EUROPEAN
COMMISSION

Brussels, XXX
C(2022) 631 / 3

COMMISSION DELEGATED REGULATION (EU) …/...
of XXX
amending Delegated Regulation (EU) 2021/2139 as regards economic activities in certain
energy sectors and Delegated Regulation (EU) 2021/2178 as regards specific public
disclosures for those economic activities(Text with EEA relevance)

This draft has been approved in principle by the European Commission on 2 February
2022 and its formal adoption in all the official languages of the European Union will takeplace later on, as soon as the language versions are available.

EN

EN

EXPLANATORY MEMORANDUM
1.

CONTEXT OF THE DELEGATED ACT

1.1

General background and objective

Regulation (EU) 2020/852 of the European Parliament and of the Council (the ‘Taxonomy
Regulation’)1 establishes the framework for the creation of the EU Taxonomy ofenvironmentally sustainable economic activities. The Taxonomy Regulation provides thatthese economic activities should comply with the technical screening criteria set out in thedelegated acts adopted by the Commission.
The delegated act specifying the technical screening criteria under which certain economic
activities qualify as contributing substantially to climate change mitigation or climate change
adaptation and not causing significant harm to any of the other relevant environmental
objectives (‘the Taxonomy Climate Delegated Act’) was adopted on 4 June 20212. The
Commission has also adopted on 6 July 2021 a delegated act specifying the content,
methodology, and presentation of the information to be disclosed by both non-financial andfinancial undertakings required to report about the alignment of their activities with the EU
Taxonomy (‘the Taxonomy Disclosures Delegated Act’)3.
The Taxonomy Climate Delegated Act sets out technical screening criteria for economic
activities having the potential to contribute to climate change mitigation and climate change
adaptation in most sectors. However, not all relevant sectors and activities have been coveredin that Delegated Act. Notably, it was not possible to take a decision as to the inclusion of
nuclear energy in the Taxonomy Climate Delegated Act due to the need to deepen theassessment of the ‘do no significant harm’ (‘the DNSH’) aspects of nuclear energy, which
was ongoing at the time.4 As regards natural gas, the Commission announced that further
reflection was needed on how to address the role of gas in the decarbonisation of the Union’s
economy.
In establishing the technical screening criteria for climate change mitigation, the Commission
should take into account and provide incentives for the ongoing and necessary transition
towards a climate-neutral economy in accordance with Article 10(2) of the Taxonomy
Regulation. As announced in the Commission Communications of 21 April 2021 and of 6 of

1

2

3

4

EN

Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of aframework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198,
22.6.2020, p. 13).
Commission Delegated Regulation (EU) 2021/2139 of 4.6.2021 supplementing Regulation (EU)2020/852 of the European Parliament and of the Council by establishing the technical screening criteria
for determining the conditions under which an economic activity qualifies as contributing substantiallyto climate change mitigation or climate change adaptation and for determining whether that economic
activity causes no significant harm to any of the other environmental objectives, Brussels, 4.6.2021,
C(2021) 2800 final.
Commission Delegated Regulation (EU) 2021/2178 of 6.7.2021 supplementing Regulation (EU)2020/852 of the European Parliament and of the Council by specifying the content and presentation of
information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU
concerning environmentally sustainable economic activities, and specifying the methodology to comply
with that disclosure obligation, Brussels, 6.7.2021 C(2021) 4987 final.
The complementary steps of the assessment, namely the report by the Joint Research Centre, the review
by the experts under Article 31 of the Euratom Treaty and the review by the Scientific Committee on
Health, Environmental and Emerging Risks (SCHEER), are available on the Commission’s website.

1ENJuly 20215, the objective of this Delegated Act is to complement the Taxonomy Climate
Delegated Act. This Delegated Act sets out the technical screening criteria for climate change
mitigation and climate change adaptation for additional economic activities in the energy
sectors which were not included in the Taxonomy Climate Delegated Act, in particular in thenatural gas and nuclear energy sectors. As regards the objective of climate change adaptation,
this Delegated Act is consistent with the approach of the Taxonomy Climate Delegated Act inreflecting the fact that all economic sectors will need to adapt to the adverse impacts ofclimate change. It therefore sets appropriate and consistent technical screening criteria forclimate change adaptation for economic activities in the fossil gas and nuclear energy sectors.
However, for specific transitional activities regarding fossil gas activities for which thisDelegated Act provides for a time-limited recognition of contribution to climate change
mitigation, it is not necessary to provide for specific technical screening criteria for climatechange adaptation in view of that time-limited recognition. For the sake of clarity, technicalscreening criteria on do no significant harm concerning climate change adaptation do notprevent an economic activity from qualifying as providing a substantial contribution toclimate change mitigation.
Moreover, to enhance market transparency and the information of investors, this Delegated
Act provides for specific disclosure requirements for the natural gas and nuclear energy
sectors by amending the Taxonomy Disclosures Delegated Act.
As outlined in the Taxonomy Regulation, the Taxonomy covers more than climate neutral andrenewable investments. It also covers economic activities that are clearly not climate neutralor renewable but could, under strict conditions and for a limited time, enable the transition
towards a sustainable energy system, such as the economic activities in the natural gas andnuclear sector. They should not hamper the development of renewable sources.
1.2

