Global green taxonomy development, alignment, and implementation

The report examines the rise of green taxonomies as classification systems to identify sustainable economic activities and reduce greenwashing. It identifies three primary development approaches: whitelist-based, technical screening criteria (TSC) based, and principle-based. A central focus is the alignment between the EU and China taxonomies via the International Platform on Sustainable Finance (IPSF) and the Common Ground Taxonomy (CGT), which aims to facilitate cross-border green capital flows. The document details how these taxonomies are implemented by regulators for mandatory disclosure and by financial intermediaries for product development and risk management.

• Green taxonomies generally follow one of three methodological approaches: whitelist-based (listing specific green technologies), technical screening criteria (TSC) based (using technology-neutral thresholds to determine substantial contribution and 'do no significant harm'), or principle-based (defining core guiding principles).
• The EU and China taxonomies differ in their primary environmental focus and design; the EU initially focused on climate change adaptation and mitigation across six objectives, while China's system addresses broader pollution challenges and resource efficiency across three objectives.
• The International Platform on Sustainable Finance (IPSF) developed the Common Ground Taxonomy (CGT) to improve the interoperability of the EU and China frameworks, serving as a voluntary reference to reduce verification costs and facilitate cross-border green investment.
• Implementation of the EU taxonomy includes mandatory disclosure for large companies under the Non-Financial Reporting Directive (NFRD) regarding the proportion of turnover, CAPEX, and OPEX aligned with the taxonomy.
• In China, the Green Bond Endorsed Projects Catalogue (2021 Edition) provides a unified domestic definition for green bonds, making its application mandatory for onshore green bond issuance.

APA

Xu, X., Xie, W., & Deng, M. (2022). Global green taxonomy development, alignment, and implementation. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Global-Green-Taxonomy-Development-Alignment-and-Implementation.pdf

Chicago

Xu, Xiaoyun, Wenhong Xie, and Manshu Deng. Global green taxonomy development, alignment, and implementation. Climate Bonds Initiative, 2022. https://www.climatebonds.net/files/documents/publications/Global-Green-Taxonomy-Development-Alignment-and-Implementation.pdf.

Wikipedia

{{cite report |last1=Xu |first1=Xiaoyun |last2=Xie |first2=Wenhong |last3=Deng |first3=Manshu |title=Global green taxonomy development, alignment, and implementation |publisher=Climate Bonds Initiative |date=February 2022 |url=https://www.climatebonds.net/files/documents/publications/Global-Green-Taxonomy-Development-Alignment-and-Implementation.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{xu2022global, author = {Xu, Xiaoyun and Xie, Wenhong and Deng, Manshu}, title = {{Global green taxonomy development, alignment, and implementation}}, institution = {Climate Bonds Initiative}, year = {2022}, month = feb, url = {https://www.climatebonds.net/files/documents/publications/Global-Green-Taxonomy-Development-Alignment-and-Implementation.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }