Omnibus uncertainty to continue as European Parliament rejects proposal

Members of the European Parliament rejected the Omnibus proposal to lower the scope of the EU’s sustainability regulations in a secret vote this Wednesday (October 22).

MEPs had found some consensus earlier this month on a series of proposed amendments to the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). But in a surprise move today, they narrowly rejected this latest draft with 318 votes against and 309 votes in favour of the Omnibus proposal.

In another last-minute twist, far-right parties Patriots for Europe, European Conservatives and Reformists and Europe of Sovereign Nations asked for a secret vote, meaning individual MEPs’ votes will not be known.

‘Another chance’ for CSRD and CSDDD

The rejection was hailed by those trying to prevent sustainability deregulation in the EU, who have denounced the leading Parliament party, EPP, for threatening to side with the far right to force a consensus.

“It is astonishing that the EPP has not been able to secure a majority but this proves that their blackmailing tactics do not work,” commented Kira Marie MEP and Vice President of the Greens group.

“The outcome gives us another chance to improve the text and make sure our sustainability and due diligence rules actually matter. Over the coming weeks, all groups will be able to table amendments before a new vote in the November I plenary. The Greens are ready to resume negotiations with the other pro-European groups in a constructive spirit. We remain fully committed to finding a strong and balanced compromise that strengthens Europe’s sustainability framework,” she added.

What next for the Omnibus?

Now that the text has been rejected, MEPs will go back to the negotiating table at the next Parliament plenary session, starting on November 11. The scope of regulation approved by the JURI committee last week – i.e. 1,000 employees and €450 million in revenue for CSRD and 5,000 employees and €1.5 billion in revenue for CSDDD – is again up for discussion.

Welcoming the rejection, the European Coalition for Corporate Justice said it made it clear that “political blackmail has no place in the Parliament’s legislative decision making”.

“This comes after the EPP not only failed to present a credible compromise to the centre of the Parliament, but also coerced the other parties (...) into accepting a deal that serves the interests of the powerful. Recent weeks have seen aggressive lobbying from climate-harming businesses and overseas trading partners, neglecting those the CSDDD was created to protect people and the planet.

“This rejection reopens a negotiating platform that gives pro-EU forces a chance to find common ground – instead of letting the pressure of climate deniers and corporate lobbies dictate the outcome. The CSDDD must remain a strong, enforceable law that delivers justice for victims and accountability for companies,” the organisation added.