The Platform on Sustainable Finance (PSF) has launched a public consultation to gather feedback on proposed updates to the EU Taxonomy, the European Union’s framework for classifying sustainable economic activities. The proposed revisions aim to simplify criteria, expand covered sectors, and enhance the usability of the sustainable finance system.
Key Proposals and Updates:
- New Activities Added
The proposed updates introduce criteria for additional sectors, including:- Digital solutions and services
- Mining and smelting of critical raw materials such as lithium, nickel, and copper
- Simplifying Sustainable Finance
The revisions are designed to streamline the EU Taxonomy by making the “Do No Significant Harm” (DNSH) criteria more practical and easier for companies to implement. This change addresses industry feedback seeking clearer guidance on compliance. - Usability Focus
The updates prioritize clarity and simplicity, enabling businesses to better assess and report their environmental impact in line with the EU’s six environmental objectives:- Climate change mitigation and adaptation
- Sustainable use and protection of water and marine resources
- Transition to a circular economy
- Pollution prevention and control
- Protection and restoration of biodiversity and ecosystems
Background and Context
The EU Taxonomy was initially structured to define and standardize what constitutes an environmentally sustainable economic activity. The Climate Delegated Act, enacted in 2022, established disclosure requirements for climate-related objectives, while the Environmental Delegated Act expanded disclosure rules to other environmental goals in 2024.
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