EU reaches Omnibus I deal that scales back sus­tain­abil­i­ty rules

The EU’s co-legislators have reached a provisional Omnibus I agreement that significantly weakens corporate sustainability and climate rules, marking what critics call a U-turn on climate ambition. Under pressure from right-wing MEPs and external actors such as the U.S. and major oil and gas companies, key provisions like mandatory climate transition plans were removed and reporting obligations were reduced. Civil society groups warn that these rollbacks undermine corporate accountability for environmental and human-rights harms and weaken the EU’s global leadership on sustainability. The deal now awaits formal approval by the European Parliament and the Council before entering into force.

Source: adapted from Frank Bold, December 2025.