Highlights

• EU lawmakers reject omnibus bill simplifying sustainability rules and due diligence requirements.
• Vote exposes chasm within European Parliament, with EPP, S&D, and ECR split on agreement.
• Final negotiations on Europe’s sustainability framework delayed until full plenary session in November.

EU lawmakers rejected a proposed sustainability law in a surprising turn of events.

The European Parliament blocked the draft "omnibus" legislation designed to simplify Europe’s sustainability rules and due diligence requirements.

The vote was extremely close, with 318 against, 309 in favour, and 34 abstentions. As a result, formal negotiations with EU governments and the European Commission cannot kick off until a full plenary review on 13 November.

Read More: EU Omnibus: Parliament and Council Take Stance on CSRD and CS3D

Chasm Among Groups

The Socialists and Democrats (S&D) experienced internal rifts, as their negotiator broke from her party line in the final committee vote. The right-wing European Conservatives and Reformists (ECR) group was split between national interests, with Polish members opposing the deal and Italian members supporting it.

The vote was conducted in secret, which makes it difficult to identify which lawmakers ultimately blocked the agreement.

Also Read: Consultation Opens on Simplified ESRS Drafts Under Omnibus Directive

The result was a setback for the European People’s Party (EPP), which had led negotiations and urged other parties, including the liberal Renew group and S&D, to accept its draft. The Greens and far-right lawmakers opposed the deal, and the secret ballot allowed members to vote according to personal convictions rather than party instructions.

Green negotiator Kira Marie Peter-Hansen described the outcome as an opportunity to improve the text so that sustainability and due diligence rules carry real impact.

See Also: EU Coalition Splits Over Green Rules Rollback

ECR negotiator Tobiasz Bocheński said the vote shows that the Parliament is acting independently and is moving toward deregulation of the Green Deal. The result reflects tensions between parties over the direction of Europe’s sustainability framework, and the outcome has delayed the opening of final talks between EU institutions.

See Also:

More developments with regard to the EU omnibus, simplifying sustainability rules and due diligence requirements, are imminent in the months ahead.

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