The EU's green taxonomy is a kind of tool for checking whether investments are environmentally and climate-friendly.
The purpose is to guide investors so that money is invested in greener businesses instead of in businesses that are not long-term climate or environmentally friendly.
- It also means that large companies and financial players must report more clearly on how to contribute to improvements in the climate, says Björn Sandén, professor of innovation and sustainability at Chalmers University of Technology.
The taxonomy must therefore determine what is considered green and sustainable investments throughout the EU, which has been preceded by lengthy negotiations and lobbying from various industries.
And Björn Sandén emphasizes that it is not an easy thing to measure sustainability.
- Both scientific knowledge and political values are included in these assessments.
Therefore, it will be a difficult negotiating issue on these definitions that may be important for future investments.