Revised Delegated Act on EU Taxonomy enters into force

Updated rules introduce materiality thresholds, streamlined reporting templates and simplified Do No Significant Harm criteria from financial year 2025.

The revised Delegated Act on the EU Taxonomy enters into force across the European Union (EU) on 28 January 2026. Adopted in July 2025 as part of the European Commission’s Omnibus initiative, it aims to reduce reporting complexity while maintaining the core structure of the Taxonomy framework. The rules apply from financial year 2025, however, companies may continue using the non-amended requirements for that year.

Key updates include the introduction of new materiality thresholds, allowing both nonfinancial and financial undertakings to exclude non‑material activities or exposures from eligibility and alignment assessments under defined conditions. Targeted changes to the Pollution “Do No Significant Harm” (DNSH) criteria reduce the scope of substances that must be assessed, aligning the requirements more closely with existing EU legislation.

Reporting templates have been significantly simplified, including major reductions in datapoints and the introduction of new summary tables for Taxonomy KPIs. Financial institutions also have the option to defer Taxonomy KPI disclosures until 31 December 2027, provided certain conditions are met.

On 17 December 2025, the Commission published a Draft Notice providing further guidance.

A broader review of technical criteria and reporting requirements is planned, alongside additional changes under the Omnibus simplification package.