EU/sustainability: The Taxonomy efforts continue - its extensions to be submitted for public consultation (July 2021)
Since the adoption of the European Green Deal in 2020, the European Union is determined to reach climate-neutrality by 2050. However, these ambitious plans, in order to come to fruition, require broad regulatory adjustments in many areas, one of them being growth financing, which has been reflected in the Plan on Financing Sustainable Growth adopted by the European Commission on 8 March 2018. One of the objectives set out in the plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth. In this pursuit, the European Parliament and the Council passed the Taxonomy Regulation (Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088) which aims to establish a unified classification system for sustainable activities. In other words, the Taxonomy Regulation lays the foundations for an EU-wide classification system, which provide for a uniform and harmonised way to determine what economic activities can be considered as sustainable.