A platform that rates the criteria of the EU’s Taxonomy in a bid to provide investors and business with “a science-based assessment of environmental sustainability” has been launched.
Dubbed the Independent Science Based Taxonomy (ISBT), the initiative includes a database mimicking the EU’s own visual representation of the taxonomy, departing from the bloc’s official criteria “when they are scientifically weak or unevidenced”. In these cases, ISBT experts will provide alternative criteria.
Announcing the launch of the ISBT, WWF said it would support both the Platform on Sustainable Finance, the EU’s sustainable finance advisers, and the European Commission in the development and refinement of science-based EU Taxonomy criteria.
“This independent science-based approach will empower informed decision-making and accelerate the transition to a sustainable future”, said Vedran Kordic, EU taxonomy coordinator at WWF EU.
In an email, he said the initiative was not a critique of the EU Taxonomy but “a robust multi-stakeholder contribution to enhance and strengthen it”.
“By leveraging a broad spectrum of expertise, it aims to contribute constructively to the development process, ensuring that the EU taxonomy criteria are both science-based and as comprehensive as possible,” he wrote.
Science-based and lobby-free
The launch of the ISBT comes at a time when the movement for sustainable finance taxonomies has been gaining traction globally.
Currently, more than 60 jurisdictions are developing taxonomies, reflecting a consensus on the need for clear standards for sustainable economic activities.
However, existing taxonomies may be influenced by political considerations or business lobbies, leading to the inclusion of activities that are not entirely sustainable, or even enabling greenwashing, ISBT backers said.
The development of the EU taxonomy for climate change mitigation was highly contentious, especially when it came to the treatment of gas-fired and nuclear power plants. WWF, along with other green organisations, filed a case against the European Commission in the European Court of Justice over the move to allow these activities to count as sustainable, which investors had also denounced.
According to the ISBT creators, the ISBT seeks to address this challenge by being evidence-based and lobby-free.
“The Commission will continue engaging with a wide range of stakeholders through the EU Platform on Sustainable Finance and other fora”
European Commission spokesperson
The EU taxonomy supplies criteria for economic activities relating to a range of environmental objectives in order to guide users as to what counts as green or not. For the climate change mitigation objective, the ISBT has reviewed 57 activities so far. For other environmental objectives, it reviewed six activities and proposed five new activities to date.
The ISBT can also assess Platform’s criteria that are not yet adopted by the Commission, and propose criteria for new activities to be adopted by the EU and international taxonomy frameworks.
The initiative is the result of a collaboration among civil society organisations (CSOs), academics, and members of the scientific community, as well as other independent stakeholders who work to develop a taxonomy fully based on scientific evidence. The coalition behind the ISBT is looking for individuals to join their technical expert group.
EC reacts
A European Commission spokesperson said the EU Taxonomy criteria are based on scientific evidence and reflect current technological developments. She also said they reflected “the balancing of different political priorities at the time” of their approval and the recommendations of the Platform on Sustainable Finance.
”The Commission is currently working to improve the usability of the Taxonomy and support companies in its implementation by providing guidance on the interpretation and application of the criteria,” she added. “In this process, the Commission will continue engaging with a wide range of stakeholders through the EU Platform on Sustainable Finance and other fora. Civil society organisations are always welcome to share their views and participate in the conversation.”
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