EU’s climate strategy sends ripple effects globally – The Peninsula

EU’s climate strategy sends ripple effects globally – The Peninsula

The EU’s Taxonomy is a technical rulebook that identifies sustainable activities that contribute to the bloc’s green transition and comply with the Paris Agreement under the EU Green Deal.

Large corporations are set to pump huge sums of money into the fight against climate change as the European Union’s green taxonomy of sustainable investments comes into effect, reports the Al Attiyah Foundation in its latest Sustainable Development Report.

The EU’s Taxonomy is a technical rulebook that identifies sustainable activities that contribute to the bloc’s green transition and comply with the Paris Agreement under the EU Green Deal.

Climate change adaptation and mitigation are two of six environmental objectives underpinning the EU Taxonomy, which includes, apart from climate change mitigation and adaption, protection of water and marine resources; transition to a circular economy; pollution prevention and control; and protection and restoration of biodiversity and ecosystems.

According to the Taxonomy, if a company works in any of the six fields, it can be considered sustainable as long as it meets the ‘Do No Significant Harm’ (DNSH) principle.

The DNSH principle entails that for an activity (investment-based or reform-based) to be sustainable it should not lead to significant harm to any of the other environmental objectives and should