Advancing Sustainable Finance: New TSC & Climate Delegated Act Review

What's new?

On 1 April 2025, the Platform on Sustainable Finance (the Platform) published a report (the Report) prepared by its technical working group.

The Report follows on from the Platform's second mandate from the European Commission (the Commission) under the Taxonomy Regulation. It develops Technical Screening Criteria (TSCs) for new economic activities and 'do no significant harm' (DNSH) criteria which will be covered under Annex II of the Climate Delegated Act as 'adapted activities'.

What does the report cover?

Reflecting the various elements of the Platform's mandate, the report contains recommendations for the activities / areas listed below.

Review of Technical Screening Criteria

• Usability improvements for the generic Climate Change Adaptation criteria.

• Consistency and usability improvements for selected activities under the Climate Change Mitigation and Adaptation objectives, including through harmonising activity titles and descriptions.

• Adjustment to scientific results and technological developments of selected substantial contribution and DNSH criteria under the Climate Change Mitigation objective.

• General recommendations for updating substantial contribution and DNSH criteria under the climate change mitigation objective.

• Mapping activities with inconsistent or insufficiently considered DNSH criteria.

New economic activities mandated by the Commission

• Refining processes that substantially contribute to Climate Change Mitigation.

• Mining processes that substantially contribute to Climate Change Mitigation.

• Close to market research, development and innovation that substantially contribute to all four objectives of the Environmental Delegated Act.

• Digital solutions and services that substantially contribute to all four objectives of the Environmental Delegated Act.

New economic activities mandated but not completed

• Manufacture of emergency aircraft that substantially contribute to Climate Change Adaptation.

• Maintenance of tunnels and bridges that substantially contribute to Transition to Circular Economy.

• Manufacture of tyres that substantially contribute to Pollution Prevention and Control.

• Telecommunication networks that substantially contribute to Climate Change Adaptation.

• Energy efficiency equipment in industry that substantially contribute to Climate Change Mitigation.

Further recommendations for Climate Change Adaptation

• DNSH criteria for 'adapted' activities for newly proposed activities under the current mandate of the Platform and activities already included in existing Delegated Acts but not included in Annex II of the Climate DA.

• A Climate Change Adaptation Headline Ambition Statement.

• An analysis of sectors most vulnerable to physical climate risks, prioritised for inclusion as 'adapted' activities in the future.

• Progress on conceptual approach to nature-based solutions' inclusion enabling Climate Change Adaptation objective.