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1. The Commission shall evaluate the application of this Regulation by 2 January 2029.

2. The Commission shall present a report on the main findings of the evaluation to the European Parliament and the Council. In carrying out the evaluation, the Commission shall take into account market developments and the relevant evidence at its disposal. The report shall in particular assess the following:

(a) the impact of this Regulation on the transition to a sustainable economy, on the gap of investments needed to meet the Union climate targets as set out in Regulation (EU) 2021/1119, and on redirecting private capital flows towards sustainable investments;

(b) the impact of this Regulation on the market structure, including the evolution of the number and diversity of ESG rating providers;

(c) whether the scope of this Regulation is appropriate to achieve its objectives in accordance with Article 1, including whether providers of data products on environmental, social and human rights, and governance factors should be included in the scope of this Regulation;

(d) the adequacy of the requirements for ESG rating providers established outside the Union to operate in the Union;

(e) the functioning of the market of ESG rating providers in the Union, including potential conflicts of interest, and its supervision by ESMA;

(f) whether this Regulation, including the non-interference principle referred to in Article 28, have contributed to improving the quality and reliability of ESG ratings and reduced the use of misleading ESG ratings.

3. Where the Commission finds it appropriate, the report shall be accompanied by a legislative proposal for amendment of the relevant provisions of this Regulation.