EU Sustainability Rules Are Changing: What It Means for Yachting

EU Sustainability Rules Are Changing: What It Means for Yachting

by | 7 Mar 2025 | Insights

Author: Awwal Idris, Environmental Expert at Water Revolution Foundation

Update as of 18 April 2025

On 3 April 2025, the European Parliament approved the first part of the EU Omnibus Package, voting by a large majority to delay the application of new corporate sustainability reporting (CSRD) and due diligence (CSDDD) requirements. This “Stop-the-Clock” directive postpones CSRD reporting for the second and third wave of companies by two years, and delays the due diligence obligations under CSDDD by one year. The directive now requires formal publication and must be transposed by EU member states into national law by 31 December 2025. The focus will now shift to the second stage of the Omnibus Package, which aims to further simplify and revise the scope and content of sustainability reporting rules.

The EU sustainability regulations strongly revised in 2025

The European Commission (EC) is scaling back sustainability reporting rules with two new proposals: Omnibus Simplification Package I and II, focusing on sustainability regulations for businesses in the European Union. With these proposed amendments, fewer companies will need to report under the Corporate Sustainability Reporting Directive (CSRD) — 80% fewer, to be exact. The Corporate Sustainability Due Diligence Directive (CSDDD) is also being relaxed. Now, companies only need to monitor direct suppliers instead of their full supply chain, and checks will happen every five years instead of annually. These and many other changes made to the original reporting rules are yet to be presented before the EU parliament for further review and negotiations.

Short summary of the proposed amendments

Deadlines have been pushed back:

  • Large EU companies now report in 2028 instead of 2026. Previously, the CSRD applied to companies with 250+ employees, but now only those with over 1,000 employees – with either a turnover of above €50 million or assets of € 25 million – are required to comply. Companies with 500-999 employees are now excluded from mandatory reporting.
  • Listed SMEs also get an extension, with mandatory first reports now due in 2028 (FY 2027). The new deregulation completely removes them from mandatory reporting after that, meaning they will not have to report at all unless they choose to opt in voluntarily.
  • Some due diligence rules under CSDDD have been delayed by a year. EU Companies with 5,000+ employees and €1.5 billion turnover will now comply from July 2028 instead of 2027. Those with 3,000+ employees and €900 million+ turnover will start in 2029 instead of 2028. The timeline for other in-scope companies is unclear but if the pattern holds, it could be pushed to 2030. Under the new deregulated rules, the CSDDD, which would have originally applied to almost 50,000 EU companies, will now only apply to around 6,000 large EU companies and some 900 non-EU companies.
  • For non-EU companies, the reporting deadline remains: under the CSRD, non-EU parent companies with a large EU branch or subsidiary must report in 2029 based on their activities in 2028. Under the original regulation, this applies if the whole group turn over €150 million or more in the EU. The new rules would raise this threshold to €450 million, so fewer companies would need to report. There is no 1,000-employee rule for EU branches or subsidiaries of non-EU companies. Instead, EU turnover is the main factor because most employees of non-EU companies work outside the EU.

The EC expects these changes to reduce administrative burdens by 25% overall and by 35% for SMEs by the end of its mandate, enabling competitiveness for EU companies and simplify investment programs.

What This Means for Yachting and EU-based Marine Industry

For the European-based superyacht industry, this will mean less pressure to comply… or an opportunity to redirect our efforts from compliance to solving the true issue: the industry should look beyond regulations to drive progress. Climate change and environmental degradation remain existential threats to Europe and the world, and deregulations do not change the scientific reality. The need to reduce environmental impact has not disappeared, and businesses will still need to track progress, set targets and work toward long-term climate neutrality by 2050, whether they are in scope of reporting or not.

Opportunity for an own target-oriented approach

Water Revolution Foundation thus calls on the industry to be pro-active and lead the way towards better future business. This opportunity to define a common goal is the basis of our cooperative Roadmap 2050, driving companies, stakeholders, and organizations to take collective responsibility towards net-zero environmental impact in the superyacht sector by 2050. At the same time, the roadmap aims to also promote the regenerative approach—going beyond reducing harm to creating a positive environmental impact. As regulations loosen, this roadmap becomes ever important as a guide to help the industry meet its targets.

