The EU Taxonomy in modeling

Summary

The document, an interim report from the German Environment Agency, addresses the challenge of quantifying the effectiveness of the EU Taxonomy in reorienting capital flows towards sustainable economic activities. It proposes and discusses methods for modeling this effectiveness, particularly a "Cost of capital" approach, and evaluates the alignment of existing net-zero GHG emission scenarios with the EU Taxonomy. The study is currently in progress, showing that more ambitious scenarios align better with the Taxonomy, but notes significant uncertainties due to methodological mismatches.

Key Facts

Source Document

https://example-government.gov/policy-document-link