12/12/2025
EU Insight 12 December 2025
Brussels, 12 December 2025
COMMISSION PRESENTS GRIDS PACKAGE TO TACKLE ENERGY BOTTLENECKS
The Commission has unveiled its awaited European Grids Package to tackle bottlenecks in Europe’s energy networks. Combining new legislation with guidance, the package intends to speed up permitting procedures, improve how costs are shared for cross-border projects, and support the upgrade and expansion of grids and other energy infrastructure across the EU. Notably, the Commission proposes to simplify access to financial support for energy infrastructure, in line with its proposal for the next long-term EU budget. However, cost sharing arrangements for grid financing will likely be a key point of contention among Member States. The legislative proposals will now be passed to the European Parliament and the Council for negotiations.
COMMISSION RELEASES NEW OMNIBUS ON ENVIRONMENTAL SIMPLIFICATION
The Commission has presented a new Environmental Omnibus package to simplify EU rules on industrial emissions, circular economy, environmental assessments and geospatial data. Overall, the main aim is to cut red tape for businesses and public authorities while keeping existing environmental standards. Key elements include speeding up and simplifying environmental assessment for permits, giving companies more flexibility in how they organise their environmental management, and replacing the costly hazardous substances database with other digital tools. The package would also ease rules on extended producer responsibility for EU producers and bring geospatial data requirements into line with broader EU open data rules. As for next steps, the Council and Parliament will now examine the Commission’s eight omnibus proposal.
EU LAWMAKERS STRIKE DEAL ON 2040 CLIMATE TARGET, DELAY ETS2 LAUNCH
The European Parliament and Council have reached a provisional agreement on the 2040 climate target during the first political trilogue. The deal confirms a 90% greenhouse gas emissions reduction target by 2040 compared to 1990 levels, with 85% to be achieved within the EU and up to 5% via international carbon credits from 2036, subject to strict safeguards. Member States and MEPs also agreed to postpone the start of the new Emissions Trading System for buildings and road transport (ETS2) by one year, from 2027 to 2028. The agreement must now be formally approved by the Parliament and the Council before entering into force.
CO-LEGISLATORS AGREE ON CORPORATE SUSTAINABILITY SIMPLIFICATION
The Council and Parliament have reached a provisional agreement to simplify sustainability reporting (CSRD) and due diligence requirements (CS3D). Under the new CSRD thresholds, only companies with more than 1000 employees and a net turnover of over €450 million will have to report, with an exemption for financial holding companies. For CSD3D, the scope is limited to very large firms with over 5000 employees and €1.5 billion in net turnover. With the deal, companies will be able to focus due diligence on areas where risks are most likely and will no longer be required to adopt a climate transition plan. In addition, the CS3D transposition deadline is pushed to 2028, with company obligations applying from 2029.
COUNCIL AND PARLIAMENT REACH DEAL ON PHARMA PACKAGE
The Council and Parliament have reached a political agreement on the EU so-called Pharma Package, which aims to improve access to medicines and reinforce the competitiveness of the European pharmaceutical sector. Companies launching new medicines will now benefit from eight years of data protection and one year of market exclusivity, with extra protection available for products that are particularly innovative, address priority medical needs or deliver clear added clinical benefit. Member States will be able to require that protected medicines are supplied in sufficient quantities to cover local patient needs. The deal also reinforces the ‘Bolar exemption’, allowing generic and biosimilar manufacturers to prepare for market entry as soon as intellectual property rights expire.
COMING UP NEXT WEEK
- 15 December: Foreign Affairs Council. On the agenda: Russian aggression against Ukraine, situation in the Middle East and Syria, China, hybrid threats.
- 15 December: Transport, Telecommunications and Energy Council. On the agenda: Connecting Europe Facility, European grids package, the energy-security nexus.
- 16 December: College of Commissioners. On the agenda: Health package, Housing package, Automotive package, Clean Industrial Deal implementation package.
- 16 December: General Affairs Council. On the agenda: Multiannual Financial Framework 2028-2034, enlargement, 2026 European Semester, cohesion, preparation for the European Council.
- 16 December: Environment Council. On the agenda: Europe’s environment 2030, EU bioeconomy strategy.
- 16-18 December: European Parliament Plenary. On the agenda: defence, phasing out Russian gas, EU-Mercosur, Common Agricultural Policy, Corporate Sustainability Omnibus, Rule of Law, Deforestation Regulation.
- 18-19 December. European Council. On the agenda: Ukraine, Middle East, next MFF, enlargement, migration, geoeconomy and competitiveness.
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