### offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union . ### offering financial products and services which pursue environmentally sustainable objectives is an effective way of shifting private investments from activities with negative environmental impact into more sustainable activities . national requirements for marketing as sustainable investments financial products , services and corporate bonds , as defined in this regulation , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence and awareness of risks , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria and indicators as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria and indicators will direct investments in an environmentally ineffective , and in some cases counterproductive , manner and lead to unmet environmental and sustainability targets . that absence thus increases costs and creates a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria and indicators for determining the degree of sustainability of an economic activity should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation of information , of metrics and of criteria , economic operators will find it easier to raise funding for their environmentally sustainable activities across borders , as their economic activities can be compared against uniform criteria and indicators in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union .


### moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives , or if they use different concepts in their explanation of what is a ‘ sustainable’ economic activity , investors will find it disproportionately burdensome to check and compare these different financial products . it has been found that this discourages investors from investing into green financial products . furthermore , the lack of investor confidence has major detrimental effects on the market for sustainable investment . it has further been shown that national rules or market - based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market . if financial market participants disclose how the financial products they claim are environment - friendly meet environmental objectives , and they use for such disclosures common criteria across the union of what is an environmentally sustainable economic activity , this will help investors compare environment - friendly investment opportunities across borders . investors will invest in green financial products with higher confidence across the union , improving the functioning of the internal market . ### moreover if market participants do not disclose how the activities they invest in contribute negatively or positively to environmental objectives , or if they use different metrics and criteria for determining the impact in their explanation of the degree of environmental sustainability of an economic activity , investors will find it disproportionately burdensome to check and compare different financial products . it has been found that this discourages investors from investing into sustainable financial products . furthermore , the lack of investor confidence has major detrimental effects on the market for sustainable investment . it has further been shown that national rules or market - based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market . if financial market participants disclose how the financial products they claim are environment - friendly meet environmental objectives , and they use for such disclosures common criteria across the union of what is an environmentally sustainable economic activity , this will help investors compare the environmental impact of investment opportunities across borders . investors will invest in green financial products with higher confidence across the union , improving the functioning of the internal market .


### improving energy efficiency ; ### improving energy efficiency in line with the energy efficiency directive ;


### by 31 december 2021 , and subsequently every three years thereafter , the commission shall publish a report on the application of this regulation . that report shall evaluate the following : ### by 31 december 2023 , and subsequently every three years thereafter , the commission shall publish a report on the application of this regulation . that report shall evaluate the following :


### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment . ### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on scientific evidence , socio - economic impact , best practice and the advice of experts with proven knowledge and experience in all of the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of a wide range of experts representing both the public and the private sector to ensure that the specificities of all relevant sectors are duly taken into account . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , representatives of the real economy including the manufacturing industry , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on the suitability of the technical screening criteria .


### member states shall apply the criteria for determining environmentally sustainable economic activities set out in article 3 for the purposes of any measures setting out requirements on market actors in respect of financial products or corporate bonds that are marketed as ' environmentally sustainable ' . ### member states and the union shall apply the criteria for determining the degree of environmental sustainability of economic activities set out in article 3 and 3a for the purposes of any measures setting out sustainability requirements on market actors in respect of financial products or corporate bonds


### nature conservation ; protecting , restoring and enhancing the condition of ecosystems and their capacity to provide services ; ### nature conservation measures to maintain or restore , at favourable conservation status , natural habitats and species of wild fauna and flora and to reach adequate populations of naturally occurring species protecting , restoring and enhancing the condition of ecosystems and their capacity to provide services ;


### generating , storing or using renewable energy or climate - neutral energy , including through using innovative technology with a potential for significant future savings or through necessary reinforcement of the grid ; ### generating , storing or using renewable energy , including through using innovative technology with a potential for significant future savings or through necessary reinforcement of the grid ;


### a union classification of environmentally sustainable economic activities should enable the development of future union policies , including union - wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union . uniform legal requirements for considering investments as environmentally sustainable investments , based on uniform criteria for environmentally sustainable economic activities , are necessary as a reference for future union legislation aiming at enabling those investments . ### union - wide indicators determining the environmental impact of economic activities should enable the development of future union policies , including union - wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union , as well as to be the basis for other economic , regulatory and prudential measures . uniform legal requirements for considering the degree of environmental sustainability of investments , based on uniform criteria for the degree of environmental sustainability of economic activities and common indicators for assessing the environmental impact of investments , are necessary as a reference for future union legislation aiming at facilitating the shift from investments with a negative environmental impact to investments with a positive impact . .


