Financial firms may be excluded from Europe’s most consequential ESG regulation, as the industry looks set to win a reprieve after an intense lobbying campaign.

Spain, which holds the European Union’s rotating presidency, has proposed that banks, asset managers and other financial firms not be included in the initial roll-out of the Corporate Sustainability Due Diligence Directive, according to a Nov. 9 draft proposal seen by Bloomberg. The proposal still requires the approval of member states and lawmakers.

The European Council and Parliament will hold negotiations later this month on CSDDD, and whether to include the finance industry has remained a key sticking point in reaching an agreement before the end of the year. Spain’s proposal is intended to allow the broader talks to continue, and return to the issue of whether banks should be included at a later date, according to the draft.

CSDDD is the key plank within the EU’s package of legislation designed to make its economy sustainable by holding businesses accountable for their social and environmental impact. Under the directive, companies would face civil liability and potentially large administrative fines if they fail to comply with the directive.

Member states remain divided over the initial Council proposal, the draft proposal shows. In June, the EU Parliament agreed to include the finance industry in CSDDD. But already then, the lawmaker who spearheaded the initiative, Lara Wolters, said she was bracing for pushback during talks with the EU Council.