The EU Taxonomy is a classification system developed by the European Union to define and categorize economic activities that contribute to environmental sustainability. It is intended to help investors, companies, and other stakeholders identify and evaluate environmentally sustainable investments and activities, as well as to provide guidance on how to measure and report on their environmental impact. The taxonomy is based on six key environmental objectives, including climate change mitigation and adaptation, sustainable use of water and marine resources, protection and restoration of biodiversity and ecosystems, pollution prevention and control, transition to a circular economy, and sustainable use of natural resources.