This brief examines the impact of the European Union’s Sustainable Finance Taxonomy Regulation and its Complementary Delegated Act (CDA) on global sustainable economic activity classification. It outlines the methodology, highlighting how countries were chosen and key principles, with a focus on fossil gas inclusion in the CDA.
The analysis results in three clusters:
- Canada, the UK, and South Korea are influenced by the EU regulation, with a direct link to the CDA and fossil gas inclusion.
- Russia, the Eurasian Economic Union (EAEU), Indonesia, and ASEAN have regional and national mechanisms, with some influence from the CDA.
- Colombia, Mexico, China, and South Africa base their mechanisms on the EU Taxonomy Regulation but not the CDA, excluding fossil gas.
The analysis underscores the EU’s role as a global model and the need for international forums to discuss this issue, such as the Conference of the Parties (COP).