How Von der Leyen is Cutting Through EU Environmental Red Tape: A Game Changer for Sustainability

Leaders from various political parties in EU member countries are sounding alarms about regulations that they believe are hurting the economy. Many are urging the European Commission to take stronger actions.

Take France’s centrist government, for instance. They are advocating for a long-term delay on the EU’s due diligence law. Similarly, Germany’s Chancellor Olaf Scholz is calling for a two-year postponement for the implementation of new corporate sustainability reporting rules.

CISL’s Kuzmanova points out that this push for delays is concerning. She notes that it shows a lack of commitment to support European businesses. “Delaying the process doesn’t simplify matters or make things easier for anyone,” she emphasizes.

There’s growing worry that the European Commission’s recent “simplification package” might weaken environmental regulations across the board. This package is viewed as the first of several moves aimed at easing environmental laws in the EU.

The European People’s Party, which is part of the coalition led by EU Commission President Ursula von der Leyen, has proposed that these new laws only apply to large companies with more than 1,000 employees. They are also requesting a two-year delay on the EU’s carbon tariffs, known as the Carbon Border Adjustment Mechanism.

Adding to the unease, this simplification package targets rules that haven’t even been fully implemented. For example, the Corporate Sustainability Reporting Directive (CSRD) passed in 2023 is still in its early stages. It started applying to a few of Europe’s largest companies last year, and the first reporting deadline is this month. The rollout is gradual, with larger publicly listed companies having until 2025 to comply, and smaller businesses until 2026. Non-EU companies will have their reporting deadline in 2028.

Check out this related article: Empowering Voices: Environmental Justice Advocates Share Insights at Ford School Panel

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