EU Taxonomy uptake is accelerating — and the signal for capital markets is getting clearer

Feb 13 / PATRICIA JOYCE N

The EU Taxonomy was built to solve a practical market problem: make sustainability claims comparable, and auditable—so capital can move faster toward activities that materially support net-zero and broader environmental objectives. Recent “on the ground” uptake data shows that this is increasingly happening.
At the same time, the EU Commission is moving to reduce reporting burden (via a Delegated Act under the Sustainability Omnibus package) and simplified technical screening criteria through a review of the Climate and Environmental Delegated Acts—an explicit recognition that usability drives real-world adoption.


Taxonomy-aligned CapEx reached €273bn in 2024, bringing the three-year total (2022–2024) to €742bn.  These figures are based on the reporting by companies in the scope of the Non-financial Reporting Directive, estimated to be around 2200. This calculation considers companies reporting non-zero values for taxonomy eligible capital expenditures (CapEx).


The reported distribution shows a heavy tilt toward enabling infrastructure and industrial transition, led by: electricity, gas, steam & air conditioning supply (44%) and manufacturing (26%), with smaller shares in professional/technical activities, financial services, transport, construction, and wholesale/repair. Country reporting also points to where large-scale aligned investment is currently concentrated: for FY2024, companies located in Germany reported €80bn of Taxonomy-aligned investments, followed by France (€51bn), Italy (€36bn), and Spain (€29bn).

Two signals are particularly useful:

A. Persistence = institutionalization.

Taxonomy is moving beyond first-cycle compliance into repeatable capital planning and governance routines —the foundations of credible transition execution. 90% of aligned CapEx value in 2024 came from companies (437) reporting some level of CapEx alignment in each of the past three years.

B. Pipeline growth = where the next wave of alignment will come from

In banking, the most instructive trend is the increase in Taxonomy-eligible assets (the “in-scope” pipeline): €1.7tn (2022) to €7.4tn (2024). Eligibility is not alignment—but it indicates counterparties increasingly operate in activities the Taxonomy can “see,” which is a prerequisite for scaling aligned finance. Converting the eligible portfolio into alignment depends on whether clients can demonstrate thresholds, DNSH, safeguards, and evidence—so banks’ competitive advantage increasingly shifts from “having a green product” to “financing verifiable alignment. This entails:

(1) Prioritise sectors showing strong alignment momentum (e.g., utilities and manufacturing in the EU data) while using eligibility signals to identify the next bankable pipeline.


(2) Invest in counterparty data collection and use-of-proceeds governance, because aligned balance sheets require evidence, not narratives.


Forward view: what to watch into 2026

If simplification reduces friction as intended, expect:
(1) broader and higher-quality reporting participation,
(2) faster eligible → aligned conversion, and
(3) more pricing differentiation between “transition-ready” and “transition-opaque” borrowers and issuers—especially where capex plans can be evidenced and assured.
Empty space, drag to resize
DEEPEN YOUR  KNOWLEDGE

Advance your expertise—enrol in the Executive Certificate in Sustainable Finance.

Enrol by 20 February 2026 to secure 80% OFF
Plus unlimted Access to our Springer Nature Collection

PAY USD 30  (150)