• New Activities Added: Proposals include criteria for digital solutions, lithium, nickel, and copper mining and smelting.
• Simplifying Sustainable Finance: Proposed updates aim to streamline the EU Taxonomy and expand covered activities.
• Usability Focus: Revisions target clearer “Do No Significant Harm” (DNSH) criteria for easier application by companies.

The Platform on Sustainable Finance (PSF) has launched a public consultation to gather feedback on updates to the EU Taxonomy, the EU’s classification system for defining sustainable economic activities.

The consultation focuses on revisions aimed at improving usability, simplifying DNSH criteria, and expanding the list of eligible activities to align with the EU’s six environmental objectives. These objectives include:

• Climate change mitigation and adaptation,
• Water and marine resource protection,
• Circular economy transition,
• Pollution prevention,
• Biodiversity and ecosystem protection.

The Climate Delegated Act established disclosure rules for climate-related objectives in 2022, while rules for the remaining objectives took effect in 2024 under the Environmental Delegated Act.

Related Article: Verra Joins Singapore Sustainable Finance Association to Boost Climate Action in Asia

What’s New:

• Simplified DNSH criteria: Companies called for clearer, more practical guidelines to assess whether activities avoid significant harm.
• Broadened Scope: Proposed new activities include digital services and mining and smelting of key materials like lithium, nickel, and copper.

Helena Viñes Fiestas, Chair of the PSF, stated:

“Our priority has been to improve the usability and effectiveness of the Taxonomy and the broader sustainable finance framework. Once changes are implemented, we hope future mandates will allow the inclusion of more activities.“

The consultation is open from January 8 to February 5, 2025. Stakeholders are invited to share evidence-based feedback via the official consultation link.

The feedback will guide final recommendations to enhance the EU Taxonomy, making it a more effective tool for sustainable economic activity classification.

Read the full report here.

Follow ESG News on LinkedIn