On 26 March 2025, the LMA submitted its response to the European Commission’s consultation on amendments to the Taxonomy Delegated Acts.

This consultation was released alongside the Commission’s Omnibus Proposal aimed at streamlining and reducing compliance burden associated with sustainability-related legislation in the EU. Whilst we welcome some of the proposed amendments, our response highlights certain areas where additional changes could be considered.  Furthermore, our response emphasises the importance of careful consideration of the impact of the EU Omnibus Package to ensure that the proposals do not inadvertently add complexity, undermine the legal certainty needed to drive investment decisions and/or lead to an erosion of the quality or ambition of the underlying legislative and economic aims.

Today, The Loan Market Association, in collaboration with Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA), published the updated Green, Social and Sustainability-Linked Loan Principles (‘Principles’) and corresponding Guidance documents (‘Guidance’). The Principles set out the core components for these labelled instruments, whilst the corresponding Guidance provides the definitive framework for structuring Green, Social, and Sustainability-Linked Loans.

Developed by an experienced working party of financial institutions, law firms and external review providers at the forefront of sustainable finance, the Principles and Guidance are designed to reflect market best practice, and provide a foundational tool to protect the integrity of the labelled loan market.

The past five years have experienced considerable growth in the labelled loan space and, as such, market practice is in a constant state of evolution. Accordingly, the Principles and Guidance will continue to develop in line with these changes, with the March 2025 updates reflecting the latest market developments.

Today, we want to give a special shoutout to our dedicated members – along with participants from across the wider banking and private credit markets – for their invaluable contributions to the LMA’s first-ever Sustainable Finance Insights Report on Greenwashing: Understanding and Navigating the Impacts for the Loan Market. A special thank you to Hannah Vanstone (LMA) and Sukhvir Basran (King & Spalding) for their tireless efforts in bringing this report to life.

Read the report here. 

The LMA has today published its high-level position paper on the EU’s First Omnibus package on sustainability.

This output follows engagement with the LMA’s Sustainable Finance Regulatory Committee and sets out 5 key recommendations for the Commission: