Welcome to our monthly insights into all EU agri-food policy news  –  from legislations and debates to political deals and manoeuvring – directly from Brussels and with a focus on sustainability.

Major EU developments in detail

1. OMNIBUS ON THE COMMON AGRICULTURAL POLICY

What? On 14 May, the European Commission released its third Omnibus simplification package, focused on the Common Agricultural Policy (CAP). This initiative aims to alleviate administrative burdens on farmers and national administrations, while enhancing the competitiveness of the European agricultural sector. Key elements include:

• Simplification of environmental requirements: The package proposes exemptions for farms under 10 hectares from certain environmental checks, streamlining compliance processes.
• Enhanced flexibility for Member States: Member States would gain greater autonomy in managing CAP strategic plans, allowing for tailored approaches that reflect national and regional needs, but risks weakening environmental requirements.
• Support for small and medium-sized farms: The introduction of simplified payment schemes aims to bolster the viability of smaller agricultural enterprises.
• Promotion of technological integration: Encouraging the use of digital tools and data-sharing technologies to improve resource use, reduce input costs, and enhance sustainability.

Why is it important? These reforms are part of the EU’s broader simplification agenda, aligned with the Competitiveness Compass and building on the Vision for Agriculture and Food. However, some of the proposed changes have sparked concern among environmental organisations, who fear some of these new measures could undermine environmental protection.

Looking ahead, the Commission is expected to unveil a new simplification package by Q4 2025, extending beyond the Common Agricultural Policy (CAP) to impact farmers as well as food and feed businesses. Still, all attention is currently focused on the forthcoming proposal for the post-2027 CAP, which is tentatively scheduled for publication on 16 July.

Are you up to date on the latest requirements for imported organic products? Read our latest blog article on the EU Organic Regulation and its impact for smallholder farmers.

2. OMNIBUS SIMPLIFICATION PACKAGE I

Divided negotiations on the first Omnibus Package continue

What? While new Omnibus simplification packages are put on the table, negotiations are ongoing on the first Omnibus proposal, amending the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU taxonomy. A non-binding opinion from the European Parliament’s Economic and Monetary Affairs Committee suggests going even further than the Commission’s proposal, calling for raising the CSRD applicability threshold to 3,000 employees (up from 250) and significantly reducing mandatory data points.

At Member State level, French President Emmanuel Macron has called for scrapping the CSDDD altogether, a move welcomed by business leaders. This is in line with previous declarations by Germany’s Chancellor Friedrich Merz, signalling that the bloc’s two most influential states are now aligned in opposing CSDDD. For the European Council to adopt a proposal, two conditions must be met: (1) at least 55% of Member States (a minimum of 15) must vote in favour, with each state having one vote (no weighted voting); (2) the supporting Member States must collectively represent at least 65% of the EU’s total population.

However, not all stakeholders are advocating against sustainability requirements. The European Central Bank (ECB) has criticised the Commission’s Omnibus proposal, warning that it risks weakening the integration of climate risk into monetary policy. In particular, the ECB flagged that exempting smaller companies from reporting obligations could deprive banks of vital information needed for risk assessment.

Looking ahead, by 30 June 2025, the European Commission is expected to present a country benchmarking system, a risk assessment framework that categorises countries as low, standard or high risk, based on their levels of deforestation.

What Else?

In the meantime, and as a follow-up to the adopted “stop-the-clock” directive delaying the entry into force of CSRD for large companies, the European Commission is planning to publish a delegated act postponing CSRD reporting obligations for ‘wave one’ companies, preparing their second European Sustainability Reporting Standards (ESRS) sustainability statement for FY2025. This “quick-fix” aims to prevent these companies from having to report information that might be removed or modified by future Omnibus changes.

Furthermore, stakeholders should anticipate an upcoming CSRD consultation as EFRAG, at the Commission’s request, is tasked with revising the ESRS to reduce the number of data points and improve consistency.

Why is it important?

It is crucial to closely monitor Ominibus’ policy negotiations, as the outcome could significantly reshape the scope and impact of the CSRD, the CSDDD and the EU taxonomy. Proposed changes would fundamentally alter compliance requirements for companies, and potentially weaken the EU’s broader sustainability agenda.

Read our in-depth blog article to find out more about the Omnibus Simplification Package.

