The taxonomy establishes a list of economic activities that are considered environmentally sustainable and introduces the regulatory and institutional framework necessary for their application.
For an economic activity to be considered environmentally sustainable, it must meet a number of criteria: make a significant contribution to at least one of the environmental objectives, not cause significant harm to other areas, and meet minimum social standards.
The assessment will be carried out in stages, from determining whether an activity is included in the taxonomy list to verifying its environmental effect and compliance with sustainability and social responsibility requirements.
The taxonomy should increase transparency in the financial market and reduce the risks of so-called “greenwashing” – when companies or financial products are mistakenly or deliberately presented as more environmentally friendly than they actually are.
The new system will help attract both public and private investment in green sectors of the economy, as well as take into account long-term environmental and climate risks.
