Climate and Energy: EU Policy and Regulation Update for 3 June 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

• EFRAG launches call for tender for cost-benefit analysis of N-ESRS
• EU Platform on Sustainable Finance responds to consultation on Taxonomy Delegated Acts

European Union/International

• NGFS publishes Report on the macroeconomic and financial impact of extreme weather events
• UN adopts resolution backing ICJ Opinion on States’ climate change obligations under international law
• EFRAG publishes 2025 Annual Review
• ESMA publishes Compliance Table of its Guidelines on Enforcement of Sustainability Information
• GRI and IFRS Foundation publish joint statement on achieving efficient sustainability reporting
• ESMA publishes new Q&As on the ESG Ratings Regulation
• European Commission opens infringement proceedings against 20 Member States for non-transposition of anti-greenwashing rules

France

• French Autorité de contrôle prudentiel et de résolution highlights sustainable finance work in its 2025 Annual Report
• French Autorité des marchés financiers highlights sustainable finance as a strategic priority in 2025 Annual Report

Sustainability Omnibus Package/ Simplification measures

21 May 2026 [EU] – EFRAG launches call for tender for cost-benefit analysis of N-ESRS

EFRAG has published a call for tender for the selection of a service provider to conduct a cost and benefit analysis supporting the development of the European Sustainability Reporting Standards for non-EU companies (N-ESRS) [full document available here].

The selected contractor will carry out a robust, evidence-based assessment of the expected costs and benefits associated with the development of the draft N-ESRS. This work will be aimed at supporting the development of the draft N-ESRS as mandated by the European Commission, and at providing policymakers and stakeholders with a robust economic impact analysis.

EFRAG notes that the assignment will draw from the Exposure Draft of the draft N-ESRS, expected to be issued for consultation in mid-July 2026, and from the EFRAG Technical Advice on the draft N-ESRS, expected to be approved by EFRAG in January 2027.

27 May 2026 [EU] – EU Platform on Sustainable Finance responds to consultation on Taxonomy Delegated Acts

The EU Platform on Sustainable Finance has published a report containing its response to the European Commission’s consultation on the proposed revisions to the Environmental and Climate Delegated Acts under the Taxonomy Regulation [full report available here].

The Taxonomy Climate Delegated Act (2021/2139) and the Taxonomy Environmental Delegated Act (2023/2486) specify the technical screening criteria for activities meeting the EU climate and environmental objectives. On 17 March 2026, the Commission published draft Delegated Regulations amending those criteria [see further here, in our previous edition] 

The EU Platform on Sustainable Finance submitted 280 recommendations to the Commission, most of which relate to the Climate Delegated Act. The report explains that the EU Platform’s review is focused on specific areas and issues identified by the Commission, including: (i) improving usability and clarity across activities, (ii) strengthening policy coherence and consistency with the Taxonomy Regulation, as well as related EU legislation and market practices, (iii) maintaining an appropriate level of ambition of the criteria, which adequately supports the transition towards a sustainable economy.

European Union/International

19 May 2026 [International] – NGFS publishes Report on the macroeconomic and financial impact of extreme weather events

The Network for Greening the Financial System (NGFS) published a Report analyzing the macroeconomic and financial impacts of extreme weather events, their transmission channels and international spillovers. The Report [available here] was prepared at the invitation of the French G7 Presidency.

The Report aims at supporting the G7 in dealing with extreme weather events, and their implications for both macroeconomic and financial risks. It draws on 31 case studies of extreme weather events across 28 economies between 2015 and 2025, made available by central banks. The cases illustrate how impacts are propagated through the economy via supply and demand channels, with impacts on the financial sector transmitted through traditional financial channels, such as credit and liquidity risks. 

The NGFS notes that, given the potential macroeconomic effects and the possible implications for financial system resilience, assessing the impacts of extreme weather and responding in line with price and financial stability objectives falls within the core mandates of central banks and supervisors. The case studies illustrate the adaptive tools deployed by central banks and supervisors (e.g., integrating disaster effects into assessments of growth and inflation, pairing monetary policy with fiscal targeted support where prices are under pressure, ensuring continuity of cash and payment services, etc.).

