As set out in the Taxonomy Regulation (TR), the European Commission (EC) is required to deliver a report on describing the provisions that would be required to extend the scope of the TR. To this end, the EC asked the Platform on Sustainable Finance (PSF) for advice on the possible extensions of the taxonomy to classify a wider range of activities. The EC also asked the PSF for advice on the technical screening criteria (TSC) on environmental objectives, as well as on the possible need to update those criteria, in order to assist the EC on the elaboration of the second delegated act for the remaining objectives of the TR.
Reports on Taxonomy extension options
In this context, the PSF has published the Final Report on Taxonomy extension options supporting a sustainable transition identifying three types of activities. Additionally, the PSF has published the Methodological report on TSC for environmental objectives of the TR, which contains recommendations relating to TSC for objectives 3 to 6 of the TR, as well as recommendations to improve the design of the Taxonomy and the Taxonomy criteria.
Executive summary
The Platform on Sustainable Finance (PSF) has considered extending the EU Taxonomy ‘beyond green’ to classify a wider range of economic activities, with priority given to an extension towards activities that require urgent transition to avoid causing significant harm (SH). On the other hand, the PSF has published the Methodological report on TSC for environmental objectives of the TR, which contains the requirements and principles used to develop technical screening criteria, as well as a list of activities for objectives 3 to 6 of the TR.
Main content
This Technical Note summarizes the main aspects of the reports of the PSF:
Final Report on Taxonomy extension options supporting a sustainable transition, which contains recommendations on the following aspects:
- The framework for extension: Activities that need to be improved urgently (red), intermediate (amber) performance activities, and Low Environmental Impact (LEnvI) activities.
- Characteristics of the activities, including recommendations on how extension could be.
- Transitions and intermediate performance levels of these activities.
Methodological report on TSC for environmental objectives of the Taxonomy Regulation, which contains recommendations on:
- The requirements and principles used to develop the TSC.
- List of economic activities for objectives 3 to 6 of the TR.
This report is supplemented by a Technical Annex containing TSC for economic activities contributing to all six environmental objectives of the Taxonomy including the rationale for those criteria.
Next Steps
- Complementary document to the report on Report on Taxonomy extension regarding economic activities under development, was expected to be published by the PSF in May 2022 also including recommendations and the revised conceptual framework on enabling activities.
- Publication of the report on Taxonomy extension beyond sustainable economic activities by the EC.
- The adoption of the Delegated Act by the EC on the remaining four objectives of the Taxonomy. (Autumm 2022).
- In addition to these activities, there are other activities which are being considered for future work of the PSF. One such activity is land‐based mining and quarrying of minerals (other than coal, lignite, crude oil/petroleum or natural gas) and supplementary 20 activities aimed at preparing the crude materials for marketing.
Download the technical note Final Report on Taxonomy extension options and Methodological report on TSC for environmental objectives.