October 2026 Global Regulatory Brief: CSRD, climate reporting and digital green bonds | Insights | Bloomberg Professional Services

October 2026 Global Regulatory Brief: CSRD, climate reporting and digital green bonds

October 27, 2026

The financial sector continues to face new rules and government expectations as part of the broader effort to aid the green transition. The following green finance policy developments represent a sample of wider regulatory and policy coverage available to Bloomberg Terminal customers. Run REGS to find out more or contact your Bloomberg representative to learn more:

- Japan: Committee advances transition finance framework - EU: Revised CSRD sustainability reporting framework advances - New Zealand: XRB consults on ISSB-aligned climate reporting - Hong Kong: HKSAR Government issues HK$20bn digital green bonds

Japan advances transition finance framework

Overview: The committee recently highlighted growth in Japan’s transition finance market, developments in transition-focused financial instruments and evolving standards across the EU, Canada, South Korea and international organizations. Members discussed developments including the proposed Transition category under the Sustainable Finance Disclosure Regulation (SFDR), transition finance subsidy programs and international cooperation through the Asia Zero Emission Community (AZEC). The discussion also covered financing for hard-to-abate industries, ASEAN developments and potential revisions to Japan’s transition finance framework.

Context: Japan launched the Transition Finance Environment Development Study Group in 2021 to develop domestic guidance aligned with international frameworks such as ICMA’s Climate Transition Finance Handbook and to support financing for the transition of hard-to-abate sectors. At its 14th meeting, the committee reviewed domestic and international developments in transition finance and continued discussions on revisions to the Climate Transition Finance Basic Guidelines, taking into account developments in international standards, market practices, taxonomies and disclosure frameworks.

Key takeaways:

- Japan’s transition finance market continues expanding, with cumulative domestic fundraising reaching approximately ¥3.72 trillion since 2021. - The committee is reviewing updates to Japan’s Climate Transition Finance Basic Guidelines to reflect evolving international practices. - Members view the transition category under the EU SFDR review as a potential source of broader investment opportunities. - Concerns remain regarding exclusion criteria, particularly the treatment of coal-related activities under proposed European regulations. - The committee discussed the role of transition finance subsidy programs in supporting company transition strategies and financing frameworks. - Participants called for greater disclosure and promotion of successful transition finance case studies and market examples. - ASEAN developments should receive greater attention due to growing sustainable finance, disclosure, and taxonomy initiatives. - The committee discussed the role of transition finance in supporting decarbonization pathways for hard-to-abate industries. - The committee discussed Japan’s Climate Transition (CT) government bonds and Green Transformation (GX) initiatives in the context of domestic transition finance. - The committee noted developments in international frameworks relating to transition plans, disclosures, external verification and safeguards against greenwashing.

Next steps: The committee will continue discussions on revisions to Japan’s Climate Transition Finance Basic Guidelines, taking into account developments in international transition finance frameworks and markets. Discussions are also expected to cover transition finance case studies and cooperation through ASEAN and AZEC initiatives.

EU advances revised CSRD sustainability reporting framework

Overview: The EU has taken further steps towards implementing its revised Corporate Sustainability Reporting Directive (CSRD) framework, with the revised European Sustainability Reporting Standards (ESRS) and a voluntary reporting standard now published in the Official Journal – see ESRS text here and V-ESRS text here.

Separately, EFRAG has released a draft XBRL taxonomy reflecting the revised ESRS for consultation, providing the technical basis for the future digital reporting of sustainability disclosures. See revised XBRL standards here and consultation form here.

Context: The developments form part of the EU’s wider simplification of corporate sustainability reporting under the Omnibus I package. The revised ESRS replace the existing standards and will become mandatory for financial years beginning on or after January 1, 2027, while EFRAG is developing the accompanying digital taxonomy ahead of its planned submission to ESMA and the European Commission.

Key takeaways:

- Revised ESRS: Commission Delegated Regulation (EU) 2026/1563 replaces the existing ESRS with the revised, simplified standards. The Regulation enters into force on November 10, 2026 and the revised standards apply to financial years beginning on or after January 1, 2027, with the first reports expected in 2028. - 2026 reporting transition: Companies within CSRD scope for financial years beginning in 2026 may use the existing ESRS, apply the existing standards together with specified reliefs from the new Regulation, or adopt the revised ESRS in full. Sustainability statements must clearly identify which approach has been used. - Voluntary reporting: Commission Delegated Regulation (EU) 2026/1560 establishes a voluntary sustainability reporting standard for companies outside mandatory CSRD scope. It enters into force on September 24, 2026. For financial years beginning on or after January 1, 2027, the Regulation also limits the sustainability information that CSRD-reporting companies may request from value-chain undertakings with an