Climate and Energy: EU Policy and Regulation Update for 2 September 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/Simplification Measures

• U.S. Government publishes comments and call to action on the CSDDD and CSRD
• EFRAG publishes materials on the revised ESRS and VSME
• GHG Protocol and ISO to launch single unified carbon accounting standard
• EFRAG publishes 2026 draft list of datapoints for revised ESRS

European Union/International

• European Commission notice on access to justice in EU environmental law published in Official Journal of the EU
• ISSB publishes proposed updates to the IFRS Sustainability Disclosure Taxonomy
• European Commission publishes Guidance on Net-Zero Industry Act
• Commission Delegated Regulations supplementing the ESG Ratings Regulation published in the EU Official Journal
• Commission publishes call for evidence on the evaluation of the European Environment Agency and the European Environment Information and Observation Network
• EBA publishes updated ESG risk dashboard
• ESMA publishes updated list of registered ESG providers under the ESG Ratings Regulation
• European Commission publishes guidance documents on implementation of EU CBAM for non-EU operators

France

• French government publishes Order on sustainability information certification

Sustainability Omnibus/Simplification measures

14 August 2026 [International] – U.S. Government publishes comments and call to action on the CSDDD and CSRD

The U.S. Mission to the EU published a letter entitled “U.S. Government Comments on the Corporate Sustainability Due Diligence Directive Guidelines (CSDDD)” [available here], setting out concerns regarding the implementation of the EU Corporate Sustainability Due Diligence Directive (CSDDD), while also addressing related requirements under the Corporate Sustainability Reporting Directive (CSRD).

The letter first acknowledges “some positive reforms” through the Omnibus packages, but notes that the changes do not fully address U.S. concerns. In particular, the U.S. Government calls for the CSDDD to apply primarily to activities, products, and services connected to the EU market and proposes removing provisions that directly bring certain non-EU companies within scope.

With respect to due diligence, it requests a risk-based and evidence-based approach, including limits on audits and information requests concerning upstream suppliers without a direct connection to the EU market. On enforcement, it argues that financial penalties should be calculated by reference to EU-generated revenue rather than worldwide turnover.

The submission also urges the Commission and Member States not to reintroduce climate transition plan requirements through CSDDD guidance or national implementation following their removal under the EU’s recent simplification reforms.

Overall, the U.S. Government calls for EU sustainability reporting legislation to be implemented in a manner that significantly limits its impact on U.S. businesses, noting that they “will take any actions necessary to address unreasonable burdens on U.S. commerce absent a solution that addresses these concerns”.

28 July 2026 [EU] – RAG publishes materials on the revised ESRS and VSME

The European Financial Reporting Advisory Group (EFRAG) released interactive versions of the revised European Sustainability Reporting Standards (ESRS) and Voluntary reporting standard for smaller companies (VSME), as adopted by the European Commission on 3 July 2026 [see further here, in our previous edition].

The new interactive document set [available here] includes all revised topical ESRS standards and the VSME, an interactive glossary, and list of defined terms, along with comparison tools to allow users to view the evolution of the final text from the 2023 ESRS and the 2025 simplified ESRS initially published by EFRAG.

This release is intended to support preparers and other stakeholders in understanding, navigating, and applying the revised ESRS and VSME more effectively.

The ESRS and the VSME will become legally effective only upon their publication in the Official Journal of the European Union, following the expiry of the two-month scrutiny period (which may be extended once) that began upon their transmission to the European Parliament and the Council of the EU in July 2026.

29 July 2026 [EU] – GHG Protocol and ISO to launch single unified carbon accounting standard

The International Organization for Standardization (ISO) and the Greenhouse Gas Protocol (GHG Protocol) have announced they will combine their corporate carbon accounting standards into a single, harmonized global accounting standard [see press release here].

The consolidation brings together GHG Protocol’s Scope 1, Scope 2, Scope 3, and Actions and Market Instruments (AMI) standards with ISO’s 14064-1 standard.

The announcement follows the launch of a strategic partnership between the two organizations in 2025, aimed at addressing the fragmentation of standards and policies. The harmonization of global greenhouse gas accounting standards was set as a key milestone in the COP30 Action Agenda.

