On October 6, ISDA, the Association for Financial Markets in Europe (AFME), the European Fund and Asset Management Association (EFAMA), the European Association of Co-operative Banks (EACB) and the European Banking Federation (EBF) published a policy statement in support of the European Commission’s (EC) efforts to simplify the application of the EU taxonomy. The statement emphasizes that reporting companies need legal certainty that the intended amendments and simplifications will apply as planned from January 1, 2026. It urges the European Parliament and the European Council to swiftly confirm their intention not to object to the delegated regulation amending the taxonomy delegated acts, with a view to enabling timely implementation and minimizing the impact on companies’ reporting and assurance processes.

The statement also notes that the draft delegated regulation provides for the postponement of the application of the trading book key performance indicator until 2028, which should not be jeopardized in view of recent policy developments, since its original date of application of January 1, 2026 would not only contradict the EC’s simplification and burden reduction objectives, but would also be impracticable from an operational perspective.