What is changing in Brussels with regard to the Green Deal

The European Union’s Green Deal and all its related regulations have undergone a change of direction in recent months. Let’s try to understand what is happening

by Massimiliano Viti

European sustainability legislation treads a fine and fragile line. On the one hand, excessive controls risk generating bureaucracy, increased costs for businesses and a reduction in innovation and competitiveness. On the other hand, insufficient controls have been shown to encourage greenwashing and abuse. Recently, Europe seems to have changed its stance on the Green Deal, driven both by a Parliament that is more centre-right than the previous one and by the less restrictive environmental policies adopted in the United States. As a result, the screws that had fixed the Green Deal are slowly loosening.

What is changing in Brussels?

During 2025, in less than a year, eight packages for simplifying the regulations contained in the Green Deal were presented in Brussels. The latest was unveiled on 9 December by the European Commission and then finally approved by Parliament on 16 December. The package significantly reduces the scope of application of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

The CSRD would apply to companies with more than 1,000 employees and at least £450 million in net turnover (a 90% reduction in the number of companies currently covered). The CSDDD would apply to companies with more than 5,000 employees and €1.5 billion in net turnover (a 70% reduction in the number of companies currently covered). The new CSDDD will then have to be transposed by Member States by mid-2028 and will enter into force in mid-2029. The revision of the CSRD will apply from January 2027 (source: borsaitaliana.it).

The effects on EPR

In addition, the European Commission has suggested suspending the Extended Producer Responsibility (EPR) obligations, which make producers responsible for the entire life cycle of their products. All this while EU Member States are preparing to transpose the European Regulation and draft national legislation. Companies have begun to assess how they can meet the related obligations.

1 billion

The European Commission, which proposed the package to simplify environmental rules, estimates savings for businesses of around €1 billion per year. The rapporteur for the Legal Affairs Committee, Jörgen Warborn, said: “Parliament has listened to the concerns expressed by businesses across Europe. Today’s vote means a historic reduction in costs, while maintaining Europe’s sustainability goals. This is an important first step in the ongoing efforts to simplify EU rules.”

Something doesn’t add up

However, at the same time as the Commission’s proposal (i.e. before the Parliament’s vote), the European Environment Agency (EEA) published a report stating that, despite progress in some key areas, the EU remains off track for most of its 2030 environmental targets. Increasing climate risks, slow transitions in energy, production and consumption systems, and weakening favourable conditions highlight the urgent need for more effective, better-funded and faster policy implementation.

The Green Deal is faltering

Conversely, the framework of the European Green Deal seems increasingly shaky, with the reopening of already approved laws and the risk of a drift in negotiations between member countries. The loosening of sustainability laws is also reflected in current events. In France, the ban on destroying unsold products, partly due to ultra-fast fashion, is causing congestion in the textile collection and recycling system.

To improve the situation, the Ministry of Ecological Transition in Paris is reportedly considering the temporary possibility of allowing the incineration of certain collected garments, specifically those considered ‘unrecoverable’ (source: Glitz Paris). This news – if confirmed – comes a few months before the European ban on the destruction of goods comes into force (July 2026). In 2027, brands will be obliged to report all unsold goods produced in order to avoid overproduction. This is provided for in the Ecodesign for Sustainable Products (ESPR) measure.

Read also: