No silver bullet
Despite its faults and shortcomings, the EU’s Taxonomy Regulation is expected to support the energy transition and help redirect capital flows to renewables and green assets. Andreas Walstad examines how the taxonomy sets out criteria for technologies to be labeled green and environmentally sustainable in a bid to provide investors with a classification system that boosts clarity, accountability, and predictability.
Outlining its Taxonomy Regulation, the European Commision (EC) states that “by clearly defining what is green, the EU Taxonomy seeks to incentivize and encourage companies to launch new projects, or upgrade existing ones, to meet these criteria.” It adds that the goal is to prevent greenwashing and help investors identify economic activities in line with …
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