meta_id 3240557

On June 15, 2026, the Icelandic Government opened a consultation on draft amendments to Iceland's sustainable investment classification regulation. The consultation period runs from June 15 to June 29, 2026, and concerns proposed changes to Regulation No. 10/2024 on the Classification System for Sustainable Investments. The amendments implement European Union (EU) Delegated Regulation (EU) 2026/73, which modifies three existing EU delegated regulations: (EU) 2021/2139, (EU) 2021/2178, and (EU) 2023/2486. These changes form part of the EU's broader effort to simplify financial market regulation. The amendments introduce several key modifications: simplification of templates and exemptions from the obligation to assess activity compliance with technical screening criteria when activities lack financial materiality; criteria defining when activities are not financially material; and exemptions from certain provisions of Regulation (EU) 2021/2178 for financial market participants whose activities are not described as activities linked to environmentally sustainable economic activities under the EU Taxonomy Regulation (EU) 2020/852. Iceland incorporated the EU Taxonomy Regulation through Law No. 25/2023 on Sustainability Disclosure in Financial Services and the Classification System for Sustainable Investments. The proposed regulation will be adopted under Article 8(1) of this law and is expected to take effect upon publication. However, financial institutions will be permitted to base their reporting for the financial year January 1 to December 31, 2025, on the versions of Regulations (EU) 2021/2178, (EU) 2021/2139, and (EU) 2023/2486 as they stood on December 31, 2025. Stakeholders may submit comments through June 29, 2026. The consultation portal is available at the Icelandic Government's consultation gateway (Samráðsgátt), with inquiries directed to Árni Axelsson at arnas.axelsson@fjr.is.