EU Taxonomy: requirements for environmental and natural projects

The European Union Taxonomy is a classification system that identifies economic activities considered environmentally sustainable. Introduced in the context of the 2018 Sustainable Finance Action Plan, it aims to provide a clear and scientifically based definition of what can be labeled as "green." This tool is essential for directing investments towards activities that contribute to the EU's environmental objectives, countering greenwashing practices and promoting transparency in the financial market. The Taxonomy is based on technical criteria developed by experts and determines whether an economic activity significantly contributes to one or more of the six environmental objectives outlined by the EU. With this system, investors can accurately assess the environmental impact of their financial decisions, fostering a transition towards a more sustainable economy.

The EU Taxonomy serves as a fundamental pillar also in the new SFDR scenario, and recently there has been a significant development with Regulation (EU) 2024/3005, published in the Official Journal of the European Union on December 12, 2024, and entering into force on January 1, 2025, with application starting from July 2, 2026. This Regulation amends the SFDR (Regulation 2019/2088) and ESAP Regulation (2023/2859), introducing a harmonized regulatory approach to ensure transparency, integrity, comparability, and independence in ESG ratings. Additionally, regulation on providers is tightened: those operating in the EU must be authorized and supervised by ESMA and must publish methodologies, data sources, and methods of separating business activities, preventing conflicts of interest and phenomena such as greenwashing and social washing. Non-EU providers, on the other hand, can operate only if endorsed or recognized by an authorized provider or registered with the ESMA registry.

The EU Taxonomy is closely linked to other European regulations, the SFDR, and the Corporate Sustainability Reporting Directive (CSRD). With the adoption of the CSRD Omnibus, significant simplifications were introduced: higher thresholds excluding about 80% of companies from the obligation, more streamlined ESRS standards, and deferred timelines to facilitate adjustment. The sustainable reporting calendar changes radically with the approval of the Omnibus Package: large companies already subject to the NFRD will publish reports in 2025 (financial year 2024), while other companies, including listed SMEs and non-EU companies, will start between 2028 and 2029. Thanks to the two-year extension introduced by the package, companies will have more time to adapt and strengthen their internal processes.

The adoption of the EU Taxonomy offers companies a unique opportunity to position themselves as leaders in sustainability. Adopting the criteria of the Taxonomy allows access to green financing, improves corporate reputation, and meets the increasing demands of investors and consumers. However, companies must deal with the complexity of the requirements and the ongoing regulatory changes, especially SMEs. Investing in monitoring systems, training, and continuous improvement is essential for effective communication of ESG performance and adapting to constantly updated regulations. Active participation in regulatory discussions and the adoption of best practices will help companies shape a regulatory framework that promotes sustainability without compromising competitiveness.

This article was created as part of the project "Biodiversity services EU expansion" (CUP: E43D22000480009) funded by the Lombardy Region call "PR FESR 2021-2027 – LINEA INTERNAZIONALIZZAZIONE 21-27", aimed at supporting the internationalization of Italian companies. 3Bee is the naturetech company that develops innovative technologies for monitoring, protecting, and regenerating biodiversity, supporting companies in defining personalized climate strategies based on the analysis of their impacts and dependencies on nature. With an established portfolio in Italy, Germany, and France and significant partnerships, 3Bee continues its expansion into international markets to create a concrete impact through technology.