What is EU Taxonomy?

The EU Taxonomy is a classification system, establishing a list of environmentally sustainable economic activities. It is a tool to help investors, companies, issuers and project promoters navigate the transition to a low-carbon, resilient and resource-efficient economy. It aims to provide clarity on which economic activities can be considered environmentally sustainable and contribute substantially to the EU's environmental objectives, such as climate change mitigation and adaptation, the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution prevention and control, and the protection and restoration of biodiversity and ecosystems.