The controversy around the European Commission’s proposed taxonomy of green investments means that the approval process will take at least until mid-2022. The European Council and the European Parliament could also request amendments, prolonging uncertainty for governments and businesses. On Dec. 31, the European Commission released the first draft of the list of energy sources and activities that can be labeled as “green” for investment purposes, which is known in the European Union as the Taxonomy for Sustainable Activities. The list will have widespread economic implications because it will guide public and private investment at the national and supranational level for the next three decades as the European Union implements its Green Deal plan to become carbon neutral by 2050. The sources of energy and activities covered by the taxonomy are particularly likely to receive funding and subsidies from EU institutions and national governments, as well as increased investment from...
