International Platform Sustainable Finance Common Ground Taxonomy Instruction Report

The International Platform Sustainable Finance (IPSF) Common Ground Taxonomy (CGT) Instruction Report (November 2024) provides a technical comparison between the sustainable finance taxonomies of the European Union (EU) and China. The report identifies areas of commonality and divergence to enhance the interoperability of green finance standards, aiming to reduce trans-boundary costs for green investments and scale up international green capital mobilization.

• The third version of the Common Ground Taxonomy (CGT) identifies 96 shared activities between the EU and China taxonomies, consisting of 76 climate mitigation activities and 20 activities contributing to other environmental objectives.
• The CGT analysis focuses exclusively on 'substantial contribution' criteria for climate change mitigation and four other environmental objectives: pollution prevention and control, transition to a circular economy, sustainable use and protection of water and marine resources, and protection and restoration of biodiversity and ecosystems.
• The report explicitly excludes certain eligibility features from its current scope, specifically the 'Do No Significant Harm' (DNSH) criteria, minimum social safeguards, and climate change adaptation activities.
• The CGT employs a six-scenario methodology to categorize the overlap between EU and China criteria, ranging from clear overlaps (Scenario 1) and varying levels of stringency (Scenarios 2 and 3) to identifiable overlap (Scenario 4) and unclear overlap or obvious divergence (Scenarios 5 and 6).
• To ensure a neutral comparison, the IPSF used the International Standard Industrial Classification of All Economic Activities (ISIC) Rev. 4 as the international reference classification for mapping activities.
• The EU Taxonomy is a list of activities usable by any entity, with mandatory applications for EU Member States, certain financial market participants, and large/listed companies under the Corporate Sustainability Reporting Directive (CSRD).
• The China Taxonomy, specifically the Green Bond Endorsed Projects Catalogue (2021 Edition), is mandatory for all green bond issuers, including financial institutions, corporations, state-owned enterprises, and regulatory agencies.
• The EU Taxonomy alignment process requires a three-step verification: substantial contribution to an environmental objective, adherence to 'Do No Significant Harm' (DNSH) criteria, and meeting minimum social safeguards.
• The China Taxonomy utilizes a 'white list' approach, where activities are eligible only if they are explicitly included in the list and meet specific conditions, including alignment with the Green Industry Guiding Catalogue (2019 Edition).
• The IPSF has expanded the CGT framework to include other jurisdictions, beginning with a comparison of the Singapore-Asia Taxonomy against the EU and Chinese taxonomies in a separate 'Multi-jurisdiction Common Ground Taxonomy' report.

APA

Climate Bonds Initiative (2024). International Platform Sustainable Finance Common Ground Taxonomy Instruction Report. https://www.climatebonds.net/files/documents/241113-common-ground-taxonomy-instruction-report_en.pdf

Chicago

Climate Bonds Initiative. International Platform Sustainable Finance Common Ground Taxonomy Instruction Report. 2024. https://www.climatebonds.net/files/documents/241113-common-ground-taxonomy-instruction-report_en.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=International Platform Sustainable Finance Common Ground Taxonomy Instruction Report |date=November 2024 |url=https://www.climatebonds.net/files/documents/241113-common-ground-taxonomy-instruction-report_en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2024international, author = {{Climate Bonds Initiative}}, title = {{International Platform Sustainable Finance Common Ground Taxonomy Instruction Report}}, institution = {Climate Bonds Initiative}, year = {2024}, month = nov, url = {https://www.climatebonds.net/files/documents/241113-common-ground-taxonomy-instruction-report_en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }