Comments on the European Taxonomy for Sustainable Finance delegated act

Since the establishment of the technical expert group on sustainable finance (TEG), ZEP has provided advice to the TEG’s technical report, and has given input and submitted consultation responses to the European Commission on the regulation on the delegated acts on climate change mitigation and adaptation.

The European Taxonomy for Sustainable Activities (Taxonomy) can be a real driver for sustainable investments to reach the European Union’s (EU) objective of climate neutrality by 2050 – defining activities that contribute substantially to climate change mitigation and adaptation – and can be a central piece of legislation for all initiatives related to the European Green Deal.

With the negotiations on the European Climate Law now finalised, the EU is preparing for the announcement of the ‘Fit for 55’ package, which will touch upon several key pieces of legislation regarding the EU’s energy and climate policies. Upcoming revisions – including the regulation on Trans European Networks for Energy (TEN-E) and the EU Emissions Trading System (ETS) directive – should be coherent with the Taxonomy’s delegated acts to provide a long-term and stable framework for investments.

By privileging a science-based approach and a technology-neutral focus, the Taxonomy can guide the EU according to the best available science and enable well-informed decisions as to which pathways and low-carbon technologies will deliver on the objective of climate neutrality by 2050.

ZEP believes that the possibilities to adjust criteria over time will be important and is pleased to see that “The criteria are dynamic and will be subject to regular review.”