European Council - Photo © European Union 2026

During yesterday’s European Council, EU leaders met to discuss the new energy shock hitting Europe, with some of them looking towards deregulation measures and major changes to the EU Emissions Trading System (ETS) as possible solutions.

The conclusion of interinstitutional negotiations on the first Omnibus package today, marks a major setback for the EU’s corporate sustainability framework, with a decision to weaken the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).