3. EU DEFORESTATION REGULATION

Country by country deforestation risk assessment published

What? The European Commission has published its benchmarking list under the EU Deforestation Regulation (EUDR), classifying countries according to their deforestation risk: ‘low’, ‘standard’, or ‘high’ risk. In this first edition of the benchmarking list, four countries have been designated as high risk: Belarus, the Democratic People’s Republic of Korea, Myanmar, and the Russian Federation; all of them are already subject to EU sanctions on their imports and exports. On the other hand, all EU countries are classified as low-risk.

Although many countries have been classified as low or standard risk, Member States remain concerned that the EUDR could impose additional administrative burdens on European industry. Eleven countries have called for further simplification of the regulation, including the creation of a “no-risk” category that would fully exempt companies from due diligence requirements. They have also proposed delaying the EUDR’s implementation by another year and allowing deforestation, provided it is offset by reforestation within the same country.

Why is it important? The EUDR covers the imports of seven commodities and their derivatives, namely cattle, cocoa, coffee, palm oil, rubber, wood, and soya. This first benchmarking list determines the extent of compliance checks required by EU Member States—ranging from 1% for low-risk countries to 9% for high-risk ones—and introduces simplified due diligence requirements for operators sourcing from low-risk regions.

The publication of this benchmarking list marks a significant milestone ahead of the EUDR’s entry into application on 30 December 2025 for large companies, and 30 June 2026 for micro- and small enterprises.

4. 2040 CLIMATE TARGETS

Uncertain outline of the 2040 carbon emissions reduction target

What? The European Commission is facing uncertainty over the introduction of a legally binding 2040 greenhouse gas (GHG) emissions reduction target. In 2024, the Commission recommended cutting net GHG emissions by 90% by 2040 compared to 1990 levels. However, growing political opposition is now casting doubt on that ambition.

To introduce greater flexibility, Climate Commissioner Wopke Hoekstra is considering allowing the use of international carbon credits. While this could help ease the burden on EU industries, it has sparked controversy, as it may weaken the credibility and environmental integrity of the EU’s climate objectives.

Several Member States are voicing concerns. Italy is pushing for a lower target of 80–85%, while France has called for a pause in setting the 2040 goal altogether. Meanwhile, Germany appears more open to integrating international offsets into the framework. One possible compromise under discussion is to cap the share of emissions that can be offset outside the EU.

The Commission has announced plans to table a legislative proposal for the 2040 climate target before the summer, now expected tentatively on 2 July. Once proposed, the target will need to go through the ordinary legislative procedure, requiring approval from both the European Parliament and the Council of the EU.

Why is it important? Regardless of the final shape of the 2040 climate target, carbon removals—including carbon capture and carbon farming—will be essential to offsetting unavoidable emissions. These tools are central to the EU’s broader strategy for achieving climate neutrality, particularly under the proposed Carbon Removal Certification Framework (CRCF). Under the CRCF, the European Commission is focusing its work on detailed methodologies for different carbon removal activities that will be set out in separate delegated act:

• one for methodologies related to DACCS and BECCS and biochar, with a planned adoption by Q4 2025. The draft act will likely be published in June.
• one for methodologies related to several carbon farming methods, such as peatland resetting, reforestation and agroforestry, with a planned adoption by Q1 2026. The draft delegated act will likely be published after summer.

Read our in-depth blog article to find out more about the EU Carbon Removal Certification Framework

5. ANIMAL WELFARE

Slow progress on the protection of animals during transport

What? The Agriculture and Transport Committees in the European Parliament held a joint hearing to advance discussions on the revision of the Regulation on the protection of animals during transport. Members of European Parliament (MEPs) exchanged views on the more than 3,000 amendments put forward by the different political groups. Journey time limits and temperature boundaries were the most controversial subjects.

Why is it important? Since the European Commission’s presentation in 2023, the proposal has been going through lengthy and controversial negotiations, both in the European Parliament and in the Council of the EU. The 3,000+ amendments reflect the deep division in the European Parliament, leading to calls for more time to reach a workable compromise before final decisions are made. In the Council of the EU, only Denmark, Sweden, Germany, the Netherlands and Austria are still actively backing the Commission’s proposal.

