The centrepiece of the EU’s ambitions to become carbon-neutral by 2050 is the EU Taxonomy for Sustainable Activities. The Taxonomy has gaps that will be filled over time, but policy makers have made an important start. In its final report on Taxonomy extension options in March 2022, the Platform on Sustainable Finance stressed that just because the Taxonomy leaves activities unclassified, stakeholders should not interpret these as not being green. Nor should their non-inclusion be seen as a negative signal to the extent that finance for them dries up. Another project supporting the transition to net zero is the proposed Social Taxonomy.
Key learning objectives:
Understand the purpose of the proposed Social Taxonomy
Outline how it is similar and differs from the Sustainable Taxonomy