EU Taxonomy Timeline
The EU taxonomy regulation sets a clear framework within the European Union (EU) and defines when a company's economic activity is sustainable or environmentally friendly based on six environmental objects. The companies that comply with those sustainability regulations distinguish themselves in a positive manner. This aims to promote sustainable economic activity, environmentally friendly technology and intends to increase the focus on sustainable investment.
An explanation of the EU taxonomy can be found here
The six environmental objectives are the basis of the EU taxonomy for a sustainability evaluation and are currently formulated by the EU. As shown in the following provisional overview, they are expected to be published at different times and therefore also differ according to their mandatory application deadline.
Environmental objectives | Release date by the EU | Mandatory application date |
Climate change mitigation | April 2021 | January 2022 |
Climate change adaptation | April 2021 | January 2022 |
Sustainable use and protection of water and marine resources | December 2021 | January 2023 |
Transition to a circular economy | December 2021 | January 2023 |
Pollution prevention and control | December 2021 | January 2023 |
The protection and restoration of biodiversity and ecosystems | December 2021 | January 2023 |
The announcement of the environmental objectives and their application guidelines are an elementary part of the EU taxonomy regulation. Yet, in the Green Deal further regulations promoting sustainability are implemented, for example, an ecolabel for retail investment products. A selection of these additional milestones and intermediate steps are listed in the timeline below:
Date | Topic | Explanation |
08.01.2021 | Study - Rating of sustainability | The European Commission releases study regarding the ranking of sustainability (Link) |
24.02.2021 | Green Deal | The European Commission enacts the Green Deal (Link) |
01.03.2021 | EU taxonomy recommendations | The European Commission receives different suggestions on the EU taxonomy regulation (Links of ESMA, EBA, EIOPA) |
April 2021 | EU taxonomy Environmental objectives | Release of the technical criteria on the environmental objectives climate change mitigation and adaptation |
May 2021 | Neutral and brown EU taxonomy recommendations | Release of recommendation guidelines on the neutral and brown taxonomy (low or negative sustainability influence of economic activity) |
June 2021 | EU taxonomy | The European Commission adopts guidelines on the content and display of non-financial information to be disclosed under EU taxonomy regulation |
June 2021 | EU ecolabel for financial products | The European Commission receives criteria suggestions for an ecolabel for retail investment products |
June 2021 | EU taxonomy | Draft of the technical criteria for the remaining four economic objectives |
September 2021 | EU ecolabel for financial products | Decision for the final ecolabel criteria for retail investment products |
December 2021 | Neutral and brown EU taxonomy | Reporting by the European Commission on a possible extension of the EU taxonomy regulation to include social and brown taxonomy |
December 2021 | EU taxonomy | Release of the technical criteria of the remaining four environmental objectives |
January 2022 | Environmental objectives | Disclosure of the environmental objectives climate change mitigation and adaptation are mandatory for companies |
July 2022 | EU taxonomy | European Commission reports on the status of the taxonomy regulation application (afterward adaptations/changes possible) |
January 2023 | Environmental objectives | Disclosure of the remaining four environmental objectives are mandatory for companies |
Note: The shown information is only a summary of selected regulatory topics and dates. It is not binding and there is no claim to completeness. Please note, that information may be changed at short or without notice. Adjustments and extensions may emerge at any time.
Sources:
EU Technical Expert Group on Sustainable Finance
European Commission
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