Completing the Picture
The Environmental Delegated Act was published in November 2023 and applies from January 2024. It adds technical screening criteria for the four remaining environmental objectives:
- Sustainable use and protection of water and marine resources
- Transition to a circular economy
- Pollution prevention and control
- Protection and restoration of biodiversity and ecosystems
It also amended the Climate Delegated Act to add new activities to objectives 1 and 2.
What It Covers
The Environmental Delegated Act brings in activities that weren't addressed by the Climate Delegated Act, including:
| Objective | Example Activities |
|---|---|
| Water | Water supply systems, nature-based water treatment, desalination, flood risk management |
| Circular economy | Repair and refurbishment, remanufacturing, marketplace platforms for reuse, material recovery |
| Pollution | Remediation of contaminated sites, pollution monitoring, manufacturing of emission reduction equipment |
| Biodiversity | Ecosystem restoration, conservation, sustainable agriculture, urban green infrastructure |
How It Changed the Landscape
Before this act, companies could only report taxonomy eligibility and alignment against climate objectives. Many activities in sectors like waste management, water utilities, and nature-based solutions had no criteria to assess against.
With the Environmental Delegated Act:
- Companies in water, waste, and environmental services can now demonstrate alignment
- Manufacturing companies can show alignment through circular economy contributions (not just climate)
- The scope of eligible activities expanded significantly
The Environmental Delegated Act is newer and less tested than the Climate Delegated Act. Companies reporting against objectives 3-6 for the first time may find less guidance, fewer precedents, and more interpretation questions. This will improve as reporting practice matures.
The Full Delegated Act Timeline
| Act | Published | Applies From | Covers |
|---|---|---|---|
| Climate Delegated Act (2021/2139) | Dec 2021 | Jan 2022 | Mitigation + Adaptation |
| Complementary CDA (2022/1214) | Jul 2022 | Jan 2023 | Nuclear + Gas additions |
| Disclosures Delegated Act (2021/2178) | Dec 2021 | Jan 2022 | Reporting templates and KPI methodology |
| Environmental Delegated Act (2023/2486) | Nov 2023 | Jan 2024 | Water, Circular Economy, Pollution, Biodiversity |
| Omnibus Delegated Act | Jul 2025 | TBD | Simplification amendments |
Key Takeaways
- 1The Environmental Delegated Act (November 2023) completes the taxonomy by adding criteria for water, circular economy, pollution, and biodiversity
- 2It also amended the Climate Delegated Act to add new activities for objectives 1 and 2
- 3Companies in water, waste, and environmental services can now demonstrate taxonomy alignment for the first time
- 4The environmental criteria are newer and less tested - expect more interpretation guidance as reporting practice matures