The price of carbon certificates (EUA) dropped sharply to €67.10 on March 11, 2025, on the ICE market. It is now on a support line. Carbon Expert analysts say that the market has fallen significantly, and there are signs that a recovery might follow. However, it is not certain that the decline has stopped, but a small increase could be near. After five weeks of decline, the trend is clearly downward. Prices remain volatile.
European Commission (EU) is reducing sustainability rules under the new Omnibus Proposal, following recommendations from the Draghi Report on European competitiveness. The report warns that strict regulations are harming businesses, leading the Commission to ease sustainability requirements. The Omnibus Proposal significantly weakens major corporate sustainability laws, including CSRD, CSDDD, and CBAM.
Key Changes in EU Sustainability Rules – Omnibus Proposal (March 2025)
1. Corporate Sustainability Reporting Directive (CSRD) Changes
- Fewer Companies Affected: Only those with over 1,000 employees and €450 million revenue must comply, cutting coverage by 85%.
- Higher Threshold for Foreign Companies: Only those making over €450 million in the EU must follow CSRD rules. (Compared to €150 million before)
- SMEs Exempt: Listed SMEs no longer need to file sustainability reports.
- Less Frequent Reports: Companies now report every five years instead of annually.
2. Corporate Sustainability Due Diligence Directive (CSDDD) Loosening
- Smaller Scope: Companies only need to check direct suppliers, not full supply chains.
- No EU-Wide Rules: Each member state decides how to apply the law.
- Slower Due Diligence: Reports are due every five years instead of annually.
- Fewer Requirements: Companies only need a basic ESG plan without full action.
3. Carbon Border Adjustment Mechanism (CBAM) Exemptions
- Most Importers Exempt: 90% of importers (those handling under 50 tons per year) don’t need to comply.
- Emissions Coverage Maintained: Despite loopholes, 99% of targeted emissions are still covered.
- Lower Costs for Some Imports: Countries with carbon pricing may get CBAM fee reductions.
Omnibus Proposal Cuts Business Compliance Costs by 25%
The Omnibus Proposal aims to cut regulatory costs for companies by 25%, saving about €40 billion. SMEs benefit even more, with a 35% reduction in compliance burdens
The Omnibus Proposal, shaped by the Draghi Report, marks a major rollback in EU sustainability rules. While businesses face fewer regulatory costs, sustainability commitments are being reduced in favor of economic growth. These changes are still under review by the European Parliament and the Council.
For more informations you can find here : https://ec.europa.eu/commission/presscorner/detail/en/qanda_25_615