A roadmap to upcoming EU regulation on sustainable finance

Prepare for the EU’s upcoming regulatory changes on sustainable finance with this timeline overview of the major developments.

Europe’s regulatory landscape is shifting as the EU implements a range of initiatives to meet its international environmental commitments and targets, from its Action Plan on sustainable finance to the EU Green Deal. These efforts include major regulatory changes to help the EU reach its goal of net-zero carbon emissions by 2050 and maintain a stable and sustainable financial system.

To help you stay on top of all of the moving pieces, the Association for Financial Markets in Europe has assembled a timeline for the rollout of EU regulation related to sustainable finance. For more, see the full report State of Play: Status of European Regulatory Developments on Sustainable Finance from February 2020.

Note: Some items are expected to be delayed where noted below, and there may be additional delays to come, particularly given the current COVID-19 pandemic.

2019

December

2020

January

March

Q1

  • ESAs to launch consultation on the draft Regulatory Technical Standards (RTSs) on the EU Disclosure Regulation (expected to be delayed)

Commission to launch consultations on:

Q2

  • EBA to launch consultation on incorporation of ESG into risk management and supervision
  • EBA to launch consultation on Pillar 3 ESG disclosure requirements included in the Capital Requirements Regulation
  • Commission to adopt Delegated Acts on the Benchmark Regulation, based on TEG’s final report on climate benchmarks and responses to a public consultation.
  • Commission to launch consultation on draft Delegated Acts to MiFIDII

Q3

  • Commission to announce the new Sustainable Finance strategy

Q4

  • Commission to launch proposal for the review of the NFRD

December

  • ESAs to draft RTSs on the Disclosure Regulation

2021

Q1

  • Commission’s Joint Research Centre (JRC) to publish final criteria for the EU Ecolabel for retail financial products

June

  • Commission to draft Delegated Acts on Taxonomy disclosure for NFRD reporters
  • EBA to publish final draft Implementing Technical Standard (ITS) on Pillar 3 disclosure (ESG)

December

  • Commission to adopt Delegated Acts on taxonomy for climate risk mitigation and adaptation

2022-2025

June 2022

  • Commission to publish draft review of Shareholders Rights Directive II (SRD)

December 2022

  • Commission to adopt Delegated Acts on Taxonomy for remaining environmental objectives

2022-2024

  • EBA to launch discussion paper on prudential treatment of green exposures
  • EBA to publish guidelines on ESG integration in risk management and supervision

June 2025

  • EBA to publish final report on prudential treatment of green exposures

 

Source: Association for Financial Markets in Europe (AFME), State of Play: Status of European Regulatory Developments on Sustainable Finance, Feb 2020

For more, see these related articles:

Expert group issues final recommendations for EU taxonomy

Q&A with Nordea’s Aila Aho on the EU Green Bond Standard

 

The information provided within this website is intended for background information only. The views and other information provided herein are the current views of Nordea Bank Abp as of the date of publication and are subject to change without notice. The information provided within this website is not an exhaustive description of the described product or the risks related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient.

The information provided within this website is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. The information provided within this website has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. It is important to note that past performance is not indicative of future results.

Nordea Bank Abp is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction.

The information provided within this website may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Bank Abp.

Related articles