Luxembourg’s prime minister Luc Frieden (CSV) supports the postponement of the CSDD and CSRD directives, as decided by the European Parliament. Photo: Shutterstock

Luxembourg’s prime minister Luc Frieden (CSV) supports the postponement of the CSDD and CSRD directives, as decided by the European Parliament.  Photo: Shutterstock

In early April, the European Parliament voted in favour of postponing the Corporate Sustainability Due Diligence Directive and the Corporate Sustainability Reporting Directive. In Luxembourg, the government says it supports the European Commission’s ambition to lighten the regulatory burden on companies, but also this postponement, which should enable Luxembourg companies to prepare better.

1 April 2025 marked the , the legislative project aimed at simplifying several key regulations in the field of sustainable finance. Following the “stop-the-clock” procedure, it was decided to  to provide more predictability for businesses.

In Luxembourg, the government says it supports this decision, as detailed in a parliamentary reply from prime minister (CSV) to Green MEP , published on Wednesday 23 April. “The government fully supports the European Commission’s ambition to reduce the administrative and regulatory burden on European businesses, particularly small and medium-sized enterprises, and to introduce more proportionality, without however abandoning the objectives of the said regulations, namely the protection of human rights and the environment,” the prime minister states. At the EU Council, Luxembourg had in fact positioned itself in favour of the European Commission’s proposal to postpone the timetable.

It’s not just a question of postponing the timetable; the European Commission is also planning targeted reductions in the obligations that will be placed on businesses, In other words, a revision of the texts in substance, to simplify them, without “emptying the directives of their substance,” which “would prevent the objectives that the EU has set itself from being achieved,” . This is also what the Luxembourg government is defending: “Luxembourg has indicated to the Council of the European Union that it wishes to support the proposal to simplify the CSRD and CSDDD directives, while ensuring that the objectives of these directives are respected,” explains Frieden in the parliamentary response. In his view, such a postponement would allow Luxembourg companies to better prepare for the changes and for the Luxembourg legislator to ensure legal certainty.

But the prime minister points out that “the government’s position will evolve depending on the discussions and the overall package.” He does, however, support a reduction in the administrative and regulatory burdens on businesses. “As noted in the , the and, more recently, the Conclusions of the European Council (April 2025), in addition to the complexity caused by the multiplication of regulatory layers, an undue administrative burden is one of the factors weighing on the European competitiveness of businesses. It is therefore absolutely critical to review the regulations in their entirety and to better articulate the respective obligations. In this respect, Luxembourg has invited the European Commission to be ambitious and to suggest further proposals for regulatory simplification,” says Frieden.

This article was originally published in .

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