A legal framework for defining green finance
In order to meet the climate targets of the Paris Agreement and encourage more environmentally friendly investments, a new EU law establishes clear EU definitions of what ‘green’ actually is. This EU Taxonomy Regulation wants to prevent ‘green washing’ by the investment industry, and encourage investment products to voluntary adopt the official EU definitions.
This fact sheet explains what this Taxonomy Regulation entails and points out some of the loopholes and critiques of the law. It also contains a time line of continuing decision-making up to January 2023.read more less