“An economist without knowledge of nature is like a physicist without knowledge of mathematics”, once said Carl Linnaeus – father of the modern Taxonomy.
The effects of climate change on our lives and economies are increasingly apparent. Scientists, governments, policy-makers and individuals now understand the necessity for our systems to shift towards a decarbonised, resilient and resource-efficient economy to mitigate climate change and prepare for more significant impacts.
On the other hand, there is a growing awareness that finance and businesses are critical enablers in this transition. By shifting investments and “putting money where our mouths are”, we can build an economy that promotes sustainability. According to the OECD, € 6.35 trillion a year is needed to meet the Paris Agreement by 2030 – the mobilisation of institutional and private capital will have to be unprecedented in speed and direction.
The European Union is taking a leading role in this transition by introducing the EU Taxonomy Regulation. It is the first time that a legal document provides a standard and global definition of sustainable economic activities and aims to prevent greenwashing. The Taxonomy regulation is affecting investors and businesses in the EU and beyond its borders – making it critical for financial institutions and companies to align their activities.
To make your deep dive on the topic easier, Plan A has compiled an exclusive whitepaper on the EU Taxonomy. This document aims to share an action-oriented overview of the EU Taxonomy and highlight what is expected of companies and investors to contribute to the low-carbon transition.