Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment

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Series Details L 192, Pages 13-43
Publication Date 22/06/2020
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Regulation (EU) 2020/852 adopted by the co-legislators on 18 June 2020, concerning the establishment of a framework to facilitate sustainable investment. It amends Regulation (EU) 2019/2088. This is a text with EEA relevance.

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This Regulation establishes the criteria for determining whether an economic activity qualifies as environmentally sustainable for the purposes of establishing the degree to which an investment is environmentally sustainable. It also sets out a process involving a multi-stakeholder platform to establish a unified EU classification system (or taxonomy) based on a set of specific criteria.

The European Commission tabled this initiative on 24 May 2018, aiming to identify activities which qualify as 'sustainable', taking into account existing market practices and initiatives and drawing on the advice of a technical expert group that was set up alongside the launch of this proposal. The proposed Regulation was part of package of measures on sustainable development, following up on an Action Plan on Sustainable Finance released in March 2018 which aims to boost the role of finance in achieving a well-performing economy that delivers on environmental and social goals as well.

The proposal was put forward as part of a legislative package on sustainable finance. The European Parliament adopted its position on the draft law on 28 March 2019, followed by the Council of the European Union on 25 September. An informal agreement between the co-legislators on a compromise text was reached on 16 December. The Council formally endorsed it on 15 April 2020, followed by the European Parliament on 18 June. The Act was signed by the co-legislators on that same day and published in the Official Journal on 22 June 2020.

A number of Delegated Acts were adopted by the European Commission at a later stage to supplement this Regulation. A first one was put forward in April 2021 on on sustainable activities for climate change adaptation and mitigation objectives. A second one was tabled in July 2021, specifying the content, methodology and presentation of information to be disclosed by financial and non-financial undertakings concerning the proportion of environmentally sustainable economic activities in their business, investments or lending activities.

On 2 February 2022, the European Commission approved in principle a Complementary Climate Delegated Act including, under strict conditions, specific nuclear and gas energy activities in the list of economic activities covered by the EU taxonomy. Despite initial opposition at committee level, the European Parliament failed to object to the proposed Delegated Act on 6 July 2022.

