The Technical Expert Group on Sustainable Finance (TEG) set up by the European Commission has requested feedback on the development of an EU-wide classification system for environmentally sustainable economic activities.
A unified taxonomy would make it possible to determine which investments, such as loans, stocks and bonds are environmentally sustainable, making it easier for market participants to finance these activities and limiting the risk of green-washing.
The taxonomy will lay the foundation for all other measures on sustainable finance. It will help investors, including individuals, invest their money in line with their sustainability preferences and build momentum for climate-friendly investments.
Source: Climate-KIC - https://www.climate-kic.org/news/feedback-sustainable-finance-definition/