20 May 2026 [International] – UN adopts resolution backing ICJ Opinion on States’ climate change obligations under international law

The United Nations General Assembly adopted a resolution urging countries to implement the International Court of Justice’s 2025 advisory opinion on States’ climate change obligations under international law into their national policy and follow-up action [see press release here].

The ICJ’s 2025 advisory opinion had concluded that states have legal obligations under international law to take concrete measures to address climate change [see further in our previous edition, here].

The resolution encourages countries to align their policies with climate science, accelerate a just phase-out of fossil fuels, scale up climate finance and address climate-related harms. 

Vanuatu introduced the resolution which was passed 141-8 (those voting against included Iran, Israel, Russia, Saudi Arabia and the United States of America). Both the ICJ ruling and the UN resolution are non-binding.

21 May 2026 [EU] – EFRAG publishes 2025 Annual Review

The European Financial Reporting Advisory Group (EFRAG) has published its 2025 Annual Review, outlining its role in strengthening Europe’s reporting framework [available here, in electronic format only]. 

The Annual Review highlights EFRAG’s key contributions in both the financial reporting pillar and the sustainability reporting pillar. With respect to the latter, EFRAG noted its work on: 

• The Draft Simplified European Sustainability Reporting Standards (ESRS). In the context of the Omnibus initiative and after a formal request by the European Commission, the draft aimed at reducing unnecessary administrative burden for companies that report under the CSRD, while preserving the policy objectives of the Green Deal;
• Launching the ESRS Knowledge Hub. The digital, interactive platform keeps ESRS materials and other relevant sources in one place; and
• The EFRAG SME Ecosystem. EFRAG’s work included the launch of the SME Forum as an active platform for feedback and collaboration between SMEs and their business counterparts.

22 May 2026 [EU] – ESMA publishes Compliance Table of its Guidelines on Enforcement of Sustainability Information

The European Securities and Markets Authority (ESMA) published a Table highlighting which national competent authorities (NCAs) comply, intend to comply or do not comply with its Guidelines on Enforcement of Sustainability Information (GLESI) [compliance table available here].

ESMA had announced in June 2025 that enforcement of the GLESI would need to be proportionate and realistic, due to the changing sustainability reporting landscape [see further here, in our previous edition]. This was reiterated as an introduction to the Compliance Table.

There are 13 Member States whose NCAs already comply with the GLESI, and 9 whose NCAs intend to comply. The Member States whose NCAs do not comply with the GLESI are Austria, Denmark, France, the Netherlands and Romania. Reasons for not complying range from specific national circumstances, such as a lack of human resources, to awaiting transposition of the CSRD in national legislation, including with respect to the NCAs’ supervisory powers.

26 May 2026 [EU] – GRI and IFRS Foundation publish joint statement on achieving efficient sustainability reporting

The Global Reporting Initiative (GRI) and the IFRS Foundation published a joint statement, entitled “Facilitating efficient reporting when using the GRI and ISSB Standards” [available here].

The statement articulates how the standards set by the GRI’s Global Sustainability Standards Board (GSSB) and those set by the IFRS Foundation’s International Sustainability Standards Board (ISSB) can be used together by reporting entities and information users. 

There are instances where the same information is relevant for meeting the purposes of both standards. The IFRS Foundation and the GRI committed in May 2024 to jointly identify and, where possible, align these common disclosures with the aim of reducing duplication, fragmentation and complexity for reporting entities and users of the information reported.

The ISSB and the GSSB announced they would continue to work together to facilitate efficient reporting for entities choosing or being mandated to report on their impacts, risks and opportunities and meet the information needs of investors and other stakeholders. This is relevant in particular to (i) the ISSB’s work on nature-related disclosures and the ongoing interoperability work between GRI and TNFD and (ii) the GSSB’s further development of GRI Sector Standards and the ISSB’s work to enhance the SASB Standards.

