The EU taxonomy is a green classification system for economic activities that aims to accelerate and scale up green investments. Under this framework, companies disclose the extent to which their activities contribute to the taxonomy’s environmental objectives and report on their environmental impact. As of 2022, the taxonomy remains a highly complex and relatively uncertain framework as it consists of a wide range of binding and non-binding finalized and non-finalized acts.
This short explainer sheds light on the purpose and structure of the EU taxonomy, and provides concrete examples of economic activities making a substantial contribution to the taxonomy’s environmental objectives.
Authors: Irina Patrahau, Michel Rademaker and Eline de Jong