The European Commission has now officially adopted the revised Taxonomy Delegated Act (and relevant Annex). The Delegated Act was initially published in February 2025 as part of the Omnibus package.

MORE DETAILS

FESI contributed to the public consultations for this Delegated Act in March 2025 (attached), asking for several clarifications. Below are the clarifications FESI specifically called for in its March 2025 position paper and relevant answers extracted from the Delegated Act.

A more comprehensive official Q&A is available here.

• Exempting eligibility and alignment for non-material activities + clarifying materiality threshold: Financial and non-financial companies have been exempted from assessing Taxonomy-eligibility and alignment for economic activities that are not financially material for their business. For non-financial companies, activities are considered non-material if their cumulative value accounts for less than 10% of a company's total revenue, capital expenditure (CapEx) or operational expenditure (OpEx). Reducing this administrative burden will benefit companies, allowing them to focus on reporting and financing of their core business activities, and how this contributes to their transition efforts.

• Reviewing relevance of taxonomy: this is part of a broader debate that is currently taking place within the Commission. FESI has been invited together with 20 other stakeholders to take part in an implementation dialogue chaired by Commissioner Albuquerque to discuss how to make Taxonomy more relevant for our industry. The dialogue will take place tomorrow, 10 July.

Other changes introduced by the Delegated Act:

• Non-financial companies are exempt from assessing Taxonomy alignment for their entire operational expenditure when it is considered non-material for their business model.

• Taxonomy reporting templates are streamlined by cutting the number of reported data points by 64% for non-financial companies and by 89% for financial companies.

• The criteria for ‘do no significant harm' to pollution prevention and control related to the use and presence of chemicals are simplified.

NEXT STEPS

The Delegated Act will now be transmitted to the European Parliament and the Council for their scrutiny. The changes will apply once the scrutiny period of 4 months, which can be prolonged by another 2-month period, is over. The Delegated Act will apply as of 1 January 2026 and will cover the 2025 financial year. However, undertakings are given the option to apply the measures starting with the 2026 financial year if they find this more convenient.

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