### ' financial products ' mean financial products as defined in article 2 of [ commission proposal for a regulation on disclosures relating to sustainable investments and sustainability risks and amending directive 2016 / 2341 ] ; ### ' financial products ' mean financial products as defined in article 2 of [ commission proposal for a regulation on disclosures relating to sustainable investments and sustainability risks and amending directive 2016 / 2341 ] as well as issuances referred to in the directive 2010 / 73 / eu ;


### the application of this regulation should be reviewed regularly in order to assess the progress on the development of technical screening criteria for environmentally sustainable activities , the use of the definition of environmentally sustainable investment , and whether compliance with the obligations requires the establishment of a verification mechanism . the review should include also an assessment of whether the scope of this regulation should be extended to cover social sustainability objectives . ### the application of this regulation should be reviewed regularly and at least after three years in order to assess the progress on the development of technical screening criteria and harmonised indicators for environmentally sustainable activities , the use of the definition of environmentally sustainable investment or investments having a negative environmental impact , and whether compliance with the obligations requires the establishment of a verification mechanism . the review should include also an assessment of the provisions required for extending the scope of this regulation to cover social sustainability objectives .


### to avoid market fragmentation as well as harm to consumer interests due to divergent notions of environmentally sustainable economic activities , national requirements that market actors should comply with when they wish to market financial products or corporate bonds as being environmentally sustainable , should build on the uniform criteria for environmentally sustainable economic activities . those market actors include financial market participants offering “green” financial products and non - financial companies issuing “green” corporate bonds . ### to avoid market fragmentation as well as harm to consumer interests due to divergent notions regarding the degree of environmental sustainability of economic activities , national requirements that market actors should comply with when they wish to market financial products or corporate bonds as defined in this regulation as being environmentally sustainable , should build on the uniform criteria for environmentally sustainable economic activities . those market actors include financial market participants offering sustainable financial products or services and non - financial companies issuing sustainable corporate bonds .


### producing clean and efficient fuels from renewable or carbon - neutral sources . ### producing low - carbon , clean and efficient fuels from renewable or carbon - neutral sources ;


### financial market participants offering financial products as environmentally sustainable investments or as investments having similar characteristics . ### financial market participants offering financial products .


### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment . ### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria and the harmonised indicators should also involve relevant stakeholders and build on scientific evidence , best practice and existing work and entities , notably , the european commission circular economy platform , and the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environment agency and national environment protection agencies , the european supervisory authorities , the european financial reporting advisory group , and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria and the harmonised indicators , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria based on harmonised indicators were considered as sustainable assets or assets having a negative environmental impact under existing market practices . the platform should also advise the commission on whether the technical screening criteria and indicators are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment . the platform should advise the commission on the development of sustainability accounting standards and integrated reporting standards for corporates and financial market participants , including through the revision of directive 2013 / 34 / eu .


### the appropriateness of extending the scope of this regulation to cover other sustainability objectives , in particular social objectives ; ### the steps required for extending the scope of this regulation to cover other sustainability objectives , in particular social objectives ;


### increasing clean or climate - neutral mobility ; ### increasing clean , low - emission or climate - neutral mobility ;


### take into account the potential impact on liquidity in the market , the risk of certain assets becoming stranded as a result of losing value due to the transition to a more sustainable economy , as well as the risk of creating inconsistent incentives ; ### take into account the risk of certain assets becoming stranded as a result of legal changes and of losing value due to the transition to a more sustainable economy , as well as the risk of creating inconsistent incentives ;


### measures adopted by member states or by the union setting out any requirements on market actors in respect of financial products or corporate bonds that are marketed as environmentally sustainable . ### measures adopted by member states or by the union setting out any sustainability - related requirements on market actors in respect of financial products or corporate bonds .


### offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union . ### offering financial products which pursue environmentally and economically sustainable objectives is an effective way of gradually channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria for determining whether an economic activity is environmentally and economically sustainable should therefore gradually be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union .


### an economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings . the technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives . when establishing and updating the technical screening criteria , the commission should ensure that those criteria are based on available scientific evidence and are updated regularly . where scientific evaluation does not allow for the risk to be determined with sufficient certainty , the precautionary principle should apply , in line with article 191 tfeu . ### an economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings and it should also not significantly harm any of the other environmental objectives . the technical screening criteria based on harmonised indicators should identify the minimum requirements necessary to avoid a significant harm to other objectives and the assessment of the negative impact . when establishing and updating the technical screening criteria and harmonised indicators , the commission should ensure that those criteria and indicators are based on available scientific evidence and are updated regularly . where scientific evaluation does not allow for the risk to be determined with sufficient certainty , the precautionary principle should apply , in line with article 191 tfeu .


