EU eyes more cutbacks to environmental laws after industry criticism

By Kate Abnett

BRUSSELS (Reuters) -The European Union has begun consultations to further simplify environmental policies after cutting back an initial set of sustainability laws earlier this year in response to criticism from industries.

The move is part of the EU's "simplification" agenda to slash red tape for industries who say that complex bloc-wide legislation means they struggle to compete with rivals in China and the U.S., where President Donald Trump is slashing regulation.

In a public consultation opened on Tuesday, the EU's executive European Commission said it was screening environmental laws to identify those where the administrative burden for companies and governments could be reduced.

"The goal is not to lower the EU's environmental objectives or the protection of human health granted by EU environmental laws, but to attain them more effectively without causing avoidable costs," the consultation's text said.

EU Environment Commissioner Jessika Roswall said on Wednesday the aim was to "simplify environmental legislation without compromising our high environmental standards".

However, other EU proposals to streamline laws have so far included substantially reducing the number of companies covered by sustainability rules, and diluting requirements for companies to check their supply chains for abuses.

Campaigners and some businesses and investors have criticised these plans, accusing Brussels of gutting laws which help manage risks from climate change and drive capital to the green transition.

The EU ombudsman is investigating a complaint by campaigners who accused the EU executive of weakening sustainability policies without first consulting the public.

The Commission has not yet decided which further environmental laws to simplify. EU environment policies cover many issues ranging from waste management to water quality and industrial pollution.

"Extended Producer Responsibility" schemes are among those being considered - although some governments want other policies cut back, including the EU's anti-deforestation law, two EU officials told Reuters.

EPR schemes make companies responsible for how their products are eventually recycled or disposed of. They have been criticised by businesses who say the EU rules overlap with some national schemes, saddling companies with doubled-up regulation.

The European Commission will draft any proposals to simplify laws after the public consultation closes on September 10.

(Reporting by Kate Abnett; editing by Mark Heinrich)