Call for proposals to improve the EU taxonomy system
The European Commission continues to enhance the EU's sustainable finance framework through the adoption of the Environment Delegated Act and amendments to the Climate Delegated Act in June. The newly introduced Stakeholder Request Mechanism (SRM) allows market participants to propose the inclusion of new economic activities in the EU taxonomy and suggest revisions to the technical analysis criteria for already included economic activities.
The Stakeholder Request Tool, accessible on the online platform, will be open continuously, but the Sustainable Finance Platform will start accepting the first suggestions for further analysis from December 15, 2023. If you wish for your proposed economic activities or additional technical analysis criteria to receive early consideration, it is advisable to submit your proposals by this date.
When submitting proposals, it's essential to provide not only the economic activity but also the scientific and technical justification. The Sustainable Finance Platform will prioritize activities based on their relevance to climate and environmental objectives. All submitted suggestions will undergo analysis and be presented in a special report in 2024.
The European Commission will subsequently decide on amendments to the delegated acts based on the recommendations of the Sustainable Finance Platform.
The taxonomy serves as a classification system to define environmentally sustainable economic activities, encouraging investors to direct capital towards sustainable investments and combat environmental manipulation. For an economic activity to be considered sustainable, it must make a significant contribution to one of the six objectives outlined in the Taxonomy Regulation, adhere to technical analysis criteria specific to its category, avoid causing significant harm to other objectives, and comply with minimum requirements for social safeguards regarding human rights and responsible business conduct.