### protection of healthy ecosystems . ### protection of biodiversity and healthy ecosystems , and restoring degraded ecosystems .


### supplement article 12 to establish technical screening criteria , for each relevant environmental objective , for determining whether an economic activity in respect of which screening criteria are established pursuant to point of this paragraph is considered , for the purposes of this regulation , to cause significant harm to one or more of those objectives . ### supplement article 12 to establish technical screening criteria based on indicators , for each relevant environmental objective , for determining whether an economic activity in respect of which screening criteria based on indicators are established pursuant to point of this paragraph is considered , for the purposes of this regulation , to cause significant harm to one or more of those objectives .


### for the purposes of this regulation , an economic activity shall be considered to contribute substantially to healthy ecosystems where that activity contributes substantially to protecting , conserving and enhancing biodiversity and ecosystem services in line with the relevant legislative and non - legislative union instruments , through any of the following means : ### for the purposes of this regulation , an economic activity shall be considered to contribute substantially to biodiversity and healthy ecosystems or the restoration of degraded ecosystems where that activity contributes substantially to protecting , conserving and enhancing or restoring biodiversity and ecosystem services in line with the relevant legislative and non - legislative union instruments , through any of the following means :


### in order to specify the requirements set out in this regulation , and particularly to establish and update granular and calibrated technical screening criteria for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the information required to comply with the disclosure obligation set out in article 4 , and the technical screening criteria mentioned in article 6 , article 7 , article 8 , article 9 , article 10 and article 11 . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law - making of 13 april 2016 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council should receive all documents at the same time as member states’ experts , and the experts of the european parliament and the council should systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts . ### in order to specify the requirements set out in this regulation , and particularly to establish and update granular and calibrated technical screening criteria and indicators for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the information required to comply with the disclosure obligation set out in article 4 , and the technical screening criteria mentioned in article 6 , article 7 , article 8 , article 9 , article 10 , article 11 and 12 , as well as with the specifications on minimum safeguards set out in article 13 . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level , and that those consultations be conducted in accordance with the principles laid down in the interinstitutional agreement on better law - making of 13 april 2016 . in particular , to ensure equal participation in the preparation of delegated acts , the european parliament and the council should receive all documents at the same time as member states’ experts , and the experts of the european parliament and the council should systematically have access to meetings of commission expert groups dealing with the preparation of delegated acts .


### moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives , or if they use different concepts in their explanation of what is a ‘ sustainable’ economic activity , investors will find it disproportionately burdensome to check and compare these different financial products . it has been found that this discourages investors from investing into green financial products . furthermore , the lack of investor confidence has major detrimental effects on the market for sustainable investment . it has further been shown that national rules or market - based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market . if financial market participants disclose how the financial products they claim are environment - friendly meet environmental objectives , and they use for such disclosures common criteria across the union of what is an environmentally sustainable economic activity , this will help investors compare environment - friendly investment opportunities across borders . investors will invest in green financial products with higher confidence across the union , improving the functioning of the internal market . ### moreover if market participants do not disclose how the activities they invest in contribute negatively or positively to environmental objectives , or if they use different metrics and criteria for determining the impact in their explanation of the degree of environmental sustainability of an economic activity , investors will find it disproportionately burdensome to check and compare different financial products . it has been found that this discourages investors from investing into sustainable financial products . furthermore , the lack of investor confidence has major detrimental effects on the market for sustainable investment . it has further been shown that national rules or market - based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market . if financial market participants disclose how the financial products they claim are environment - friendly meet environmental objectives , and they use for such disclosures common criteria across the union of what is an environmentally sustainable economic activity , this will help investors compare the environmental impact of investment opportunities across borders . investors will invest in green financial products with higher confidence across the union , improving the functioning of the internal market .


### moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives , or if they use different concepts in their explanation of what is a ‘ sustainable’ economic activity , investors will find it disproportionately burdensome to check and compare these different financial products . it has been found that this discourages investors from investing into green financial products . furthermore , the lack of investor confidence has major detrimental effects on the market for sustainable investment . it has further been shown that national rules or market - based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market . if financial market participants disclose how the financial products they claim are environment - friendly meet environmental objectives , and they use for such disclosures common criteria across the union of what is an environmentally sustainable economic activity , this will help investors compare environment - friendly investment opportunities across borders . investors will invest in green financial products with higher confidence across the union , improving the functioning of the internal market . ### moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives , or if they use different concepts in their explanation of what is a ‘ sustainable’ economic activity , investors will find it disproportionately burdensome to check and compare these different financial products . it has been found that this discourages investors from investing into sustainable financial products . furthermore , the lack of investor confidence has major detrimental effects on the market for sustainable investment . it has further been shown that national rules or market - based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market . if financial market participants disclose how the financial products they claim are environment - friendly meet environmental objectives , and they use for such disclosures common criteria across the union of what is an environmentally sustainable economic activity , this will help investors compare environment - friendly investment opportunities across borders . investors will invest in sustainable financial products with higher confidence across the union , improving the functioning of the internal market .


