NGOs demand changes to criteria for environmentally sustainable investments

Nearly 100 NGOs have signed a list of ten priorities for an effective and science-based EU taxonomy. If done properly, the taxonomy should help end greenwashing in the finance sector by showing which investments are truly sustainable. The taxonomy can also play an even bigger role, helping the post-crisis EU economy become more resilient by guiding the EU’s green recovery spending.

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The 94 NGOs, which include WWF, 350.org, Transport & Environment and Climate Action Network Europe, ask for criteria suggested by the technical expert advisory group to the Commission (the TEG) to be tightened particularly for forestry, bioenergy and hydropower, where there is a risk of damaging practises being included as sustainable. For example on bioenergy, they ask for the European Commission to exclude tree trunks and stumps from being considered as ‘green’, since burning them for energy actually increases emissions compared to fossil fuels.