Welcome to the European Parliamentary Research Service Podcasts.

In this podcast, we'll talk about EU taxonomy, and more specifically about the delegated

ads on climate and nuclear and gas.

Does this sound too abstract?

It won't by the end of this podcast.

So stay with us.

The future is green, but to get there, plenty of money is needed.

To achieve the objectives of the Paris Agreement and the ambitious European Green Deal,

hundreds of billions of euros will need to be invested in projects that can make it happen.

But which projects?

Here's where taxonomy comes into play.

It sounds very EU jargon, but the concept behind it is pretty simple.

It's basically a classification system to guide public and private investments towards sustainable economic activities and

innovative technologies that will help Europe move towards a carbon neutral economy by 2050.

This science-based transparency tool creates a common language that companies and investors can

use when investing in projects and economic activities that have a positive impact on the climate and the environment.

And it also introduces disclosure obligations on companies and financial market participants.

The Commission claims that such a common understanding of what constitutes environmentally sustainable investment

can facilitate the funding of the transition

to a more sustainable economy by bringing clarity to investors, avoiding market fragmentation,

and reducing the risk of greenwashing. But how will it work exactly? Well, the taxonomy

regulation entered into force in July 2020.

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