Legal background

This Delegated Act is based on the empowerments set out in Articles 8(4), 10(3) and 11(3) of
the Taxonomy Regulation. This Delegated Act amends the Taxonomy Climate Delegated Act
by adding technical screening criteria for certain economic activities in the natural gas andnuclear energy sectors that have not been included in that Delegated Act. The technicalscreening criteria are set out in accordance with the requirements of Article 19 of theTaxonomy Regulation. This Delegated Act also amends the Taxonomy Disclosures Delegated
Act by providing for specific disclosure requirements for natural gas and nuclear energy
sectors.
In accordance with Article 31 of the Inter-institutional Agreement of 13 April 2016 on Better
Law-Making6, this Delegated Act combines in a single act two interrelated empowerments of
the Taxonomy Regulation, namely those laid down in Articles 10(3) and 11(3), concerning
the technical screening criteria for climate change mitigation and climate change adaptation
respectively, and an empowerment of the Taxonomy Regulation laid down in Article 8(4)concerning the information to be disclosed by large non-financial and financial undertakings.
5

6

EN

Communication from the Commission to the European Parliament, the Council, the European
Economic and Social Committee and the Committee of the Regions, EU Taxonomy, Corporate
Sustainability Reporting, Sustainability Preferences and Fiduciary Duties: Directing finance towards theEuropean Green Deal, Brussels, 21.4.2021, COM/2021/188 final; Communication from theCommission to the European Parliament, the Council, the European Economic and Social Committee
and the Committee of the Regions, Strategy for Financing the Transition to a Sustainable Economy,
Strasbourg, 7.6.2021, COM/2021/390 final.
Interinstitutional Agreement between the European Parliament, the Council of the European Union andthe European Commission on Better Law-Making (OJ L 123, 12.5.2016, p. 1).

2

EN

2.

CONSULTATIONS PRIOR TO THE ADOPTION OF THE ACT

As regards natural gas, this Delegated Act builds on the recommendations of the TechnicalExpert Group on Sustainable Finance (the ‘TEG’), a Commission expert group composed ofdiverse private and public sector stakeholders set up in 2018. The mission of the TEG
consisted of helping the Commission to develop the EU Taxonomy technical screening
criteria in line with the Commission's legislative proposals of May 2018 and taking into
account the objectives of the European Green Deal.
The TEG published two interim versions of its recommendations in its reports in December
2018 and in June 2019. Both reports were subject to an open call for feedback, to which 257
and 830 responses were received, respectively. During its mandate, the TEG also engaged
with over 200 additional experts to develop recommendations for the technical screening
criteria for climate change mitigation and climate change adaptation 7. The Commission alsoorganised two meetings with stakeholders to gather views on the TEG reports in June 2019and in March 2020.
Furthermore, the technical screening criteria for natural gas, which were initially included in
the draft Taxonomy Climate Delegated Act, were published on the Better Regulation portal
for a four-week feedback period between 20 November and 18 December 2020, to which
46.591 stakeholders responded. Those criteria have also been discussed with the Member
States’ experts and observers from the European Parliament, at several meetings of theMember States Expert Group on Sustainable Finance in 2020 and 2021.
As regards nuclear energy, the TEG has not included nuclear energy activities in its
recommendations. Although the TEG has recognised that energy generation from nuclear
energy has a high potential to substantially contribute to climate change mitigation, it was notable to reach a firm conclusion as to whether nuclear energy does no significant harm to otherenvironmental objectives, considering in particular waste management, impact on biodiversity
and water as well as potential pollution aspects. The TEG has, therefore, recommended that amore detailed assessment of nuclear energy should be carried out, involving experts with ahigh level of relevant expertise.
The Commission has therefore set up a specific process for an in-depth assessment of the
DNSH aspects of nuclear energy. First, a technical assessment of nuclear energy under theTaxonomy Regulation and the DNSH criterion has been prepared by the Joint ResearchCentre (the ‘JRC’), the European Commission’s science and knowledge service.
The JRC report concluded that:(i)nuclear energy can make a substantial contribution to the climate change mitigation
objective and meanwhile does not do significant harm to the other four
environmental objectives of the Taxonomy Regulation provided that it meets the
proposed technical screening criteria;(ii)

deep geological repositories can be considered – at the state of today’s knowledge –appropriate and safe means of isolating spent fuel and other high-level radioactive
waste from the biosphere for very long time scales and the necessary technologies
are now available;

7EN

EU Expert Group on Sustainable Finance, Financing a sustainable European economy – Technicalreport – Taxonomy: Final report of the Technical Expert Group on Sustainable Finance, March 2020.

