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EU Proposes Relaxation of Rules on Industrial Emissions, Circular Economy, and Waste Management

The European Commission has launched a Call for Evidence for its upcoming “environmental omnibus proposal,” aimed at simplifying environmental laws and reducing administrative burdens for businesses, particularly in the areas of the circular economy, industrial emissions, and waste management.

This initiative follows the EU’s broader push for regulatory simplification under its “Competitiveness Compass” strategy, unveiled in January, which set targets to cut reporting burdens by 25% for all companies and 35% for SMEs.

The new proposal builds on “Omnibus I,” introduced in February 2025, which proposed sweeping changes to key sustainability regulations, including the CSRD, CSDDD, Taxonomy Regulation, and CBAM. While Omnibus I aimed to streamline requirements, it has faced criticism from the EU Ombudsman for bypassing standard public consultations and impact assessments.

The new omnibus package under development will explore options such as:

· Rationalizing reporting under the Waste Framework Directive

· Harmonizing extended producer responsibility (EPR) rules

· Streamlining permitting and reporting requirements across circular economy and emissions-related laws

The Commission emphasized that these changes will aim to lower administrative costs for businesses—such as those related to monitoring, auditing, and notifications—without weakening environmental goals.

Final proposals are expected by Q4 2025.

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