EU classification system for sustainable economic activities

The Commission welcomes the vote by the European Parliament's Economic affairs (ECON) and Environment Public Health and Food Safety (ENVI) Joint Committee on a EU classification system for sustainable economic activities ('taxonomy'), proposed by the Commission in May 2018 as part of the Sustainable Finance Action Plan. This is another step towards enabling the financial sector to support the transition towards a climate-neutral economy. The development of an EU-wide taxonomy for environmentally sustainable economic activities is an integral part of the EU efforts, under the EU's sustainable development agenda and the carbon neutrality agenda, to connect finance with needs of the real economy and drive forward the Capital Markets Union. Valdis Dombrovskis, Vice-President responsible for Financial Stability, Financial Services and Capital Markets Union, said: "I welcome the European Parliament's committees' vote on the law establishing an EU classification for climate and environmentally friendly economic activities. To invest in projects with a positive impact on the planet, investors first need to know what is green. The lack of clarity makes us lose precious time in the fight against climate change. This is why I urge Member States to agree on a general approach as soon as possible." Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, added: "With this vote, the EU taxonomy project has received much-needed political backing. This sends a strong signal globally about the determination of the EU to enable the transition to a climate-neutral and circular economy, supported by private capital. Given the urgency and importance of this project, I hope that both co-legislators will reach a deal before the end of this year." This proposal would provide market participants and investors with a common understanding of what is unambiguously green and thus fight greenwashing. This will bring clarity on which activities are considered sustainable so that economic actors and investors take more informed decisions, and should facilitate intra-EU sustainable investments. The Commission invites the Council of the European Union to reach an agreement on the proposed rules shortly so that trilogue negotiations with the European Parliament could start. More information available here.