3EN(iii)

where and when the environmental impacts are potentially harmful, appropriate
measures to prevent the impacts or to mitigate their consequences can be
implemented using existing technology; and(iv)

compliance with the provisions of the Euratom legislation and licensing processes
provides sufficient confidence that the impact of the nuclear energy full lifecycle,
including the back end of the nuclear fuel cycle, on humans and the environment
remains below harmful levels.

That report has been reviewed by Member States’ experts on radiation protection and waste
management appointed by the Scientific and Technical Committee under Article 31 of theEuratom Treaty, as well as by experts from the Scientific Committee on Health,Environmental and Emerging Risks (the ‘SCHEER’).
The opinion of the Group of Experts referred to under Article 31 of the Euratom Treaty
provides a positive assessment of the JRC report8. The experts agree with the main findings ofthe report, whilst offering a small number of observations on possible improvements. For
example, in their opinion, the existing European legal framework provides an adequate
system to ensure the highest level of protection of workers, members of the public and theenvironment in the Union. For activities outside the Union, they find that international
standards provide for a comparable level of protection and note that compliance with thosestandards should be incorporated in the technical screening criteria for such activities.
Furthermore, the Group of Experts confirmed the view of the JRC that deep geologicalrepositories are considered, at the state of today’s knowledge, an appropriate and safe solution
for the management of high-level waste, and noted that the technology for this is alreadyavailable today. The Group of Experts confirmed also the JRC’s assessment of theconsequences of severe accidents which, however, was limited in scope. The Group ofExperts noted that other direct and indirect impacts of severe accidents, not analysed by JRC
as such, have not been assessed for any economic activities under the EU Taxonomy. Suchassessment may also be important for understanding the broader impacts of severe accidents
but may be more difficult to assess.
The opinion of the SCHEER experts is that the findings and recommendations of the JRC
report with respect to non-radiological impacts are overall comprehensive. However, in theview of the experts, some findings require further assessment and evidence. Notably they
consider that comparing nuclear power to other energy generating technologies as doing no
more harm is different from the assessment of “do no significant harm” (DNSH) under theTaxonomy Regulation. The SCHEER also expressed the view that the existence of aregulatory framework is not in itself sufficient to mitigate all relevant risks and advocated fora deeper analyses of some aspects, in particular of the impacts of mining and milling (which ismostly done outside the Union):EN–the uncertainties regarding the final disposal of high-level nuclear waste that is still
an open research question; and–the impact of radiation on the environment, specifically with regard to the protectionof water and marine resources.

8

A dissenting opinion (out of the 32 experts from the 27 Member States) annexed to the report stated thatthe focus of the JRC report left out the consideration of some key risks, such as nuclear proliferationand low-probability, but high-impact accidents which are more acute for nuclear activities than for otherenergy technologies covered by the Taxonomy. However, it should be noted that the assessment of
those issues was not included in the scope of the work specified in the Terms of Reference provided to
JRC, as the assessment framework was based on the process followed by the TEG.

4

EN

When establishing the technical screening criteria for nuclear energy related activities, theCommission has duly taken into account and addressed the observations of the SCHEER. In
particular, the mining and milling activities have not been included in this Delegated Act andthe remaining observations have been addressed by the technical screening criteria.
As regards the process of adoption of this Delegated Act, it was decided that an impact
assessment was not necessary for natural gas energy activities, given that:–

this Delegated Act will implement policy choices already made and will only
complement the Taxonomy Climate Delegated Act;–the Taxonomy Climate Delegated Act was based on advice received from the TEG
and from the Platform on Sustainable Finance and was accompanied by aproportionate impact assessment;–

the criteria for most activities which are planned to be included in this Delegated Act
have been already subject to an impact assessment and public consultation as part ofthe preparation of the Taxonomy Climate Delegated Act.

With respect to nuclear energy activities, it was decided that an impact assessment was notnecessary given that a detailed technical assessment was carried out as detailed above.
The relevant technical and policy issues concerning the natural gas and nuclear energy have,therefore, been in the public domain throughout the course of legislative deliberations on theTaxonomy Regulation, the work of the TEG, and the finalisation of the Taxonomy Climate
Delegated Act. They have also been discussed several times with Member States and theEuropean Parliament. Stakeholders have submitted extensive feedback to the Commission onthese activities, based on the options discussed for the Taxonomy Climate Delegated Act for
gas-activities, and on the JRC report and expert committee reviews for nuclear activities.
Advanced disclosure of a draft delegated act to the public would have been likely to influence
the markets.
No further open consultation was, therefore, necessary to prepare this Delegated Act.
The Platform on Sustainable Finance (‘the Platform’) and the Member States Expert Group
have been consulted in accordance with Articles 10(4) and 11(4), and respectively, Articles
23(4) and 24(2) of the Taxonomy Regulation.
The Platform feedback notes a number of perceived shortcomings and inconsistencies with
the Taxonomy Regulation. It also questions whether the criteria are in line with the conditionsof Articles 10(2), 17 and 19 of the Taxonomy Regulation. A preference is expressed to rather
include the activities in a possible future ‘intermediate’ environmental performance category,pursuant to the work underway in the Platform. The Platform notes a series of concerns withthe future-oriented nature of some of the criteria, and uncertainties for financial market users
to ascertain compliance with the criteria by operators. The Platform’s proposals relate toclarifying disclosure and verification requirements concerning activities in the Delegated Act.
The feedback provided confirmation of widely known divided positions. The Commission has
taken note of the criticism expressed by the Platform and by some Member States in thecontext of the consultation of the MSEG on Sustainable Finance, according to which the draft
Delegated Acts would not be in line with the Taxonomy Regulation, both concerning thesubstantial contribution to climate change mitigation and the requirement of doing no
significant harm to the other environmental objectives. The Commission rejects this criticism
insofar as it seems to be based on the assumption, which is contrary to the purpose of Article
10(2) of the Taxonomy Regulation, that only the technical screening criteria that ensure themost substantial contribution to the climate change mitigation objective and do no harm, or

