EU taxonomy regulation: Update of the European Sustainable Finance framework
Since 2020, the European Commission, supported by the Platform and the Technical Expert Group (TEG) on Sustainable Finance, has been developing the regulatory framework to direct investments towards sustainable activities with a classification system to evaluate homogeneously the climate and environmental performance of economic activities, known as the EU taxonomy. Key regulations are entering into force in 2022. This analyst note provides an overview of the current regulatory and technical framework of sustainable finance.