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This week, the EU seems to be doing two things at once: making some rules easier for businesses in the short term, while setting even bigger goals for the long term. Let's look at this balancing act and what it means for you.

Making things simpler?

The biggest news for many companies is that the EU has agreed to raise the thresholds for CSRD and CSDDD. This means fewer companies will have to comply with these complex reporting and due diligence rules, which will reduce costs for many.

This is part of a wider trend. The European Commission also proposed simpler environmental rules to cut business costs by about €1 billion a year. The goal is to remove some of the administrative work so companies can focus on the green transition.

Big goals for the future

While some rules are getting simpler, the EU's long-term climate ambitions are getting stronger. Policymakers agreed on a binding 90% emissions cut by 2040. This sets a clear direction for the next 15 years, even though the start of the new carbon market for buildings and transport (ETS2) has been delayed by a year.

To help reach this target, the EU is planning a major grid overhaul to lower energy costs. Better energy grids will make it easier to use more renewable power across Europe. In another specific move, the automotive industry is also getting a big update with new circularity and recycling rules, pushing carmakers to use more recycled materials.