Climate and Energy: EU Policy and Regulation Update for 22 April 2026
April 22, 2026
As policy and regulatory landscapes evolve, this publication will provide insights to navigating emerging risks and opportunities in the energy transition. Read previous issues here.
Sustainability Omnibus Package/ Simplification measures
- EBA announces simplification of supervisory reporting, including with respect to ESG-related supervisory reporting ITS
- EFRAG to launch public consultation on the N-ESRS for non-EU companies in Q3 2026
- ESMA publishes compliance table for its guidelines on Enforcement of sustainability information
- European Commission publishes first CBAM certificate price
- EIOPA and ESM staff publish discussion paper on natural catastrophe risk management
- European Commission adopts Delegated Regulation on RTS for the ESG Ratings Regulation
- Consob publishes 2025 Report on Sustainability Reporting
- Federal Cabinet adopts 2026 Climate Action Program
- Federal Environment Minister presents key points for a new Textiles Act introducing extended producer responsibility in Germany
Sustainability Omnibus Package/ Simplification measures
10 April 2026 [EU] – EBA announces simplification of supervisory reporting, including with respect to ESG-related supervisory reporting ITS
The European Banking Authority (EBA) announced it would consult on a series of measures to significantly simplify EU supervisory reporting. In its press release [available here] the EBA notes that the envisaged revisions – which would apply from September 2027 – are aimed at better aligning reporting requirements with supervisory needs, reducing the number of data points across the EU harmonized reporting by around 50% and strengthening proportionality, in particular for small and non-complex institutions.
The EBA consequently launched a consultation on several modules, relating to the preparation of Implementing Technical Standards (ITS) on supervisory reporting, and on supervisory benchmarking reporting. This includes an ESG reporting module, and related Consultation paper [available here].
The EBA is mandated by Article 430(7) of Regulation 575/2013 (CRR) to develop draft ITS specifying uniform reporting formats, frequencies and instructions necessary for competent authorities to monitor compliance with prudential obligations. The revision of the CRR through Regulation 2024/1623 (CRR 3) extended this mandate, to include exposures to ESG risks.
The EBA specifies that it considered the broader EU objective of regulatory simplification and coherence, including the Omnibus initiatives, while drafting the proposals. In this context, due regard has been given to the interaction with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), with a view to promoting alignment, reducing overlaps and facilitating operational implementation for institutions subject to multiple sustainability reporting frameworks.
The consultation is open until 10 July 2026 [link for comments available here].
21 April 2026 [EU] – EFRAG to launch public consultation on the N-ESRS for non-EU companies in Q3 2026
During its 21 April 2026 meeting, the European Financial Reporting Advisory Group (EFRAG) was presented with a paper on the Due Process Proposal for Non-European ESRS (N-ESRS) [available here].
The paper explains that EFRAG has been preparing an Exposure Draft on N-ESRS for non-EU undertakings falling within the scope of Article 40a of the CSRD. However, because EFRAG cannot start the public consultation before the adoption of the Delegated Act on Simplified ESRS, the earliest commencement date for consultation is mid-July 2026.
In that context, EFRAG notes that a full 120-day public consultation period will lead to breaching the January 2027 deadline set by the European Commission for the submission of its technical advice. The consultation will need to be shortened to 100 days.
European Union/International
1 April 2026 [EU] – ESMA publishes compliance table for its guidelines on Enforcement of sustainability information
The European Securities and Markets Authority (ESMA) published a compliance table [available here] regarding its Guidelines on Enforcement of Sustainable Information (GLESI), which govern supervision of ESRS compliance by national competent authorities (NCAs).
In June 2025, ESMA had published a public statement on ESRS supervision, outlining the need for an adjustment phase in the first years of application of the ESRS. It noted that enforcement of the GLESI during this phase should be “proportionate and realistic” [see further here, in our previous edition].
