To be able to reach the EU’s climate and energy targets for 2030 and the objectives of the European green deal, direct investments towards sustainable projects and activities are needed. The EU taxonomy is a green classification system, that most importantly converts the EU’s climate and environmental objectives into criteria for specific economic activities for investment purposes. Moreover, it provides companies, investors, and policymakers with appropriate definitions for which economic activities can be environmentally sustainable.
The EU Taxonomy is essential in making the EU climate targets implementable in practice, alongside creating security for investors, protecting private investors from greenwashing, and helping companies become more climate friendly. become more climate friendly.
The EU Taxonomy will affect Member States and the EU directly, on the other hand, it will indirectly affect companies that supply to the EU and corporations outside of the EU with investors from the EU.
To be included in the EU Taxonomy, an economic activity must contribute substantially to at least one environmental objective and do “no significant harm” to the other five environmental objectives set out in the legislative proposal.
EU Taxonomy (Full report)
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