The efforts to meet GHG emission reduction targets in line with the Paris Agreement will require broad deployment of investments from both public and private sectors. The EU Sustainable Finance Taxonomy is a classification system that defines activities which are deemed to be environmentally sustainable, focused initially on activities which contribute substantially to climate objectives while not adversely affecting other environmental objectives.
Ecologic Institute led the study for DG FISMA to assist the Technical Expert Group (TEG) on Sustainable Finance in developing criteria on agricultural activities to be included in the EU Sustainable Finance Taxonomy.
The study supported the TEG by:
- scoping of agriculture activities with significant potential to contribute to mitigation and adaptation;
- drafting of criteria, metrics and thresholds to ensure that selected activities substantially contribute to climate change mitigation and adaptation, and do not significantly harm any other environmental objectives;
- supporting research on means for compliance checking;
- organising a workshop with expert group members; and
- preparing inputs to support the Impact Assessment of the agricultural components of the Taxonomy.
The outcomes of the study were integrated in the Technical Report on EU Sustainable Finance Taxonomy.
This study builds on the Commission proposal for a Regulation on the establishment of a framework to facilitate sustainable investment (COM (2018) 353 final).
Following a consultation to gather feedback from broader public on the Taxonomy, the TEG will issue recommendations to support the development of future legislation on EU Sustainable Finance Taxonomy by the end of 2019.