Delegated Regulation on Environmental Targets 3-6

On 13 June 2023, the EU Commission approved in principle the so-called "Environmental Delegated Regulation" on environmental objectives 3-6. In addition, the EU Commission approved in principle the amendments to the existing Delegated Regulations on content and presentation (so-called "Disclosure Delegated Regulation", (EU) 2021/2178) and on the technical assessment criteria for the climate-related environmental objectives (so-called "Climate Delegated Regulation", (EU) 2021/2139).

The Environmental Delegated Regulation sets out the technical assessment criteria for a number of economic activities that make a significant contribution to one or more of the other four non-climate related environmental objectives:

• Sustainable use and protection of water and marine resources (6 economic activities),
• Transition to a circular economy (21 economic activities),
• pollution prevention and control (6 economic activities), and
• Protection and restoration of biodiversity and ecosystems (2 economic activities).

The amendments to the "Climate Delegated Regulation" concern, among other things, the inclusion of further economic activities in the catalogue as well as changes to the technical assessment criteria of individual economic activities already in existence as well as the amendments to Annex C on the use and presence of certain chemicals.

The amendments to the "Disclosure Delegated Regulation" concern, among other things, the design of the notification form.

From 1 January 2024 to 31 December 2024 ((ie in reports on reporting period 2023 or – in case of reporting periods deviating from the calendar year – those ending in 2024 but before 31 December 2024), companies should only report on taxonomy eligibility for the newly introduced economic activities.

The amendments to the "Disclosure Delegated Regulation" as well as the amendments to existing economic activities on the first two environmental objectives are already to be fully implemented for periods beginning on 1 January 2024.

The European Parliament and the Council now have up to four months to raise objections.

The texts of the new and amended delegated regulations can be downloaded here.

In addition, on 12 June 2023, the EU Commission published a "Draft Commission Notice" with questions and answers on the role of minimum protection in the EU taxonomy and on the requirements for reporting companies as well as on the link with the Sustainable Finance Disclosure Regulation (SFDR).

The "Draft Commission Notice" is available here.