Omnibus package: The most important changes

4. März 2025

Background: What is behind the omnibus package?

With the Green Deal from 2019, the EU is pursuing the goal of promoting sustainable economic processes. At the same time, it became apparent that the existing regulations on sustainability reporting are associated with a considerable administrative burden for companies. Against this backdrop, the Budapest Declaration was adopted at the end of 2024 to strengthen the competitiveness of European companies and reduce the regulatory and reporting burden.


On 26 February 2025, the EU presented the Omnibus Package, a comprehensive catalog of measures to simplify and standardize sustainability reporting. The aim is to streamline existing regulations, avoid overlaps and significantly reduce bureaucracy. The proposed changes must now go through the legislative process in the European Parliament and the European Council.

Key points of the omnibus package

1. Corporate Sustainability Reporting Directive (CSRD)

Redefinition of the group of users

  • The group of companies subject to reporting requirements is to be reduced by up to 80%.
  • Instead of a three-stage introduction of the CSRD, a uniform threshold regulation is now proposed: only companies with more than 1,000 employees on an annual average and
  • a turnover of more than €50 million,
  • or a balance sheet total of more than €25 million.


Postponement of the date of first-time application

  • Companies that would have been required to report for the first time from 2025 will receive a deferral until 2027.
  • The reporting obligation for large capital market-oriented companies (from 2024) remains unchanged.



Simplification of the report content

  • Reduction of the European Sustainability Reporting Standards (ESRS).
  • No more sector-specific standards.
  • Companies that are no longer required to report will receive voluntary reporting recommendations based on the SME standards.

2. Taxonomy Ordinance (TaxVO)

Adaptation of the user group

  • The reporting obligation will be adapted to the Corporate Sustainability Due Diligence Directive (CSDDD).
  • In future, only companies with more than 1,000 employees and a turnover of more than € 450 million will be affected.
  • Companies that are subject to CSRD but do not meet these criteria can report voluntarily.


Synchronized postponement of the initial application time

  • The TaxVO will be postponed by two years, analogous to the CSRD.


Reduction in reporting obligations

  • Simplification of the “Do-No-Significant-Harm” criterion.
  • 70% fewer data points in the KPI tables.
  • Easier for banks, as non-reporting companies can be excluded from the denominator of the Green Asset Ratio.

3. Corporate Sustainability Due Diligence Directive (CSDDD)

Relief for companies in the value chain

  • Reduced due diligence obligations beyond direct business partners.
  • Extended intervals for checking the effectiveness of due diligence obligations.


Later date of initial application

  • National implementation will not take place until July 26, 2027.
  • The application of the first due diligence obligations begins on July 26, 2028.


Simplification of reporting requirements

  • Reduced reporting intervals.
  • Limited depth of analysis within the value chain.

Criticism of the omnibus package

While the omnibus package aims to ease the burden on companies, it is not without criticism. Inconsistent thresholds and unclear definitions lead to confusion:


  • The preamble to the draft mentions an employee threshold of 1,000,
  • Later, companies with under and over 500 employees are classified differently.


There is also the question of the consequences for companies that have already made considerable investments in the implementation of sustainability reports. These companies must now decide whether to continue existing processes or adapt them.

Legislative procedure: What happens next?

The proposals of the omnibus package are now going through the legislative process:


  1. Readings in the European Parliament and European Council - amendments are still possible here.
  2. Adoption and publication in the EU Official Journal.
  3. Transposition into national law by the member states.


According to the European Commission, the proposals include a directive amending the CSRD and CSDDD, which must be implemented by the member states.

Conclusion: What does this mean for companies?

The omnibus package is intended to reduce bureaucracy, but it also creates uncertainty:


  • Companies required to report for the first time in 2025 have already invested extensive resources. Now they have to decide whether to continue with their processes.
  • The reaction of the German government remains to be seen. Due to the EU's ongoing infringement proceedings for the delayed implementation of the CSRD, Germany could be forced to implement the existing regulations after all.
  • Critics see the relaxation as an undermining of the EU's sustainability efforts. Companies are now faced with an individual risk-benefit assessment as to whether they should continue or adapt their existing sustainability reports.


Do you have questions about the impact of the omnibus package on your company? Our experts at Smart Energy Technology will be happy to advise you! Get in touch with us here.