Sustainable Finance

In 2018, the European Commission published the “Taxonomy Proposal”. The main objective of this proposal is to define and reorient capital flows towards environmentally sustainable investments. The Taxonomy Proposal sets a framework to identify which economic activities are environmentally sustainable – activities contributing to at least one of the environmental objectives established by the proposal (climate mitigation and adaptation, protection of water and marine resources, circular economy, pollution prevention and ecosystem protection); and, that do not significantly harm any of the objectives above.
The European Parliament adopted its position in March. However, the newly elected Parliament will decide whether to accept this position as it is, or, reopen the file for amendments. In any case, the Council of the EU under the Finnish Presidency reached an agreement on its position on 25 September. Pending the Parliament’s final decision, negotiations (so called trialogues) among the EU institutions are probable to start soon.