EU Taxonomy for Sustainable Finance
To achieve the 2030 climate and energy targets and the objectives of the European green deal, it is crucial to direct investments toward sustainable projects and activities. Therefore, the European Union introduced the 2020 EU Taxonomy Regulation, which works as a classification system to establish a list of environmentally sustainable economic activities.
Why is it important?
The EU taxonomy would provide investors, financial institutions, and companies across the EU with a clear definition of what a “sustainable investment” is. Thus, protecting private investors from greenwashing and market fragmentation while assisting companies in becoming more climate-friendly and shifting the investment to where it is most needed. It also helps investors assess if their investments meet robust environmental requirements and are in line with high-level policy commitments such as the Paris Agreement on Climate Change.
The industrial minerals sector welcomes the issuing of the EU’s Taxonomy Regulation and is committed to contributing to economic growth consistent with the policy commitments such as Sustainable Finance Action Plan, which is essential for the EU green economy and long-term climate targets.