EU revises sustainable finance rules to clarify green investment standards

EU revises sustainable finance rules to clarify green investment standards
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The European Commission has opened a public feedback period on draft changes to the EU taxonomy, the bloc’s classification system for what counts as a sustainable economic activity.

The EU taxonomy is part of the EU’s sustainable finance framework and is used to guide investment towards projects considered sustainable, the Commission said in a statement on Tuesday.

It sets “technical screening criteria” — conditions that an activity must meet to qualify as sustainable — under the EU Taxonomy Regulation.

Draft revisions published by the Commission include streamlined criteria and clarifications on how organisations can show they meet the rules.

The proposals would also align the criteria with updated EU laws and reflect technological developments.

The changes cover most activities under the Climate and Environmental Delegated Acts, including forestry and environmental protection, manufacturing, energy, transport and construction, as well as the taxonomy’s “do no significant harm” appendices.

Earlier changes and what happens next

In February 2025, the Commission’s Omnibus I package introduced changes to the EU taxonomy that mainly focused on disclosures, with only targeted adjustments to the technical screening criteria.

The Commission then reviewed all technical screening criteria during 2025, leading to the draft changes published now.

Feedback is open until 14 April and will be used to shape a revised version that the Commission plans to adopt by the summer.


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