EN

5

EN

the least harm to the other environmental objectives could be included in the Delegated Act.
Under Article 10(2) and (3) of the Taxonomy Regulation, the Commission is required to set
out technical screening criteria for economic activities for which at present there is notechnologically and economically feasible low-carbon alternative and which would benecessary in transition towards climate neutrality. The Commission also rejects the criticism
expressed by other Member States, contesting the qualification of nuclear energy activities
under Article 10(2) of the Taxonomy Regulation and arguing that they should be qualified
under Article 10(1) thereof. Generating, transmitting, storing, distributing or using energy islimited, in Article 10(1), point (a), of the Taxonomy Regulation, to renewable energy in linewith Directive (EU) 2018/11, and nuclear energy activities do not fall under the othercategories of economic activities listed in points (b) to (i) of that provision. Targeted
adjustments to the technical screening criteria and disclosure and verification requirements
have been introduced to reinforce notably their clarity and usability. It is useful to recall thatwhat does not qualify as a sustainable economic activity under the EU Taxonomy is not bydefinition harmful.
3.

LEGAL ELEMENTS OF THE DELEGATED ACT

The empowerments to adopt delegated acts are provided for under Articles 8(4), 10(3) and11(3) of the Taxonomy Regulation.
Article 1 lays down the amendments to the Taxonomy Climate Delegated Act.
Article 2 lays down the amendments to the Taxonomy Disclosures Delegated Act.
Article 3 specifies the dates of the entry into force and application of the Delegated Act.
Annex I to this Regulation lays down the amendments to Annex I of the Taxonomy Climate
Delegated Act.
Annex II to this Regulation lays down the amendments to Annex II of the Taxonomy Climate
Delegated Act.
Annex III to this Regulation adds a new Annex XII to the Taxonomy Disclosures Delegated
Act.

EN

6

EN

COMMISSION DELEGATED REGULATION (EU) …/...
of XXX
amending Delegated Regulation (EU) 2021/2139 as regards economic activities in certain
energy sectors and Delegated Regulation (EU) 2021/2178 as regards specific public
disclosures for those economic activities(Text with EEA relevance)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) 2020/852 of the European Parliament and of the Council of
18 June 2020 on the establishment of a framework to facilitate sustainable investment, andamending Regulation (EU) 2019/20889, and in particular Articles 8(4), 10(3) and 11(3)thereof,
Whereas:(1)

The technical screening criteria set out in Commission Delegated Regulation (EU)2021/213910 cover several economic sectors and activities that have a potential tocontribute to the Union climate change mitigation and climate change adaptation
objectives. Those economic sectors and activities were chosen because of their sharein overall greenhouse gas emissions, and their proven potential for avoiding the
production of greenhouse gas emissions, reducing such emissions, or removing such
emissions. In addition, those economic sectors and activities have a proven potential toenable such avoidance, reduction and removal for other economic sectors andactivities, or to ensure long-term storage of such emissions for such other sectors andactivities.

(2)

The total energy use accounts for approximately 75% of direct greenhouse gas
emissions in the Union. Thus, the energy sector has a crucial role in continuing to
reduce greenhouse gas emissions. The technical screening criteria laid down in
Delegated Regulation (EU) 2021/2139 therefore cover a wide range of economic
sectors and activities related to the energy supply chain, ranging from electricity orheat generation from different sources, through transmission and distribution networks
to storage, as well as heat pumps and the manufacture of biogas and biofuels.
However, Delegated Regulation (EU) 2021/2139 does not contain technical screening
criteria for economic activities in the fossil gas and nuclear energy sectors, despite
their potential to contribute to the decarbonisation of the Union’s economy.

9

OJ L 198, 22.6.2020, p. 13.
Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU)2020/852 of the European Parliament and of the Council by establishing the technical screening criteria
for determining the conditions under which an economic activity qualifies as contributing substantiallyto climate change mitigation or climate change adaptation and for determining whether that economic
activity causes no significant harm to any of the other environmental objectives (OJ L 442, 9.12.2021,
p. 1).

