The Taxonomy Regulation was published in the Official Journal four days later, thereby ushering in a new era of financial regulation.
The objective of the Taxonomy Regulation is to contribute to the creation of the world’s first-ever classification system for sustainable economic activities, in order to establish a common language for use by investors when investing in projects and economic activities with a substantial positive impact on climate and the environment. By helping investors to reorient their investments towards more sustainable technologies and businesses, the Taxonomy Regulation represents a key step towards the objective of achieving a climate-neutral European Union by 2050,consistent with the EU Green Deal.
In this context, the Taxonomy Regulation sets out a framework and environmental objectives, as well as new legal obligations for financial market participants, large companies, the EU and Member States. In particular, to avoid harming consumer interests, the Taxonomy Regulation provides for disclosure obligations on the part of fund managers and institutional investors offering financial products as environmentally sustainable. These disclosure obligations supplement the rules on sustainability related disclosures laid down in Regulation (EU) 2019/2088 of the European Parliament and of the Council.
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Source: Agefi - September 2020