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Lorenzo Barbieri
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Lorenzo Barbieri2026-02-17 05:21:152026-02-17 10:47:35Ambler Road: Through Alaska’s Frozen LandsEurope has been a world leader in climate regulation, with ambitious laws, clear targets, and a determined commitment to environmental protection. Today, that leadership is under pressure.
Changing political winds are creating a new climate risk from within Europe’s political system itself.
Omnibus
Since the Corporate Sustainability Reporting Directive (CSRD) came into effect in the EU on 1 January 2023, there have been increasing demands to simplify its requirements and reduce the perceived reporting burden linked to sustainability disclosures. To address this demand for simplification, the Omnibus package was introduced in February 2025, changing the requirements of the CSRD and the Corporate Sustainability Due Diligence Directive (CSDDD). The latter was meant to protect people and the planet from corporate harm [1].
What began as a technical update has turned into a clear political signal with significant consequences, as the EP adopted the following position on 13 November:
The Parliament’s can easily be perceived as a betrayal of affected communities, human rights, and environmental protection, sacrificed in the name of ‘simplification’ and ‘competitiveness’.
Far Right
In April, Manfred Weber, President of the European People’s Party (EPP) – the largest party in the EP, described populists and extremists as his party’s main rivals [2]:
“As a leader, I defined a clear red line to the extremists, we will never work together with those who are not respecting my three pro’s: pro Ukraine, pro rule of law and pro Europe, these are fundamental things for us.”
The way the position of the EP was adopted is shocking. Just six months after the above statement, the red line has vanished, as the EPP decided to align with the far to significantly water down core elements of the Omnibus package. This was the first time a major legislative file advances thanks to an EPP–far-right voting bloc. The Socialists and Democrats (S&D) drew a historical parallel with the 1930s, recalling how conservatives in Germany distanced themselves from the Social Democrats and later entered government alongside the Nazis [3]. Civil society groups voiced deep concern as well. According to Nele Meyer of the European Coalition for Corporate Justice [4]:
“By aligning with the far right to push a corporate-driven agenda, the EPP has crossed a dangerous line. This isn’t just another policy setback, it’s a betrayal of Europe’s social and environmental commitments. When anti-EU parties and corporate lobbies write the rules, accountability dies and Europe’s credibility crumbles. Today’s vote shows how corporate capture and far-right politics now walk hand in hand, and it’s the victims, workers and the planet who pay the price.”
Trilogue
During the trilogue negotiations between the Parliament, the Council, and the Commission in December, the EU will “determine who sets the standards for transparency, climate transition finance and corporate accountability for European companies — and whether the EU remains a rulemaker or becomes a rule taker in a system shaped elsewhere” [5].
Transparency and consistency are essential for Europe’s sustainability agenda. Businesses need stable rules, investors rely on trustworthy data, and policymakers must ensure climate targets remain achievable. Simplifying regulations may be needed, but weakening accountability and reliability would undermine competitiveness and long-term resilience. The EU has long been a global leader through high standards and innovation. It can maintain that leadership if it chooses ambition over retreat [5].
References:
[1] Grant Thornton Argentina. (2025). Further updates on Omnibus Package negotiations regarding CSRD and CSDDD. https://www.grantthornton.com.ar/en/insights/articles/2025/further-updates-on-omnibus-package-negotiations-regarding-csrd-and-csddd/
[2] Euronews. (2024). Populists and extremists are EPP’s main competitors – interview with Manfred Weber [Video]. Dailymotion. https://www.dailymotion.com/video/x9iorl2
[3] Politico Europe. (2025). EU conservatives vote with far right to approve cuts to green rules. https://www.politico.eu/article/epp-votes-with-far-right-to-approve-cuts-to-green-rules/
[4] European Coalition for Corporate Justice. (2025). European Parliament’s far-right alliance adopts position on Omnibus I: Corporate capture on full display, written for the few not for people or planet. https://corporatejustice.org/news/press-release-european-parliaments-far-right-alliance-adopts-position-on-omnibus-i-corporate-capture-on-full-display-written-for-the-few-not-for-people-or-planet/
[5] Financial Times. (2025). Europe must be a rulemaker, not a rule-taker. https://www.ft.com/content/a7ef36e6-7288-4e12-b80a-085acd6a722f
Cover and preview image: European Parliament. Photo by Christian Lue on Unsplash.




















