European Commission advocates ‘voluntary’ taxonomy framework
21 June 2019 London
Image: Shutterstock
Implementation of sustainable taxonomy should be voluntary, according to a new report published by the European Commission’s Technical Expert Group (TEG).
The report determined that investors with an interest in taxonomy-eligible activities should either utilise the available EU framework or disclose their own individual approach.
The voluntary use of the framework has “divided political opinion”, causing the European Parliament to call for either a “comply or explain approach”.
The TEG defined climate change mitigation (an environmental objective set forth in the report as a criterion for determining an environmentally sustainable activity) as “greening of” and “greening by”, in order to widen the scope of the term to apply to more activities.
Furthermore, climate change adaptation was defined as a twofold approach that initially examines the “negative physical impact” of climate change on a particular activity, before formulating a programme to minimise such impacts.
The report determined that investors with an interest in taxonomy-eligible activities should either utilise the available EU framework or disclose their own individual approach.
The voluntary use of the framework has “divided political opinion”, causing the European Parliament to call for either a “comply or explain approach”.
The TEG defined climate change mitigation (an environmental objective set forth in the report as a criterion for determining an environmentally sustainable activity) as “greening of” and “greening by”, in order to widen the scope of the term to apply to more activities.
Furthermore, climate change adaptation was defined as a twofold approach that initially examines the “negative physical impact” of climate change on a particular activity, before formulating a programme to minimise such impacts.
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