### given the specific technical details needed to assess the environmental impact of an economic activity and the fast - changing nature of both science and technology , the criteria of environmentally sustainable economic activities should be adapted regularly to those changes . for the criteria to be up to date , based on scientific evidence and input from experts as well as relevant stakeholders , the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly . to that purpose , granular and calibrated technical screening criteria for the different economic activities should be laid down by the commission , on the basis of the technical input of a multi - stakeholders platform on sustainable finance . ### given the specific technical details needed to assess the environmental impact of an economic activity and the fast - changing nature of both science and technology , the criteria relevant for determining the degree of environmental sustainability of economic activities should be adapted regularly to those changes . for the criteria and indicators to be up to date , based on scientific evidence and input from experts as well as relevant stakeholders , the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly . to that purpose , granular and calibrated technical screening criteria and a set of harmonised indicators for the different economic activities should be laid down by the commission , on the basis of the technical input of a multi - stakeholders platform on sustainable finance .


### to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter . ### to encourage environmentally sustainable innovation and to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that relevant economic activities within major economic sectors , including among others agriculture , construction , energy , transportation and production , can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter .


### offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union . ### offering financial products and services which pursue environmentally sustainable objectives is an effective way of shifting private investments from activities with negative environmental impact into more sustainable activities . national requirements for marketing as sustainable investments financial products , services and corporate bonds , as defined in this regulation , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence and awareness of risks , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria and indicators as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria and indicators will direct investments in an environmentally ineffective , and in some cases counterproductive , manner and lead to unmet environmental and sustainability targets . that absence thus increases costs and creates a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria and indicators for determining the degree of sustainability of an economic activity should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation of information , of metrics and of criteria , economic operators will find it easier to raise funding for their environmentally sustainable activities across borders , as their economic activities can be compared against uniform criteria and indicators in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union .


### establishing criteria for environmentally sustainable economic activities may encourage firms to disclose on their websites , on a voluntary basis , information on the environmentally sustainable economic activities they carry out . this information will not only help relevant actors in the financial markets to easily identify which firms carry out environmentally sustainable economic activities , but it will also facilitate for these firms to raise funding for their green activities . ### the information on the environmental impact of activities will help relevant actors in the financial markets to easily identify the degree of environmental sustainability of the economic activities carried out by firms , but it will also facilitate for firms to raise funding .


### supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered , for the purposes of this regulation , to contribute substantially to the protection of healthy ecosystems ; ### supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered , for the purposes of this regulation , to contribute substantially to the protection of healthy ecosystems , taking into account investment already planned which likewise promotes the objective concerned ;


### the economic activity complies with technical screening criteria , where the commission has specified those in accordance with articles 6 , 7 , 8 , 9 , 10 and 11 . ### it complies with technical screening criteria , where the commission has specified those in accordance with articles 6 , 7 , 8 , 9 , 10 and 11 . those criteria shall take into account planned investments that contribute substantially to one or more of the environmental objectives listed in article 5 .


### the use of the definition of environmentally sustainable investment in union law , and at member state level , including the appropriateness of setting up verification mechanism of compliance with the criteria set out in this regulation . ### the use of the definition of environmentally sustainable investment and investments with negative environmental impact in union law , and at member state level , including the appropriateness of setting up verification mechanism of compliance with the criteria based on indicators set out in this regulation .


### increasing carbon capture and storage use ; ### increasing carbon capture and utilisation or storage of carbon dioxide emissions ;


### the application of this regulation should be reviewed regularly in order to assess the progress on the development of technical screening criteria for environmentally sustainable activities , the use of the definition of environmentally sustainable investment , and whether compliance with the obligations requires the establishment of a verification mechanism . the review should include also an assessment of whether the scope of this regulation should be extended to cover social sustainability objectives . ### the application of this regulation should be reviewed regularly and at least after three years in order to assess the progress on the development of technical screening criteria and harmonised indicators for environmentally sustainable activities , the use of the definition of environmentally sustainable investment or investments having a negative environmental impact , and whether compliance with the obligations requires the establishment of a verification mechanism . the review should include also an assessment of the provisions required for extending the scope of this regulation to cover social sustainability objectives .


