Europe’s new sustainability reforms aim to simplify corporate reporting and due diligence, raise the company size thresholds, and remove EU-wide liability for sustainability harms. While supporters say this reduces compliance costs, critics argue it weakens accountability and Europe’s standing in global sustainable finance. Early evidence shows substantial progress from companies under the original rules, but concerns remain that deregulation could result in less reliable data, transparency gaps, and weaker market trust. The outcome is uncertain, as lawmakers have rejected the current reform proposal, and the final approach will shape both Europe’s market credibility and global influence in sustainability standards.