ESG – SFDR RTS changes on fossil gas and nuclear activities published

The amendments to the SFDR Level 2 RTS brought about as a result of the Complementary Delegated Act (CDA), which covers fossil gas and nuclear activities, have now been published in the Official Journal - they come into effect on the third day following publication (i.e., Monday 20 February 2023).

Background

When the Council of the EU and European Parliament were developing Level 2 measures under the Taxonomy Regulation, political differences between Member States led to the decision to deal with the issue of gas or nuclear activities separately.

In the end, the European Commission adopted a Complementary Delegated Act (CDA) in March 2022. The CDA was published in July 2022 and came into effect on 1 January 2023.

Among other things, this makes amendments to the Level 2 measures under the SFDR to enable investors to identify if economic activities under the Taxonomy Regulation include gas or nuclear activities and, if so, to what extent.

As a result, the ESAs were mandated to develop draft amendments, on the back of which the Commission adopted a legislative proposal and this was submitted at the end of October 2022 to the Council of the EU and the European Parliament for their scrutiny.

The three month scrutiny period ended on 31 January 2023 and the final text has now been published, taking effect from Monday 20 February 2023.

What’s changed?

The amendments introduced by the CDA affect Articles 15 and 55 as well as Annexes II to V of the SFDR RTS.

For an unofficial and indicative redline of the SFDR RTS against the published Commission Delegated Regulation, see here.