Summary

Regulation (EU) 2020/852 of the European Parliament and of the Council  ('Taxonomy Regulation') entered into force on 12 July 2020. It establishes the criteria for determining whether an economic activity qualifies as environmentally sustainable for the purposes of establishing the degree to which an investment is environmentally sustainable.

In order to specify what constitutes 'environmentally sustainable investment', the Taxonomy Regulation delegates the Commission the power to create technical screening criteria that dictate how an activity qualifies as sustainable. The draft of the Commission Screening Regulation  ('Screening Regulation'), which is based on the Taxonomy Regulation, in accordance with Article 290 TFEU, was published on 20 November 2020 for public feedback. The final Regulation will be adopted at the end of 2020.