EU Taxonomy Regulation
Taxonomy: Article 3 Criteria for Environmentally Sustainable Economic Activities

EU Taxonomy Regulation TAXO-Art.4: Use of the criteria in public measures, standards and labels (Taxonomy Article 4)

Article 4 obliges Member States and the Union to apply the criteria for environmentally sustainable economic activities set out in Article 3 for the purposes of: (a) any measure setting out requirements for financial market participants or issuers in respect of financial products / corporate bonds that are made available as environmentally sustainable; (b) the EU Green Bond Standard (Regulation (EU) 2023/2631 EuGB Regulation) and its labelling requirements. Article 4 creates the legal anchor connecting the Taxonomy criteria to the broader EU sustainable finance product-labelling regime: EU GBS-issuer of a bond labelled as European Green Bond (EuGB) must allocate at least 85% of the proceeds to Taxonomy-aligned economic activities; the remaining 15% can be allocated to activities pending TSC publication subject to a 'do no significant harm' commitment.

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