The European Union is adjusting its environmental regulations to reduce business compliance costs while maintaining its commitment to decarbonisation. The move follows pressure from industry leaders and major economies like France and Germany, which have raised concerns over high energy costs and regulatory burdens.
The European Commission introduced a “Clean Industrial Deal” to cut red tape, lower electricity taxes, and refine corporate sustainability reporting requirements. Under the proposed changes, large companies would report on supply chain impacts every five years instead of annually, and the reporting threshold would increase from firms with 250 employees to those with over 1,000.
Despite the adjustments, the EU reaffirmed its goal of carbon neutrality by 2050 and its target to reduce greenhouse gas emissions by 55% by 2030. However, the revisions face opposition from environmental groups and some lawmakers, who argue that scaling back regulations could undermine sustainability efforts. The proposals require approval from EU member states and the European Parliament.
