The EU taxonomy is a classification system, that establishes a list of environmentally sustainable economic activities. It will play an important role in helping the EU scale up sustainable investment and implement the European Green Deal. The EU taxonomy provides companies, investors, and policymakers with appropriate definitions for economic activities that can be considered environmentally sustainable. In this way, security for investors should be created, private investors protected from greenwashing, companies supported by becoming more climate-friendly, market fragmentation mitigated, and investments shifted where they are most needed.
FT supported the public consultation process by providing feedback on the water and pollution criteria to improve the environmental performance of certain sector activities.