EIOPA chair says EU omnibus leaves industry and supervisors in ‘limbo’

The chair of the European Insurance and Occupational Pension Authority (EIOPA) has said plans to amend European Union sustainable finance rules “leaves us a bit in limbo”.

Speaking at EIOPA’s conference on sustainability this week, Petra Hielkema addressed the impact of the so-called ‘omnibus’ package, which will make changes to rules including the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CS3D) and the Taxonomy Regulation.

“I really welcome the proposal,” she said.

“I look at how much was produced – for good reason […] But at the same time, it’s a lot to do […] and some of the reductions will really help to free up resources to work on productivity and competitiveness.”

But, Hielkema continued, the lengthy political negotiations expected before a final legislative text is agreed “leaves us a bit in limbo in [relation to] existing legislation now in place”.

The lack of clarity about how the laws will eventually change makes it “difficult” for both industry and European supervisors in the meantime.

There are two legislative proposals being negotiated that cover both CS3D and CSRD.

The first – known as the ‘stop-the-clock’ proposal – would introduce delays to the two directives, to give lawmakers time to thrash out the substantive amendments laid out in the second.

Hielkema said a ‘stop-the-clock’ proposal “might be a good idea” but that it should also be used to postpone Regulatory Technical Standards for identifying, measuring, monitoring and managing sustainability risks under Solvency II.

EIOPA is currently required to finalise the standards by January 2026.

Negotiations in Parliament and Council

Hielkema’s comments came the same week the European Parliament held its first debate on the omnibus proposals.

On Monday, members of the European Parliament (MEPs) locked horns over whether the current plans, which include cuts of around 80% to the coverage of CSRD and the Taxonomy, and reductions in their content, are appropriate.

Politicians on the left of Parliament are angry at the extent of the cuts.

“This is the kind of nonsense that can only be come up with when people go on what must be an ideological crusade, at breakneck speed, refusing to consider real evidence or with a public consultation,” said Lara Wolters, an MEP representing the Dutch Labour Party.

Meanwhile, many on the right of Parliament are keen to see further reductions, with some calling on Monday for the entire EU Green Deal to be abolished in order to make Europe more competitive.

A vote on the ‘stop-the-clock’ proposal will take place on 1 April.

The Council of the European Union met on Tuesday to discuss their position.

That meeting was behind closed doors, but insiders say it was similarly fractious, with the French asking for reductions in the scope of the CS3D and the Dutch wanting Europe’s largest companies – who have already started reporting under CSRD – to be included in the delays.

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