Framework to facilitate sustainable investment (Taxonomy)

taxonomy
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In May 2018, the Commission presented its proposal setting out uniform criteria for determining whether an economic activity is environmentally sustainable (“taxonomy”). The proposal further set out a process involving a multi-stakeholder platform to establish a unified classification system for determining the sustainability of activities. The ECON and ENVI Committees were jointly responsible for this proposal.

On 11 March 2019, ECON and ENVI adopted their report, followed by adoption by Parliament on 28 March 2019. On 21 October 2019, the Joint Committee decided to enter interinstitutional negotiations. Following agreement with Council, on 28 May 2020, the Committees adopted the agreed text, followed by adoption in Parliament on 17 June 2020.

The Taxonomy is a part of EU efforts to reach objectives set out in the European Green Deal, specifically to provide incentives to investors to finance the green transition. The Parliament text describes six environmental objectives which allow economic activities to be considered environmentally sustainable if they contribute to at least one, without causing significant harm to any of the others. The text calls on the Commission to define criteria on 'transition' and 'enabling' activities, which are incompatible with climate neutrality but considered necessary in the transition to a climate-neutral economy, which were published in December 2021.

Co-Rapporteurs

Bas EICKHOUT (Greens/EFA, ECON), Sirpa PIETIKÄINEN (EPP, ENVI)

Shadow Rapporteurs: Paul TANG (S&D, ECON), Simona BONAFÈ (S&D, ENVI), Gilles BOYER (Renew, ECON), Martin HOJSÍK (Renew, ENVI), Gunnar BECK (ID, ECON), No shadow (ID, ENVI), Bogdan RZONCA (ECR, ECON), Alexandr VONDRA (ECR, ENVI), Dimitrios PAPADIMOULIS (GUE/NGL, ECON), Silvia MODIG (GUE/NGL, ENVI)