The European Commission set up a Technical expert group on sustainable finance (TEG) to assist it in developing, in line with the Commission’s legislative proposals of May 2018

• an EU classification system – the so-called EU taxonomy – to determine whether an economic activity is environmentally sustainable;
• an EU Green Bond Standard;
• methodologies for EU climate benchmarks and disclosures for benchmarks; and
• guidance to improve corporate disclosure of climate-related information.

The TEG commenced its work in July 2018. Its 35 members from civil society, academia, business and the finance sector, as well as additional members and observers from EU and international public bodies work both through formal plenaries and sub group meetings for each work stream. To allow it to conclude its technical work and retain the expertise before the future Platform on sustainable finance is set up, the mandate of the TEG has been extended until 30 September 2020.

Source: European Commission

Martin Spolc, Head of Unit, Sustainable Finance, European Commission, said:

?The landmark final reports on #EUTaxonomy and the #EUGreenBond Standard are out. The impressive result of high competence, dedication & very hard work by 45+ top professionals of the @EU_Commission’s Technical Expert Group on #SustainableFinanceEU.???https://t.co/HUhhJnQfno

— Martin Spolc (@MartinSpolc) March 9, 2020

The EU Commission said:

.@EU_Commission today welcomed the publication by the Technical Expert Group on Sustainable Finance of a report on the EU’s classification of green economic activities, or taxonomy, and a report on the EU Green Bond Standard.
Both reports available here: https://t.co/9ri83C5ry2 pic.twitter.com/uCK0UgkB6A

— EU Finance ?? (@EU_Finance) March 9, 2020

Delighted to deliver the final Taxonomy report to @EU_Finance today. Congratulations to the TEG, additional experts and thank you to stakeholders who gave feedback. https://t.co/2ZRkF6y5MZ

— Nathan Fabian (@nathanafabian) March 9, 2020

Sean Kidney, chief executive of Climate Bonds Initiative, said in a statement:

“The EU Taxonomy opens up huge opportunities for institutional investors to support low carbon and green growth, transition activities and decarbonisation.

Final reports from @EU_Finance TEG released today. #EUTaxonomy & #GreenBonds standards. Our latest post looks at what it means for #greenfinance & climate investment: https://t.co/PJLuJisoVC pic.twitter.com/q1YWckBnAv

— Climate Bonds (@ClimateBonds) March 9, 2020

“Companies and investors need both confidence and guidance to commit the trillions needed in this decade and on to 2050 to achieve carbon neutrality. The TEG report with its updated sustainability criteria for 70 different economic activities provides a comprehensive level of guidance to the market, stakeholders and regulators.”

It’s an affirmative and definite signal for corporations and institutional investors. The EU Taxonomy takes the wider sustainability and climate agenda and integrates it within real economy activities, giving boards and investors increasing confidence in their short- and long-term decisions.

Today’s announcement will positively shape investor decision making and corporate planning in multiple regions through the 2020s. It will help shift capital allocations towards sustainable economic activity, low carbon growth and a new array of investment and employment opportunities.” 

"The taxonomy matters – most importantly because it is a serious effort by financial regulators to mandate disclosure against a #sustainability target, rather than a financial one" – @Fireynolds on the #EUTaxonomy final report. Read her full comment here: https://t.co/t90G21nRJa

— The PRI (@PRI_News) March 9, 2020