The taxonomy is one of ten measures in the EU Action Plan on Sustainable Finance and will work towards setting a definition for sustainability in business. Celsia highlights some key facts that you should know about the new regulation.

Manufacture of food and beverages was not previously included in activities set out in the taxonomy technical screening criteria. Now it has been included in the latest draft annex from the EU.

The taxonomy will require large companies and financial market participants to report on their taxonomy alignment, but there are also benefits for smaller companies using the taxonomy.

Solar power is expected to be a key enabler for a transition to a low-carbon society. But is it automatically considered to be a sustainable activity in the EU taxonomy?

The EU taxonomy sets the standard for which economic activities can be considered as sustainable. The inclusion of natural gas as a sustainable activity has been controversial. Should it be labeled sustainable?

The EU taxonomy is set to cover many industries, including energy, manufacturing, and transport. However, the possible inclusion of nuclear power as a sustainable activity has proved controversial.

On New Years Eve, the EU Commission announced that nuclear and gas would be included in the taxonomy as transitional sources of energy and shared a draft text for a Complementary Delegated Act (CDA). This week, the Platform on Sustainable Finance released their response to the EU Commission’s proposed criteria for nuclear and gas.

Electricity generation from bioenergy is one of the eligible activities identified by the EU in the taxonomy technical screening criteria.

Companies required to report on the taxonomy will need to assess their business activities against the technical criteria and disclose this information according to the regulation.