Green Taxonomy (K-Taxonomy)

Green Taxonomy (K-Taxonomy)

 

The green taxonomy (K-Taxonomy) refers to a system that divides private business activities into 'green' and 'non-green' according to the level of management activities such as low carbon.

 

The purpose is to make it clear to investors whether the financial product is a green investment target or not.

 

According to the draft green classification system, the government plans to select 81 sub-economic activities in a total of 10 sectors, including manufacturing (eco-friendly automobiles, low-carbon technology manufacturing, etc.), construction (low-carbon urban development, green remodeling, etc.), and transportation. Classification systems such as the European Union, ISO, and China are referred to.

 

The government is also planning to prepare technical standards for judging whether economic activities related to these fields fall under 'green' in stages.

 

In addition, in order to prevent so-called 'green washing', which claims to be eco-friendly management on the surface but is not, in reality, environmental laws that must be observed in each economic activity field are also planned to be specified. In fact, the EU is proposing environmental legislation on what to comply with.

 

After the pilot application of the green classification system in the second half of this year, the government plans to gradually adjust and supplement the classification system.