EUSTAFOR input to the inception impact assessment of the Commission Delegated Regulation on Sustainable Finance – EU classification system for green investments

Following our previous feedback to the European Commission’s consultation related to the EU Taxonomy, EUSTAFOR continues providing input to the public consultation on the inception impact assessment of the Commission Delegated Regulation on Sustainable Finance – EU classification system for green investments. This initiative aims to create a classification system for sustainable economic activities (“taxonomy”) and focuses on the EU’s environmental objectives on climate change mitigation and adaptation.

EUSTAFOR shares the view that forests, sustainable forest management (SFM) and forest-based products have great potential to contribute to the climate mitigation and adaptation objectives and the climate neutrality objective enshrined in the EU Green Deal. EUSTAFOR welcomes the fact that forestry and SFM are subject to the EU Taxonomy. However, the way in which the latter embraces SFM requires further examination by the Commission and the Member States, with due consideration of the opinions of forest owners and managers.

Please view EUSTAFOR’s input here or on the European Commission’s website.

The Council has adopted the regulation setting out the EU-wide classification system, or “taxonomy”, which will provide businesses and investors with a common language to identify those economic activities which are considered environmentally sustainable. For the next step, the regulation needs to be adopted by the European Parliament at a second reading before it can be published in the Official Journal and enter into force.