“A Trojan horse for aggressive deregulation”: EU’s Omnibus package condemned by environmentalists

On February 26, 2025, the European Commission unveiled the Omnibus Simplification Package, a two-part initiative aimed at enhancing European competitiveness by reducing regulatory burdens. Environmental NGOs strongly oppose the move, arguing that the package serves as a vehicle for aggressive deregulation, undermining recently established protections for people and the planet.

The first segment of the package, Omnibus I, focuses on revising key components of the Corporate Sustainability Due Diligence Directive (CSDDD), a law that mandates large companies to conduct thorough due diligence to identify and address potential adverse human rights and environmental impacts within their operations and across their entire supply chain. Omnibus I also revises components of the Corporate Sustainability Reporting Directive (CSRD), a law mandating that large companies regularly publish detailed reports on their environmental and social impact; and the EU Taxonomy, a classification system established to clarify which economic activities are environmentally sustainable. Rather than providing clarity, critics assert that these revisions dismantle essential elements of the Green Deal and responsible business practices.

ERF grantee partners ClientEarth and Environment at the European Environmental Bureau (EEB) were among the critics of the Omnibus Simplification Package. Amandine Van den Berghe, a senior lawyer for ClientEarth stated: “The Commission has decided to tear down three key pillars of the Green Deal that ensure businesses act responsibly throughout their value chain – a reckless move that could actually not only hinder the EU’s environmental goals but also the competitiveness of the EU market. At a time when corporate climate action needs more accountability, not less, weakening transition plan requirements is highly problematic.”

In addition to weakening corporate responsibility and watering down climate transition plan obligations, NGOs highlight that revising these directives without an impact assessment or proper consultation process undermines democratic principles enshrined in the EU Treaties.

Faustine Bas-Defossez, Director for Nature, Health, and Environment at the EEB, reinforced this concern, stating: “It is now clear that ‘simplification’ is just a Trojan horse for aggressive deregulation. The Omnibus Simplification Package isn’t just an attack on corporate environmental accountability; it’s a blow to democracy.”