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What is the EU's sustainable finance taxonomy?

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BRUSSELS - Supporters say it's the world's most ambitious green investment rulebook and could direct huge sums of money into fighting climate change.

BRUSSELS - Supporters say it's the world's most ambitious green investment rulebook and could direct huge sums of money into fighting climate change.

Rules for most sectors came into effect this year, covering investments including steel plants, electric cars and building renovations. Parliament will decide whether to veto the rules in a vote on Wednesday. EU officials expect a tight ballot. Others, such as Denmark and Luxembourg, say it is not credible to label gas, a fossil fuel, as green.The taxonomy does not ban investments in activities not labelled"green", but it limits which ones companies and investors can claim are climate friendly.

Large companies and listed firms must also disclose what share of their turnover and capital expenditure complies.

 

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