EU: Delegated act on simplifying Taxonomy Reporting published in the Official Journal

The Commission delegated act on simplifying the application of the EU Taxonomy Regulation was published in the Official Journal of the EU on 8 January 2026.

Background

The delegated act, which amends the Taxonomy Disclosures, Climate and Environmental delegated acts under the EU Taxonomy Regulation was adopted by the Commission on 4 July 2025. The changes to reporting include the introduction of a materiality threshold and changes to the reporting templates. The changes to the technical screening criteria include changes to the DNSH criteria with regard to the environmental objective of preventing and reducing pollution (see our earlier blog post for more detail on the simplification measures).

Application and timings

The delegated act will enter into force on 28 January 2026 and start applying retrospectively from 1 January 2026 covering the 2025 financial year for companies already in scope of the EU Taxonomy regime.  However, companies have an option to defer for one year and apply the previous regime for the 2025 financial year if more convenient, although it must apply those reporting rules in full.

Reporting undertakings should include a statement in the contextual information of their sustainability report that specifies which set of reporting rules they applied when reporting on the 2025 financial year.

Commission FAQs

The European Commission published a draft Q&As on 17 December 2025 to provide practical guidance on the implementation of the Delegated Act. It answers questions such as whether and how previous year’s data must be reported if the new EU regulations are applied, and how the new materiality threshold should be applied. Formal adoption of the FAQs in all EU languages is expected shortly now that the delegated act has been published. 

Links to resources:

• Commission Delegated Regulation (EU) 2026/73 published in the Official Journal of the EU

• Commission’s draft Q&As on the delegated act.

• Linklaters: EU Omnibus Tracker: simplification of sustainability rules