Taxonomy’s troubled birth shakes its power to green markets

Wood burning climate fuel from Alamy 22Apr21 575x375
By Jon Hay
22 Apr 2021

Market participants will embark in the coming weeks on the difficult task of working out how to use the European Union’s sustainable finance Taxonomy, after the first criteria were published this week. In doing so, they will be conscious that the smooth tide of green finance is now breaking against the hard reality of power politics and resistance by fossil fuel industries — a clash that is rocking the Taxonomy’s credibility, writes Jon Hay.

Rather than uniting Europe around a common vision of what is sustainable, the Taxonomy has so far exposed divisions — an inevitable result of trying to create a joint definition of what is green, when 27 countries have very different ideas about how to transition to a low ...

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