On 5 February 2024, the Council of the EU and the European Parliament reached a provisional agreement for a regulation on ESG rating activities (the “Proposed EU Regulation“). The Proposed EU Regulation differs in certain respects from the version that was agreed upon by the Council of the EU in December 2023.
The Proposed EU Regulation has not substantively changed from the version that we commented on in December 2023 (for further detail on this, read our earlier blog post here). The latest version does, however, provide further detail on the scope of the Proposed EU Regulation, as well as on the applicable exclusions.
The Proposed EU Regulation needs to be approved by the Council of the EU and the European Parliament before going through the EU’s formal adoption procedure. The final regulation will start applying 18 months after its entry into force.