Beyond compliance, these new changes create an opening for self-regulations and industry-led standards. A long-standing complaint in the yachting industry has been that regulation doesn’t account for yachting’s unique characteristics: now with less regulatory pressure, the industry can take charge, setting its own sustainability benchmarks that truly reflect its needs. Instead of waiting for restrictive policies, when these are weak or evolving, scientific data and best practices become the guideposts towards ensuring credibility and competitiveness in a market that increasingly values transparent sustainability. To stay ahead, companies should collaborate to:

  • Develop and rely on best sustainability science and practice to ensure meaningful progress
  • Engage with industry groups to create shared standards that suit yachting while meeting or surpassing global environmental expectation
  • Leverage independent review mechanisms that make sure sustainability claims and investments are credible and actually contribute to positive environmental change.

Staying Ahead

A future tightening of rules is probable if we are to meet the climate targets and environmental ambitions set by 2050. These deregulation actions by the EU may reinforce the perception that sustainability reporting is an administrative burden and overhead cost for businesses, but those able to prioritize environmental responsibility see real benefits:

  • Lower risk and better efficiency over time: compliance takes effort at first, but costs drop as businesses improve their systems
  • Stronger trust from investors and customers
  • Future-proofing against new regulations and market shifts.

Future-proof yachting depends on sustainability

Looking at sustainability as just a regulatory headache is short-sighted – beyond rules, it’s a growing demand from clients, investors, and the industry itself. Clients, especially the new generation cohorts expect more eco-friendly options, and voluntary sustainability efforts can boost reputation and business appeal. Furthermore, a generational shift is also underway—those poised to take over key roles in the industry are far more committed to sustainability and will likely remain engaged in yachting only if environmental responsibility is embedded in its core values. If the industry hopes to attract and retain the next generation of talent, regressing on sustainability efforts is not the way forward. Instead embedding sustainability into the core of the industry will ensure its long-term relevance and vitality in a changing world.

Don’t Wait—Lead

The yachting industry has a unique opportunity to lead by example, proving that economic strength and sustainability go hand in hand. If simplification is pursued purely as means to reduce compliance costs, there is a risk of weakening any needed and essential sustainability progress and/or innovations that can drive accountability and long-term industry resilience. Sustainability isn’t just about ticking boxes – it improves decision-making and competitiveness, and overall protection of the environment our industry depends on. Thus the industry should not look to only comply with regulations: they should lead and define the future of the industry.

Click here for the official European Commission article. 

A lifebuoy for yachting

A lifebuoy for yachting

by | 20 Oct 2024 | Insights

Author: Dr Vienna Eleuteri, Co-Chair and Initiator of Water Revolution Foundation

“Sustainability is no longer about doing less harm. It’s about doing more good”. – Joachen Zeit* 

Yachting’s course toward sustainability is set, with zero emissions as the final destination. Following global climate policy goals, which have long aimed for climate neutrality by 2050, the European Union is committed to reducing greenhouse gas emissions by at least 55% by 2030.

Enter the EU ETS: the European Emission Trading Scheme, a cornerstone of EU climate action since 2005. Though currently limited to yachts over 5,000 GT, it’s only a matter of time before the entire yachting industry is included, driving significant change. The EU ETS, led by the Greenhouse Gas Emission Allowance Directive, encourages cost-effective emissions reductions for a more environmental yachting future.

Achieving true impact

The goals are clear and impact all of us, but how can we truly achieve effective change that signals a real shift in direction? After all, this is a challenge that finds us all “in the same boat.” The 2022 IPCC Report and 2023 Synthesis Report highlight the private sector’s role in spreading climate misinformation and contributing to “maladaptation”—actions meant to address climate change but ultimately worsening risks and harming biodiversity. Though maladaptation is described as an “unintentional side effect,” the evidence is clear: current actions are falling short, and the entire private sector is still off course.

Staying with the nautical metaphor—and beyond it—we’re charting a well-defined course, but with tools that lack precision, risking both our destination and the optimization of our efforts toward a goal that demands a bold shift in direction. Unless we break through the rhetoric and recognize that continuing on this same path won’t relieve natural ecosystems from relentless exploitation and climate stress, we’re simply repeating a cycle expecting a different outcome—a notion Einstein famously defined as madness.

Debunking sustainability myths

Before diving into the solutions, let’s clarify a common misconception: yachting’s emissions are cited by the International Maritime Organisation (IMO) as just 0.3% of global maritime emissions (2-3% overall) yet this figure only reflects fuel use and overlooks the full ecological impact. Beyond propulsion, yacht construction, maintenance, disposal, and infrastructure like marinas and ports all contribute significantly to ecological footprints – disrupting biodiversity, destroying habitats, and contributing to pollution—while not reflected in operational emissions figures.

