The European Commission’s Technical Expert Group on Sustainable Finance (TEG) have today published their final report on the taxonomy for sustainable activities. Today’s report marks an important step towards establishing the EU’s taxonomy and enabling the delivery of a climate neutral net-zero economy by 2050. It will support the translation of Europe’s net-zero economy goal into a useful framework for providers, recipients and managers of investment capital, as part of a broad policy package for sustainable finance.
Quotes on financing a net-zero economy
Nick Mabey, Chief Executive of E3G said:
Restructuring the global economy in 30 years to eliminate fossil fuel use is a task unprecedented in complexity and pace. The EU has recognised that promoting sustainable finance is key to this and the taxonomy could play a significant role as part of the broad financial and economic framework needed to deliver a sustainable, climate-resilient, net-zero economy. Avoiding greenwashing is a good start yet expanding the framework to assess the unsustainability of economic activities is a vital measure to address risks and truly re-orient capital.
Kate Levick, Sustainable Finance Programme Lead said:
The taxonomy is an important tool to enable the delivery of Europe’s net-zero economy by 2050. Today’s report brings climate change adaptation to the fore, responding to the real and increasing physical climate impacts already affecting Europe’s economy. The inclusion of transition activities is also a welcome step in addressing the risk of stranded assets and supporting capital reallocation.
Sandrine Dixson-Declève, Senior Associate and Co-Chair, Taxonomy Manufacturing Sub Group in Technical Expert Group said:
The TEG’s work has been robust and tireless. This now needs to be matched by the EU institutions and the future Platform to ensure the taxonomy truly delivers impact in the real economy. To guarantee implementation, dynamism and continued progress in shifting capital from ‘brown’ to ‘green’ based on the EU’s investment needs, the European Commission must establish a clear governance plan and observatory function for its new Platform on Sustainable Finance.
Notes to Editors
- E3G is an independent climate change think tank accelerating the transition to a climate safe world. E3G specialises in climate diplomacy, climate risk, energy policy and climate finance.
- E3G will publish our deep dive analysis of the technical criteria of the report in the coming weeks.
- In 2018, for the third year running, E3G was ranked the fifth most globally influential environmental think tank by the Global Go To Think Tank Index.
- The full report can be read here.