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Commentary and Analysis
Transport&Environment: Challenges: Sustainable Finance: EU taxonomy
EPRS: At a Glance, March 2019: A framework to facilitate sustainable investment
Ashrust: Finance Regulatory Briefing, 23/06/2020: EU Taxonomy Regulation published: an update on sustainable finance developments in the EU and the UK's position post Brexit
Loyens Loeff: News, 03/07/2020: EU Parliament adopts Taxonomy Regulation
University of Oxford: Faculty of Law Blog, 13/07/2020: Sustainability is No Longer in the Eye of the Beholder: An Overview of the Taxonomy Regulation
EPRS: Briefing, July 2020: Sustainable finance – EU taxonomy: A framework to facilitate sustainable investment
BSP: Sustainable Finance Insights Series (No. 7), 03/08/2020: EU taxonomy regulation published
White&Case: Alerts, 20/08/2020: The EU Taxonomy: the answer to the question "what is green?"
Times of Malta: Views, 06/09/2020: EU’s taxonomy regulation – towards a greener economic recovery
LinkLaters: Sustainable Futures, 22/09/2020: EU Taxonomy Regulation: what does it do and what happens next?
OECD: Library: Developing Sustainable Finance Definitions and Taxonomies (October 2020): The European Union sustainable finance taxonomy
DLA Piper: Insights, 13/10/2020: The EU Taxonomy Regulation – Giving sustainable investing a good name
Simmons&Simmons: Insights, 12/11/2020: EU Taxonomy Regulation disclosure – ESMA consults
Blog Droit Européen, 18/11/2020: The EU Taxonomy Regulation Sustainable finance: moving towards a forward-looking approach
Ernst&Young: Insights, 20/11/2020: EU Taxonomy Regulation
EurActiv: Opinion, 20/11/2020: The EU’s green finance taxonomy: an Orwellian mechanism
Reuters: Analysis, 23/11/2020: Tested by taxonomy - EU green finance rules leaky for ships, tight for houses
InfluenceMap: Report, December 2020: Lobbying on the EU Taxonomy's Green Criteria
Digital Europe: Resources, 18/12/2020: The EU taxonomy: a missed opportunity to grasp the potential of the ICT sector
SGI Europe: Publications, 18/12/2020: Input to the EU classification system for Green Investments (Taxonomy Regulation)
Insitute for European Environmental Policy: News, 21/12/2020: IEEP’s response to the public consultation on the EU taxonomy for green investments
Oxford University: Faculty of Law Blog, 21/01/2021: The Taxonomy Regulation: More Important Than Just as an Element of the Capital Markets Union
PwC: Research and Insights, 10/02/2021: The EU taxonomy and the acceleration of sustainable finance
EUI: Florence School of Regulation: Policy Briefs, 16/03/2021: The importance of the EU Taxonomy: the example of electricity storage
Fitch Ratings: Fitch Wire, 21/04/2021: EU Green Taxonomy to Channel Capital to Sustainable Activities
FERN: News, 21/04/2021: The European Green Deal promises an EU of bigger and better forests: the Taxonomy Regulation makes it impossible
Nordea: Open Insights, 21/04/2021: The final EU Taxonomy and next steps in sustainable finance
Heinrich Böll Foundation: Analysis, 26/04/2021: The role of nuclear energy in the EU’s Sustainable Taxonomy Regulation
EPRS: Briefing, May 2021: Taxonomy Regulation: Approved EU Taxonomy Climate Delegated Act under Art. 10(3) and 11(3)of the Taxonomy Regulation
S&P Global: Insights, 12/05/2021: A Short Guide to the EU’s Taxonomy Regulation
BusinessEurope: Potential extension of the taxonomy regulation to social aspects - a BusinessEurope position paper (21 May 2021)
KPMG: Insights, 03/06/2021: Taxonomy Regulation Disclosures
LinkLaters: Sustainable Futures, 06/07/2021: European Commission adopts Delegated Act on Article 8 disclosures under Taxonomy Regulation
Freshfields Bruckhaus Deringer, 12/08/2021: What are ‘green’ economic activities? EU pioneering the development of a common understanding
Institute for European Environmental Policy (IEEP): News, 18/08/2021: EU Taxonomy: Call for feedback on new environmental criteria
ClientEarth: Letters, 07/10/2021: Exclusion of natural gas activities from the EU Taxonomy Regulation
CSR Europe: Resources, 03/11/2021: The EU Taxonomy: What’s Next?
WorldWide Fund for Nature (WWF), 09/12/2021: EU Taxonomy: first list adopted despite Member State lobbying on nuclear and gas
BEUC: Press Release, 03/01/2022: EU’s ‘green finance’ plans amount to unacceptable institutional greenwashing
European Environmental Bureau (EEB): EEB position on the inclusion of nuclear energy and fossil gas as sustainable investments in the EU Taxonomy Complementary Delegated Act (19 January 2022)
Institute for European Environmental Policy (IEEP): Blog, 20/01/2022: Nuclear and gas – not yet ready for the sustainable finance taxonomy
CSR Europe: Resources, 21/01/2022: Nuclear and Gas Included in the EU Taxonomy
SP Global: Market Intelligence, 24/01/2022: Resist green label for natural gas, nuclear, EU taxonomy advisers say
Social Europe, 25/01/2022: EU cash floodgates open for nuclear and gas
Pinsent Masons: Out-Law Analysis, 28/01/2022: Germany's position on nuclear power and natural gas and its impact on the EU's taxonomy system
E3G: Press Release, 01/02/2022: EU Taxonomy Delegated Act: are gas and nuclear sustainable?
WorldWide Fund for Nature (WWF): News, 02/02/2022: Fake Green Taxonomy Act must be rejected by EU Parliament
Greenpeace: Press Release, 02/02/2022: Taxonomy: inclusion of nuclear and gas is “attempted robbery” – Greenpeace
Politico, 03/02/2022: Green bust or green flush: Figuring out the impact of the EU’s new investment rules
ClientEarth: Press Release, 04/02/2022: Environmental lawyers take first step to challenge EU taxonomy in Court
CMS Law-Now: eAlerts, 17/02/2022: The European Commission proposes the inclusion of specific activities in gas and nuclear sector into the EU Taxonomy
ING Think: Article, 18/02/2022: EU’s controversial labelling of gas and nuclear energy as ‘green’ prompts backlash
Official Monetary and Financial Institutions Forum (OMFIF): News, 21/02/2022: European Commission adds nuclear power to taxonomy
S&P Global: Insights, 22/02/2022: What the inclusion of gas and nuclear in the EU taxonomy could mean for investors and asset managers
Bruegel: Blog, 22/02/2022: Europe’s sustainable taxonomy is a sideshow
Climate Action Network (CAN Europe): G10 Letter – Withdraw the Taxonomy Complementary Delegated Act (16 March 2022)
DFGE: Blog, 30/03/2022: EU Taxonomy: European Commission declares nuclear and gas to be green
OBC Transeuropa, 13/04/2022: The EU's energy dependence, between gas and nuclear power
E3G: Briefing Paper, May 2022: Align the EU’s green taxonomy with the new geopolitical reality
E3G: Blog, 25/05/2022: The EU’s green taxonomy caught in geopolitical turmoil
University of Cambridge: Institute for Sustainable Leadership: Blog, 09/06/2022: The European Commission’s plans to label fossil fuel projects as ‘green’ in the taxonomy might hamper the EU’s clean energy transition
Euronews: Opinion, 14/06/2022: EU Taxonomy: Why is there outrage over new green investment rules?
World Wide Fund for Nature (WWF): News, 05/07/2022: European Parliament to pull the trigger on the inclusion of fossil gas and nuclear power in EU Taxonomy
Le Monde: Opinion, 05/07/2022: European green taxonomy: 'Including gas and nuclear would benefit Russia to the tune of several billion euros per year'
The European Files, 06/07/2022: Supporting the transition to renewables: the role of the taxonomy

