EU Taxonomy Regulation FAQs and Guidance. The resources identify several aspects of the taxonomy that require further clarification. These include:

• Exemptions from the requirements of EU environmental law : The sources clarify how to interpret the Technical Screening Criteria (TSC) when they refer to specific requirements set out in EU environmental law but do not mention exemptions from these requirements that are otherwise permitted in EU environmental law. In principle, if the wording of the TSC allows for the use of exemptions, then these exemptions apply. If the wording does not allow for the use of exemptions, then these exemptions do not apply.
• Relationship between EU taxonomy and ESRS standards: The resources clarify the relationship between the DNSH (Do No Significant Harm) criteria in the EU taxonomy and the way in which the DNSH principle is applied in the context of public funds and in the context of the ESRS standards. While the data used in ESRS reporting will in many cases be useful in assessing compliance with the DNSH criteria, reference to ESRS disclosures alone is not sufficient to demonstrate compliance with the DNSH criteria.
• Third-party verification frequency: The sources clarify how often third-party verification should be carried out, especially in cases where the technical control criteria require verification of greenhouse gas emissions over the entire life cycle. For activities where third-party verification is prescribed without specifying a specific frequency, this verification should be carried out regularly, but not necessarily every year.
• Definition of the term “project” in relation to nuclear energy: The sources clarify the definition of the term "project" in the context of the technical control criteria for the production of electricity from nuclear energy in existing installations. In this context, the term "project" can be understood as the implementation of a long-term programme of a given existing nuclear installation.
• Application of the Global Replacement Ratio (GRR) in aviation: The sources provide detailed information on how to calculate and apply the GRR in the context of technical inspection criteria for aircraft production, leasing and operation. The GRR is calculated based on the ratio of aircraft permanently retired to aircraft delivered at a global level, averaged over the previous 10 years.
• Development of CO2 emission limits for aircraft: The sources clarify how CO2 emission limits for new aircraft types will evolve over time in the context of the technical control criteria for aircraft production. These limits refer to the current ICAO standard and will need to be reviewed by 2032 to take into account developments in technology and international regulation.
• Use of secondary raw materials in construction: The sources clarify the meaning of the term "for the combined sum of concrete, natural stone or agglomerated stone" in the context of the technical control criteria for the construction of new buildings. This wording allows flexibility for economic operators by setting the thresholds for the use of secondary raw materials for a material category as a maximum percentage of the use of primary raw materials per material category.
• Use of different national tools to calculate the carbon footprint of buildings: The sources clarify whether it is possible to use a national tool to calculate the carbon footprint of buildings, even if it differs from the common EU framework. The sources state that an official national or regional tool can be used, even if it deviates from the common EU framework.
• Definition of the term "soil" in relation to decontamination: The sources clarify whether the term "soil" in the context of remediation activities also includes soil air. The answer is no.
• Application of exemption from the use of prohibited chemicals: The sources explain how the exemption from the use of banned chemicals applies in the context of the DNSH criteria for pollution prevention and control. The exemption applies when there are no suitable alternatives and when the substances are used under controlled conditions.
• Taking into account cumulative impacts on protected areas: The sources clarify how cumulative impacts on protected areas should be assessed in the context of the DNSH criteria for the protection and restoration of biodiversity and ecosystems. Cumulative impacts must be assessed in the context of the suitability assessment under the Habitats Directive.
• Reporting on activities that are not business-critical: The sources clarify the extent to which businesses must report on activities included in the taxonomy, even if they are not material to their business. Businesses must report on all activities included in the taxonomy, regardless of their materiality.
• Reporting on activities that contribute to multiple goals: The resources clarify how businesses should report on activities that contribute to multiple environmental objectives. Non-financial businesses must indicate in the relevant reporting templates whether an activity is consistent with each relevant objective.
• Definition of the terms "funds" and "has exposures": The resources clarify the definition of the terms “funds” and “has exposures” in the context of the fossil gas and nuclear energy disclosure templates. These terms apply to disclosures by financial undertakings and are not relevant to non-financial undertakings.

In addition to these specific aspects of the taxonomy, the sources also highlight the need to simplify the taxonomy framework to make it easier for businesses to use. The Commission has committed to stepping up efforts to support taxonomy users in interpreting and complying with the technical control criteria and to explore digital solutions for reporting.