### measures adopted by member states or by the union setting out any requirements on market actors in respect of financial products or corporate bonds that are marketed as environmentally sustainable . ### measures adopted by member states or by the union setting out any sustainability - related requirements on market actors in respect of financial products or corporate bonds .


### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment . ### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities , the european investment bank and national promotional banks and institutions . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment .


### supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered , for the purposes of this regulation , to contribute substantially to climate change mitigation ; ### supplement paragraph 1 to establish technical screening criteria based on indicators for determining under which conditions a specific economic activity is considered , for the purposes of this regulation , to contribute substantially to climate change mitigation . those technical screening criteria shall include thresholds for mitigation activities that drive decarbonisation pathways to meet targets beyond the paris agreement ;


### when establishing and updating the technical screening criteria the commission should also take into account the specificities of the infrastructure sector and take into account environmental , social and economic externalities within a cost - benefit analysis . in that regard , the commission should consider the work of international organisations , such as the oecd , relevant union legislation and standards , including directive 2001 / 42 / ec of the european parliament and of the council42 , directive 2011 / 92 / eu of the european parliament and of the council43 directive 2014 / 23 / eu of the european parliament and of the council44 , directive 2014 / 24 / eu of the european parliament and of the council45 , directive 2014 / 25 / eu of the european parliament and of the council46 , and current methodology . in that context , the technical screening criteria should promote appropriate governance frameworks integrating environmental , social and governance factors , as referred to in the united nations - supported principles for responsible investment47 , at all stages of a project ' s lifecycle . __________________ 42 directive 2001 / 42 / ec of the european parliament and of the council of 27 june 2001 on the assessment of the effects of certain plans and programmes on the environment . 43 directive 2011 / 92 / eu of the european parliament and of the council of 13 december 2011 on the assessment of the effects of certain public and private projects on the environment . 44 directive 2014 / 23 / eu of the european parliament and of the council of 26 february 2014 on the award of concession contracts . 45 directive 2014 / 24 / eu of the european parliament and of the council of 26 february 2014 on public procurement and repealing directive 2004 / 18 / ec . 46 directive 2014 / 25 / eu of the european parliament and of the council of 26 february 2014 on procurement by entities operating in the water , energy , transport and postal services sectors and repealing directive 2004 / 17 / ec . 47 https : / / www . unpri . org / download ? ac=1534 . ### when establishing and updating the technical screening criteria and the harmonised indicators the commission should also take into account the specificities of the different sectors and take into account environmental , social and economic externalities within a cost - benefit analysis . in that regard , the commission should consider the work of international organisations , such as the oecd , relevant union legislation and standards , including directive 2001 / 42 / ec of the european parliament and of the council42 , directive 2011 / 92 / eu of the european parliament and of the council43 directive 2014 / 23 / eu of the european parliament and of the council44 , directive 2014 / 24 / eu of the european parliament and of the council45 , directive 2014 / 25 / eu of the european parliament and of the council46 , and current methodology . in that context , the technical screening criteria and indicators should promote appropriate governance frameworks integrating environmental , social and governance factors , as referred to in the united nations - supported principles for responsible investment47 , at all stages of a project ' s lifecycle . __________________ 42 directive 2001 / 42 / ec of the european parliament and of the council of 27 june 2001 on the assessment of the effects of certain plans and programmes on the environment . 43 directive 2011 / 92 / eu of the european parliament and of the council of 13 december 2011 on the assessment of the effects of certain public and private projects on the environment . 44 directive 2014 / 23 / eu of the european parliament and of the council of 26 february 2014 on the award of concession contracts . 45 directive 2014 / 24 / eu of the european parliament and of the council of 26 february 2014 on public procurement and repealing directive 2004 / 18 / ec . 46 directive 2014 / 25 / eu of the european parliament and of the council of 26 february 2014 on procurement by entities operating in the water , energy , transport and postal services sectors and repealing directive 2004 / 17 / ec . 47 https : / / www . unpri . org / download ? ac=1534 .


### to ensure that investments are channelled towards economic activities that make the biggest positive impact on the environmental objectives , the commission should give priority to the establishment of technical screening criteria for the economic activities that potentially contribute most to the environmental objectives . ### to ensure that investments are channelled towards economic activities that make the biggest positive impact on the environmental objectives , the commission should give priority to the establishment of technical screening criteria for the economic activities that potentially contribute most to the environmental objectives , and as matter of priority to climate mitigation . the technical screening criteria should be flexible enough to introduce progressively new technologies and innovations .