EurActiv, 16/10/2019: Gas industry storms into EU green finance taxonomy debate
EurActiv, 27/11/2019: Paris, Berlin divided over nuclear’s recognition as green energy
The New York Times, 16/12/2019: EU Landmark Law on Sustainable Investments Back on Track After Lawmaker Approval
EurActiv, 17/12/2019: EU seals deal on green finance in breakthrough for climate goals
Reuters, 01/04/2021: Nine EU advisers threaten walkout over sustainable finance row
EUObserver, 02/04/2021: Experts threaten to quit over new EU 'green finance' rules
EurActiv, 21/04/2021: EU spells out criteria for green investment in new ‘taxonomy’ rules
Helsinki Times, 18/11/2021: Finnish government at odds over EU taxonomy regulation
EurActiv, 10/12/2021: Gas and nuclear: Fate of EU green taxonomy ‘now in the hands of von der Leyen’
Politico, 01/01/2022: Germany hits out at Brussels plan to label nuclear and gas ‘green’
The Irish Times, 04/01/2022: McGuinness insists EU move to label nuclear and gas ‘green’ based on science
Times of Malta, 09/01/2022: European People’s Party ‘acknowledges role of nuclear energy as low-carbon tech'
Politico, 20/01/2022: EU enters endgame in fight over green investing rules
EurActiv, 21/01/2022: Fury in Parliament as EU green taxonomy deadline expires
EUObserver, 21/01/2022: Lawyers threaten action over new EU gas and nuclear rules
Reuters, 01/02/2022: EU to propose final green investment rules for gas, nuclear energy
The Guardian, 02/02/2022: EU includes gas and nuclear in guidebook for ‘green’ investments
TIME Magazine, 02/02/2022: EU Unveils Controversial Green Label for Gas and Nuclear
Financial Review, 03/02/2022: EU pushes on with plan to label gas, nuclear as green investments
Euronews, 04/02/2022: Campaigners begin legal fight against EU green investment rules - documents
EUObserver, 13/04/2022: Nuclear and gas in EU taxonomy slammed as 'greenwashing'
EurActiv, 14/06/2022: Cross-party alliance seeks to block nuclear and gas from EU’s green taxonomy
Deutsche Welle, 06/07/2022: European Parliament backs listing nuclear energy, gas as 'green'
The Guardian, 06/07/2022: ‘Putin rubbing hands with glee’ after EU votes to class gas and nuclear as green

