Adoption of EU Taxonomy Delegated Act Marks Milestone Opens New Chapter in EU’s Sustainability Efforts

The EU Taxonomy Delegated Act adopted on 9 December 2021 contains the technical screening criteria (“TSC”) for climate change adaptation and mitigation under the EU Taxonomy Regulation.  The TSC is key in the EU’s transition to achieve carbon neutrality by 2050 and in guiding investment to environmentally sustainable economic activities, including the EU Renovation Wave initiative.  75% of EU buildings are believed to be energy-inefficient.  Improving the energy performance of the EU’s buildings is critical in meeting the EU’s targets.  Appropriate guidance and clarity around the usability of the taxonomy for underlying financial products for the needed investment are essential.