The European Union (EU) green taxonomy: codifying sustainability to provide certainty to the markets

Patrizia Tettamanzi, Riccardo Gotti Tedeschi and Michael Murgolo ()
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Patrizia Tettamanzi: LIUC – Cattaneo University
Riccardo Gotti Tedeschi: European Company Law Firm
Michael Murgolo: LIUC – Cattaneo University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 11, No 2, 27136 pages

Abstract: Abstract This study aims at making the potential implications of the ‘Green’ Taxonomy implementation emerge. The EU (European Union) regulatory framework on sustainability-related issues and the regulatory action in the area of non-financial or ESG (environmental, social and governance) reporting have highlighted the need for more academic contributions. There could, indeed, be a risk of oversimplification of an issue that cannot be solved without considering its practical implications on the stakeholders affected. Hence, failing to think these through might result in tragic consequences from a societal standpoint, despite being outstanding from an environmental one. This critical analysis, thus, investigates a few crucial points pertaining to the EU ‘Green’ Taxonomy—as the latest classification system for environmentally sustainable economic activities proposed by the EU—with the aim of providing academics and policymakers with a balanced report between theory and practice. By means of archival data, content analysis and bibliometric techniques, and implementing the steps of the systematic literature network analysis (SLNA) protocol which were deemed pertinent for the purposes of our study, we conducted a documentary review regarding the EU Taxonomy. Based on this critical analysis, we were able to outline (a) the rationale of Regulation (EU) 2020/852, (b) its structure, (c) its ability to improve corporate environmental performance and (d) the role played by specific nuclear and gas energy activities for a climate-neutral future. Every economic choice implies a cultural choice, and economics—unlike natural sciences—is essentially based on decisions, which can be influenced. The study, thus, concludes with proposals for future research and potential improvements of EU frameworks in order to support an efficient achievement of the Green Deal objectives and the 2030 Agenda.

Keywords: Green taxonomy; ESG dynamics; Sustainable finance; EU regulation; Energy crisis; Sustainability reporting; Environment and climate risk (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10668-023-03798-6

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