The Council of the European Union and the European Parliament on Wednesday agreed to establish a EU-wide classification system to make businesses and investors understand which economic activities can be seen as environmentally sustainable
MOSCOW (Pakistan Point News / Sputnik - 18th December, 2019) The Council of the European Union and the European Parliament on Wednesday agreed to establish a EU-wide classification system to make businesses and investors understand which economic activities can be seen as environmentally sustainable."The proposed regulation is meant to address two challenges: reduce fragmentation resulting from market-based initiatives and national practices; reduce 'greenwashing', i.e. the practice of marketing financial products as 'green' or 'sustainable,' when in fact they do not meet basic environmental standards," the Council of the EU said in a statement.
The new unified classification system, which will be developed by the European Commission assisted by a technical expert group, will be based on six EU environmental objectives, including climate change mitigation and adaptation, the sustainable use of natural resources, the transition to a circular economy, pollution prevention and biodiversity protection.
The classification system, or "taxonomy," will be helpful in making the bloc climate neutral by 2050 and meeting the Paris Climate Agreement's 2030 targets.
According to the Council, the framework to address climate change should be ready before 2021 and enter into force before 2022, while for the remaining four objectives, the deadlines are set for one year later.
