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. It is divided into the following sections:
- What is the EU Taxonomy?
- Which activities are eligible for the EU Taxonomy?
- Disclosure and reporting
- Opportunities and challenges.