In 2025, European ESG regulations are undergoing a major transformation aimed at simplifying compliance while preserving sustainability goals. The new Omnibus Simplification Package brings relief to SMEs and shifts focus toward impactful environmental and social initiatives.

The European Union is simplifying its Carbon Border Adjustment Mechanism (CBAM) to ease the burden on small and medium-sized enterprises (SMEs), while still covering 99% of emissions from high-carbon imports. This move balances administrative relief with environmental integrity, signaling a pragmatic shift in EU climate policy.

The EU took a pioneering step on October 1st by launching the world's first Carbon Border Adjustment Mechanism (CBAM), a system designed to impose CO2 emissions tariffs on carbon-intensive goods imported into the EU.

Yesterday, The European Commission adopted a detailed set of reporting regulations for the transitional phase of the Carbon Border Adjustment Mechanism (CBAM). Set to begin on October 1, 2023 and extend through the year 2025, this transitional phase aims to lay the groundwork for the CBAM's full implementation.