An additional issue is carbon inequity: yachting serves a small, affluent population with a disproportionately high per-capita carbon footprint. Despite advances in resource efficiency, the benefits are often offset by rising consumption, especially within affluent sectors.

As we sail further into the 21st century, it’s clear that simply aspiring to carbon neutrality isn’t enough—it’s akin to anchoring in shallow waters. This moment calls for the yachting industry to assume genuine leadership by moving from mere harm reduction to the promotion of regenerative practices that actively enhance environmental health. Only by adopting this approach can the yachting sector embark on a path that meets net-zero goals in a serious, proactive, and, above all, credible way.

Establishing a roadmap to 2050 with the 3-R model

This ambition aligns with the recent Water Revolution Foundation industry leadership summit, hosted for its second edition in 2024 by Feadship in Hoofddorp, the Netherlands. At this gathering, industry leaders came together to outline a roadmap to achieve carbon neutrality by 2050 and establish the strategic framework necessary for realizing this goal.

 The 3-R model introduced at the event provides a structured, measurable framework to achieve both net-zero emissions and a nature-positive impact — making it the first sector to adopt this model systematically. Recently validated at COP28 in Dubai during a Water Revolution Foundation-hosted panel at the UN Sustainable Development Goals pavilion, the model has gained international recognition for its scientific rigor and relevance.

Starting with Reduce, the model pushes organizations to set clear net-zero targets, embedding emission reduction into their core strategies. Remove goes further, encouraging investment in proactive emissions offsetting, such as renewable energy projects replacing fossil fuels. However, the true innovation lies in Restore, which emphasizes the restoration of ecosystems. This stage unlocks the potential of blue carbon solutions like seagrass meadows, mangroves, coral reefs, and key biodiversity marine ecosystems that sequester carbon while revitalizing marine resources impacted by human activities.

Putting this vision into action, the Foundation’s Ocean Assist program provides a practical and accessible solution for the yachting community to integrate a complete model aligned with net-zero and nature-positive goals. Driven by an independent advisory board, the program funds high-impact projects that deliver maximum regenerative value, rigorously assessed on a scientific basis.

A balanced investment strategy

The Ocean Assist program reframes marine conservation as essential to the yachting industry, introducing a balanced investment approach that combines Verified Emission Reductions (VERs) and Regenerative Contribution Units (RCUs). VERs are carbon credits representing one ton of CO₂ offset through verified emission reductions, allowing yachting companies to align with global sustainability targets. RCUs go further, channeling funds into “blue carbon” ecosystems — like seagrasses and coral reefs — that both capture carbon and enhance marine biodiversity, directly addressing the ‘Restore’ segment of the 3-R Model. Together, these units form a dual strategy: VERs address carbon offsets, while RCUs support ocean health, shifting the industry from neutral to regenerative impact.

Ocean Assist Units (purchased through the Ocean Assist programme) each combine one VER and one RCU, allowing companies to calculate their carbon footprint or invest in units to offset specific emissions, thereby actively contributing to marine restoration. Companies can start by calculating their total carbon emissions or the impact of individual products and services to determine how many Ocean Assist Units are needed for full or partial offsetting. Each unit provides a one-ton CO₂ offset through VERs, along with additional regenerative benefits through RCUs, supporting projects like Important Marine Mammal Areas (IMMAs).

After investing, companies can track the impact of their Ocean Assist Units using a transparent system, which offers clear metrics for ESG reporting and compliance with the EU’s Green Claims Directive, CSRD, and EU Taxonomy.

This combined approach empowers the yachting sector to go beyond carbon neutrality and positions it as a leader in regenerative environmental development. As the program’s philosophy perfectly captures:

“True luxury is not just about the journeys we take, but the legacy we leave behind—a thriving ocean, resilient and restored, for generations to come.”

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Visit the Ocean Assist Page here.

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*Joachen Zeit is a renowned businessman celebrated for his visionary initiatives as the former CEO of Puma, where he integrated environmental and social responsibility into the company’s core business model. He advocates for “doing more good” rather than just “doing less harm,” inspiring industries to adopt a regenerative approach for addressing global challenges.

© Photo by Breed Media – Jeff Brown