This quarter brings significant developments in EU and Norwegian sustainability regulation – including changes to the CSRD scope under the Omnibus I Directive, simplified EU Taxonomy reporting rules, and proposed green amendments to TEK17.
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Key developments in Q1 2026
CSRD: Omnibus I Directive adopted and consultation on Norwegian implementation
On 24 February 2026, the Omnibus I Directive was formally adopted in the EU. Among the most important changes introduced is the revised scope of undertakings subject to sustainability reporting under CSRD and, by extension, the Taxonomy Regulation. From the 2027 financial year (and from 2026 if permitted by Member States), only entities with an annual net turnover of EUR 450 million and more than 1,000 employees will have to report. The same goes for parent undertakings in groups exceeding the thresholds on a consolidated basis. A simplification of the reporting standards (ESRS) is also underway.
In Norway, the Ministry of Finance launched a public consultation on 16 February 2026 regarding the implementation of the revised CSRD rules, including an exemption from reporting for financial year 2026 for entities that will fall outside the revised scope once the Omnibus amendments take effect.
EU Taxonomy: simplified reporting rules now in force and applicable for 2025 reporting
Simplifications to the EU Taxonomy reporting framework entered into force in January 2026 through amendments to the Taxonomy Disclosures Delegated Act. The changes introduce streamlined reporting templates, a materiality threshold allowing undertakings to omit activities representing less than 10% of the relevant KPI denominator, and increased flexibility in the calculation of certain key performance indicators.
The simplified rules apply to reporting for the 2025 financial year, although undertakings may choose to continue applying the previous rules for that year provided they are applied in full. The Norwegian Ministry of Finance has stated that Norwegian entities may rely on the simplified reporting templates even if the amendments have not yet been implemented into Norwegian law at the time of reporting.
15th edition of the European List of Ship Recycling Facilities
On 27 February 2026, the European Commission adopted the 15th edition of the European List of Ship Recycling Facilities. The updated list contains 41 approved facilities, down from 43 in the previous edition. Notable changes include the addition of the first German facility (in Emden), and the removal of a Finnish facility (which did not apply for renewal), a Northern Irish facility (which failed to provide necessary documentation) and a Turkish facility (for non-compliance with shoreline protection requirements). No facilities in India, Pakistan or Bangladesh have yet been included on the European List.
FuelEU database will be based on the existing THETIS-MRV system
On 24 February 2026, the European Commission adopted Implementing Regulation (EU) 2026/394 specifying the access rights and functional and technical specifications of the FuelEU database. The database, which is built on EMSA's existing THETIS-MRV system, enables companies to report energy consumption and emissions, verifiers to carry out verifications and issue Documents of Compliance, and administering authorities to perform enforcement activities. The regulation defines differentiated access rights for each user type, and includes functionalities for compliance balance calculation, registration of pooling, recording an onshore power supply exception, and recording penalties issued and paid.
Green amendments to TEK17 out on public hearing
Proposed amendments to TEK17 are currently subject to a public consultation running until 5 May 2026. The proposed amendments address, inter alia, a new calculation method based on weighted delivered energy, as well as simplified rules for calculating energy requirements in connection with building measures on existing buildings, with a view to incentivising upgrades to the existing building stock. In addition, the mandatory greenhouse gas calculations introduced in 2022 are proposed to be expanded to encompass more building components and to apply to single houses of 1,000 sqm or more in size. A maximum requirement for climate footprint per sqm is also suggested. The Directorate has indicated that these proposals will be assessed in conjunction with an earlier proposal on "solar ready buildings", which was subject to a public hearing in H2 2025.
European Union introduces simplification amendments to the EU Deforestation Regulation
In late 2025, the European Union amended the Regulation together with an additional one-year postponement of application, by introducing simplification measures which will reduce administrative costs and burdens for companies covered by the Regulation. The key elements of the simplification measures are streamlined obligations for downstream operators and traders, a simplified one-off declaration for micro and small operators from low-risk countries, and the removal of certain products from the product scope.
