The Taxonomy is based legally on a political agreement reached on December 17, 2019. 1 Section 3.5 “Manufacture of Hydrogen”, Section 4.12 “Storage of hydrogen” in the Taxonomy Report: Technical Annex, March 2020. The taxonomy is one of the key elements of the EU Action Plan, with the purpose of reorienting capital flows towards sustainable investments to achieve sustainable and inclusive growth. The EU taxonomy offers some key benefits for users, including guidance on activities to prioritize for decarbonization, climate change adaptation and other environmental goals. In June 2019 based on more than 200 experts’ opinion, the Technical Expert Group on sustainable finance (TEG) published a report on the use of the Taxonomy and a first version of its technical report, proposing, for 67 economic activities, technical criteria to determine how each activity makes a substantial contribution to mitigating or adapting to climate change (technical screening criteria). This report contains recommendations relating to the overarching design of the Taxonomy, as well as guidance on how users of the Taxonomy can develop Taxonomy disclosures. The final EU Taxonomy Report, which describes changes to the Taxonomy since the political agreement, explains the climate adaptation activities and has extensive implementation guidance for the Taxonomy, including on the minimum safeguards included in the Taxonomy Regulation. Furthermore, detailed regulatory technical standards for a corresponding disclosure is envisioned, starting from mid-2021. In this post, we explain what the Taxonomy Regulation does, who it applies to and what happens next. Related Topics: Civilian Military Workforce, Europe, European Union, Program Evaluation Companies have to show in their financial statements which revenues, capex and opex they generated with the EU-Taxonomy aligned activities. What is the EU Taxonomy Regulation? Thus, it is of paramount importanceto revise especially many of the set criteria thresholds in the Technical Annex /2/ in order to later on avoid frequent excess usage of the derogation mechanism included in Article 6 (1a) of the Taxonomy Framework /3/ (see text quote in Annex 1), excessive high implementation costs, etc. The EU-wide green taxonomy set out by the Taxonomy Regulation represents one pillar of the regulatory proposals under the Action Plan and is due to be implemented in stages, ... (see the Technical Annex to the TEG Recommendations). This document acts as a technical annex to the Technical Expert's Group on Sustainable Finance's (TEG) final recommendations to the European Commission on the EU Taxonomy of Sustainable Finance. Titled ‘Taxonomy: Final report of the Technical Expert Group on Sustainable Finance’ , the report was developed by the EU’s Technical Expert Group (TEG) on Sustainable Finance, to share its final recommendations on the design of the EU Taxonomy. Technical Annex: Taxonomy. 4 (and in particular, Annex III) and to the ESEF Reporting Manual 5. Also, the Technical annex to the TEG final report on the EU taxonomy with screening criteria for 70 climate change mitigation and 68 climate change adaptation economic activities. The Taxonomy is a list of economic activities within different sectors with technical screening criteria to substantially contribute and not to significantly harm environmental objectives. The expected EU added value of the proposal lies in its potential to enable the mobilisation of sustainable finance across the EU, while ensuring a high level of financial stability. Group final report on the EU Taxonomy and Technical Annex requirements on a best effort basis2. GENERAL INTRODUCTION EUROMOT welcomes the Commission’s initiative to consult stakeholders on the Draft Taxonomy ... in Annex V to Directive (EU… The EU Technical Expert Group (TEG) on Sustainable Finance has released its highly anticipated final recommendations for the EU taxonomy, including a technical annex with updated technical screening criteria.. The report contains recommendations relating to the overarching design of the EU taxonomy, as well as extensive implementation guidance on how companies and financial institutions can use and disclose against the taxonomy. Despite a very ambitious outcome for the taxonomy during its political negotiations, which ended just before Christmas, the legislation still requires final sign off from European Parliament, which has been pushed back to June. Link to the EU TEG Technical annex Àlex Plana Paluzie, M&A Lawyer. A unified taxonomy and the monitoring of sustainab ility of investments will support the uptake of sustainable finance in the European financial sector. This report is supplemented by a Technical Annex containing: DRAFT DELEGATED REGULATION ON TAXONOMY – TECHNICAL SCREENING CRITERIA FOR CLIMATE CHANGE MITIGATION AND ADAPTATION 17 December 2020 1. The EU Taxonomy is a tool to help investors, companies, issuers and project promoters navigate the transition to a low-carbon, resilient and resource-efficient economy. Technical amendments on the Resolution framework. Interested parties may gain a glimpse into the scope and complexity of the EU-Taxonomy by inspecting the technical annex to the TEG’s final report that was already published in March 2020. Link to the EU TEG Summary report . Published in: European Commission (2019) Posted on RAND.org on October 30, 2019. by Alice Lynch, Jacopo Bellasio, Katerina Galai, Marta Kepe, Anna Knack. The EU Taxonomy. Political agreement on the Taxonomy Regulation text was confirmed by the Council’s Committee of Permanent Representatives (COREPER) on 5 February 2020, marking another step towards its finalisation. The technical documents available for download include the following: 1. *This figure is fully identifiable with the gross investment from the group’s cash flow statement. The EU Taxonomy is a tool to help investors, companies, issuers and project promoters plan and report the transition to an economy that is consistent with the EU’s environmental objectives. In March 2020 the European Commission’s Technical Expert Group on Sustainable Finance (TEG) published three documents entitled: EU Taxonomy Technical Report, EU Taxonomy Technical Annex and EU Taxonomy Excel Tool. Included are the 'Do No Significant Harm' criteria for pollution prevention and control, use and protection of water and marine resources, circular economy, and protection and restoration of biodiversity and ecosystems. 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