05-05-2021 12:35

The final EU Taxonomy and next steps in sustainable finance

The European Commission has adopted its final screening criteria under the EU taxonomy, a framework for classifying green investments. Nordea's experts share their reflections on the landmark rules and what to focus on going forward.
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Six environmental objectives of the EU taxonomy

1. Climate change mitigation

2. Climate change adaptation

3. Sustainable use and protection of water and marine resources

4. Transition to a circular economy, waste prevention and recycling

5. Pollution prevention and control

6. Protection of healthy ecosystems

Source: EU TEG on Sustainable Finance, Taxonomy Technical Report, June 2019

A sustainable finance regulation timeline (subject to change)

2021 Q2

European Commission (EC) adopts first Taxonomy delegated act on climate change adaptation and mitigation (21 April)

EC issues Corporate Sustainability Reporting Directive, its legislative proposal for the revision of the Non-Financial Reporting Directive (21 April)

EC to issue Article 8 Taxonomy disclosures consultation (April)

EC proposal on revised EU Emissions Trading System (ETS)

EC proposal on a Carbon Border Adjustment Mechanism (CBAM)

EC to launch EU Green Bond Standard proposal (June)

EC to launch Sustainable Corporate Governance proposal (June)

EC to launch Renewed Sustainable Finance Strategy (June)

EC to adopt delegated act on Article 8 Taxonomy disclosures (by 1 June 2021)

2022 Q1

Taxonomy regulation starts to apply 1 Jan 2022 for climate change mitigation and adaptation

2023 Q1

Taxonomy regulation to apply 1 Jan 2023 for remaining 4 objectives

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