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European Commission launches consultation on revising sustainable investment criteria

07 Apr 2026
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On 17 March 2026, the European Commission initiated a public consultation to revise the technical screening criteria (TSC) under the EU Taxonomy Regulation (Regulation (EU) 2020/852). This framework aims to facilitate sustainable investment by defining criteria for economic activities that contribute to the EU's six environmental objectives: climate change mitigation, climate change adaptation, sustainable use of water and marine resources, circular economy, pollution prevention and control, and biodiversity protection.

As part of this process, the European Commission has published draft amendments to two key Delegated Acts:

  • Taxonomy Climate Delegated Act((EU) 2021/2139) – Enhancing usability of TSC for climate-related objectives.
  • Taxonomy Environmental Delegated Act((EU) 2023/2486) – Improving TSC usability for broader environmental goals.

The proposed revisions aim to simplify and improve the framework's usability, reflecting stakeholder feedback and technological advancements. Key sectors addressed include forestry, environmental protection, manufacturing, energy, transport, and construction. The amendments also refine the "do no significant harm" (DNSH) criteria.

The consultation is open until 14 April 2026, with the Commission planning to adopt the revised legislation in Q2 2026.

About the EU Taxonomy Regulation

The EU Taxonomy Regulation, a cornerstone of the EU’s sustainable finance framework, establishes a unified classification system for environmentally sustainable economic activities. It aims to direct investments toward projects aligned with the European Green Deal and the EU’s 2030 climate and energy targets. By providing clear criteria, the taxonomy fosters market transparency, mitigates greenwashing, and supports companies and investors in identifying sustainable opportunities.

The regulation defines six overarching environmental objectives and relies on technical screening criteria, developed through delegated acts, to assess activities' alignment with these goals.

For more information, the news release can be found here