In its April 2026 publication, ESMA reiterated this call for flexibility, and listed NCAs which comply, intend to comply, or do not comply with the GLESI. Most NCAs either comply or intend to comply. However, Austria, Denmark, France, the Netherlands, Romania and Norway are marked as “do not comply”. In particular, the French Autorité des Marchés Financiers shared that it would comply “by such time as all NCAs have the necessary legislative or regulatory basis to supervise sustainability information set out in the CSRD.”
7 April 2026 [EU] – European Commission publishes first CBAM certificate price
The European Commission has published the first price of CBAM certificates for 2026 Q1 on its new dedicated page on the CBAM website [available here].
For 2026, CBAM certificate prices will be determined on a quarterly basis, and will only apply to emissions in CBAM goods imported into the Union during the quarter it relates to. Each quarterly price will be calculated by the Commission as the average of EU Emissions Trading System (EU ETS) auction clearing prices, ensuring a fair and consistent alignment with the EU carbon market.
Authorized CBAM declarants will only begin purchasing CBAM certificates from February 2027 (covering their 2026 imports). However, the Commission decided to start publishing in 2026, to enhance transparency and provide a reliable reference point for all stakeholders. From 2027 onwards, the Commission will calculate and publish the price of CBAM certificates on a weekly basis.
9 April 2025 [EU] – EIOPA and ESM staff publish discussion paper on natural catastrophe risk management
The European Insurance and Occupational Pensions Authority (EIOPA) and the European Stability Mechanism (ESM) published a discussion paper on natural catastrophe risk management [available here], aimed at quantifying the benefits of a European risk-sharing mechanism.
The proposed risk management mechanism would consist of two complementary parts: (i) a risk-based premium-financed, Europe-wide natural catastrophe insurance pool, and (ii) a loan-based backstop for extreme tail events that exceed the pool’s capacity.
The EIOPA and ESM note that the proposed mechanism aims to reduce Europe’s significant protection gap, which in the past left around 75% of economic losses from natural catastrophes uninsured, and to strengthen the continent’s resilience against increasingly frequent and severe natural disasters like floods, droughts, storms and wildfires.
On 16 April 2026, Petra Hielkema, EIOPA Chairperson, noted that this insurance protection gap was at the heart of the EIOPA’s concern. She outlined the need for collaborative action to address this gap, which in turn, will safeguard the financial system and improve the resilience of society [full speech available here].
21 April 2026 [EU] – European Commission adopts Delegated Regulation on RTS for the ESG Ratings Regulation
The European Commission adopted a Delegated Regulation supplementing Regulation 2024/3005 (ESG Ratings Regulation) with regard to regulatory technical standards (RTS) specifying the measures and safeguards to be implemented by ESG rating providers to separate their ESG rating activities from their other activities [available here].
In May 2025, ESMA had carried out a public consultation on said RTS, in line with its mandate under Article 16(5) of the ESG Ratings Regulation. The Final Report on these RTS was submitted to the Commission services in October 2025, and formed the basis for the Delegated Regulation. Key provisions are as follows:
- Article 1 sets out that all ESG rating providers should put in place separate organizational structures and working environments for employees and other persons involved in the rating process from any of the activities listed in Article 16(1) of the ESG Ratings Regulation, and subject them to regular self-declarations attesting employees’ non-involvement in such activities.
- Article 2 proposes that ESG rating providers intending to provide investment services and/or insurance and reinsurance activities implement additional technical and internal control measures.
- Article 3 provides that ESG rating providers that intend to provide benchmarks, or do provide such benchmarks, are to adopt additional specific safeguards ensuring that employee compensation remains unaffected by conflicts of interest related to benchmark activities, that ESG ratings are produced and offered independently of the provision of benchmarks, and that any actual or potential conflicts of interest are assessed and documented before entering into a contract for the provision of ESG rating activities.
The Council of the EU and the European Parliament will now review the Delegated Regulation, which will be published in the Official Journal of the European Union and enter into force 20 days after publication, if neither objects. The Delegated Regulation will apply from 2 July 2026 to align with the ESG Ratings Regulation application date.
