The EU taxonomy for sustainable activities celebrates its one-year anniversary next month. The classification system, which is part of the larger European Green Deal, aims to create guidelines that the EU hopes will funnel investments into companies, products, and services that mitigate climate change, promote a circular economy, protect biodiversity, and more.
The framework for the taxonomy is in place, but the EU is still deep in negotiations about which economic activities can be labeled sustainable — including tricky decisions on agriculture and gas and nuclear power. The first set of the long-awaited rules was published in April, and another set is expected next year.
While the rules won’t go into effect until next year, the debate rages on.