Germany has walked back earlier calls to eliminate the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), instead clarifying that its goal is to streamline and reduce bureaucracy, not to cancel the law entirely. This shift aligns more closely with the EU’s broader ESG and carbon neutral strategy objectives. 

At a recent press conference, German government spokesperson Stefan Kornelius emphasized the coalition’s intent to “de-bureaucratize the European framework,” especially as the European Commission advances its Omnibus proposal to ease regulatory burdens while preserving sustainability principles. 

The clarification follows strong statements by Chancellor Friedrich Merz, who earlier urged the EU to “cancel” the CSDDD. France’s President Emmanuel Macron also supported shelving the regulation. However, both nations now appear more focused on regulatory simplification rather than outright repeal. 

Adopted in May 2024, the CSDDD mandates that companies identify and mitigate adverse environmental and human rights impacts across their supply chains, covering issues such as deforestation, emissions, pollution, and labor abuses. The directive’s scope was scaled back during adoption, applying only to large companies and delaying implementation to 2028. 

Germany’s coalition agreement, signed in April 2025, included plans to repeal its national Supply Chain Act (LkSG) in favor of the CSDDD, underscoring the strategic pivot toward EU-level regulation. Kornelius reiterated that Germany’s goal is to “streamline the European Supply Chain Directive in its comprehensive impact” while maintaining commitments to ESG accountability. 

As the EU continues refining sustainability frameworks under the Omnibus initiative, Germany’s revised position may pave the way for balanced reforms that protect environmental goals while easing compliance for businesses. The move reinforces Europe’s leadership in sustainable value chains, ESG reporting, and its overarching carbon neutral strategy. 

Source: 

https://www.esgtoday.com/germany-walks-back-call-to-scrap-the-eus-supply-chain-sustainability-law/