### take into account the nature and the scale of the economic activity ; ### take into account the nature and the scale of the economic activity and its external effects during its entire lifecycle ;


### experts appointed in a personal capacity , with proven knowledge and experience in the areas covered by this regulation . ### academia and experts appointed in a personal capacity , with proven knowledge and experience in the areas covered by this regulation , excluding those having a conflict of interest .


### a union classification of environmentally sustainable economic activities should enable the development of future union policies , including union - wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union . uniform legal requirements for considering investments as environmentally sustainable investments , based on uniform criteria for environmentally sustainable economic activities , are necessary as a reference for future union legislation aiming at enabling those investments . ### union - wide indicators determining the environmental impact of economic activities should enable the development of future union policies , including union - wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union . uniform legal requirements for assessing the environmental sustainability of investments , based on uniform criteria for determining the environmental sustainability of economic activities and common indicators for assessing the environmental impact of investments , are necessary as a reference for future union legislation aiming at facilitating the shift from investments with a negative environmental impact to investments with a positive impact .


### ' energy efficiency ' means using energy more efficiently at all the stages of the energy chain from production to final consumption ; ### ' energy efficiency ' means the ratio of output of performance , service , goods or energy , to input of energy .


### to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter . ### to encourage environmentally sustainable innovation and to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that all relevant economic activities within major economic sectors , including among others agriculture , construction , energy , chemicals , transportation and production , can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter .


### to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in the criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter . ### to avoid distorting competition when raising financing for environmentally sustainable economic activities , the technical screening criteria should ensure that relevant economic activities within major economic sectors , including among others agriculture , construction , energy , transportation and production , can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this regulation . the potential capacity to contribute towards those environmental objectives may however vary across sectors , which should be reflected in industry specific criteria . however , within each sector , those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter .


### the progress on the implementation of this regulation with regard to the development of technical screening criteria for environmentally sustainable economic activities ; ### the progress on the implementation of this regulation with regard to the development of technical screening criteria for environmentally sustainable economic activities , especially how the principle of subsidiarity and the division of competences between the union and member states has been respected ;


### advise the commission on the technical screening criteria referred to in article 14 , and the possible need to update those criteria ; ### advise the commission on the technical screening criteria based on indicators referred to in article 14 , and the possible need to update those criteria ;


### supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered , for the purposes of this regulation , to contribute substantially to climate change mitigation ; ### supplement paragraph 1 to establish technical screening criteria for determining under which conditions a specific economic activity is considered , for the purposes of this regulation , to contribute substantially to reduce its environmental impacts ;


### for the purposes of determining whether an economic activity is environmentally sustainable , an exhaustive list of environmental objectives should be laid down . ### for the purposes of determining the degree of environmental sustainability of an economic activity , an exhaustive list of environmental objectives based on indicators measuring the environmental impact should be laid down .


### ' sustainable forest management ' means using forests and forest land in a way , and at a rate , that maintains their biodiversity , productivity , regeneration capacity , vitality and their potential to fulfil , now and in the future , relevant ecological , economic and social functions , at local , national , and global levels , and that does not cause damage to other ecosystems . ### ’sustainable forest management’ means using forests and forest land in accordance with applicable national legislation building on the sfm definition adopted in the ministerial conference of protection of forests in europe , the commitments stemming from the lulucf regulation as well as from the eu timber regulation .


### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment . ### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts shall include representatives of relevant stakeholders , including financial market actors , representatives of the real economy representing a wide range of industries , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices .


### improving the efficient use of raw materials in production , including through reducing the use of primary raw materials and increasing the use of by - products and waste ; ### improving the efficient use of raw materials and resources in production , including through reducing the use of primary raw materials and increasing the use of by - products and waste ;


### circular economy and waste prevention and recycling , where that activity leads to significant inefficiencies in the use of materials in one or more stages of the life - cycle of products , including in terms of durability , reparability , upgradability , reusability or recyclability of products ; or where that activity leads to a significant increase in the generation , incineration or disposal of waste ; ### circular economy and waste prevention and recycling , where that activity leads to significant inefficiencies in the use of materials and resources , such as non - renewable energy , raw materials , water and land , directly or indirectly in different stages of the life - cycle of products including inefficiencies related to features designed to limit the lifetime of products and including in terms of durability , reparability , upgradability , reusability or recyclability of products ; or where that activity leads to a significant increase in the generation , incineration or disposal of waste emissions ;


### offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union . ### offering financial products and services which pursue environmentally sustainable objectives is an effective way of shifting private investments from activities with negative environmental impact into more sustainable activities . national requirements for marketing as sustainable investments financial products , services and corporate bonds , as defined in this regulation , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence and awareness of risks , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria and indicators as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria and indicators will direct investments in an environmentally ineffective , and in some cases counterproductive , manner and lead to unmet environmental and sustainability targets . that absence thus increases costs and creates a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria and indicators for determining the degree of sustainability of an economic activity should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation of information , of metrics and of criteria , economic operators will find it easier to raise funding for their environmentally sustainable activities across borders , as their economic activities can be compared against uniform criteria and indicators in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union .


### offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment - friendly , when in fact it does not meet basic environmental standards . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . given the political commitments under the paris agreement and at union level , it is likely that more and more member states will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable . in doing so , member states would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union . ### offering financial products which pursue environmentally and economically sustainable objectives is an effective way of gradually channelling private investments into sustainable activities . national requirements for marketing as sustainable investments financial products and corporate bonds , in particular requirements set out to allow the relevant market actors to use a national label , aim to enhance investor confidence , to create visibility and to address concerns about “greenwashing” . currently a few member states have in place labelling schemes . they build on different taxonomies classifying environmentally sustainable economic activities . if such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable , investors will be discouraged from investing across borders , due to difficulties in comparing the different investment opportunities . in addition , economic operators wishing to attract investment from across the union would have to meet different criteria in the various member states in order for their activities to qualify as environmentally sustainable for the purposes of the different labels . the absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators , amounting to an impediment to access cross - border capital markets for sustainable investments . the barriers to access to cross - border capital markets for the purposes of raising funds for sustainable projects are expected to grow further . the criteria for determining whether an economic activity is environmentally and economically sustainable should therefore gradually be harmonised at union level , in order to remove obstacles to the functioning of the internal market and prevent their future emergence . with such harmonisation economic operators will find it easier to raise funding for their green activities across borders , as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments . it will therefore facilitate attracting investment across borders within the union .


### establishing criteria for environmentally sustainable economic activities may encourage firms to disclose on their websites , on a voluntary basis , information on the environmentally sustainable economic activities they carry out . this information will not only help relevant actors in the financial markets to easily identify which firms carry out environmentally sustainable economic activities , but it will also facilitate for these firms to raise funding for their green activities . ### the information on the environmental impact of activities will help relevant actors in the financial markets to easily identify the degree of environmental sustainability of the economic activities carried out by firms , but it will also facilitate for firms to raise funding .


### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices . the platform should also advise the commission on whether the technical screening criteria are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment . ### it is of particular importance that the commission when preparing the development of the technical screening criteria , carry out appropriate consultations in line with better regulation requirements . the process for the establishment and the update of the technical screening criteria and the harmonised indicators should also involve relevant stakeholders and build on scientific evidence , best practice and the advice of experts with proven knowledge and experience in the relevant areas . for that purpose , the commission should set up a platform on sustainable finance . this platform should be composed of experts representing both the public and the private sector . public sector representatives should include experts from the european environmental agency , the european supervisory authorities and the european investment bank . private sector experts should include representatives of relevant stakeholders , including financial market actors , universities , research institutes , associations and organisations . the platform should advise the commission on the development , analysis and review of technical screening criteria and the harmonised indicators , including their potential impact on the valuation of assets that until the adoption of the technical screening criteria based on harmonised indicators were considered as sustainable assets or assets having a negative environmental impact under existing market practices . the platform should also advise the commission on whether the technical screening criteria and indicators are suitable for further uses in future union policy initiatives aimed at facilitating sustainable investment .


### a union classification of environmentally sustainable economic activities should enable the development of future union policies , including union - wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union . uniform legal requirements for considering investments as environmentally sustainable investments , based on uniform criteria for environmentally sustainable economic activities , are necessary as a reference for future union legislation aiming at enabling those investments . ### union - wide indicators determining the environmental impact of economic activities should enable the development of future union policies , including union - wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union , as well as to be the basis for other economic , regulatory and prudential measures . uniform legal requirements for considering the degree of environmental sustainability of investments , based on uniform criteria for the degree of environmental sustainability of economic activities and common indicators for assessing the environmental impact of investments , are necessary as a reference for future union legislation aiming at facilitating the shift from investments with a negative environmental impact to investments with a positive impact . .


