EU taxonomy review to clarify Climate Delegated Act criteria

The European Commission has proposed updates to the technical screening criteria of the EU Taxonomy's Climate Delegated Act. These changes aim to make compliance more practical and consistent across sectors, with proposed solutions open for feedback until April 14 and expected implementation from January 1, 2027.

The commission emphasizes that the review does not intend to reopen core policy choices of the Taxonomy. Instead, it focuses on clarifying provisions and streamlining steps to improve internal consistency and operability. The adjustments are driven by extensive industry feedback, which highlighted complexities and administrative burdens in proving Taxonomy alignment.

The proposed amendments include simplifying and harmonizing the "Do No Significant Harm" (DNSH) criteria by referencing existing EU legislation. Specific activity descriptions and methodologies are also being refined, particularly for "other low-carbon technologies," to provide clearer guidance. Reporting requirements were previously narrowed through legislative updates, now affecting a smaller group of undertakings.

Key sector-specific changes are proposed for forestry, reforestation, and wetland restoration. In manufacturing, alignment with recent EU regulations like the Net-Zero Industry Act is being enhanced, including differentiating criteria for battery manufacturing and recycling. Energy production, storage, and distribution criteria are also being revised for consistency and simplified DNSH considerations.