EU taxonomy for sustainable activities
| European Union regulation | |
| Title | on the establishment of a framework to facilitate sustainable investment |
|---|---|
| Made by | European Parliament and Council |
| Made under | Article 114 TFEU |
| Journal reference | L 198/13, 22 June 2020 |
| Other legislation | |
| Amends | Regulation (EU) 2019/2088, the Sustainable Finance Disclosure Regulation |
The EU taxonomy for sustainable activities (i.e. "green taxonomy") is a classification system established to clarify which economic activities are environmentally sustainable, in the context of the European Green Deal. The aim of the taxonomy is to prevent greenwashing and to help investors make informed sustainable investment decisions. The Taxonomy covers activities contributing to six environmental objectives: climate change mitigation, climate change adaptation, the transition to a circular economy, pollution prevention and control, sustainable use and protection of water and marine resources, and protection and restoration of biodiversity and ecosystems. The Taxonomy came into force in July 2020. The UK is working on its own separate taxonomy.