The Spanish government urged the European Commission to maintain robust sustainability reporting requirements, warning against diluting key elements of the EU’s Green Deal framework, Euractiv reported.
This comes as the Commission prepares to propose a simplification of reporting rules under the Corporate Sustainability Reporting Directive (CSRD), green finance taxonomy, and corporate due diligence regulations next Wednesday.
In a letter sent to the Commission on Tuesday, Spain expressed “sincere gratitude” for the Commission’s efforts to reduce regulatory burdens but emphasised that core sustainability laws should remain intact.
Removing certain existing obligations would not necessarily improve our competitiveness and yet risks sending a dangerous signal of backtracking on our core European values.
Spain argues that the “main elements” of the CSRD should be preserved, as they are critical for transparency and accountability in corporate sustainability practices. However, Madrid acknowledges that smaller firms could benefit from “mandatory, albeit proportionate” climate reporting requirements to ease their compliance burden.
Officials also oppose reopening the taxonomy regulation, which classifies sustainable investments, but suggest streamlining the “Do No Significant Harm” (DNSH) principle. The adjustment could allow more investments to qualify as sustainable without undermining the regulation’s integrity.
Balancing simplification and ambition
While Spain supports measures to reduce administrative burdens, it stresses that the primary goal should be to “unlock capital flows toward the green transition.” The letter highlights the importance of maintaining the EU’s commitment to sustainability, even as it seeks to enhance competitiveness.
The proposed overhaul of EU rules requires a 65% majority among member states, giving Spain—with its large population—significant influence in the decision-making process.
Spain’s defence of the CSDDD underscores its role in demonstrating the EU’s environmental leadership on the global stage. The directive, which holds companies accountable for human rights and environmental violations in their supply chains, is a key component of the bloc’s green agenda.
As the European Commission moves to simplify sustainability reporting rules, Spain’s intervention highlights the delicate balance between reducing regulatory burdens and maintaining ambitious environmental standards. Madrid’s call to preserve the core elements of the Green Deal framework reflects a broader concern that weakening these rules could undermine the EU’s credibility and progress toward its climate goals.
