD), generated a heated debate on Monday night. The deep divisions revealed make it clear that consensus will be difficult to achieve.
EU finance ministers broadly welcomed the proposal as a reasonable balance—supporting reporting delays while maintaining the goals to embed sustainability disclosures into corporate reporting (not to mention structured digital reporting requirements). Thee European Central Bank (ECB) stressed the need for consistent, comparable sustainability data. The European Investment Bank (EIB) also cautioned that technical implementation must be carefully handled. However, in Parliament, political fault lines are stark.
The centre-right European People’s Party (EPP) is pushing for an “urgent procedure” to fast-track delays, while centre-left Socialists & Democrats (S&D) argue that the proposal prioritises deregulation over true simplification. The Greens have criticised it as a major setback for the green transition, warning that it could deter investors already committed to sustainability. Meanwhile, conservative and far-right groups are calling for deeper cuts to regulations, with some advocating for a complete overhaul of EU sustainability rules.
With Parliament deeply divided, the Omnibus proposal’s future is an uncertain numbers game. The outcome will have major implications for corporate sustainability reporting in the EU.
More updates to come as negotiations continue. Read more about this week’s debates here, here and here.