In a first step, four laws are to be freed from bureaucratic burdens / Over 90% of companies previously subject to CBAM reporting obligations will be completely exempt / Support for industry in transitioning to climate neutrality and a package of measures to lower electricity prices
 
“The European Commission is finally getting serious about cutting red tape. I expect a bold move to reduce administrative burdens in a first step involving four specific laws this coming Wednesday,” said the environmental policy spokesperson for the largest group in the European Parliament, Peter Liese (EPP), at a press conference in Brussels. The four laws concern Corporate Sustainability Reporting (CSRD), the European Due Diligence (CSDDD), the so-called Taxonomy, and the Carbon Border Adjustment Mechanism (CBAM).
 
“The Commission rightly says that we need to continue pursuing climate protection, and that, if done correctly, climate action can be a driver of innovation. However, we urgently need to make adjustments. In my view, developments within the European Commission can largely be attributed to pressure from Christian Democrats across Europe,” Liese continued.

 
Liese went into detail about plans to reduce bureaucracy in the CO₂ Carbon Border Adjustment Mechanism (CBAM): “The Commission plans to completely exempt 91% of the companies currently covered by reporting obligations. Yet 99% of emissions will still be covered. Therefore, this step is both justifiable in terms of climate policy and urgently needed from an economic standpoint. Regarding sustainability reporting, there will be a general reduction in requirements, and it will be clarified that small and medium-sized enterprises should be protected from excessive indirect effects. An easy-to-use instrument for voluntary reporting by SMEs will be introduced. Both large companies and their auditors will have to accept it. The fact that large companies and auditors simply fulfill their reporting obligations by imposing extensive requirements on their suppliers is a huge annoyance and needs to stop,” Liese said.

In a press briefing on Friday, Christian Lohmann, Head of Logistics, and Tobias Süßenbach, Sustainability Manager of VETTER Industrie GmbH in Burbach gave insight into SME’s struggles with bureaucracy: „It´s a huge burden, pushing family owned midcaps to spend money and time on CSRD reporting instead of spending resources in efficiency projects and new technologies. The SME rules have to be modified and a new midcap class has to be established. In our opinion, the CBAM reporting level must be raised significantly.”
 
Behind the scenes, there are still intense negotiations within the European Commission. As there is significant resistance to reducing bureaucracy coming from the Social Democratic and Liberal groups, the Social Democratic and Liberal Commissioners are also finding it difficult. A letter from leading members of the Social Democratic group, including their leader Iratxe García Pérez states literally: “We would like to express our deep concerns regarding your announcement of an omnibus simplification package due as early as February 2025. [...] What is more, the Corporate Sustainability Due Diligence Directive (CSDDD) should by all means be excluded from the simplification exercise.”
 
“The Social Democrats’ letter is a slap in the face of small and medium-sized enterprises throughout Europe. I hope—and I am confident—that this resistance will be overcome and that the Commission will propose a bold plan,” Liese concluded.