EU Omnibus package proposes significant simplifications, while the first Transparency Act penalty is overturned

In this month's ESG alert, we highlight the EU Commission's Omnibus package, which proposes significant simplifications to EU legislation on sustainability and human rights. We also describe the overturn of the first infringement penalty issued under the Transparency Act, and the proposed implementation of the EU Regulation on Waste Shipments into Norwegian law.
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Environment
Commission releases first Omnibus package
On 26 February 2025, the European Commission adopted new proposals to the first part of the so-called Omnibus package. The package contains simplification measures aiming to improve competitiveness and promote growth in the EU.
The proposed amendments include:
- Corporate Sustainability Reporting Directive (CSRD): Only companies with more than 1000 employees and either an annual turnover above EUR 50 million or a balance sheet total above EUR 25 million will fall within the scope.
- Corporate Sustainability Due Diligence Directive (CS3D): The application of the directive's obligations is postponed by one year, and less stringent requirements relating to due diligence and climate transition plans.
- Carbon Border Adjustment Mechanism Regulation (CBAM): Small importers will be exempt from the CBAM obligations, and requirements for in-scope companies are simplified.
The proposals will now be submitted to the European Parliament and the Council for consideration and adoption.
Please refer to our article on the Omnibus package for further details regarding the proposed changes (Norwegian).
Public consultation – Implementation of new regulation on waste shipments (Norwegian)
On 19 February 2025, the Norwegian Environmental Agency issued a public consultation on a proposal to amend Chapter 13 of the Norwegian Waste Regulation, regarding transboundary shipments of waste. The proposed amendments are made to align the Norwegian Waste Regulations with the EU Regulation on Waste Shipments.
The New Waste Regulations aim to facilitate the transport of waste for reuse and material recycling within the EU. It establishes procedures and control regimes for shipments of waste, depending on the origin, destination and route of the shipment, the type of waste and the type of treatment to be applied to the waste at its destination. It will further aim to contribute to the increased use of waste as secondary raw materials, and to promote a more circular economy.
Social
First infringement penalty under the Norwegian Transparency Act overturned (Norwegian)
On 12 February 2025, the Market Council overturned the Consumer Authority's September 2024 decision to impose an infringement penalty of NOK 450,000 on a clothing retailer. The clothing retailer had failed to respond to information requests on two occasions.
The Market Council underscored that infringement penalties should be a subsidiary measure for cases in which the Consumer Authority is unable to enforce the Transparency Act in other ways. Further, two infringements was not held to satisfy the requirement of "repeated infringements" in the provision regarding infringement penalties.
Although the Consumer Authority's infringement penalty decision was eventually overturned, it likely illustrates that companies now face a real risk of sanctions for non-compliance with the Transparency Act.
Wikborg Rein's monthly ESG alerts will cover key developments on topics of relevance under the ESG umbrella. The WR ESG alerts intend to offer a focused perspective on environmental and social issues, emphasising material developments and their implications. However, this may not encompass all aspects of the broader ESG spectrum and will generally not cover governance-related updates.
The WR ESG alerts primarily cover regulatory developments within Norway and the EU. We endeavour to keep you informed about the evolving landscape of ESG regulations, although it is essential to verify and cross-reference information, considering the dynamic nature of regulatory environments. Please note that the information shared in the WR ESG alerts is for informational purposes only and should not be construed as legal advice.