On February 25, 2025, the European Commission adopted new proposals simplifying sustainability regulations for businesses. The proposal cited concerns that complex rules and excessive red tape are hindering competitiveness and discouraging economic investment within the EU. It included delaying the implementation of the Corporate Sustainability Reporting Directive (CSRD) for all available companies and revising other sustainability laws under the European Green Deal.

Commissioners Maria Luis Albuquerque and Valdis Dombrovskis introduced the initiative at a plenary debate of the European Economic and Social Committee (EESC). Dombrovskis outlined key changes to reduce administrative complexity, including exempting 80% of companies currently under the CSRD, delaying the corporate sustainability due diligence law, removing sector-specific reporting mandates, modifying EU taxonomy rules on sustainable investments, and simplifying the Carbon Border Adjustment Mechanism (CBAM).

The proposal received support from business groups and criticism from environmental advocates, reflecting ongoing tensions between the EU’s climate goals and economic policies.