10

EN

7

EN

EN

(3)

As set out in Commission Communication of 21 April 2021 (‘EU Taxonomy,
Corporate Sustainability Reporting, Sustainability Preferences and Fiduciary Duties:
Directing finance towards the European Green Deal’) and in Commission
Communication of 6 July 2021 (‘Strategy for Financing the Transition to a Sustainable
Economy’), the establishment of technical screening criteria for energy generationfrom fossil gas was postponed in view of the need for further technical assessment,
notably on the transitional role of fossil gas in the decarbonisation of the economy11.
The establishment of technical screening criteria for nuclear energy generation
activities was also postponed awaiting an in-depth expert assessment, launched in
2020, of whether the nuclear life-cycle, and notably nuclear waste, could beconsidered compatible with the requirement, laid down in Article 17 of Regulation(EU) 2020/852, that an activity can do no significant harm to other environmental
objectives. In the light of those assessments, it is necessary to recognise that the fossil
gas and nuclear energy generation activities can contribute to the decarbonisation of
the Union’s economy.

(4)

In accordance with Article 10(2) of Regulation (EU) 2020/852 covering transitional
economic activities, it is necessary to lay down technical screening criteria forelectricity generation, high-efficiency co-generation of power and heat/cool, andproduction of heat/cool in efficient district heating and cooling systems from fossil
gas, where greenhouse gas emissions from fossil gas are below an appropriate
threshold. In addition, it is necessary to lay down technical screening criteria for theuse of fossil gas in electricity generation, high-efficiency co-generation of power andheat/cool, and production of heat/cool in efficient district heating and cooling systems,
where such electricity generation, high-efficiency co-generation of power andheat/cool, and production of heat/cool in efficient district heating and cooling systems
do not yet comply with that appropriate threshold, as in addition to the use of climateneutral energy and more investments in already low-carbon economic activities andsectors, the transition requires substantial reductions in greenhouse gas emissions inother economic activities and sectors for which there are no technologically andeconomically feasible low-carbon alternatives. All those economic activities should be
qualified as transitional under Article 10(2) of Regulation (EU) 2020/852, given thattechnologically and economically feasible low-carbon alternatives may not yet becommercially available at a sufficient scale to cover the energy demand in acontinuous and reliable manner. In particular, for electricity generation, it isappropriate to provide for an alternative approach to directly limiting the greenhousegas emissions. Under this alternative approach, that should deliver similar results overa twenty years period, facilities may reach such results by limiting the number ofhours in operation or by advancing the switch to renewable or low-carbon gases to an
earlier date. The technical screening criteria should facilitate an accelerated phase-out
from more emissions-intensive energy sources, including solid fossil fuels. In addition,in order to fulfil the requirements laid down in Article 10(2), first subparagraph, points(a), (b) and (c), of Regulation (EU) 2020/852, the technical screening criteria for the11

Communication from the Commission of 21 April 2021 to the European Parliament, the Council, theEuropean Economic and Social Committee and the Committee of the Regions, EU Taxonomy,
Corporate Sustainability Reporting, Sustainability Preferences and Fiduciary Duties: Directing financetowards the European Green Deal (COM/2021/188 final) and Communication from the Commission of
7 June 2021 to the European Parliament, the Council, the European Economic and Social Committee
and the Committee of the Regions, Strategy for Financing the Transition to a Sustainable Economy,(COM/2021/390 final).

8ENuse of fossil gas should also ensure that robust evidence is available to demonstratethat the same energy capacity cannot be generated with renewable sources, and that
effective plans are put in place for each facility, in line with the best performance inthe sector, to switch entirely to renewables or low carbon gases by a specific date.
Finally, the technical screening criteria should provide for a time-limited recognitionof the contribution of those activities to decarbonisation.
(5)

Renewables will play a fundamental role in meeting the climate and environmental
goals of the Union. In that light, investments in renewables need to scale-up to meetthe needs of the energy market of the Union for more renewable and clean energy.

(6)

Nuclear energy-related activities are low-carbon activities, they do not constituteenergy from renewable sources as defined in Article 2, second subparagraph, point (1)of Directive (EU) 2018/2001 of the European Parliament and of the Council12, and as
referred to in Article 10(1), point (a) of Regulation (EU) 2020/852 and do not fallunder the other categories of economic activities listed in points (b) to (i) of thatprovision. Such nuclear energy related economic activities should be qualified under
Article 10(2) of Regulation (EU) 2020/852, in the absence of technologically andeconomically feasible low-carbon alternative at a sufficient scale to cover the energy
demand in a continuous and reliable manner. In addition, in the Final Report of theTechnical Expert Group on Sustainable Finance from March 202013, it was stated that
‘nuclear energy generation has near to zero green-house gas emissions in the energy
generation phase’ and ‘evidence on the potential substantial contribution of nuclear
energy to climate change mitigation objectives was extensive and clear’. Moreover, anumber of Member States’ plans include nuclear energy along with renewable energy
in the energy sources to be used to meet climate targets, including the 2050
decarbonisation objective set out in Regulation (EU) 2021/1119 of the European
Parliament and of the Council14. Finally, by providing a stable baseload energy supply,
nuclear energy facilitates the deployment of intermittent renewable sources and does
not hamper their development, as required by Article 10(2), point (b), of Regulation(EU) 2020/852. Nuclear energy related activities should therefore be considered ascomplying with Article 10(2) of Regulation (EU) 2020/852.

