ICMA publishes commentary and recommendations on the simplification of EU Sustainable Finance legislation
5 February 2025 The International Capital Market Association (ICMA) has published a new paper providing key recommendations for simplifying EU sustainable finance legislation to enhance usability and effectiveness.
With an omnibus legislative proposal expected by February 2025, the paper highlights the need for a simplified, proportionate and internationally operable regulatory framework.
Key recommendations include fundamentally addressing the usability challenges of the EU Taxonomy and its implementation, refocusing the Corporate Sustainability Reporting Directive (CSRD) data requirements, and streamlining reporting under the Sustainable Finance Disclosure Regulation (SFDR) while maintaining its flexible definition to sustainable investments.
We also underline the importance of the logical sequencing of reforms, as well as the related need for interim requirements or suspended enforcement notably for reporting.
These recommendations reflect extensive engagement with policymakers and industry stakeholders, as well as input from ICMA committees and members, ensuring a balanced, informed, and practical approach that maintains policy and regulatory integrity while reducing excessive complexity.
The full paper is available here.