The Supply Chain Law Initiative analyses what the planned “Omnibus” regulation could mean for the European Supply Chain Law CSDDD. Specifically, the Omnibus regulation – announced for February 26, 2025 – is intended to “simplify” three central sets of rules:

  • the EU Supply Chain Directive (CSDDD),
  • the Sustainability Reporting Directive (CSRD) and
  • the Taxonomy Regulation.

Under the guise of reducing bureaucracy and simplifying the system, the CSDDD, which has been in force since July 2024 and must be implemented into national law by July 2026, is at risk of being significantly watered down. The background to this is an intensive lobbying campaign by German, French and Italian business associations that have been opposing comprehensive sustainability requirements for years. This effort is supported by the European People’s Party (EPP) and parts of the CDU/CSU. Critics fear that these lobbying efforts – possibly in cooperation with right-wing extremist groups in the European Parliament – could lead to a serious weakening of human rights, environmental and climate protection requirements.

The Omnibus Regulation is primarily intended to reduce redundant reporting requirements without changing the “correct content” of the existing laws – this is von der Leyen’s official justification. In practice, however, the changes aim to shift the scope of the CSDDD (e.g. from companies with 1,000 to those with 5,000 employees) and to limit due diligence obligations to direct suppliers. It must be warned that this would exclude essential risk areas such as environmental destruction in mining or child and forced labor in developing countries. In addition, fines and civil liability would be eliminated, which could deprive victims of human rights violations of access to compensation.

There is fierce resistance to the planned changes within the EU. Social Democratic and Green groups in the European Parliament as well as numerous NGOs and non-governmental organizations are calling for the CSDDD to be consistently retained. Even within the EU Commission, some commissioners, such as Justice Commissioner Michael McGrath, are criticizing the planned gutting of sustainability legislation. The further political debate, especially in the European Parliament, remains crucial for Europe’s future course on sustainability.

Please refer: Briefing „Rollback des European Green Deal? Omnibus-Verordnung droht EU-Lieferkettenrichtlinie auszuhöhlen“ (German)