An advisory body to the European Commission has prioritised improvements to the usability of ‘do no significant harm’ (DNSH) criteria as part of its input to a scheduled review of the EU Taxonomy Regulation (EUTR). The Platform for Sustainable Finance (PSF) has called for market feedback on its proposals, published in a draft report containing preliminary recommendations for revisions to technical screening criteria (TSC) for activities included in the EUTR’s Climate Delegated Act (CDA), and the addition of new activities to the taxonomy. Along with the Environmental Delegated Act, the CDA defines TSCs for economic activities which make a significant contribution to one of six environmental objectives while doing no significant harm to the others. The review includes revisions to the TSCs for transitional activities, which must be reviewed every three years. As well as making recommendations to update DNSH criteria, including for adapted activities, the PSF also “employed a specific focus” on the usability of the DNSH criteria when proposing new activities. The PSF noted a need to “simplify the application” of DNSH criteria, based on previous market engagement activity, saying the criteria were crucial for “avoiding unintended environmental consequences, preserving the interconnectedness of environmental objectives, and closing loopholes”. “Evidence-based input – especially concrete examples of criteria that are difficult to assess – will be invaluable and carefully considered as we refine the criteria,” said PSF Chair Helena Viñes Fiestas. The consultation is open until 5 February, after which the PSF will finalise its recommendations to the commission. Separately, proposals for streamlining the Taxonomy Directive, the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive are expected next month.
