EU's Green Deal Agenda progressing at breathtaking speed
The EU’s Green Deal is progressing on its path to creating a legal framework for achieving its long-term goal of climate neutrality by 2050. In June, two parts of the Green Deal, the ESRS and the EU Taxonomy, were amended by adding legislative parts to the initial proposals after public consultation. Additionally, on July 12, 2023, the Nature Restoration Law passed the EU Parliament and marked an important milestone in the EU’s efforts in the protection of biodiversity and ecosystems.
On June 26, 2023, the European Commission published an Environmental Delegated Act consisting of three main parts.
The first part entails the adoption of four additional environmental objectives, namely:
- 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 ecosystems.
By incorporating these objectives into the EU Taxonomy, comprehensive coverage is achieved, along with a targeted focus, standardised criteria, innovation, and risk mitigation. The second part involves amending the two initially adopted environmental objectives related to climate change mitigation and climate change adaptation. This amendment includes modifications to the technical screening criteria for certain economic activities and the addition of new economic activities. Lastly, the third part encompasses an amendment to Regulation EU 2021/2178 (Disclosures Delegated act).
One further legislative sustainability effort of the EU’s Green Deal agenda, the Nature Restoration Law, moved its next milestone towards adoption, with its adoption by the EU parliament on July 12, 2023. The law is groundbreaking legislation aimed at restoring and preserving the natural ecosystems and biodiversity within the European Union. Drafted as a response to the pressing environmental challenges faced by the region, the law sets ambitious targets and guidelines for member states to promote conservation, restoration, and sustainable management of their natural habitats. But the law is still facing obstacles before it takes effect: The EU Parliament will now bargain its final shape in negotiations with the Member States and a subsequent trialogue procedure, in which a compromise will be negotiated between the positions of the Parliament, the EU Environment Council and the Commission.
Furthermore, enterprises in the EU need to be aware of the latest news about the ESRS, which is the implementation guideline of the CSRD for companies on how to report environmental, social and governance matters. The scheduled public consultation period for the final drafts of the ESRS lasted from June 9 to July 7, 2023 culminating in their adoption by the European Commission on July 31, 2023. More insights about this and the next legislative steps of the ESRS will follow in our next blog post.
We are already supporting our customers in implementing the regulatory requirements of the EU Taxonomy, CSRD and ESRS. Contact us (contact@viridad.eu) to learn more.
