Table of Contents

  • This report aims to provide policy makers with information and preliminary policy considerations in the emerging field of official definitions of sustainable finance. It examines the recently adopted EU Regulation on the establishment of a framework to facilitate sustainable investment (the “EU taxonomy”), as well as official definitions of sustainable finance in Japan, China, France and the Netherlands. It maps similarities in the coverage of certain economic sectors, such as renewable energy. It also identifies differences, in sector coverage but also in terms of approaches in principle to defining what it sustainable. [For instance, the EU regulation stands out in its combined approach of several environmental objectives, with a substantial contribution to one objective such as climate mitigation joined with a no significant harm requirement for other environmental objectives such as adaptation and other natural capital objectives]. It provides details of the frameworks that each of the above jurisdictions adopted in terms of official definitions of sustainable finance.

  • This report is composed of two parts. Part 1 contains the essence and analytical content of the report. It provides a summary presentation of the sustainable finance definitions and taxonomies in the five jurisdictions involved (EU, China, Japan, France and the Netherlands). It proposes a mapping of theses definitions and taxonomies, and preliminary reflections on policy considerations. Part 2 of the report is descriptive. It provides a detailed review of sustainable finance definitions and taxonomies in the jurisdictions in the scope of the report. Chapter 7 contains an overview of EU taxonomy regulation, and a summary of the technical screening criteria for eligibility that were proposed by the EU Technical Expert Group to the European Commission in June 2020.

  • In recent years, investors have increasingly taken actions to integrate climate change and broader sustainability concerns into their investment decisions and portfolio allocations. However, there is a widely perceived need for greater certainty on the environmental sustainability of different types of investments and economic activities. In response, a number of jurisdictions have started to legislate to create official definitions of sustainable finance. This report maps sustainable finance definitions and taxonomies in five jurisdictions: the EU, China, Japan, France and the Netherlands.