The European Commission is gathering input for improvements to be made to the EU Taxonomy, the classification system that defines criteria for environmentally sustainable economic activities. A key instrument, the Taxonomy is at the heart of the EU’s sustainable finance framework.
We as DUFAS have submitted input on various elements of the framework that, from a global investor perspective, would benefit from further improvement. In particular, our suggestions concern:
- Improving the usability of the framework for non-EU assets;
- The limited added value of the minimum safeguards for renewable energy projects within the EU;
- Simplifying the assessment of Taxonomy alignment for certain private market investments; and
- Strengthening alignment of the Taxonomy indicators for real estate by referencing CRREM.
As the European Commission aims to adopt the revised delegated acts in the second quarter of 2026, we will continue to monitor further initiatives in this area.
