The Platform on Sustainable Finance has launched an important consultation process aimed at refining the EU Taxonomy for sustainable activities. On January 8, 2025, it released a draft report detailing proposed amendments and new criteria under its “Call for feedback on preliminary recommendations for the review of the Climate Delegated Act and the addition of activities to the EU taxonomy.”
This consultation comes as the European Commission gears up for the anticipated simplification of the Taxonomy through the upcoming “omnibus” review.
The draft report, prepared by the Platform’s Technical Working Group, suggests several key revisions to the Taxonomy, including updated technical screening criteria for existing activities as well as the introduction of new criteria.
Among the major updates proposed are:
Expansion of Scope: The Taxonomy would now include mining and refining activities for critical minerals like lithium, nickel, and copper. This addition reflects the EU’s strategic focus on securing essential raw materials for the green transition, ensuring that clean energy technologies are supported by a sustainable supply of these minerals.
Tighter Greenhouse Gas (GHG) Emissions Standards: The report proposes stricter GHG emissions thresholds for electricity generation, particularly concerning fossil gas. These changes are expected to influence EU-wide legislation that relies on these metrics.
New “Adaptation” Module: A generic adaptation module applicable across activities is introduced, aimed at enhancing resilience and aligning with global climate goals.
Further recommendations include updates to bioenergy, manufacturing, construction, and real estate activities, as well as enhanced environmental protection and biodiversity safeguards. The Platform also calls for the harmonization of criteria across the Taxonomy’s mitigation and adaptation annexes to improve usability.
Stakeholders are invited to provide feedback on the draft report by February 5, 2025. While these proposals are still in the preliminary stages, they highlight the EU’s commitment to making the Taxonomy a flexible, evolving tool that can effectively balance decarbonization goals with the need for resilience in the face of climate change. The forthcoming revisions will test the EU’s ability to strike the right balance between ambition and practicality in its sustainable finance framework.
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