Sustainable finance in the EU: implementing the commitment to ‘Do No Significant Harm’

Summary:

In view of the growing importance of sustainable finance to complement the legislative agenda of the European Green Deal, this Briefing introduces the Taxonomy Regulation and the underlying principle of Do No Significant Harm (DNSH). The DNSH principle is at the heart of a classification system of environmentally sustainable economic activities, which is applicable in several pieces of legislation in the area of sustainable finance. The Briefing discusses the challenges of implementing the DNSH principle, highlighting the growth in substantive and regulatory complexity, and the importance of capacity-building for both private and public actors.

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