The sustainable finance taxonomy: a key tool for supporting green investment and preventing climate change

The EU needs efficient and urgent measures to reduce emissions and get to grips with climate change. To that end, the Sustainable Finance Package presented by the European Commission has the potential to establish a clear, coherent and comprehensive framework in which a greener economy can develop without lock-in effects.

In the opinion adopted at the September plenary session, drawn up by Stefan Back, the EESC fully supports the Commission's measures aimed at setting standards for the definition of "sustainable economic activities", but points out that some elements may prove a complex and costly challenge, particularly for SMEs.

The Committee says that it is important to clearly define technical criteria for the green investments that directly contribute to Europe's climate objectives and to which the practices of the business sectors concerned and the financial sector can be aligned. Setting standards that diverge from the maximum requirements of EU legislation may create confusion, and the EESC therefore recommends strengthening those requirements.

"The package of Commission measures is intended to enable investors to re-orientate investments towards more sustainable technologies and businesses. We need efficient, easily applicable, innovative and productive tools that bring about rapid and clear results. The assessment of the Sustainable Finance Taxonomy Delegated Regulation should be carried out in this spirit", stressed Mr Back. (mp)