EU Taxonomy Regulation - Technical Screening Criteria Published in Official Journal
On 9 December 2021, Delegated Regulation no. (EU) 2021/2139 of 4 June 2021, which establishes the technical screening criteria (“TSC”) for determining the conditions under which an economic activity qualifies as contributing substantially to the climate change objectives set out in the Taxonomy Regulation1 and whether an economic activity causes no significant harm to any of the other environmental objectives contained therein, was published in the Official Journal (here) (the “Delegated Regulation”).
The Delegated Regulation was adopted by the European Commission (the “Commission”) in June 2021 and sets out the TSC for determining:
- the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation and climate change adaptation; and
- whether an economic activity causes no significant harm to any of the other relevant environmental objectives set out in the Taxonomy Regulation.
Further detail on the Delegated Regulation and the Taxonomy Regulation is contained in our briefing here.
When it was adopted by the Commission in June, the Delegated Regulation then entered into a scrutiny period whereby the European Parliament and the Council reviewed same. The timeframe for scrutiny had been extended and it was uncertain as to whether the TSC would apply from 1 January 2022, as required by the Taxonomy Regulation2.
The publication of the Delegated Regulation in the Official Journal provides clarity for asset managers that the TSC in the form set out in the Delegated Regulation will take effect on 1 January 2022.
- Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088
- Articles 10(6) and 11(6) of the Taxonomy Regulation require the Delegated Regulation to apply from 1 January 2022.
This document has been prepared by McCann FitzGerald LLP for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.