The European Commission launched the latest step to manage forward sustainable finance in the EU with the call for feedback on a classification system – or “taxonomy” – for environmentally-sustainable economic activities. The consultation is being launched by the Technical Expert Group (TEG) on Sustainable Finance. The TEG, a global group of experts set up by the Commission, published its Report on Taxonomy on 18 June 2019. It follows on the Commission’s May 2018 legislative proposal on an EU taxonomy currently being discussed by the European Parliament and the Council.
The aim is to gradually develop a unified EU-wide classification system for environmentally sustainable economic activities. The final goal is to contribute to more informed decisions by businesses and investors. In line with the objective of a climate-neutral Europe by 2050, the call for feedback is part of the Commission’s commitment to climate change mitigation and adaptation, the core objective of its Action Plan on financing sustainable growth, published in March 2018.
During the autumn, the TEG will advise the Commission how to take this feedback forward in developing the future EU Taxonomy. Stakeholders are invited to comment on the proposed activities identified by the experts that contribute substantially to climate change mitigation and adaptation and the proposed technical screening criteria. The consultation closes on 13 September 2019.