28 August 2026 [EU] – EFRAG publishes 2026 draft list of datapoints for revised ESRS

The European Financial Reporting Advisory Group (EFRAG) released an updated list of datapoints for the European Sustainability Reporting Standards (ESRS) [full list available here] effective from 2026 onward and reflecting the revised ESRS adopted by the European Commission on 3 July 2026 [see further here, in our previous edition].

The 2026 draft list of ESRS datapoints incorporates usability enhancements, including categorization of datapoints using distinct data types and added paragraph references to link them back to the original ESRS adopted in 2023. It is expressly presented as supporting material, rather than implementation guidance.

The list was released alongside an explanatory note [available here], providing context on the methodology applied, background on the improvements and changes implemented, as well as implementation details, and topical observations.

European Union/International

24 July 2026 [EU] – European Commission notice on access to justice in EU environmental law published in Official Journal of the EU

The updated European Commission notice on access to justice in environmental matters in the EU was published in the Official Journal of the EU [full text available here], replacing the Commission’s 2017 guidance [former version available here].

The notice provides guidance on the application of EU rules governing access to national courts to challenge decisions, acts, and omissions by Member State public authorities in environmental matters. It is intended to support consistent application of these requirements by national authorities and courts and to provide guidance to individuals, environmental organizations, legal practitioners, and economic operators.

In particular, the notice addresses legal standing, including the circumstances in which individuals and environmental organizations may challenge environmental decisions. It also covers the scope and standard of judicial review, effective remedies and interim relief, litigation costs and legal aid, procedural time limits and timeliness, and access to practical information concerning judicial review procedures.

The guidance reflects requirements arising from (i) the Convention on access to information, public participation in decision-making and access to justice in environmental matters (i.e., the Aarhus Convention), (ii) the EU principle of effective judicial protection, and (iii) sector-specific EU environmental legislation. It does not address environmental litigation between private parties, nor does it relate to the administrative or judicial review of administrative acts and omissions of the EU institutions via the General Court.

29 July 2026 [International] – ISSB publishes proposed updates to the IFRS Sustainability Disclosure Taxonomy

The International Sustainability Standards Board (ISSB) published a proposal for amendments to the 2024 International Financial Reporting Standards (IFRS) Sustainability Disclosure Taxonomy (ISSB Taxonomy), with respect to the “Greenhouse Gas Emissions Disclosures” [full proposal available here].

The proposed changes are intended to ensure that the digital taxonomy continues to reflect the amended IFRS S2 requirements, as adopted by the ISSB in December 2025, and support the analysis of sustainability-related financial information in digital form.

The ISSB Taxonomy update would incorporate those amendments into the digital reporting framework used for disclosures prepared under ISSB Standards. The ISSB Taxonomy enables companies to assign digital tags to sustainability-related financial information reported in accordance with the Standards. This tagging makes the reported information computer-readable and allows investors and other capital providers to search, extract, compare and analyze sustainability-related disclosures.

The ISSB is seeking stakeholder feedback on the proposed changes, with comments due by 28 September 2026 [consultation link available here].

29 July 2026 [EU] – European Commission publishes Guidance on Net-Zero Industry Act

The European Commission published a communication providing guidance on Article 26 of Regulation (EU) 2024/1735 establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem (Net-Zero Industry Act) [available here].

The Net-Zero Industry Act entered into force on 29 June 2024 and establishes a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem. Article 26 has applied since 30 December 2025 and requires Member States to include certain non-price criteria in at least 30 % of the volume auctioned per year or, alternatively, in at least 6 gigawatts per year per Member State in auctions for the deployment of energy from renewable sources.

The communication is aimed at helping Member States, auction authorities, and market participants understand and consistently apply the new non-price criteria requirements, and does not cover auctions for the deployment of energy from renewable sources that are carried out in accordance with EU public procurement legislation.

28-30 July 2026 [EU] – Commission Delegated Regulations supplementing the ESG Ratings Regulation published in the EU Official Journal

Three Commission Delegated Regulations supplementing Regulation (EU) 2024/3005 (the ESG Ratings Regulation) were published in the EU Official Journal, following their adoption by the European Commission in April 2026 [see further here, in our previous edition].

