Source: European Parliament
The EU taxonomy aims to help identify investments into activities that make a substantial contribution to EU environmental objectives.
The taxonomy already covers several technologies that are important for Europe’s strategic autonomy and resilience, such as manufacturing of renewable energy, generation of electricity and/or heat from renewable sources, hydrogen, storage and batteries, grids technologies, also recognised under the Net-Zero-Industry-Act[1], as well as transitional energy activities including gas and nuclear.
Although defence activities are not covered as such in the taxonomy, undertakings in the defence sector can report investments into greening of their buildings or transport like any other sector[2].
The EU taxonomy is a living document. More activities could be added to its scope over time. This could include more strategic activities.
The Platform on Sustainable Finance[3], an independent advisory group, is currently developing recommendations for potential inclusion of mining and refining of critical raw materials in the taxonomy.
In line with the EU Defence Industrial Strategy (EDIS)[4], improving access to finance for the defence industry is a priority for the EU, and the EU sustainable finance framework does not impose any limitations in this regard.
EDIS stresses that, ‘with the exception of weapons subject to prohibitions by international conventions signed by Member States — which are therefore deemed by the EU to be incompatible with social sustainability — the defence industry enhances sustainability, given its contribution to resilience, security and peace’.
- [1] Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724, OJ L, 2024/1735, 28.6.2024.
- [2] Commission Notice on the interpretation and implementation of certain legal provisions of the EU Taxonomy Climate Delegated Act establishing technical screening criteria for economic activities that contribute substantially to climate change mitigation or climate change adaptation and do no significant harm to other environmental objective, OJ C, C/2023/267, 20.10.2023 , https://eur-lex.europa.eu/eli/C/2023/267/oj
- [3] https://finance.ec.europa.eu/sustainable-finance/overview-sustainable-finance/platform-sustainable-finance_en
- [4] https://defence-industry-space.ec.europa.eu/eu-defence-industry/edis-our-common-defence-industrial-strategy_en