EU Emissions Trading System and EU Taxonomy: Difference between pages

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''Environmental policy - emissions - EU''.
''Sustainability - European Union - European Commission.''


(EU ETS).  
The EU Taxonomy is a tool to help investors, companies, issuers and project promoters navigate the transition to a low-carbon, resilient and resource-efficient economy.


The European Union Emissions Trading System is a mandatory cap and trade scheme that requires Europe's heavy industries and power generators, as the continent's major emitters of carbon dioxide, to monitor and report annually on their carbon dioxide emissions and to purchase and return an amount of emissions allowances to the government that represents each year's carbon dioxide output.
The Taxonomy sets performance thresholds (referred to as ‘technical screening criteria’) for economic activities which:
*Make a substantive contribution to one of six environmental objectives (below).
*Do no significant harm (DNSH) to the other five, where relevant.
*Meet minimum safeguards (for example, the OECD Guidelines on Multinational Enterprises and the UN Guiding Principles on Business and Human Rights).
 
 
Environmental objectives of the EU Taxonomy:
 
*Climate change mitigation.
*Climate change adaptation.
*Sustainable use and protection of water and marine resources.
*Transition to a circular economy.
*Pollution prevention and control.
*Protection and restoration of biodiversity and ecosystems.
 
 
Under the EU Taxonomy, three different types of activity are recognised as "environmentally sustainable":
 
(1)  Activities that make a substantial direct contribution to one or more of the environmental objectives noted above.
 
(2)  ''Transitional activities'', acting as an appropriate stepping stone.
 
(3)  Appropriate ''enabling activities''.




== See also ==
== See also ==
* [[Cap and trade]]
* [[Accounting for Sustainability]] (A4S)
* [[Carbon Border Adjustment Mechanism]]
* [[Biodiversity]]
* [[Carbon trading]]
* [[Business & Sustainable Development Commission]]
* [[Emission trading scheme]]
* [[Carbon footprint]]
* [[Streamlined Energy and Carbon Reporting]]
* [[Climate change adaptation]]
* [[UK Emissions Trading Scheme]] (UK ETS)
* [[Climate change mitigation]]
* [[Common Ground Taxonomy]]
* [[Conference of the Parties]]
* [[Convention on Biological Diversity]]
* [[Corporate social responsibility]]
* [[Circular economy]]
* [[Credit]]
* [[Credit rating agency]]
* [[Draft Delegated Act]]
* [[Enabling activities]]
* [[ESG investment]]
* [[European Commission]]
* [[European Union]]
* [[Global Sustainable Investment Alliance]]
* [[HLEG]]
* [[Metaeconomics]]
* [[Natural capital]]
* [[Organic]]
* [[SRA]]
* [[SRI]]
* [[Stakeholder]]
* [[Sustainable Development Goals]]
* [[Sustainable finance]]
* [[Sustainability]]
* [[Sustainability Accounting Standards Board]]
* [[Sustainability bond]]
* [[Sustainability Linked Loan Principles]]
* [[Taxonomy Regulation]]
* [[Technical Expert Group]]
* [[Transitional activities]]
* [[UK Sustainable Investment and Finance Association]]
* [[United Nations]]
* [[World Trade Organization]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Revision as of 08:03, 24 February 2022

Sustainability - European Union - European Commission.

The EU Taxonomy is a tool to help investors, companies, issuers and project promoters navigate the transition to a low-carbon, resilient and resource-efficient economy.

The Taxonomy sets performance thresholds (referred to as ‘technical screening criteria’) for economic activities which:

  • Make a substantive contribution to one of six environmental objectives (below).
  • Do no significant harm (DNSH) to the other five, where relevant.
  • Meet minimum safeguards (for example, the OECD Guidelines on Multinational Enterprises and the UN Guiding Principles on Business and Human Rights).


Environmental objectives of the EU Taxonomy:

  • Climate change mitigation.
  • Climate change adaptation.
  • Sustainable use and protection of water and marine resources.
  • Transition to a circular economy.
  • Pollution prevention and control.
  • Protection and restoration of biodiversity and ecosystems.


Under the EU Taxonomy, three different types of activity are recognised as "environmentally sustainable":

(1) Activities that make a substantial direct contribution to one or more of the environmental objectives noted above.

(2) Transitional activities, acting as an appropriate stepping stone.

(3) Appropriate enabling activities.


See also

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