Breaking news – Sustainable Finance - April 2025

What’s new in sustainable finance?

📢 Omnibus Package: "Stop the Clock" Approved 🚨
On April 3rd, 2025, the European Parliament gave the green light to the "stop the clock" mechanism, effectively pausing the implementation of the CSRD and CS3D directives to allow for further revisions. 
🕰️ With 531 votes in favor, this decision sets the stage for continued negotiations on necessary adjustments. 
⚖️ Political groups will need to work closely together to find a balanced compromise, all while keeping the green transition on track.
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📢 NZBA shift to "well below 2°C"
The Net Zero Banking Alliance (NZBA) has updated its framework: member banks are no longer required to align portfolios strictly with the 1.5°C target. They may now align with pathways aiming for "well below 2°C" while continuing efforts toward 1.5°C.
🗣️ The change, approved on April 15, 2025, reflects calls from a majority of members for greater flexibility. 
⚠️ Some civil society groups have expressed concerns about the potential implications for climate ambition.
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📢 EU SRB Delays ESRS Work Plan 
The EU Sustainability Reporting Board (SRB) couldn't agree on a work plan to simplify the European Sustainability Reporting Standards (ESRS), part of the EU’s effort to reduce sustainability reporting “burdens” under the Corporate Sustainability Reporting Directive (CSRD). As the next step, EFRAG is likely to request more time to refine the plan, with further discussions expected.
Key highlights:
➡️ Delayed Progress: EFRAG’s plan to simplify the ESRS was due for submission by 31 October, but members couldn’t approve the work plan.
➡️ Implementation Concerns: Key members raised concerns over slow progress and doubts about the broader implementation plan’s success.
➡️ Consultation Issues: Disagreement on whether a public consultation should be mandatory.
➡️ Focus on Burden Reduction: Concerns over the emphasis on reducing data points instead of focusing on overall burden reduction.
Implementation Concerns: Key members raised concerns over slow progress and doubts about the broader implementation plan’s success.
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