The Taxonomy – alongside the Sustainable Finance Disclosure Regulation (the SFDR) and the Low Carbon Benchmarks Regulation – forms one of the pillars of the European Commission’s sustainable finance and climate change agenda. The Taxonomy aims to facilitate the EU’s goal to become carbon neutral by 2050 and achieve the UNSDGs. By providing a tool that harmonizes the understanding of sustainable finance across the EU countries and businesses, it aids investors to redirect capital into “green” projects and businesses.