Green finance taxonomy: A road to hell paved with good intentions?
By: Bioenergy Europe // If the EU Taxonomy Regulation genuinely wants to deliver on its good intentions of scaling up sustainable investments and accelerating the climate transition, it sorely needs actionable criteria based on good science and existing metrics.
The direction of the taxonomy road was clear at first, “a European tool for greening the economy”. Although not mandating investments into those meeting its criteria, it would support top performers on sustainability and rate the degree of sustainability for each sector, business, and product.
The road becomes somewhat clearer?
November’s publication (and well-reported leak) of the long-awaited Draft Delegated act on Taxonomy meant the road became somewhat clearer. The intention to integrate Taxonomy into other areas such as State Aid and the Recovery and Resilience Facility. Criteria unfortunately distanced from existing metrics and sustainability requirements. Numerous sectors including bioenergy at risk of unnecessary punitive labelling of perfectly sustainable economic activities.