Advisers to the European Commission have published proposed updates to the European Union Taxonomy.
The Platform on Sustainable Finance released nearly 350 pages of recommended changes to the technical screening criteria of the framework, defining which economic activities qualify as supporting the bloc’s environmental and social objectives.
Among the proposals are a number of additions to the scope of the Taxonomy. The advisers have told the European Commission it should be widened to include activities linked to the mining and production of three key metals for the climate transition: lithium, nickel and copper.
Digital solutions and services are also included in the proposed new activities and criteria.
The sustainability contribution of some other industries remains unaddressed in the update.
Agriculture, for example, is for the most part absent in the document, despite calls for it to be added as soon as possible. There are some references to the negative impact of some farming practices, but nothing about the contribution agricultural activities make.
“Based on the resources, workload and time available, the Platform [working group] could not finalise its recommendations on all activities that were mandated by the Commission,” the group said in a statement.
“In this context, it is important to note that the non-inclusion of an activity in the report does not imply that the activity will not be considered for inclusion in the EU taxonomy.”
The Platform’s second mandate was recently extended until the end of March 2025. In its consultation document it “hopes that a future mandate will allow us to focus on incorporating many more activities into the Taxonomy”.
The publication of the document on Wednesday marked the first significant update to the Taxonomy since 2023.
Since then, there has been growing division around the role of the taxonomy.
Last year, the European Securities and Markets Authority (ESMA) said it should “constitute the sole common reference point against which sustainability performance should be measured”.
Germany’s insurance body has called for the disclosure requirements associated with the taxonomy to be limited to the reporting of “important key figures”. Germany’s sustainable finance body has also requested that the Commission revisit the rules.
Next month, the Commission will publish details about its plan to cut back the requirements under a so-called ‘omnibus’ legislation.
In the meantime, investors and other stakeholders are being invited to provide feedback on this week’s proposed updates to the Taxonomy. The consultation closes on 5 February.
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