EU Taxonomy Regulation A Step Towards Achieving Sustainability Objectives

The EU will need 180 billion euros of private investments into sustainable business in order to meet the targets of the Paris climate agreement. In order to accelerate this development, the European Parliament and Council issued the Regulation on the establishment of a framework to facilitate sustainable investment, known as the Taxonomy Regulation, in the summer of 2020.

What is the Taxonomy Regulation?

The regulation makes it possible to offer financial products that pursue environmentally sustainable objectives and channel private investments into sustainable activities. In practice, the regulation is an amendment of the rules of the EU's financial system that links financing to the EU's climate goals.