The EU taxonomy for sustainable investments

The EU expects that, over time, the more sustainable a business is, the easier it will be for it to raise capital. By providing comparable information on sustainable activities, businesses will enable investors and banks to make better-informed decisions about which companies to invest in or lend money to.

• Must make a substantial contribution* to at least one of the six environmental objectives:

1. Reduce and prevent greenhouse gas emissions
2. Climate change adaptation​
3. Sustainable use and protection of water and marine resources
4. Transition to a circular economy, waste prevention and recycling
5. Pollution prevention and control
6. Protect and restore biodiversity and ecosystems
   

• Do no significant harm* to any of the other environmental objectives.
• Follow the guiding principles for responsible business conduct in accordance with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights.
• Meet the technical criteria for the six environmental objectives as described in EU Taxonomy Compass

* Substantial positive contribution and harm are defined at activity level in the technical criteria for the six environmental objectives.

The taxonomy places a strong emphasis on holistic thinking, so it is important to consider every aspect of the economic activity, including the use of finite resources, production and delivery methods, circularity in raw material flows, and so on.

To qualify for green grants and loans from us, your project must align with the EU taxonomy. This means you must describe and quantify the extent to which your project makes a substantial contribution to at least one of the environmental objectives. This applies whether the positive environmental impact is direct or indirect. You must also discuss any potential negative impacts on the other environmental objectives and explain how your company upholds the principles of responsible business conduct.

The EU taxonomy is extensive, so we have created an introductory course to give you an overview of the taxonomy and what it means for Norwegian businesses.

You can use the tools on the EU's own website – EU Taxonomy Compass – to explore how different activities are classified. We have developed our own tool in Norwegian to help you navigate the taxonomy.

When applying, we recommend that you provide robust evidence of your project's environmental and climate impacts. If you have carried out a life cycle assessment (LCA) or prepared a greenhouse gas inventory in line with GHG principles, you should attach it to your application. Alternatively, you can provide a simplified description and calculation of the climate impacts.

As part of the 'Green Deal' growth strategy, the EU adopted the Taxonomy Regulation in 2020. It became part of the EEA Agreement in December 2022. In Norway, the taxonomy entered into force under the Sustainable Finance Act in January 2023.

The taxonomy defines specific thresholds that economic activities must meet to be considered sustainable. Note that the taxonomy sets out reporting requirements, not environmental requirements. These requirements do not yet apply to small and medium-sized enterprises, but are still relevant to smaller companies because banks, investors and customers will request this information to meet their own reporting requirements.

Read more about the EU taxonomy