EU: Commission publishes FAQs on EU Taxonomy

On 29 November 2024, the Commission published a draft set of FAQs on the EU Taxonomy.  

The Commission's aim in doing so is to make the Taxonomy easier to use, and “is part of the Commission's simplification agenda and its effort to reduce the administrative burden on companies applying the EU sustainable finance framework”.

The draft FAQs provide technical clarifications regarding various elements of the EU Taxonomy.  Among other things this includes:

• the application of general Taxonomy requirements - including a reminder that the assessment of Taxonomy-alignment of economic activities should be performed annually for the purposes of reporting;
• the application of technical screening criteria for specific activities included in the Taxonomy Climate and Environmental Delegated Acts; and
• questions related to the generic ‘do no significant harm' (DNSH) criteria for climate change adaptation, pollution prevention and control, and protection and restoration of biodiversity and ecosystems.

A copy of the draft notice can be found here.  Its formal adoption in all the official languages of the European Union will take place later on, as soon as the language versions are available.