The EU taxonomy is a cornerstone of the EU’s sustainable finance framework and an important market transparency tool. The taxonomy is a classification system that defines criteria for economic activities that are aligned with a net zero trajectory by 2050 and the broader environmental goals other than climate.

The objectives of the Regulation are to prevent the generation of packaging waste, boost high quality recycling and making all packaging on the EU market recyclable by 2030 and to reduce the need for primary natural resources and create a well functioning market for secondary raw materials.  Applicability: 2024 (TBD)

Introduces more detailed reporting requirements on companies’ impact on the environment, human rights, and social standards, as well as governance factors based on common criteria in line with EU’s climate goals. Applicability: Reporting obligations as of 2024 – 2026 with sectoral standards TBD.

The European Commission has adopted a set of proposals to make the EU’s climate, energy, transport, and taxation policies fit for reducing net greenhouse gas emissions by at least 55% by 2030 aligned with the Paris Climate Agreement. Read more here.

The initiative will require companies to substantiate claims they make about the environmental footprint of their products by using standard methods for quantifying them.

The aim is to make the claims reliable, comparable and verifiable across the EU – reducing ‘greenwashing’. Expected entry into force after 2024.