European Council Adopts Conclusions on Sustainability Omnibus Package

On 20 March 2025, the European Council adopted conclusions on several key legislative initiative – among them, the sustainability Omnibus Package.

As a result the Council clearly called for the adoption of the “stop-the-clock” mechanism by June 2025 at the latest. The European Parliament will vote on the request for urgent treatment on 1 April 2025. The Council is expected to take it up shortly after with the aim to provide certainty for businesses: the transposition deadline is set for 31 December 2025, so that “Wave 2” companies do not come into scope for CSRD Reporting on 1 January 2026.

In addition the commission “urges the co-legislators to take work forward on the Omnibus simplification packages presented on 26 February 2025 as a matter of priority and with a high level of ambition, with a view to finalising them as soon as possible in 2025.”

What’s in the Omnibus Package?

Published on 26 February 2025, the first Omnibus Package aims to simplify ESG reporting requirements accross three major sustainability regulations:

• CSRD (Corporate Sustainability Reporting Directive)

• EU Taxonomy Article 8

• CSDDD (Corporate Sustainability Due Diligence Directive)

One of the key proposals is the so-called “stop-the-clock” mechanism. Under this approach:

• Companies already subject to CSRD and Taxonomy Article 8 will continue reporting as planned.

• Companies that were originally scheduled to start reporting will have their obligations postponed for two years.

• During this period, legislators aim to redefine thresholds and streamline the scope across all three regulations.

If adopted, this would mean CSRD, Taxonomy Article 8, and CSDDD would apply with updated requirements starting from FY 2027, to be reported in 2028.

Omnibus Timeline and what is next?

• October 2024: first announcement about the Sustainability Omnibus

• 26.02.2025: European Commission published first Omnibus Package

• 20.03.2025: European Council Adopts Conclusions on the Omnibus Package: high priority “stop-the-clock” + Omnibus simplification packages “as soon as possible in 2025”

• 01.04.2025: European Parliament will vote on the request for urgent treatment

• shortly after European Council final statement

• June 2025 (estimated): final decision on the “stop-the-clock”

• 31.12.2025 (estimated): adoption of “stop-the-clock” on national level

• 31.12.2025 (estimated): Omnibus simplification packages to be finalised on European Level

cleversoft’s Compliance Services for CSRD, Taxonomy, and CSDDD

cleversoft is closely monitoring the dynamic developments on the sustainability regulatory landscape and will keep you informed every step of the way. Once changes are adopted and delegated Acts published, we will adjust services accordingly.

As a trusted RegTech provider, cleversoft offers reporting solution on all three regulations: CSRD, CSDDD and Taxonomy Article 8.

For questions about our CSRD solution, please contact us through our form. Our experts are ready to provide detailed guidance.

With cleversoft’s compliance commitment, you receive a service with integrated regulatory updates as soon as they are officially released by regulators.