What the EU is doing and why
The EU taxonomy is a cornerstone of the EU’s sustainable finance framework and an important market transparency tool. It helps direct investments to the economic activities most needed for the transition, in line with the European Green Deal objectives. The taxonomy is a classification system that defines criteria for economic activities that are aligned with a net zero trajectory by 2050 and the broader environmental goals other than climate.
In order to meet the EU’s climate and energy targets for 2030 and reach the objectives of the European green deal, it is vital that we direct investments towards sustainable projects and activities. To achieve this, a common language and a clear definition of what is ‘sustainable’ is needed. This is why the action plan on financing sustainable growth called for the creation of a common classification system for sustainable economic activities, or an “EU taxonomy”.
The EU taxonomy allows financial and non-financial companies to share a common definition of economic activities that can be considered environmentally sustainable.
In this way, it plays an important role in helping the EU scale up sustainable investment, by creating security for investors, protecting private investors from greenwashing, helping companies become more climate-friendly and mitigating market fragmentation.
The Taxonomy Regulation entered into force on 12 July 2020. It establishes the basis for the EU taxonomy by setting out the 4 overarching conditions that an economic activity has to meet in order to qualify as environmentally sustainable.
Under the Taxonomy Regulation, the Commission had to come up with the actual list of environmentally sustainable activities by defining technical screening criteria for each environmental objective through delegated and implementing acts.
EU taxonomy navigator
The Commission created an educational and user-friendly website offering a series of online tools to help users better understand the EU taxonomy in a simple and practical manner, ultimately facilitating its implementation and supporting companies in their reporting obligations.
The EU taxonomy navigator offers four tools that will help you navigate the EU taxonomy:
- EU taxonomy compass: a visual representation of sectors, activities and criteria included in the EU Taxonomy delegated acts
- EU taxonomy calculator: a step-by-step guide on reporting obligations
- FAQs repository: an overview of questions and answers on the EU taxonomy and its delegated acts
- EU taxonomy user guide: a guidance document on the Taxonomy for non-experts
Commission expert groups on sustainable finance
The Platform is an advisory body subject to the Commission’s horizontal rules for expert groups.
The Technical expert group on sustainable finance (TEG) was set up from 2018 to 2020 to assist the Commission in developing the work put forward in the legislative proposals of May 2018.
Further information on the MSEG is available on the European Commission Register of Commission Expert Groups and similar entities.
Policy making timeline
- 21 November 2023Delegated act - Environmental and climate
Publication in the Official Journal of a Delegated Act for economic activities substantially contributing to the objectives of
- sustainable use and protection of water and marine resources
- transition to a circular economy
- pollution prevention and control
- protection and restoration of biodiversity and ecosystems
Amendments to add economic activities to the list of those substantially contributing to the objectives of climate change mitigation and adaptation, and to clarify the reporting obligations for the additional activities. The delegated acts were approved in principle on 13 June 2023 and adopted on 27 June 2023. They will apply as of January 2024.
- 17 October 2023Stakeholder request mechanism
- October 2022 - October 2024Expert group - Platform on Sustainable Finance
Second mandate of the Platform on Sustainable Finance.
- 15 July 2022Delegated act - Climate
Publication of a Complementary Climate Delegated Act in the Official Journal, including, under strict conditions, specific nuclear and gas energy activities in the list of economic activities covered by the EU taxonomy.
The delegated act applies as of January 2023.
The criteria for the specific gas and nuclear activities are in line with EU climate and environmental objectives and will help accelerate the shift from solid or liquid fossil fuels, including coal, towards a climate-neutral future.
- 10 December 2021Delegated act - Disclosures
Publication of a Delegated Act supplementing Article 8 of the Taxonomy Regulation in the Official Journal.
This Delegated Act specifies the content, methodology and presentation of information to be disclosed by financial and non-financial undertakings concerning the proportion of environmentally sustainable economic activities in their business, investments or lending activities.
- 9 December 2021Delegated act - Climate
Publication of a Delegated Act on sustainable activities for climate change adaptation and mitigation objectives in the Official Journal.
The delegated act applies as of January 2022.
The publication of the first Delegated Act was accompanied by the adoption of a Commission Communication on ‘EU taxonomy, corporate sustainability reporting, sustainability preferences and fiduciary duties: Directing finance towards the European green deal’ that aimed at delivering key messages on how the sustainable finance toolbox facilitates access to finance for the transition. This Communication builds on the transition finance report adopted by the Platform on Sustainable Finance in March 2021.
- October 2020 - October 2022Expert group - Platform on Sustainable Finance
First mandate of the Platform on Sustainable Finance.
- 22 June 2020Legislation - Taxonomy Regulation
Publication of the Taxonomy Regulation in the Official Journal of the European Union.
- July 2018 - July 2020Expert group - Technical expert group
In order to inform its work on the action plan, including on the EU taxonomy, the European Commission established a Technical Expert Group (TEG) on sustainable finance.
- 8 March 2018Action plan - Financing sustainable growth
- 2016 - 2018Expert group - High-level expert group
Mandate of the High-level expert group on sustainable finance.
The Taxonomy Regulation was published in the Official Journal of the European Union on 22 June 2020 and entered into force on 12 July 2020. It establishes the basis for the EU taxonomy by setting out the 4 overarching conditions that an economic activity has to meet in order to qualify as environmentally sustainable.
The Taxonomy Regulation establishes six climate and environmental objectives
- Climate change mitigation
- Climate change adaptation
- The sustainable use and protection of water and marine resources
- The transition to a circular economy
- Pollution prevention and control
- The protection and restoration of biodiversity and ecosystems
Different means can be required for an activity to make a substantial contribution to each objective.
Under the Taxonomy Regulation, the Commission had to come up with the actual list of environmentally sustainable activities by defining technical screening criteria for each environmental objective through delegated and implementing acts.
Basic information
- Text of the Taxonomy Regulation (2020/852/EU)
- Summary of the legislation: Assessing environmentally sustainable investments
Delegated and implementing acts
Legislative history
November 2024
December 2023
June 2023
December 2022
- Commission Notice on the interpretation and implementation of certain legal provisions of the EU Taxonomy Climate Delegated Act
- Commission Notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of EU Taxonomy Regulation on the reporting of Taxonomy-eligible and Taxonomy-aligned economic activities and assets
February 2022
December 2021
July 2021
April 2021