The European Commission has opened a fresh consultation on the rules that determine which economic activities can be classed as environmentally sustainable under the EU Taxonomy.
A call for evidence, published on 7 November 2025, invites stakeholders to comment on proposed amendments to the Climate Delegated Act and the Environmental Delegated Act, which contain the technical screening criteria underpinning the system. The consultation is being run via the Commission’s “Have your say” portal and will remain open until 5 December 2025.
The EU Taxonomy Regulation, in force since 2020, is the central classification tool in the EU’s sustainable finance framework. It sets out conditions under which an economic activity may be considered environmentally sustainable and covers six environmental objectives: climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems. The aim is to provide a common language for investors and companies, and to reduce the risk of misleading sustainability claims.
The current initiative focuses on two key pieces of secondary legislation: the Taxonomy Climate Delegated Act (EU) 2021/2139 and the Taxonomy Environmental Delegated Act (EU) 2023/2486. These acts specify detailed technical screening criteria (TSC) for activities that may contribute to the six environmental objectives. The Commission is legally required to review these criteria on a regular basis and, where appropriate, to amend them. The call for evidence notes that experience with the first years of application has highlighted elements that are complex, difficult to document in practice or challenging to implement consistently across sectors.
Stakeholders are asked to provide feedback on whether the existing TSC are clear, usable and proportionate, and on which aspects might be simplified or adjusted. The consultation covers both the design of the criteria and their practical application, including data needs, costs of compliance and sectoral coverage. Respondents may also propose new activities for inclusion, or suggest modifications to thresholds and qualitative conditions that determine whether an activity makes a “substantial contribution” to environmental objectives and does “no significant harm” to others.
The review comes against the backdrop of a broader simplification agenda in EU sustainable finance policy. In February 2025 the Commission tabled an “Omnibus” package intended to streamline elements of the Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive and the Taxonomy Regulation. In parallel, the Sustainable Finance Disclosure Regulation (SFDR) is undergoing revision, following a separate call for evidence earlier this year and the circulation of a draft “SFDR 2.0” text. Together, these processes aim to reduce reporting burdens and align different pieces of legislation while maintaining coherence across the framework.
For financial institutions and listed companies, the outcome of the taxonomy review will be closely watched. Banks, asset managers and insurers rely on the taxonomy to calculate and disclose taxonomy-aligned exposures, while non-financial companies must report the share of their turnover, capital expenditure and operating expenditure associated with taxonomy-aligned activities. Any changes to the criteria could alter these figures, affect how products are positioned in the market and influence the design of investment strategies that use the taxonomy as a reference point.
The Commission’s advisory Platform on Sustainable Finance is already examining potential changes to the screening criteria as part of a wider review. A report published in April 2025 set out technical advice on new activities and on the first review of the Climate Delegated Act. The Platform is also analysing hundreds of stakeholder submissions received through a standing request mechanism, which allows proposals for additional activities or adjustments to existing criteria. A broader package of revised taxonomy criteria is expected to be prepared for adoption in 2026.
Once the call for evidence closes on 5 December, the Commission will assess the feedback alongside input from member state experts and the Platform. Draft amending delegated acts will then be prepared and submitted to the European Parliament and the Council for scrutiny. Under the standard procedure for delegated legislation, the two institutions may object but cannot amend the text. Market participants therefore have only a limited period to influence the substance of the changes, before the formal adoption process begins in Brussels.
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