The Omnibus I Negotiations in light of the ICJ Advisory Opinion on Climate Change

This briefing addresses the proposed “Omnibus I” Directive, with a focus on Article 22 of the Corporate Sustainability Due Diligence Directive (CS3D). It examines the implications of the International Court of Justice Advisory Opinion (23 July 2025) – a landmark development in the evolving international legal framework on climate change. 

Building on recent jurisprudence from the ECtHR, ITLOS, and IACtHR, the ICJ Opinion clarifies and strengthens States’ obligations under international law, with direct consequences for corporate regulation. It underscores the need for mandatory, actionable corporate climate transition plans (CTPs) aligned with the Paris Agreement’s 1.5°C goal, while highlighting the heightened litigation risk landscape for both States and private actors. 

Key recommendations for the final Omnibus Directive include:

1. Preserving the behavioral duty in Article 22 to adopt and implement transition plans (not just disclose!). 

2. Including a clear standard of effort reflecting the scale and urgency of the climate crisis - companies must be required to demonstrate effective, science-based actions in striving to achieve the emission reduction targets set out in their transition plans.

3. Ensuring full alignment with international and EU climate frameworks - companies must be required to ensure compatibility of their business model with the European Climate Law and the Paris Agreement, including the 1.5°C temperature limit and intermediary 2030 and 2040 targets.