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The EU Taxonomy is a tool to help investors, companies, issuers and project promoters navigate the transition to a low-carbon, resilient and resource-efficient economy. The Taxonomy sets performance thresholds (referred to as "technical screening criteria") for economic activities which:
- make a substantive contribution to one of six environmental objectives of which climate change adaptation is one;
- do no significant harm (DNSH) to the other five objectives (Mitigation, protection of water ressources, transition to a circular economy, pollution prevention control and protection and restoration of biodiversity and ecosystems, where relevant);
- meet minimum safeguards (e.g. OECD Guidelines on Multinational Enterprises and the UN Guiding Principles on Business and Human Rights).
The performance thresholds will help companies, project promoters and issuers access green financing to improve their environmental performance, as well as helping to identify which activities are already environmentally friendly. In doing so, it will help to grow low-carbon sectors and decarbonise high-carbon ones.
On 9 March 2020, the TEG published its final report on EU Taxonomy. The report contains recommendations relating to the overarching design of the EU taxonomy, as well as extensive implementation guidance on how companies and financial institutions can use and disclose against the taxonomy. The report is supplemented by a technical annex containing:
- Updated technical screening criteria for 70 climate change mitigation and 68 climate change adaptation activities, including criteria for do no significant harm to other environmental objectives.
- An updated methodology section to support the recommendations on the technical screening criteria.
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Published in Climate-ADAPT Jul 27, 2020 - Last Modified in Climate-ADAPT Dec 12, 2023
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