EU Taxonomy Regulation TAXO-Art.1_2: Subject matter, scope and definitions (Taxonomy Articles 1-2)

Article 1 establishes the Regulation's purpose: to lay down the criteria for determining whether an economic activity qualifies as environmentally sustainable for the purposes of establishing the degree to which an investment is environmentally sustainable. Article 1(2) the Regulation applies to: (a) measures adopted by Member States or by the Union that set out any requirements for financial market participants or issuers in respect of financial products / corporate bonds that are made available as environmentally sustainable; (b) financial market participants that make available financial products; (c) undertakings subject to the obligation to publish a non-financial statement or a consolidated non-financial statement pursuant to NFRD Article 19a or 29a of Directive 2013/34/EU (replaced by CSRD). Article 2 contains 17 definitions including: (1) 'environmentally sustainable investment'; (2) 'financial market participant' (cross-referenced to SFDR Article 2(1)); (3) 'financial product' (cross-referenced to SFDR Article 2(12)); (5) 'climate change mitigation'; (6) 'climate change adaptation'; (8) 'pollutant'; (9) 'circular economy'; (10) 'pollution'; (15) 'ecosystem services'; (16) 'biodiversity'.