Taxonomy for sustainable finance

Image: Aivi Allikmets

The EIC is a partner in the creation of a sustainable finance roadmap, which is the first step towards putting the European Union taxonomy rules into practice in Estonia.

The taxonomy regulation adopted last year as part of the European Union’s Sustainable Finance Action Plan defines which economic activities are environmentally sustainable and which are not. The value of taxonomy lies in directing capital into green investments by larger companies, banks and other financial institutions, which helps to accelerate progress towards environmental and climate goals.

Together with the Ministry of the Environment, the Ministry of Finance, the Ministry of Economic Affairs and Communications, and the authorities of the Republic of Latvia, we received support for the project from the European Commission’s Directorate-General for Structural Reform Support.

Over two years, we will:

• analyse investments in key economic sectors underpinned by environmental and climate objectives in cooperation with EBRD experts;
• map the current state of local sustainable finance practices;
• map key economic sectors facing new reporting requirements regarding the taxonomy;
• and assess national legal and regulatory constraints and other public policies, to better target investments towards achieving environmental and climate objectives.

This will form the basis for a national roadmap, i.e., the sustainable finance strategy. The practical outputs of the project will also include raising awareness and competence in the public and private sector, organising campaigns and seminars.