Clarification still needed to make EU taxonomy a reality

The EU taxonomy is becoming ever more important in Germany both from the banking and asset management points of view.

“While you don’t really see it much in the product documentation that there’s actually a taxonomy quota, it still is a topic, especially for our clients,” said PwC Deutschland’s head of real asset financial services Sebastian Kreutel.

He explained that clients want to know what the taxonomy means and what they need to do to become aligned with it.

In particular, there are questions concerning sections 7.1 and 7.7 of the taxonomy which cover the construction and acquisition of buildings. “There is still some uncertainty and on how to interpret it,” Kreutel said.

Politicians are still functioning at a different and more general level than market participants who are concerned about how to put it all into action.

There are still unanswered questions, and Kreutel said it is important to have more discussion about interpreting the taxonomy and developing a strategy to achieve standardisation of the topic in order to put it into action and create assets that can be showcased as taxonomy aligned and taxonomy compatible.

Please click on the video above to watch the full interview or listen to the podcast below.