France Pushes Brussels to Halt EU Green Business Rules Indefinitely

25 Jan, 2025

France is advocating for a delay in EU rules requiring companies to disclose their environmental impact, climate risk exposure, and ensure suppliers adhere to environmental and labor standards. In a Jan. 20 document obtained by POLITICO, France proposed postponing the Corporate Sustainability Reporting Directive (CSRD) by two years and indefinitely delaying the Corporate Sustainability Due Diligence Directive (CSDDD).

The document highlighted the need to refine the CSDDD directive, suggesting it only apply to companies with over 5,000 employees and revenue exceeding €1.5 billion. Economy Minister Eric Lombard emphasized the importance of simplifying legislation that burdens businesses and hampers growth, advocating for adjustments to the CSRD and deferring the due diligence directive until it is more practical.

European Commission President Ursula von der Leyen acknowledged concerns in November, announcing a review of laws requiring business disclosures, including the CSRD, CSDDD, and the EU taxonomy, which evaluates economic activities based on their environmental impact. This review, known as the omnibus, is scheduled for Feb. 26.

French President Emmanuel Macron echoed this sentiment, calling for a regulatory overhaul to boost innovation and reconsider recent rules that may hinder progress. Germany also supports a two-year delay for reporting rules and a reduction in CSRD requirements, as outlined in a letter to von der Leyen dated Dec. 17.

Both nations are pressing for a balance between fostering sustainability and enabling businesses to thrive without overregulation, highlighting a broader EU debate on environmental compliance versus economic growth.

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