European Union: Commission Adopts Taxonomy for Green Investments

The European Commission adopted the Taxonomy Regulation in June 2020. This Regulation establishes the framework for an EU taxonomy for sustainable activities to classify economic activities as “sustainable activities”, “transitional activities and “enabling activities.” On April 21, 2021, the Commission adopted a regulation laying down technical screening criteria to define which activities contribute substantially to climate change adaptation and climate change mitigation, including bioenergy. The Commission decided to adopt a complementary regulation on agriculture activities later in 2021 to take into account the new Common Agricultural Policy.