Launched in 2019, the EU Green Deal sets out a “plan to transform Europe’s economy, energy, transport, and industries for a more sustainable future”[1] by steering companies toward sustainability-oriented business models and achieving climate neutrality by 2050.  As the flagship initiative of Ursula von der Leyen’s first Commission mandate, the EU Green Deal originally prioritized ambitious climate, environmental and social objectives. However, developments in early 2025 indicate a significant strategic shift within the EU, prioritizing competitiveness through its new “Competitiveness Compass” and reducing emphasis on the initial green agenda.

This shift is reflected in efforts to simplify regulatory requirements associated with the Green Deal, aiming to reduce compliance burdens on businesses, including two umbrella regulations: