Taxonomy Regulation: FAQs on Climate Delegated Act and Disclosures Delegated Act
The European Commission has published FAQ on Delegated Acts under the EU Taxonomy Regulation:
- Commission Notice on interpretation and implementation of certain legal provisions of the EU Taxonomy Climate Delegated Act: setting out responses to FAQ on the technical screening criteria (TSC) for economic activities that contribute substantially to climate change mitigation or climate change adaptation and do no significant harm to other environmental objectives. A footnote to the Notice clarifies that the FAQs do not take into account proposed amendments to the Taxonomy Climate Delegated Act, which were published by the Commission in June 2023.
- Commission Notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act: setting out responses to FAQ on interpretation of the Disclosures Delegated Act with regard to the reporting of Taxonomy-eligible and Taxonomy-aligned economic activities and assets under Article 8 of the Taxonomy Regulation. The Notice states that the Commission may update or add to FAQs relating to non-financial undertakings reporting key performance indicators (KPIs) and financial undertakings reporting on their green asset ratio (GAR) and green investment ratio (GIR). Undertakings subject to the NFRD/CSRD are obliged to make disclosures under Article 8 of the Taxonomy Regulation. The FAQ clarify that where the relevant undertakings are not able to ascertain compliance of Taxonomy-eligible activities that are not material for their business with the TSC due to a lack of data or evidence, they should report those activities as not Taxonomy-aligned without any further assessment.
The notices were originally published by the European Commission in December 2022 and the final versions have now been published in the Official Journal.