Sustainable finance
Substantial Contribution
The EU Taxonomy's first test: an economic activity must substantially enable at least one of six environmental objectives to count as sustainable.
Definition
Substantial contribution is the first of the EU Taxonomy Regulation's conditions for classifying an economic activity as environmentally sustainable: the activity must contribute substantially to at least one of six objectives — climate mitigation, climate adaptation, water and marine resources, circular economy, pollution prevention, and biodiversity — as defined by technical screening criteria in the Taxonomy's delegated acts. Combined with do no significant harm to the other objectives and minimum social safeguards, the test defines what European finance may call green.
Overview
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