Reform package, omnibus procedure, relief cabinet: The political arena regularly announces measures to reduce bureaucracy. This is important because companies cite legal framework conditions, alongside high energy prices, as the biggest risk factor for their location in Germany. These issues significantly contribute to their persistently negative business expectations.

Package with useful initiatives, ...

The federal government and the Federal Ministry for the Environment (BMUKN) in their package to strengthen modern, digital, and effective environmental protection (UmoP (only available in German)) have announced many useful initiatives to reduce bureaucracy, accelerate planning and approval processes, and improve the modernization and digitization of administrative processes. This will relieve companies and strengthen Germany's economic location. The German Chamber of Commerce and Industry (IHK) explicitly supports the BMUKN in these efforts.

However, these announcements should not obscure the fact that companies in the environmental and sustainability sector currently must still expect additional burdens from ongoing legislative processes or new laws. Some of these are rooted in EU legislation. In many cases, however, Germany goes beyond EU requirements or adheres to its own regulations. In practice, despite all efforts, more burdens often reach companies than are reduced.

To genuinely relieve companies, the federal government must significantly reduce national reporting and documentation obligations than it has done so far. At the same time, it must push in Brussels for the reduction of new and existing requirements.

... but new additional burdens threaten elsewhere

The following regulations are currently affecting companies:

Implementation of the Industrial Emissions Directive in Article Law and General Regulations (Status: Government Draft)

Large industrial facilities will have to introduce an environmental management system in the future. When it comes to exceptions to limit values under European law, the draft law, especially in water law, does not fully implement all possibilities under European law.

Law to Strengthen Natural Infrastructure (Status: Draft Bill)

The draft bill from the Federal Environment Ministry establishes an overriding public interest for various protection areas. This threatens to significantly delay or halt numerous planning and approval procedures in infrastructure or business. Interventions in the new land area "natural infrastructure" are expected to additionally burden companies.

EU Packaging Regulation

As of August, companies will have to meet numerous additional requirements for their packaging. Among other things, they must register their packaging, submit a declaration of conformity, and mark it separately. 

In Germany, without corresponding EU requirements, companies additionally have to declare the completeness of packaging quantities, as well as prove their return and unsaleability.

Corporate Sustainability Reporting Directive (CSRD)

Despite the Omnibus-I package, the CSRD entails significantly more effort for affected companies. By including the supply chains, countless business partners of the reporting companies are also obligated to provide certain sustainability data. New processes for gathering sustainability data will be introduced and significantly expanded. Companies have to perform a double materiality analysis and have their sustainability reports externally audited.

Corporate Sustainability Due Diligence Directive (CSDDD)

Even after the Omnibus-I package, the CSDDD poses significant additional effort for affected companies: establishing, implementing, and monitoring risk-based due diligence obligations along their own business activities and parts of the supply chain, annual reporting requirements (usually integrated into CSR reporting).

Empowering Consumers Directive (EmpCo)

Companies must review and prove environmental and sustainability claims in advertising much more strictly in the future. This requires adjustments to product labeling, company name, brand, and marketing.

Regulation for Avoiding Microplastic Emissions from Plastic Pellets (Plastic Pellets)

Companies must take technical and organizational measures to avoid pellet losses along the entire supply and logistics chain. Additionally, they must introduce documentation, labeling, training, regular inspections of operational processes, and, depending on company size, adhere to certification or self-declaration requirements.

EU Deforestation Regulation

The regulation introduces requirements for complete traceability of relevant raw materials down to the cultivation area and the submission of diligence declarations before placing products on the market, risk analyses in the supply chain, regular inspection and documentation obligations to authorities and business partners.

Ecodesign Regulation and Digital Product Passport

Future mandatory integration of ecodesign requirements into product design for a multitude of product groups, providing detailed environmental and product data throughout the entire life cycle.

Introduction of digital product passports, continuous data maintenance, documentation, and compliance obligations along the supply chain.