EUR-Lex Access to European Union law

Back to EUR-Lex homepage

This document is an excerpt from the EUR-Lex website

Assessing environmentally sustainable investments



Regulation (EU) 2020/852 on establishing a framework to facilitate sustainable investment


  • It aims to inform investors on whether an economic activity is environmentally sustainable by setting common EU-wide criteria.
  • It amends Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial sector.


Action plan on sustainable growth

This ‘taxonomy’ regulation is one of a number of actions designed to help achieve the three objectives of the action plan, which are:

  • to reorient capital flows towards sustainable investments to achieve sustainable and inclusive growth;
  • to manage financial risks stemming from climate change, natural disasters, environmental degradation and social issues;
  • to foster transparency and a long-term outlook for financial and economic activity.


The regulation sets out the following criteria to be applied by the EU and EU Member States to decide whether an economic activity is environmentally sustainable.

  • It contributes substantially to one or more of the environmental objectives set out in the regulation.
  • It does not significantly harm any of these environmental objectives.
  • It is carried out in compliance with the minimum safeguards set out in the regulation.
  • It complies with technical screening criteria set up by the European Commission in accordance with the regulation.

Environmental objectives

For the purpose of the regulation, the environmental objectives are:

The regulation sets out the steps that an economic activity must take to make a substantial contribution or to not significantly harm any of these objectives.

Activity list

The regulation requires the Commission to set out a list of environmentally sustainable activities by defining technical screening criteria for each environmental objective. These criteria are established by means of delegated acts.

  • The Climate Delegated Act (Delegated Regulation (EU) 2021/2139) includes technical screening criteria for economic activities that substantially contribute to the objectives of climate change mitigation and climate change adaptation. It has applied since 1 January 2022.
  • The Disclosures Delegated Act (Delegated Regulation (EU) 2021/2178) supplements Article 8 of the taxonomy regulation. It specifies the content, methodology and presentation of information to be disclosed by financial and non-financial undertakings concerning the proportion of environmentally sustainable economic activities in their business, investments or lending activities. It has applied since1 January 2022.
  • The Complementary Climate Delegated Act (Delegated Regulation (EU) 2022/1214) amends Delegated Regulations (EU) 2021/2139 and (EU) 2021/2178, including, under strict conditions, specific nuclear and gas energy activities in the list of economic activities covered by the EU taxonomy. The criteria for the specific gas and nuclear activities are in line with EU climate and environmental objectives and will help accelerate the shift from solid or liquid fossil fuels, including coal, towards a climate-neutral future. It will apply as of January 2023.


It has applied since 12 July 2020.


For further information, see:


Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, pp. 13–43).


Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions: The European Green Deal (COM(2019) 640 final, 11.12.2019).

Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (OJ L 317, 9.12.2019, pp. 1–16).

Successive amendments to Regulation (EU) 2019/2088 has been incorporated into the original text. This consolidated version is of documentary value only.

Regulation (EU) 2019/2089 of the European Parliament and of the Council of 27 November 2019 amending Regulation (EU) 2016/1011 as regards EU Climate Transition Benchmarks, EU Paris-aligned Benchmarks and sustainability-related disclosures for benchmarks (OJ L 317, 9.12.2019, pp. 17–27).

Communication from the Commission – Guidelines on non-financial reporting: Supplement on reporting climate-related information (OJ C 209, 20.6.2019, pp. 1–30).

Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, pp. 82–209).

See consolidated version.

Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, pp. 19–76).

See consolidated version.

last update 10.08.2022