Italy
20 April 2026 [Italy] – Consob publishes 2025 Report on Sustainability Reporting
On 20 April 2026, the Italian Financial Market Authority (Consob) published its Annual Report on the sustainability reporting of Italian listed companies for 2025 [available here, in Italian and English], which represents the first year of reporting under the Italian framework transposing the Corporate Sustainability Reporting Directive (CSRD) and the mandatory European Sustainability Reporting Standards (ESRS).
According to the Report, in 2025, 69.4% of companies listed on Euronext Milan (i.e., 136 Italian companies) published sustainability reports for the 2024 financial year in line with the new framework, representing 97.1% of the total market capitalization. By comparison, in 2024, 72% of listed companies (i.e., 150 companies, corresponding to 97.2% of market capitalization) published non-financial disclosures.
The 2025 report – which is based on a sample of 60 listed companies as of 31 December 2024 – was prepared during a period of significant change in the European regulatory framework, which was recently amended by the Omnibus I Directive. This reform has eased certain disclosure requirements and narrowed the scope of application. The report shows that companies that will remain subject to reporting obligations from the 2027 financial year onwards, compared to those that may fall outside the scope, have more structured reporting processes. They are more likely to have internal procedures for preparing sustainability reports and ESG or sustainability plans, and more frequently integrate ESG factors into their strategy and executive remuneration policies. Companies that may no longer be required to report, although generally smaller and with less formalized processes, nonetheless appear to adopt a similar approach to identify the issues relevant for reporting purposes. The report also highlights that:
- Stakeholder involvement in the double materiality analysis (which considers both the impact of ESG factors on the company and the impact of the company on the environment and society) is widespread, with 80% of the companies analyzed involving stakeholders, most commonly suppliers, employees and customers;
- Boards of Directors are frequently involved in the double materiality process, in over 93% of cases;
- Climate change remains a priority for all the companies analyzed, although only 13% of the sample report having adopted a climate transition plan, while a further 17% intend to adopt one in the near future;
- As to social issues, impacts relating to the company’s own workforce are considered material by all companies;
- ESG factors are playing an increasingly important role in remuneration policies, with 78% of the companies in the sample – rising to 90% among those that will continue to be subject to sustainability reporting obligations – having incorporated them into the variable remuneration of their CEOs.
Germany
25 March 2026 [Germany] – Federal Cabinet adopts 2026 Climate Action Program
The Federal Cabinet (Bundeskabinett) has adopted the 2026 Climate Action Program (Klimaschutzprogramm 2026), which outlines a wide range of measures to be implemented by 2030 in order to achieve the 65% CO2-reduction target set forth in the Federal Climate Action Act (Bundes-Klimaschutzgesetz, KSG).
The 2026 Climate Action Program comprises a total of 67 measures aimed at reducing CO2-emissions by 25 million tons by 2030. The measures include, among other things, an additional tender for the construction of 12 gigawatts of onshore wind power (which corresponds to approx. 2,000 new wind turbines), support for investments in the decarbonization of industrial processes, subsidies for the purchase of electric cars, and the promotion of programs regarding the protection of forests, wetlands and soils. A total of 8 billion euros have been allocated for these measures [see further here, German only].
27 March 2026 [Germany] – Federal Environment Minister presents key points for a new Textiles Act introducing extended producer responsibility in Germany
The German Federal Environment Minister has presented key points for a new Textiles Act aimed at introducing extended producer responsibility for textiles in Germany. The key points require producers to finance the collection and treatment of old textiles, including clothing, clothing accessories, home textiles and shoes. The financial contribution is supposed to be greater, the more textiles a producer places on the market, and the lower their quality.
The key points are intended to address the mounting problems in the used-textiles sector caused by the rapid growth of fast fashion and low-quality imports. They aim at preparing the legislative process for the implementation of Directive (EU) 2025/1892 amending the Waste Framework Directive, published in Q4 2025 [see further here, German only].