• Commission Delegated Regulation (EU) 2026/871 [available here] was published on 28 July 2026, and sets out regulatory technical standards (RTS) specifying the elements of ESG rating products to be disclosed to the public and to users of ESG ratings, rated items and issuers of rated items. It establishes minimum requirements regarding the information that ESG rating providers must disclose in relation to each product. It entered into force on 17 August 2026, but applies from 2 July 2026.
• Commission Delegated Regulation (EU) 2026/904 [available here] was published on 30 July 2026, and supplements the ESG Ratings Regulation in relation to rules of procedure on fines and periodic penalty payments imposed on ESG rating providers. It entered into force on 19 August 2026.
• Commission Delegated Regulation (EU) 2026/910 [available here] was published on 30 July 2026, and supplements the ESG Ratings Regulation in relation to fees charged to ESG rating providers. It entered into force on 31 July 2026.

The ESG Ratings Regulation was adopted in November 2024 and applies from 2 July 2026. It seeks to enhance the reliability and transparency of ESG ratings used in the EU, by setting minimum requirements for ESG ratings providers operating in the EU, regardless of their home jurisdiction.

30 July 2026 [EU] – Commission publishes call for evidence on the evaluation of the European Environment Agency and the European Environment Information and Observation Network

The European Commission launched a call for evidence to prepare for the evaluation of the European Environment Agency (EEA) and the European Environment Information and Observation Network (EIONET) for the period 2022-2026 [available here].

The EEA is a decentralized agency of the European Union, assisting the European Commission and the Member States in implementing EU environmental legislation, and informing European citizens about the state and outlook of Europe’s environment. The EIONET is a partnership network of the EEA, which gathers environmental data, builds knowledge, and gives advice to policymakers across Europe.

The evaluation of the EEA and the EIONET, done every five years, is conducted in line with the Commission’s Better Regulation and the Common Approach on EU decentralized agencies.

6 August 2026 [EU] – EBA publishes updated ESG risk dashboard

The European Banking Authority has published its latest ESG risk dashboard [available here], which provides a regular overview of climate-related risks in the EU/EEA banking sector based on ESG disclosure data, and supports the monitoring of banks’ exposures to both transition and physical climate risks.

The updated results show continued stability in banks’ transition and physical climate risk indicators across the EU/EEA in the second half of 2025. The share of banks’ exposures to sectors highly contributing to climate change remained at 62%, and banks’ exposures sensitive to physical climate risk remained unchanged across most jurisdictions.

The dashboard also indicates that significant differences persist across countries, with average exposure shares ranging from below 10% in some jurisdictions to above 55% in others.

13 August 2026 [EU] – ESMA publishes updated list of registered ESG providers under the ESG Ratings Regulation

The European Securities and Markets Authority (ESMA) published an updated list of ESG ratings providers registered under Regulation (EU) 2024/3005 (the ESG Ratings Regulation) [available here].

The ESG Ratings Regulation sets out different authorization regimes for ESG ratings providers and mandates ESMA to establish and maintain a publicly accessible register.

The register currently lists 13 such providers, all registered under the temporary regime set out in Article 5 for ESG rating providers qualifying as a small undertaking or as a small group.

14 August 2026 [EU] – European Commission publishes guidance documents on implementation of EU CBAM for non-EU operators

The European Commission published ten guidance documents [all available here] aimed at assisting non-EU operators with the implementation of Regulation 2023/956 establishing the EU Carbon Border Adjustment Mechanism (CBAM Regulation) during its definitive phase, which began on 1 January 2026.

Under the CBAM Regulation, EU importers of in-scope goods must buy carbon certificates corresponding to the carbon price that would have been paid had the goods been produced in the EU.

The publication contains four general guidance documents, including an introduction to CBAM concepts, a roadmap for non-EU operators, a guide on the calculation of embedded emissions, and a guide on the calculation of the free allocation adjustment.

This is completed by six sector-specific guides, providing dedicated overviews of production processes, value chains, and monitoring and reporting considerations for each CBAM sector (i.e., cement, hydrogen, fertilizers, iron and steel, aluminum, and electricity).

France

5 August 2026 [France] – French government publishes Order on sustainability information certification

The French government published an Order [available here, in French only] setting out the examination programme for professionals seeking to certify sustainability information under the Corporate Sustainability Reporting Directive (CSRD) as transposed into French law.

The Order introduces a new annex to the French Commercial Code, complementing article A821-34, and covers topics required to become registered as a certifier.

These topics include the EU legislative framework on sustainable finance, the European Sustainability Reporting Standards, the EU Taxonomy, as well as the rules and liability regimes applicable to certifiers.