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illuminem summarizes for you the essential news of the day. Read the full piece on POLITICO or enjoy below:
🗞️ Driving the news: European Commission President Ursula von der Leyen is pushing to simplify EU environmental regulations, aiming to reduce compliance burdens and boost economic competitiveness
• Critics argue that this move could weaken environmental protections and favor conservative political forces
• The first major proposal, an "omnibus" simplification package, is expected on February 26
🔭 The context: The package targets key environmental laws, including the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD)
• These laws were designed to enhance transparency by requiring companies to disclose environmental and social risks
• Businesses, especially mid-sized ones, have criticized these regulations as costly and complex, leading to calls for reform
🌍 Why it matters for the planet: Environmental groups fear this initiative could undermine the EU Green Deal by weakening corporate accountability on climate and sustainability issues
• The CSRD and CSDDD were meant to drive investments toward greener businesses, and relaxing these rules might reduce transparency
• Delays or reductions in reporting requirements could slow progress toward Europe's climate goals
⏭️ What's next: The "omnibus" package is likely the first of several simplification efforts, with growing political pressure for broader deregulation
• Business groups are pushing for further rollbacks, while some EU governments want delays in sustainability reporting requirements
• The final outcome could shape the future of EU climate policy and corporate sustainability standards
💬 One quote: “This could be an extremely problematic precedent and a possible first step in the deregulation wave across Europe.” — Tsvetelina Kuzmanova, EU sustainable finance lead at the Cambridge Institute for Sustainability Leadership
📈 One stat: The cost of compliance with the CSRD could reach €800,000 in the first two years for an average mid-sized French company, according to METI, a business lobby
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