(7)

Scientific review conducted by experts15 concluded that technical screening criteria for
nuclear energy related economic activities should ensure that no significant harm isdone to other environmental objectives due to potential risks arising from the longterm storage and final disposal of nuclear waste. Those technical screening criteria
should therefore reflect the highest standards of nuclear safety, radiation protection
and radioactive waste management, building upon requirements laid down in theTreaty establishing the European Atomic Energy Community (‘Euratom Treaty’) andin legislation adopted under that Treaty, and in particular in Council Directive

12

Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the
promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).
The TEG report available on:https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/20
0309-sustainable-finance-teg-final-report-taxonomy_en.pdf
Regulation (EU) 2021/1119 of the European Parliament and of the Council 14 of 30 June 2021
establishing the framework for achieving climate neutrality and amending Regulations (EC)No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1)
JRC report: Technical assessment of nuclear energy with respect to the ‘do no significant harm’ criteriaofRegulation(EU)
2020/852(‘Taxonomy
Regulation’)availableon:
https://ec.europa.eu/info/file/210329-jrc-report-nuclear-energy-assessment_en

13

14

15

EN

9

EN

2009/71/Euratom16. That Directive contains a high-level nuclear safety objective
covering all stages of the life-cycle of each nuclear installation, including the siting,design, construction, commissioning, operation and decommissioning of such
installations. In particular, that Directive calls for significant safety enhancements inthe design of new reactors, including the so-called Generation III+ reactors, for whichstate of the art knowledge and technology should be used, taking into account thelatest international safety requirements. Those requirements provide for an effective
implementation of the nuclear safety objective, including the application of the
defence-in-depth principle and of an effective safety culture. Those requirements
ensure that the impact of extreme human-made and natural hazards, including
earthquakes and floods, is minimised and that accidents, abnormal operations andfailures or loss of control systems are prevented, inter alia by protective structures orback-up cooling and electricity supply systems.

EN

(8)

Accident-tolerant fuel for nuclear power plants which provides additional protection
against accidents resulting from structural damages to fuel or reactor components has
become available in the market. In order to take into account those recent
technological developments, the use of that type of fuel should be set out as arequirement in the technical screening criteria, taking into account its licensing within
the Union.

(9)Worldwide, research and development efforts are ongoing to develop new nuclear
reactor technologies that use, among others, closed fuel cycles or fuel self-breeding
concepts and that minimise the production of high-level radioactive waste(‘Generation IV reactors’). Although those Generation IV reactors are not yet
commercially viable, technical screening criteria should be laid down for such reactors
in light of their potential contribution to the objective of decarbonisation andminimisation of radioactive waste.

(10)

Nuclear energy is part of the future energy sources in a number of Member States, aspart of their decarbonisation efforts. The scenarios assessed by the Commission lead toa decarbonised energy system based on renewables to a very large extent and on
nuclear energy with a stable installed capacity compared to current levels. As thenuclear installations being currently exploited age, they need safety upgrades to extend
operational life as well as newly built nuclear installations to replace obsolete
installations. This is a continuous process that should ensure the availability of thenecessary capacity for the decarbonisation of the energy system by 2050 and beyond
this date as needed. Accordingly, significant investments in nuclear energy will beneeded throughout the period until 2050 and beyond. It is necessary to ensure that new
nuclear power plants use the most advanced solutions resulting from technologicalprogress. The technical screening criteria for such new nuclear power plants should
therefore provide for regular reviews of each investment project, and for technicalparameters that correspond to the best-available technology in view of the outcomes ofsustained research and development efforts and the continuous improvements oftechnologies. Specific dates should be defined to ensure phasing in of newtechnologies compatible with sustainable decarbonisation as soon as they become
available.

16

Council Directive 2009/71/Euratom of 25 June 2009 establishing a Community framework for the
nuclear safety of nuclear installations (OJ L 172, 2.7.2009, p. 18)

10

EN

EN

(11)

Annex II to the Euratom Treaty and Council Regulation (Euratom) No 2587/199917
establish thresholds and other requirements for the notification to the Commission of
investments in nuclear energy. To ensure, for the purpose of meeting the goals of thetaxonomy, the highest possible regard to the principles and requirements of theEuratom legislation, including the nuclear safety objective, such investments should be
subject to an opinion from the Commission, irrespective of whether Annex II to the
Euratom Treaty and Regulation (Euratom) No 2587/1999 require any notification. For
the same reason, all issues concerning the application of Article 10(2) and Article 17
of Regulation (EU) 2020/852 and the technical screening criteria identified by theCommission in its opinion should be satisfactorily addressed.