6. FERTILISER

Parliament greenlights fertiliser sanctions

What? On 22 May, the European Parliament approved the sanctions on Russian and Belarusian fertiliser imports. On top of the current 6,5% tariff, the sanction will add a fee of between €40 and €45 per tonne for the 2025-2026 period. These tariffs will rise to €430 per tonne by 2028. The gradual increase will give time for the market to shift away from Russian imports.

Why is it important? This decision marks a significant step in the EU’s efforts to reduce dependency on Russian and Belarusian fertilisers, aligning trade policy with geopolitical and security priorities. By phasing in higher tariffs, the measure aims to incentivise a shift toward alternative suppliers while giving the agricultural sector time to adapt. However, voices in the European Parliament and among farmers expressed concerns over the new sanctions, claiming that they would increase costs for farmers. Once officially approved by the Council, the sanctions will take immediate effect.

7. BIOPESTICIDE

Biopesticide plan promised for 2025

What? Commissioner for Health and Food Safety Oliver Varhely announced the introduction of a biopesticide plan before the end of the year. The plan aims to streamline the lengthy approval process for new biocontrol active substances. It would also strengthen the European Food Safety Agency (EFSA) to allow for quicker approvals of innovative crop protection products.

Why is it important? The Commission seeks to incentivise the use of biopesticides as an alternative to traditional pest-control methods. Compared to other markets, where approval can take up to 3 years, the European process is particularly long, with an average of 7 to 9 years. The upcoming EU Biotech Act, expected in 2026, is also expected to encourage the development of biocontrol solutions.

8. OMNIBUS ON SMALL-MID CAPS

Commission proposes a new Omnibus on small-mid caps and paper requirements reduction

What? On 22 May, the European Commission unveiled another simplification package, the fourth one, focused on small mid-caps and removal of paper requirements. A central feature of the proposal is the creation of a new company category: small mid-caps (SMCs), i.e., companies with fewer than 750 employees and either up to €150 million in turnover or €129 million in total assets. They will benefit from reduced reporting requirements under eight legislations, including GDPR and the EU Batteries Regulation. The public consultation on this package is now open until 21 July, and anyone can provide feedback.

Why is it important? It is estimated that about 38,000 companies in the EU will fall under this new category. In addition, the Commission has confirmed that the new SMCs definition will be taken into account in ongoing legislative reviews, including under previous Omnibus packages. This could mean lighter reporting obligations for SMCs under upcoming rules such as the Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Due Diligence Directive (CSDDD).

Things to watch: Upcoming Events

Amazon Week

June 2-13, 2025

Amazon Week 2025 marks the third edition of a program dedicated to highlighting the critical role of the world’s largest rainforest in maintaining global climate balance, protecting biodiversity and fostering sustainable development. The conferences and events, held in Brussels, Paris, Berlin and online, will centre around finance, bioeconomy, and sustainable development. Check out the event’s website to see the city-by-city agenda.

Water Resilience Strategy

June 4, 2025

On 4 June, the European Commission will unveil its Water Resilience Strategy. According to a leaked version, we should expect a non-binding water abstraction target (taking water from a surface or underground source) for 2030 and the revision of several water laws: the Water Framework Directive, the Marine Strategy Framework, or the Water Reuse Regulation.

EU Green Week

June 3-5, 2025

The European Commission organises a series of conferences and events on sustainability in Brussels and online. This year’s topic is the circular economy. The agenda includes items on bioeconomy or water management. Don’t forget to check out the partner events as well, which stretch until the end of the month and span the continent.

An EU Action Plan for Plant-Based Foods

June 11, 2025

Speakers from five political groups will meet in the European Parliament to exchange around plant-based diets, their environmental and health impact, and how EU policy can accelerate their uptake. More information and registration here.

Consultation: Omnibus on Agriculture

May 23-July 21, 2025

The Omnibus on the Common Agricultural Policy is open for consultation until 21 July. Anyone can contribute on the Have Your Say platform.

Consultation: Omnibus on Small Mid-Caps

May 23-July 21, 2025

The Omnibus on small mid-caps is open for consultation until 21 July. Anyone can contribute on the Have Your Say platform.

If you have questions regarding anything in the Ohana Agri-Food Monthly Insights,
please reach out to Natalia Yerashevich at natalia@ohanapublicaffairs.eu, Francesca Fina at francesca@ohanapublicaffairs.eu, or Arthur Faure at arthur@ohanapublicaffairs.eu