The European Green Deal is the Union's growth strategy [Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions: The European Green Deal (COM(2019) 640 final)]. It aims to transform the EU into a fair and prosperous society, with a modern, resource-efficient and competitive economy. The goals are to achieve no net emissions of greenhouse gases in 2050, protect the environment and health of Europeans, and achieve economic growth by the most efficient and sustainable use of natural resources. It also aims to protect, conserve and strengthen the EU's natural capital, and protect the health and well-being of the public from environmental risks.

Regulation (EU) 2020/852 of the European Parliament and of the Council [Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).] (the 'Taxonomy Regulation') aims to help channel capital towards activities that substantially contribute to reaching the objectives of the European Green Deal, such as climate neutrality and resilience, zero pollution, preservation of biodiversity and ecosystems, the transition to a circular economy and sustainable use of water and marine resources. By providing companies, investors and policymakers with definitions of economic activities that can be considered to be environmentally sustainable, the Taxonomy Regulation is expected to help direct investments in economic sectors where they are most needed for a fair green transition.