(12)

In view of the long lead times for investments in new nuclear generation capacity,
extending the service time of selected existing nuclear installations can support the
decarbonisation of the energy system in the near to medium term. The technicalscreening criteria for such extensions should, however, require modifications andsafety upgrades to ensure that those nuclear installations comply with the highest
achievable safety standards and with all safety objective requirements laid down inlegislation adopted under the Euratom Treaty.

(13)

In the light of the expected technological and scientific developments, investments inthe construction and safe operation of new nuclear installations using best available
technologies and approved by an appropriate date by Member States’ competentauthorities in accordance with applicable national law should be subject to technicalscreening criteria and to time-limits that will encourage the development and future
use of Generation IV reactors with closed fuel cycle or fuel self-breeding once they
become commercially available. These time-limits should be appropriately reviewed
in light of progress in the development of such technologies.

(14)

The technical screening criteria related to climate change mitigation or climate change
adaptation objectives should ensure that economic activities do not cause significant
harm to any of the other environmental objectives. Specifically for nuclear energy
related economic activities, it is necessary to ensure that the long term disposal ofwaste does not cause significant and long-term harm to the environment, as referred toin Article 17(1), point (d)(iii), of Regulation (EU) 2020/852. It is therefore appropriate
to set out in the technical screening criteria specific requirements for a radioactive
waste management fund and a nuclear decommissioning fund, which can be
combined, in line with the principle that waste generators should be responsible for thecost of managing it, and to require operational final disposal facilities for all
radioactive waste, which should prevent any export of radioactive waste for disposal
in third countries. In several Member States, low and intermediate level radioactive
waste is currently being disposed of in near-surface disposal facilities already, andsubstantial experience and know-how in waste management have been accumulated
during decades of operating those near-surface disposal facilities. For high-level
radioactive waste and spent fuel, deep geological disposal represents the state of theart solution that is broadly accepted in the expert community world-wide as the safest
and the most sustainable option for the end point of the management of high-level
radioactive waste and spent fuel considered as waste. Member States, while retaining
responsibility for their policies in respect of the management of their spent fuel and17

Council Regulation (Euratom) No 2587/1999 of 2 December 1999 defining the investment projects tobe communicated to the Commission in accordance with Article 41 of the Treaty establishing theEuropean Atomic Energy Community (OJ L 315, 9.12.1999, p. 1).

11ENlow, intermediate or high-level radioactive waste, should include planning andimplementation of disposal options in their national policies, in particular under thenational programmes for the management of spent fuel and radioactive waste,covering all types of spent fuel and radioactive waste and all stages of spent fuel andradioactive waste management from generation to disposal. The national programmes’
content is specified in Council Directive 2011/70/Euratom18 and includes key
performance indicators to monitor progress transparently. The Member States have toreport regularly on the progress of implementation of the national programmes to theCommission. Reporting from Member States from 2021 demonstrates that substantial
progress is made in the realisation of the first deep geological disposal facilities on theUnion territory. Realistic solutions are becoming available for Member States todevelop and operate such facilities by 2050. Therefore, the inclusion of acorresponding requirement in the technical screening criteria ensures that no
significant harm is caused to the environment.

EN

(15)

It is necessary that non-financial and financial undertakings provide investors with ahigh degree of transparency concerning their investments in fossil gas and nuclear
energy generation activities for which technical screening criteria should be laid down.
To provide that transparency, specific disclosure requirements for non-financial andfinancial undertakings should be laid down. In order to ensure comparability of theinformation disclosed to investors, that information should be presented in the form ofa template that indicates clearly the proportion of fossil gas and nuclear energy
activities in the denominator and, where appropriate, the numerator of key
performance indicators of those undertakings. In order to provide a high degree oftransparency to investors in financial products referred to in Article 5 and Article 6 ofRegulation (EU) 2020/852 concerning exposures to fossil gas and nuclear energy
activities, for which technical screening criteria are laid down, the Commission will
amend or propose to amend the disclosure framework pertaining to those financial
products as appropriate to provide for full transparency over the whole life of thosefinancial products. To ensure that such information is clearly identified by endinvestors, the Commission will consider amending the requirements on the financial
and insurance advice given by distributors.

(16)

To enhance investor confidence, compliance with the technical screening criteria
related to fossil gas activities should be verified by an independent third party. To
ensure an impartial and diligent verification of compliance, the independent third-party
should have the resources and expertise to perform that verification, be independent toavoid any conflict of interest with the owner or the funder, and should not be involvedin the development or operation of such fossil gas activities. In addition to theverification mechanism, financial and non-financial undertakings may be subject tospecific verification requirements provided in other Union legislation on sustainablefinance that cover compliance with the technical screening criteria. In accordance with
Article 26(1), point (c), of Regulation 2020/852, the Commission should review theprovisions required for setting up verification mechanisms of compliance with thecriteria set out in that Regulation.

