CEEP’s response to the public consultation on the Platform on Sustainable Finance’s draft proposal for an extended taxonomy to support economic transition

CEEP’s response to the public consultation on the Platform on Sustainable Finance’s draft proposal for an extended taxonomy to support economic transition

The current "black and white" approach in the EU Taxonomy regulation needs to be adjusted, and more space for intermediate/transitional activities has to be made. The proposal made by the Platform is a step in right direction. However, the upcoming complementary delegated act on transitional activities (including gaseous fuels) should be adopted before any other initiatives regarding the intermediate/transitional activities are considered.

The EU Taxonomy delegated acts should set the pathway to sustainable economy and reflect the current stage of technology and market development, rather than setting the finish line, which is fully compatible with the EU 2050 target, but cannot be achieved overnight.

The EU Taxonomy designed as a positive incentive which highlights sustainable activities needs some time to prove its viability. Before any extension the EU economy should have a chance to learn how to work with currently designed rules, and then the EU will need to carefully assess what are benefits and costs of the extension.

Read our feedback to the public consultation.