### sustainable use and protection of water and marine resources , where that activity is detrimental to a significant extent to good status of union waters , including freshwater , transitional waters and coastal waters , or to good environmental status of marine waters of the union ; ### sustainable use and protection of water and marine resources , where that activity is detrimental to a significant extent to good status of union waters , including freshwater , transitional waters and coastal waters , or to good environmental status of marine waters of the union , in line with directive 2000 / 60 / ec of the european parliament and of the council establishing a framework for community action in the field of water policy ;


### ' sustainable forest management ' means using forests and forest land in a way , and at a rate , that maintains their biodiversity , productivity , regeneration capacity , vitality and their potential to fulfil , now and in the future , relevant ecological , economic and social functions , at local , national , and global levels , and that does not cause damage to other ecosystems . ### ’sustainable forest management’ means using forests and forest land in accordance with applicable national legislation building on the sustainable forest management definition adopted in the pan - european ministerial conference on the protection of forests in europe , the commitments stemming from the regulation on the integration of land use , land use change and forestry , as well as the eu timber regulation .


### member states shall apply the criteria for determining environmentally sustainable economic activities set out in article 3 for the purposes of any measures setting out requirements on market actors in respect of financial products or corporate bonds that are marketed as ' environmentally sustainable ' . ### member states and the union shall apply the criteria for determining the degree of environmental sustainability of economic activities set out in article 3 and 3a for the purposes of any measures setting out sustainability requirements on market actors in respect of financial products or corporate bonds


### sustainable forest management . ### sustainable forest management , taking into account national forest legislation and the eu timber regulation , eu lulucf regulation as well as in the case of wood - based bioenergy the requirements of eu renewable energy directive .


### the economic activity complies with technical screening criteria , where the commission has specified those in accordance with articles 6 , 7 , 8 , 9 , 10 and 11 . ### the economic activity complies with technical screening criteria , where the commission has specified those based on harmonised indicators and in accordance with articles 6 , 7 , 8 , 9 , 10 and 11 .


### the power to adopt delegated acts referred to in articles 4 , 6 , 7 , 8 , 9 , 10 and 11 shall be conferred on the commission for an indeterminate period from [ date of entry into force of this regulation ] . ### the power to adopt delegated acts referred to in articles 4 , 6 , 7 , 8 , 9 , 10 , 11 , 12 and 13 shall be conferred on the commission for an indeterminate period from [ date of entry into force of this regulation ] .


### take into account the environmental impacts of the economic activity itself , as well as of the products and services provided by that economic activity , notably by considering their production , use and end - of - life ; ### take into account the environmental impacts of the economic activity itself , as well as of the products and services provided by that economic activity , notably by considering the entire life cycle , including production , use , end - of - life and recycling ;


### an economic activity shall be considered to contribute substantially to the transition to a circular economy and waste prevention and recycling where that activity contributes substantially to that environmental objective through any of the following means : ### an economic activity shall be considered to contribute substantially to the transition to a circular economy and waste prevention and recycling where that activity , in line with the eu waste acquis , contributes substantially to that environmental objective through any of the following means :


### for the purposes of determining whether an economic activity is environmentally sustainable , an exhaustive list of environmental objectives should be laid down . ### for the purposes of determining the degree of environmental sustainability of an economic activity , an exhaustive list of environmental objectives based on indicators measuring the environmental impact should be laid down .


### a union classification of environmentally sustainable economic activities should enable the development of future union policies , including union - wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union . uniform legal requirements for considering investments as environmentally sustainable investments , based on uniform criteria for environmentally sustainable economic activities , are necessary as a reference for future union legislation aiming at enabling those investments . ### a union classification of environmentally and economically sustainable activities should gradually enable the development of future union policies , including union - wide standards for sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the union . uniform legal requirements for considering sustainable investments as such , based on uniform criteria for a certain number of sustainable activities , are necessary as a reference for future union legislation aiming at enabling those investments .


### the platform on sustainable finance shall be chaired by the commission . ### the platform on sustainable finance shall follow the principle of rotation and shall be chaired by the commission .


### to address existing obstacles to the functioning of the internal market and to prevent the emergence of such obstacles in the future , member states should be required to use a common concept of environmentally sustainable investment when setting up requirements for market actors for the purpose of labelling financial products or corporate bonds marketed as environmentally sustainable at national level . for the same reasons , fund managers and institutional investors that hold themselves out as pursuing environmental objectives should use the same concept of environmentally sustainable investment when disclosing how they pursue those objectives . ### to address existing obstacles to the functioning of the internal market and to prevent the emergence of such obstacles in the future , member states and the union should be required to use a common concept regarding the degree of environmental sustainability of investments when setting up requirements for market actors for the purpose of labelling financial products , services or corporate bonds marketed as environmentally sustainable at national level . for the same reasons , fund managers and institutional investors that hold themselves out as pursuing environmental objectives should use the same concept of environmentally sustainable investment and the same indicators , metrics and criteria for calculating the environmental impact when disclosing how they pursue those objectives .