(17)

The fossil gas and nuclear energy sectors are characterised by rapid technologicaldevelopment. It is therefore necessary to review the technical screening criteria
covering energy generation activities in those sectors regularly, as required by Article

18

Council Directive 2011/70/Euratom of 19 July 2011 establishing a Community framework for the
responsible and safe management of spent fuel and radioactive waste (OJ L 199, 2.8.2011, p. 48).

12EN

19(5) of Regulation (EU) 2020/852. In addition, based on the conditions laid down in
Article 10(2) of Regulation (EU) 2020/852, such review should cover theappropriateness of the periods of time laid down in the technical screening criteria.
(18)

Delegated Regulation (EU) 2021/2139 and Commission Delegated Regulation (EU)2021/217819 should therefore be amended accordingly. The amendments to DelegatedRegulation (EU) 2021/2139 and Delegated Regulation (EU) 2021/2178 do notmandate any investments, but are intended to help financial markets and investors to
identify, subject to strict conditions, relevant gas and nuclear related activities needed
for the transition of the Member States' energy systems towards climate neutrality inline with Union climate goals and commitments.

(19)

The amendments to Delegated Regulation (EU) 2021/2139 and Delegated Regulation(EU) 2021/2178 laid down in this Delegated Regulation are closely linked. In order toensure coherence between those provisions, which should enter into force at the sametime to facilitate a comprehensive view of the legal framework for stakeholders and to
facilitate the application of Regulation (EU) 2020/852, it is necessary to include those
provisions in a single Regulation.

(20)

It is necessary to provide non-financial and financial undertakings with sufficient time
to assess whether their economic activities related to fossil gas and nuclear energy
comply with the technical screening criteria laid down in this Regulation, and to reporton the basis of that assessment in accordance with Delegated Regulation (EU)2021/2178. The date of application of this Regulation should therefore be deferred to
1 January 2023,

HAS ADOPTED THIS REGULATION:
Article 1
Amendments to Delegated Regulation (EU) 2021/2139
Delegated Regulation (EU) 2021/2139 is amended as follows:(1)

the following Article 2a is inserted:‘Article 2a
Review

When performing the review referred to in Article 19(5) of Regulation (EU) 2020/852, theCommission shall also review and assess the necessity to amend the dates referred to in
Annex I, Section 4.27, Section 4.28, Section 4.29, point 1(b), Section 4.30, point 1(b) andSection 4.31, point 1(b).
Any review of the date referred to in point (2) of Sections 4.27 and 4.28 to Annex I shall take
into account the technical progress in accident-tolerant fuel commercialisation in the Union
and world-wide.’(2)

Annex I is amended in accordance with Annex I to this Regulation.

(3)

Annex II is amended in accordance with Annex II to this Regulation.

19

EN

Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU)2020/852 of the European Parliament and of the Council by specifying the content and presentation of
information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU
concerning environmentally sustainable economic activities, and specifying the methodology to comply
with that disclosure obligation (OJ L 443, 10.12.2021, p. 9).

13

EN

Article 2
Amendments to Delegated Regulation (EU) 2021/2178
Delegated Regulation (EU) 2021/2178 is amended as follows:(1)

in Article 8, the following paragraphs 6, 7 and 8 are added:‘6. Non-financial undertakings and financial undertakings shall disclose theamount and proportion of:(a)the taxonomy-aligned economic activities referred to in Sections 4.26, 4.27 and4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the
denominator and the numerator of their key performance indicators;(b)

the taxonomy-eligible, but not taxonomy-aligned, economic activities referred
to in Sections 4.26, 4.27 and 4.28 of Annexes I and II to Delegated Regulation(EU) 2021/2139 in the denominator of their key performance indicators;(c)the taxonomy-non-eligible nuclear energy related activities in the denominatorof their key performance indicators.

7.
Non-financial undertakings and financial undertakings shall disclose theamount and proportion of:(a)the taxonomy-aligned economic activities referred to in Sections 4.29, 4.30 and
4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the
denominator and the numerator of their key performance indicators.

(b)

the taxonomy-eligible, but not taxonomy-aligned, economic activities referred
to in Sections 4.29, 4.30 and 4.31 of Annexes I and II to Delegated Regulation(EU) 2021/2139 in the denominator of their key performance indicators;(c)the taxonomy-non-eligible fossil gas related activities in the denominator of
their key performance indicators.

8.
The information referred to in paragraphs 6 and 7 shall be presented in tabularform by using the templates set out in Annex XII to this Regulation.’(2)

the text set out in Annex III to this Regulation is added as Annex XII.
Article 3
Entry into force and application

This Regulation shall enter into force on the twentieth day following that of its publication in
the Official Journal of the European Union.
It shall apply from 1 January 2023.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,

For the Commission
The President
Ursula VON DER LEYEN

EN

14EN