FIN.

Europe reaches agreement on ‘green taxonomy’ regulation

Negotiations between the European Parliament and Council have reached agreement on environmental objectives for determining the sustainability of an economic activity.

The Commission proposal for a ‘taxonomy regulation’ stipulates the following objectives:

  1. climate change mitigation;
  2. climate change adaptation;
  3. sustainable use and protection of water and marine resources;
  4. transition to a circular economy, waste prevention and recycling;
  5. pollution prevention and control;
  6. protection of healthy ecosystems.

It also further defines the criteria for a substantial contribution to each environmental objective.

The agreement must next be signed off by the two relevant committees, and then put to a plenary vote.  It will then contribute to establishing a transparent and consistent framework for assessing the sustainability (or otherwise) of financial products and mitigating the risk of ‘greenwashing’.

FIN. Team