The Principles for Taxonomy Interoperability, launched by the Taxonomy Roadmap Initiative at a Pre-COP30 event in São Paulo, guide policymakers in developing sustainable finance taxonomies that are credible and comparable across borders. As over 50 taxonomies exist globally, interoperability is essential to facilitate cross-border investment and efficient capital allocation. The Principles provide common tenets for taxonomy design, governance, and implementation, enabling greater transparency and investor confidence. By fostering alignment between emerging and developed markets, interoperable taxonomies can mobilize the climate finance needed to achieve decarbonization, resilience, and the Paris Agreement goals.
The Principles for Taxonomy Interoperability were developed under the Taxonomy Roadmap Initiative to support policymakers and regulators in creating sustainable finance taxonomies that are both nationally relevant and globally comparable. Taxonomies define what qualifies as “green” or “sustainable,” providing clarity and transparency for investors, financial institutions, and regulators. However, the proliferation of more than 50 national and regional taxonomies has created challenges for consistency and cross-border investment. The Principles, launched at a Pre-COP30 event in São Paulo, offer a framework to enhance interoperability through common scientific baselines and governance practices. Their implementation can strengthen investor confidence, channel capital to projects with environmental and social benefits, and accelerate global progress toward the Paris Agreement objectives. The document underscores the need for international cooperation and leadership from the Global South to harmonize approaches while respecting regional contexts.