European Commission: Register of delegated and implementing acts for Regulation (EU) 2020/852
EUR-LEX: COM(2018)353: Proposal for a Regulation on the establishment of a framework to facilitate sustainable investment
EUR-LEX: SWD(2018)264: Staff Working Document accompanying the Proposal - Impact assessment
EUR-LEX: SWD(2018)265: Staff Working Document accompanying the Proposal - Executive summary of the impact assessment
European Parliament: Legislative Observatory: Procedure File for Proposal on Framework to facilitate sustainable investment (2018/0178(COD))
European Parliament: Legislative Train Schedule: Establishment of a Framework to facilitate sustainable investment
European Commission: Sustainable Finance: EU taxonomy for sustainable activities
European Commission: Press Release, 24/05/2018: Sustainable finance: Making the financial sector a powerful actor in fighting climate change
European Commission: Fact Sheet, 24/05/2018: Frequently asked questions: Commission proposals on financing sustainable growth
Finnish Council Presidency: Sustainable finance: classification system for sustainability of investments
Council of the European Union: Council position on the taxonomy of sustainable activities, September 2019
Council of the European Union: Press Release, 25/09/2019: Sustainable finance: Council agrees position on a unified EU classification system
European Parliament: Press Release, 17/12/2019: Climate change: new rules agreed to determine which investments are green
European Commission: Questions and Answers, 18/12/2019: Political agreement on an EU-wide classification system for sustainable investments (Taxonomy)
Council of the European Union: Press Release, 18/12/2019: Sustainable finance: EU reaches political agreement on a unified EU classification system
European Commission: Press Release, 18/12/2019: Sustainable finance: Commission welcomes deal on an EU-wide classification system for sustainable investments (Taxonomy)
Council of the European Union: Press Release, 15/04/2020: Sustainable finance: Council adopts a unified EU classification system
European Commission: Press Release, 18/06/2020: Sustainable Finance: Commission welcomes the adoption by the European Parliament of the Taxonomy Regulation
European Parliament: Press Release, 18/06/2020: Green finance: Parliament adopts criteria for sustainable investments
UK House of Commons: European Scrutiny Select Committee: 14th Report 2019-2021: 5Green finance: the EU’s Sustainable Investment Taxonomy (update)
Norwegian Government: Taxonomy – Norway’s response to the consultation on the draft delegated regulation (17 December 2020)
European Commission: Press Release, 21/04/2021: Sustainable Finance and EU Taxonomy: Commission takes further steps to channel money towards sustainable activities
European Commission: Questions and Answers: Taxonomy Climate Delegated Act and Amendments to Delegated Acts on fiduciary duties, investment and insurance advice (21 April 2021)
European Commission: Press Release, 06/07/2021: Commission puts forward new strategy to make the EU's financial system more sustainable and proposes new European Green Bond Standard
Finnish Government: Press Release, 17/11/2021: Government opposes adopting proposed delegated act on climate under EU Taxonomy Regulation
Greens/EFA EP Group: Press Release, 01/01/2022: Investment in gas and nuclear power contradicts green deal
European Commission: Press Release, 02/02/2022: EU Taxonomy: Commission presents Complementary Climate Delegated Act to accelerate decarbonisation
European Commission: Questions and Answers on the EU Taxonomy Complementary Climate Delegated Act covering certain nuclear and gas activities (2 February 2022)
European Parliament: Legislative Observatory: Procedure File for Amending the Taxonomy Climate Delegated Act and the Taxonomy Disclosures Delegated Act (2022/2594(DEA))
EPP EP Group: Newsroom, 02/02/2022: Involve the European Parliament when deciding on gas and nuclear energy
European Parliament: Press Release, 14/06/2022: Taxonomy: MEPs object to Commission’s plan to include gas and nuclear activities
S&D EP Group: Newsroom, 14/06/2022: S&Ds: We voted down the Taxonomy Delegated Act. Gas and nuclear cannot be labelled either green or sustainable
European Parliament: Press Release, 06/07/2022: Taxonomy: MEPs do not object to inclusion of gas and nuclear activities
European Commission: Press Release, 06/07/2022: EU Taxonomy: Commission welcomes the result of today's vote by the European Parliament on the Complementary Delegated Act
Greens/EFA EP Group: Press Release, 06/07/2022: European Parliament fails to vote down the taxonomy

ESO Records
Technical Report on Financing a Sustainable European Economy - EU Taxonomy (European Commission, March 2020)

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