{"id":3699,"date":"2025-08-19T16:45:56","date_gmt":"2025-08-19T14:45:56","guid":{"rendered":"https:\/\/audicia.qreative.be\/simplification-via-the-omnibus-1-directive\/"},"modified":"2025-09-01T12:12:58","modified_gmt":"2025-09-01T10:12:58","slug":"simplification-via-the-omnibus-1-directive","status":"publish","type":"post","link":"https:\/\/audicia.be\/en\/simplification-via-the-omnibus-1-directive\/","title":{"rendered":"Simplification via the “Omnibus 1” Directive"},"content":{"rendered":"\t\t
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2-Year Postponement of Sustainability and Due Diligence Reporting Rules<\/strong><\/h3>

Here are the main points that have been adopted or advanced<\/strong> to date (early August 2025).<\/p>

<\/p>

1. Adoption of the “Regulatory Pause” Directive for CSRD and Cs3d<\/strong><\/h3>

<\/strong>The d<\/strong>irective “regulatory pause” (<\/strong>“Stop-the-Clock Directive”) <\/strong>was adopted in April 2025<\/strong>. It is part of the “Omnibus” package to reduce the administrative burden on businesses. <\/p>

  • This directive by 2 years<\/strong>postpones certain obligations<\/strong> for sustainability reporting imposed by the CSRD directive.<\/strong><\/li><\/ul>

    This directive postpones by two years<\/strong> the application of CSRD obligations, sustainability reporting, for wave 2 companies (large non-NFRD companies = unlisted) (start their reporting only in 2028, for the 2027 financial year) and wave 3 (listed SMEs): financial year 2028<\/strong> from 2029.<\/p>

    Note: large companies already subject to the NFRD (Non-Financial Reporting Directive) remained concerned from 2024<\/strong>. Their timeline has not been modified<\/strong>. In 2022, the European Union adopted the CSRD (Corporate Sustainability Reporting Directive)<\/strong> to replace and strengthen<\/strong> the NFRD. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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    Why Was this Directive Adopted?<\/strong><\/h4>

    It allows the European Commission to revise the ESRS standards (European Sustainability Reporting Standards in connection with the CSRD), through Efrag, with a simplification objective (fewer data points, removal of sectoral standards).<\/p>

    • For the CS3D (<\/strong>Corporate Sustainability Due Diligence Directive)<\/strong> (Directive on Corporate Due Diligence)<\/strong>, transposition by Member States is now scheduled for end July 2027<\/strong>, with a first application by end July 2028<\/strong> for large companies.<\/li><\/ul>

      <\/h4>

      What Must European Companies Do for Cs3d?<\/strong><\/h4>

      Companies will need to:<\/p>

      1. Identify human rights\/environmental risks and violations in their value chain<\/li>
      2. Implement risk prevention and correction measures<\/li>
      3. Develop a climate transition plan<\/strong> aligned with the Paris Agreement to limit negative impacts<\/li>
      4. Ensure public transparency<\/strong><\/li>
      5. Create grievance mechanisms<\/strong> for stakeholders (suppliers and subcontractors)<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
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        2. Ongoing Proposals (not yet Adopted)<\/strong><\/h3>

        These measures are part of the Omnibus proposal but still need to be approved by the European Parliament and the Council:<\/p>

        • CSRD<\/strong>: Reduction of ~80% of the scope of subject companies, only those with >1,000 employees (and raised financial thresholds).<\/li>
        • Taxonomy<\/strong>: Lighter obligations (voluntary reporting, financial thresholds, DNSH simplification, overhaul of the Green Asset Ratio)<\/li>
        • CS3D<\/strong>: Simplification of obligations \u2014 assessment every 5 years, focus on direct suppliers, removal of harmonized civil standards, simplified transition plan.<\/li>
        • CBAM<\/strong> (Carbon Border Adjustment Mechanism) (= Carbon Border Adjustment Mechanism):<\/li><\/ul>

          <\/strong><\/p>

          The CBAM requires importers of certain products<\/strong> from non-EU countries to pay an equivalent cost<\/strong> to that borne by European companies under the European carbon quota system (EU ETS).<\/p>

          New exemption threshold: < 50 tonnes\/year (CO\u2082 equivalent) exempting 90% of importers, easing of calculations, postponement of certificate sales to February 2027, modified deadlines for declarations, support via default values.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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          Why Was CBAM Created?<\/strong><\/h4>

          The European Union aims to reduce greenhouse gas emissions. This comes at a cost for European companies (purchase of carbon allowances, green investments, etc.). <\/p>

          The risk<\/strong> is that companies relocate their production to countries with less stringent climate requirements, known as carbon leakage<\/strong>.<\/p>

