A Great Green Day
On 18 June 2020 the European Parliament adopted the Taxonomy Regulation – the key regulatory instrument in the EU Taxonomy framework.
This is probably one of the most important legal texts of the decade, and a milestone in EUs efforts to counter the global climate crisis.
The proposal for a new regulation was first presented by the Commission in May 2018, and the Parliament have now finally approved the text of the political agreement reached in December 2019.
The EU Taxonomy will "create the world's first-ever “green list” – a classification system for sustainable economic activities – that will create a common language that investors can use everywhere when investing in projects and economic activities that have a substantial positive impact on the climate and the environment. By enabling investors to re-orient investments towards more sustainable technologies and businesses, this piece of legislation will be instrumental for the EU to become climate neutral by 2050": 1
What this amounts to, is nothing less than the first truly advanced effort to establish an international accounting standard on how to measure sustainability.
The regulation will now be published in the Official Journal and enter into force in its entirety 20 days after publication. It identifies six environmental objectives and prescribes general standards for what is to count as sustainable economic activities.
The Commission is to adopt delegated acts with specific and technical screening criteria, based on inter alia the Technical Group Report of March 2020. Delegated acts for the two first criteria (climate change mitigation and climate change adaptation) is to be adopted by the end of this year while criteria on the other four environmental objectives is to be in place by the end of next year. So the EU Taxonomy is moving forward fast these days.
Schjødt has established a Sustainability Law Group, covering all legal aspects relating to sustainability and environmental, social and governance (ESG). We are in the forefront in Norway with respect to ESG and finance, and regularly assist clients on a variety of ESG matters. For more information and material, see "Practice areas" below.