EU Taxonomy in Agriculture

This article explores the integration of agriculture within the framework of the EU taxonomy, a key initiative under the European Green Deal aimed at achieving climate neutrality by 2050. The EU taxonomy is a classification system for environmentally sustainable economic activities, requiring businesses to demonstrate significant contributions to at least one of six environmental objectives, including climate change mitigation, biodiversity restoration, and pollution prevention, without causing harm to others. Agriculture, as a critical sector, has a unique role in meeting these objectives due to its significant environmental impact and potential for sustainability.

To be considered environmentally sustainable under the taxonomy, agricultural activities must meet strict technical screening criteria that ensure positive environmental outcomes. These criteria cover climate change adaptation, water management, and soil protection. Activities such as perennial and non-perennial crop production, livestock farming, forestry logging, and fishing are included, while certain practices, like greenhouse farming and insect farming, remain excluded or under review. Sustainable practices like grazing in biodiversity-beneficial habitats and avoiding synthetic chemicals further qualify agricultural activities for inclusion.

Despite agriculture's growing presence in the taxonomy, its representation remains limited compared to other sectors. However, the framework's evolving annexes are beginning to incorporate more agricultural activities, emphasizing their capacity for carbon sequestration, biodiversity conservation, and greenhouse gas reduction.

The article also highlights the role of food and beverage manufacturers in selecting sustainably sourced ingredients and the importance of biodiversity-rich farming practices. Finally, it introduces Celsia, a platform offering EU taxonomy compliance solutions to streamline sustainability assessments for businesses, enabling them to align with green finance systems efficiently.