          CBAM therefore aims to:<\/p>

          • Prevent the relocation of polluting activities outside the EU<\/li>
          • Encourage trade partners to produce cleaner<\/strong><\/li>
          • Ensure fair competition<\/strong> between European and imported products<\/li><\/ul>

            <\/p>

            Which Products are Covered?<\/strong><\/h4>

            To start, CBAM targets 6 highly emitting sectors<\/strong>: cement, steel and iron, aluminum, fertilizers, electricity, hydrogen.<\/p>

            E.g.: A Turkish cement manufacturer exporting to the EU will now have to declare the CO\u2082 emissions related to its production, and pay a carbon adjustment<\/strong> if these exceed European standards. <\/p>

            <\/strong><\/p>

            How Does it Work in Practice?<\/strong><\/h4>
            1. The importer<\/strong> declares the GHG emissions related to the products they import.<\/li>
            2. They purchase a number of CBAM certificates<\/strong>, proportional to these emissions.<\/li>
            3. The price of these certificates is aligned with the price of CO<\/strong>\u2082<\/strong> in the <\/strong>\u2019<\/strong>EU<\/strong> (ETS system).<\/li>
            4. If the country of origin already has a carbon system, compensation<\/strong> is possible.<\/li><\/ol>

              <\/strong><\/p>

              How to Prepare?<\/strong><\/h4>
              • Identify products subject to CBAM in your supply chain<\/li>
              • Engage with your non-EU suppliers to obtain their emissions data<\/strong><\/li>
              • Implement carbon traceability systems<\/strong><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
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                3. Final Status of the Package<\/strong><\/h3>
                • The CSRD\/CS3D (“Stop-the-Clock”) component is adopted<\/strong> and published in the Official Journal of the European Union.<\/li>
                • The other elements (Taxonomy, CBAM, voluntary reporting, civil guarantees, various simplifications) are still in the state of proposals<\/strong>.<\/li><\/ul>

                  <\/p>

                  4. Updated Summary (Version for External Stakeholders)<\/strong><\/h3>

                  Topic<\/strong><\/p><\/td>

                  Current status<\/strong><\/p><\/td>

                  Main proposed changes<\/strong><\/p><\/td><\/tr><\/thead>

                  CSRD<\/strong><\/p><\/td>

                  Postponed for waves 2 and 3 (applied)<\/p><\/td>

                  Limited scope (\u2013 80%) by raising eligibility thresholds (reporting thresholds) (Scope of application changed from 250 to 1,000 employees), simplified standards, no sectoral standards, limited assurance<\/p><\/td><\/tr>

                  CS3D<\/strong><\/p><\/td>

                  Transposition postponed to 2027, application 2028<\/p><\/td>

                  Triennial reassessment, focused on direct suppliers, national civil liability<\/p><\/td><\/tr>

                  CBAM<\/strong><\/p><\/td>

                  Under proposal<\/p><\/td>

                  Small quantity exemption, simplification of calculations and declarations, derogation for certificates<\/p><\/td><\/tr>

                  Process<\/strong><\/p><\/td>

                  Stop-the-clock adopted<\/p><\/td>

                  The rest still needs to be approved by Parliament & the Council<\/p><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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                  Conclusion<\/strong><\/h3>

                  Some proposals are already adopted<\/strong>, such as the well-known CSRD\/CS3D postponement<\/strong> (“Stop-the-Clock”). The other measures, although officially proposed in February 2025, have not yet formally entered into force<\/strong>. They remain subject to upcoming legislative discussions. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

                  2-year postponement of sustainability and due diligence reporting rules. Here are the main points that have been adopted or advanced to date (early August 2025). <\/p>\n","protected":false},"author":2,"featured_media":4241,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[41],"tags":[],"class_list":["post-3699","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-csrd-esg"],"acf":[],"_links":{"self":[{"href":"https:\/\/audicia.be\/en\/wp-json\/wp\/v2\/posts\/3699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/audicia.be\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/audicia.be\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/audicia.be\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/audicia.be\/en\/wp-json\/wp\/v2\/comments?post=3699"}],"version-history":[{"count":1,"href":"https:\/\/audicia.be\/en\/wp-json\/wp\/v2\/posts\/3699\/revisions"}],"predecessor-version":[{"id":3705,"href":"https:\/\/audicia.be\/en\/wp-json\/wp\/v2\/posts\/3699\/revisions\/3705"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/audicia.be\/en\/wp-json\/wp\/v2\/media\/4241"}],"wp:attachment":[{"href":"https:\/\/audicia.be\/en\/wp-json\/wp\/v2\/media?parent=3699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/audicia.be\/en\/wp-json\/wp\/v2\/categories?post=3699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/audicia.be\/en\/wp-json\/wp\/v2\/tags?post=3699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}