The EU's Extended Environmental Taxonomy

The EU Sustainable Finance Platform just released a report recommending how environmental components of the EU Taxonomy should be extended.

A major component of this proposed Taxonomy extension is the addition of four classifications for economic activities, based on their environmental harm and transition urgency:

? Significant Environmental Harm - Urgent Exit
? Significant Environmental Harm - Urgent Transition
? Intermediate Environmental Performance - Transition When Possible
⚪ Low Environmental Impact (LEnvl)

The aim of this extended labelling is to show where finance needs to flow to support transitions away from environmentally harmful activities. This would allow entities in impactful industries to tell their transition stories and access transition finance.

At the same time, identifying LEnvl activities will allow companies with low environmental impact to have full access to green finance for their green expenditures. In other words, they won't be excluded from green finance opportunities and the chance to make a positive contribution.

The EU Taxonomy will set a global precedent for economy-wide reporting on environmental sustainability and aligning green finance flows. Do you think this proposed Taxonomy extension does enough to classify economic activities?

The full report is linked below.