The European Parliament has adopted the EU Taxonomy on 18 June 2020 – a key piece of legislation that will contribute to the European Green Deal. It will help create the world’s first-ever ‘green list’ – a classification system for sustainable economic activities.
The EU Taxonomy sets out the requirements for six environmental objectives of which Climate Change mitigation and adaption have been adopted and will enter into force in December 2020. Each objective is supplemented with a specific technical screening criteria to determine which economic activities can qualify for each environmental objective.
The remaining four objectives and their criteria should be ready by 2021.
Sustainable issuers may align with the following internationally recognised standards that promote credibility, assurance, transparency and growth:
EU Green Bond Standard ‘EU GBS’ (aligned with the EU Taxonomy)
Climate Bond Initiative Standards
The ICMA Principles (Green/Social/Sustainable)