Taxonomy Regulation

The “Action Plan: Financing Sustainable Growth” was published by the European Commission on 8 March 2018 and it established a financing strategy to redirect capital flows towards sustainable investment. Against this background, the European Parliament recently adopted Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (the “Taxonomy Regulation”).

The establishment of this unified classification system for environmentally sustainable activities will allow investors to redirect their investments towards more sustainable technologies and businesses.

The Taxonomy Regulation seeks to provide companies and investors with a common language (taxonomy) to identify economic activities that can be considered sustainable, by implementing six environmental objectives.