EU plans to combine climate regulations amid business concerns
- The EU implemented several climate regulations as part of the European Green Deal starting in 2020.
- Businesses expressed concerns over compliance costs and regulatory burdens from these directives.
- Ursula von der Leyen's proposal aims to streamline existing regulations into a single framework to reduce confusion.
In 2020, the European Union implemented directives as part of the European Green Deal, which required businesses to address climate change and report carbon emissions. To enhance accountability, the EU Taxonomy for Sustainable Activities was adopted, followed by the Corporate Sustainability Due Diligence Directive in May 2024, which imposed new reporting requirements and legal liabilities. These regulations have led to considerable confusion and concerns among businesses regarding their compliance costs and burden. In response to heightened criticism, especially from SMEs, Ursula von der Leyen announced plans to consolidate these regulatory frameworks into one comprehensive proposal. Additionally, political shifts during the 2024 European Parliament elections reflected significant pushback against the existing regulatory requirements.