EU Taxonomy: TSCs for Taxo 4 - is the wait nearly over?

With the end of Q1 2023 fast approaching, there is a glimmer of hope for those looking out for the European Commission’s Delegated Act covering the technical screening criteria (TSC) for the remaining four environmental objectives under the Taxonomy Regulation: 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 ecosystem (sometimes also referred to as "Taxo 4" or "Taxo4"). 

The Delegated Act had been expected before the end of 2022 – and indeed the Platform on Sustainable Finance's (PSF) final non-binding recommendations were provided to the Commission back in March 2022, (and supplemented in November 2022) with this deadline in mind (see our previous blog post here).  But 2022 ended with no further update on progress. 

It is now understood that a long-awaited consultation on the draft Taxo 4 TSCs could come as early as the end of March/April 2023 (with a push for adoption at the end of June 2023).  

It is worth noting that a number of different scenarios remain under consideration - and there remains some disagreement among member states (particularly regarding the treatment of forestry and agriculture)  - and as such a further delay is possible.  However this looks to be a step in the right direction.