28 May 2026 [EU] – ESMA publishes new Q&As on the ESG Ratings Regulation

The European Securities and Markets Authority (ESMA) published four new Q&As on Regulation 2024/3005 on the transparency and integrity of ESG rating activities (the ESG Ratings Regulation) [all Q&A available here]. The Q&As provide information on:

• The practical components that an ESG rating should feature to demonstrate the existence of a defined ranking system of rating categories, as required by Article 3 of the ESG Ratings Regulation;
• The different registration pathways for ESG ratings providers, in preparation of the date of application of the ESG Ratings Regulation (on 2 July 2026);
• Whether ESG rating providers established after 1 January 2025 can benefit from the transitional regime under Article 51 of the ESG Ratings Regulation; and
• The meaning of “any material changes in the information provided” and “any material changes to the circumstances under which the initial authorization was granted” under Article 6(5) of the ESG Ratings Regulation.

These new Q&As come shortly after the European Commission adopted 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 [see further here, in our previous edition].

28 May 2026 [EU] – European Commission opens infringement proceedings against 20 Member States for non-transposition of anti-greenwashing rules

The European Commission announced it had sent formal notices to 20 Member States that have failed to notify it of measures adopted to transpose Directive 2024/825 on Empowering Consumers for the Green Transition [press release available here].

The Member States had until 27 March 2026 to transpose the Directive into their national law. However, Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, France, Croatia, Cyprus, Latvia, Luxembourg, Hungary, Malta, Netherlands, Austria, Poland, Portugal, Slovenia, Finland and Sweden failed to communicate complete transposition to the Commission.

The Directive is aimed at improving the reliability and transparency of green claims and sustainability labels. It encourages businesses to adopt more sustainable practices, and helps preventing early obsolescence and greenwashing.

France

21 May 2026 [France] – French Autorité de contrôle prudentiel et de résolution highlights sustainable finance work in its 2025 Annual Report

The French Autorité de contrôle prudentiel et de résolution (ACPR) published its 2025 Annual Report [available here, in French only], highlighting sustainable finance as a main priority. The ACPR reported on the supervision of climate risks, and the work performed in 2025 in that area. Key developments include:

• A clarification that compliance with the EBA guidelines on ESG risk management will be interpreted so as not to require institutions to collect data from counterparties that are no longer required to publish such data pursuant to the Omnibus package;
• The publication of a deepened thematic review covering 90% of the French insurance market, assessing how insurers integrate sustainability risks, particularly climate and environmental risks, into their governance and risk management systems; and
• The first on-site inspection within an insurance group specifically dedicated to governance and management of climate and environmental risks, verifying that these risks were properly identified and explicitly integrated into written policies, risk appetite frameworks, and the Own Risk and Solvency Assessment (ORSA) process.

28 May 2026 [France] – French Autorité des marchés financiers highlights sustainable finance as a strategic priority in 2025 Annual Report

The French Autorité des marchés financiers (AMF) published its 2025 Annual Report [available here, in French only], highlighting the promotion of a more sustainable finance as part of its “Impact 2027” strategic priorities. The share of AMF supervisory activities addressing sustainable finance rose to 38% in 2025, up from 36% in 2024, exceeding the 27% target.

The AMF outlined its study on CSRD sustainability statements by listed companies, identifying good practices and areas for improvement, particularly regarding value chain analysis and quantification of financial resources allocated to transition. 

The AMF also finalised two Supervision of Operational and Thematic Practices (SPOT) check summaries in sustainable finance. In the asset management sector, a campaign across five firms examined voting and shareholder engagement policies, finding overall satisfactory practices but noting that reporting on votes could be more detailed, particularly regarding environmental, social and governance resolutions.

The AMF also sent a follow-up letter to an asset management company for inaccurate and misleading marketing statements, requiring it to adopt more appropriate disclosures to avoid greenwashing.

For 2026, the AMF intends to maintain its supervisory approach to sustainability statements, adapting to the evolving CSRD and Taxonomy framework, with particular attention to climate transition information, balancing transparency, proportionality and usefulness for investors.