EU Sustainable Finance in 2026: What to Expect from the Evolving EU Taxonomy

As 2026 approaches, the EU’s sustainable finance framework is moving into a new phase of consolidation. In recent years, the EU Taxonomy has expanded its scope, refined its technical screening criteria and clarified the application of the “Do No Significant Harm” (DNSH) principle.

With new delegated acts currently being prepared, supervised entities should expect both opportunities and challenges as they update their strategies, data processes and disclosures.

Key Evolutions Expected for 2026

• Updated technical screening criteria, incorporating sector feedback and aiming for greater usability.

• Clearer DNSH guidance, improving comparability and reducing interpretative uncertainty.

• Potential new environmental objectives, broadening the scope of sustainability-linked disclosures.

• Further alignment of reporting templates, supporting interoperability with CSRD and ESRS requirements.

Impact for Market Participants

Financial institutions and asset managers will need to reassess product governance, client disclosures and eligibility assessments. Corporates will need to update data collection processes, integrate revised criteria into sustainability planning and anticipate increasing investor scrutiny.

How can Osmia Consulting help you ?

Osmia Consulting supports institutions in implementing sustainable finance obligations through practical, operational and regulatory expertise. Our approach focuses on proportionality, efficiency and the real needs of your compliance function, helping you navigate evolving Taxonomy requirements with confidence.

If you would like to discuss how we can support your sustainable finance and Taxonomy compliance needs, please feel free to contact us.