Economic Transition: Shifting Economy, Labels and Sustainability Reporting

Shifting Economy: The Strategic Framework

The Shifting Economy is the regional economic transition strategy adopted by the Brussels-Capital Region in 2022. It aims to redirect all regional economic subsidies towards businesses committed to environmental and social action. The stated goal for 2030 is that 100% of subsidies go exclusively to "exemplary" businesses.

The strategy is jointly led by Brussels Environment and Brussels Economy and Employment (BEE), with support from hub.brussels (business coaching) and finance&invest.brussels (financial instruments). Brupartners, the regional economic and social council, issues opinions on economic reforms related to the transition.

In practice, the Shifting Economy rests on three pillars:

• Conditioning economic subsidies on environmental and social criteria
• Supporting businesses in their transition (Shift My Enterprise programmes, personalised coaching)
• Rewarding pioneers through a system of labels and increased subsidies

The Exemplarity Mechanism

Since March 2024, BEE applies the exemplarity mechanism: businesses holding a recognised label (Ecodynamic, Good Food, B Corp, certified social enterprise) receive increases on all regional subsidies:

• +2.5% for a basic label
• +10% for an intermediate label
• Up to +45% for businesses holding multiple labels or a higher-level label

The mechanism is automatic: when applying for a subsidy (investment, recruitment, consultancy, internationalisation), the BEE system checks whether the business is listed in the register of recognised labels. If so, the increase is applied without any additional steps.

Currently, only 188 sites hold the Ecodynamic label out of 118,000 VAT-registered businesses in the Brussels Region, i.e. 0.16%. The gap between the 2030 ambition (100% of subsidies to exemplary businesses) and reality (0.16% labelled) is the strategy's main challenge.

The Brussels Label Ecosystem

Ecodynamic Enterprise Label

Brussels Environment's historic label, created in 1999, rewards businesses that improve their environmental management (energy, waste, mobility, biodiversity). Three levels: 1, 2 and 3 stars.

• 188 labelled sites at end of 2025
• +125 applications processed in 2024, a growth of +34%
• On 16 June 2026, Bruxelles Environnement awarded the label to 107 businesses in a single ceremony — the highest annual total since the label was created in 1999, according to the cabinet of State Secretary for the Environment Ans Persoons and several media outlets (DH, L'Avenir, BX1). Sources do not specify whether this figure adds to the 188 sites or partly overlaps with it (including renewals)
• The label evolved in 2025 to align with the Shifting Economy (social criteria added)

Good Food Label

Awarded by Brussels Environment to restaurants and canteens committed to sustainable food (short supply chains, waste reduction, vegetarian options). The Good Food Resto label is recognised under the exemplarity framework.

B Corp

The international B Corp certification, issued by B Lab, assesses a company's overall impact (governance, employees, community, environment, customers). In November 2024, Belgium had 100 certified B Corp companies. By April 2026, the 142-company mark was passed — a 30% increase compared to early 2025 — around sixty of them in Brussels, according to figures from the advisory firm BetterBusiness reported by La Libre.

BeCircular

Brussels Environment's annual call for projects supports circular economy initiatives. In 2024, 14 winners were selected, with total support of EUR 1.2 million. Since the first edition in 2016, nearly 300 projects have been supported. BeCircular winners are recognised under the exemplarity system.

Transition Financing

finance&invest.brussels manages the Region's public financial instruments to support the transition:

• Economic Transition Fund: over EUR 210 million in assets under management, invested in Brussels businesses committed to environmental and social transition
• Subordinated loans, equity stakes and guarantees for SMEs in transition
• Co-investment with private impact funds

The annual BEE subsidy budget (investment, employment, consultancy) amounts to approximately EUR 30 million, to which the exemplarity mechanism applies.

The European Framework in Retreat

CSRD (Corporate Sustainability Reporting Directive)

The CSRD requires large companies to publish a sustainability report according to European ESRS standards. In Belgium, transposition has been effective since January 2025 (wave 1: large public-interest entities). Waves 2 and 3 (listed SMEs, other large companies) were due to apply in 2026-2027.

Stop the Clock

In February 2025, the EU adopted the "Stop the Clock" directive postponing waves 2 and 3 of the CSRD by two years. Belgium transposed this directive, pushing obligations to 2028-2029 for the companies concerned.

Omnibus I

On 24 February 2026, the EU Council adopted the Omnibus I package, which reduces the scope of the CSRD by around 80%. Directive (EU) 2026/470 was published in the Official Journal on 26 February 2026 and entered into force on 18 March 2026. Only companies exceeding both 1,000 employees and EUR 450 million in turnover remain in scope (compared with 250 employees and EUR 50 million previously). For remaining companies, reporting is simplified (lighter standards). Member States must transpose the CSRD provisions by 19 March 2027, with first application to financial years starting on or after 1 January 2027.

CSDDD (Corporate Sustainability Due Diligence)

The Corporate Sustainability Due Diligence Directive (CSDDD) requires large companies to prevent adverse impacts on human rights and the environment in their value chain. Its scope is also reduced by Omnibus I: thresholds are raised to EUR 1.5 billion in turnover and 5,000 employees, with transposition by 26 July 2028 and compliance by in-scope companies by 26 July 2029.

Regional/European Tension

The European retreat creates tension with Brussels's ambition: the Shifting Economy pushes businesses towards greater transparency and sustainability, while the EU lightens reporting obligations. Brussels businesses with fewer than 1,000 employees (the vast majority) will no longer be subject to the CSRD, but remain encouraged by regional incentives.

The Pioneer/Mass Gap

The main challenge of Brussels's economic transition is the gap between pioneers (188 labelled sites, 142 Belgian B Corps) and the mass of 118,000 businesses. Several factors explain this discrepancy:

• Cost of labelling: the process requires time and resources, especially for micro and small enterprises
• Lack of awareness: many businesses are unaware of the exemplarity mechanism
• Complexity: the label ecosystem (Ecodynamic, Good Food, B Corp, BeCircular, social enterprise) can seem fragmented
• European easing: Omnibus I reduces regulatory pressure, diminishing the incentive for voluntary labelling

Issues to Watch

• 2030 target: will the Region achieve the goal of 100% subsidies to exemplary businesses, with only 0.16% currently labelled?
• Omnibus impact: will the European retreat slow voluntary labelling momentum in Brussels?
• Exemplarity scale-up: will the subsidy increase mechanism be sufficiently incentivising to accelerate labelling?
• Transition fund: will the EUR 210M under management produce a measurable leverage effect on Brussels SME transition?
• Federal/regional alignment: how will Belgium align residual CSRD obligations with the Shifting Economy's regional incentives?
• Belgian transposition: Belgium must transpose Directive (EU) 2026/470 by 19 March 2027 (CSRD provisions) and 26 July 2028 (due diligence provisions) — with which national options?