The EU Taxonomy, a classification system, is an important voluntary market transparency tool that helps companies and investors identify environmentally sustainable economic activities to make sustainable investment decisions. Up to date, the EU Taxonomy includes 242 activities spanning across 16 economic sectors.
Under the Corporate Sustainability Reporting Directive (CSRD), companies have to report in their annual reports to what extent their activities are covered by the EU Taxonomy (Taxonomy-eligibility) and align with the criteria set in the Taxonomy Delegated Acts (Taxonomy-alignment).
Companies
In 2025, capital investments into Taxonomy-aligned activities amounted to €323.8 billion [1], bringing the cumulative reported value to €1.224 trillion of sustainable investments since 2021. Overall, Taxonomy-aligned investments continue to remain stable, following a steady upward trajectory over the years, with a slight increase in their share of total eligible investments. The utilities sector continued to account for the largest share, particularly through electricity providers (€168 billion).
| Year | Taxonomy-aligned CapEx | Number of reporting companies | % aligned CapEx for reporting companies | % of aligned CapEx out of total EU corporate investment [2] (EU population numerator) |
| 2022 | €219 billion | 1187 | 20.04% | 9.76% |
| 2023 | €308 billion | 1425 | 24.43% | 13.45% |
| 2024 | €324 billion | 1556 | 25.29% | 13.72% |
| 2025[3] | €324 billion | 1270 | 28.58% | 13.05 % |
Table 1: Taxonomy aligned capex as share of total over time | Source: Bloomberg
For the financial year 2025, companies located in The Netherlands have reported the highest Taxonomy-aligned investments relative to total corporate investment (20.2%), followed by Denmark (20%), Germany (18.6%) and Spain (15.58%).
Stable levels of Taxonomy-aligned CapEx, alongside evidence from company disclosures and stakeholder feedback[4], demonstrate the value of Taxonomy as a tool for showcasing investments in the transition to a more sustainable and resilient economy.
In 2025, reporting companies allocated an average of 28.58% of their capital investments towards sustainable activities under the EU Taxonomy. The highest investments were made in the utilities sector (51.8%), followed by manufacturing (26.8%) and transportation and storage sectors (10.2%).
In 2025, Taxonomy-aligned turnover (not shown in charts) reached a total of €913 billion, corresponding to 14.41% of the total turnover of reporting companies. Taxonomy-aligned operating expenditures (OpEx) reached a total of €71 billion, representing 12.69% of the total OpEx of reporting companies.
Banks & financial markets
Green Asset Ratio (GAR)The GAR shows the share of a bank’s covered assets that finance activities aligned with the EU Taxonomy. As such, it provides an indication of the extent to which a bank’s financing supports activities that meet the EU’s environmental sustainability criteria as laid down by the EU Taxonomy.
In 2025, the average Taxonomy-aligned GAR increased to 5.68%, compared with 2.8% in 2024[5]. This corresponds to €903 billion in taxonomy-aligned assets out of approximately €15.41 trillion in covered assets assessed for the GAR calculation (an increase compared with the €816 billion of 2024).
European Green BondsSince the European Green Bond (EuGB) Regulation came into effect in December 2024, market adoption has gained momentum. By the end of 2025, issuance reached €21 billion equivalent, followed by a further €39 billion year-to-date in 2026, bringing total issuance since the European Green Bond standard’s application to around €60 billion[6].
Issuer diversification has been strong. Corporates account for 51% of EuGB issuance volume, banks for 31%, and sovereign, supranational and agency (SSA) issuers for 18%.
Geographical diversification has also broadened, with issuers from 16 countries. Germany ranks first, accounting for 18% of market share, followed by the Netherlands (15%), Spain (12%), France (12%) and Italy (10%).
| Country | Number of issuers | Amount issued (EUR million eq.) | Market share |
|---|---|---|---|
| 🇩🇪 Germany | 6 | 10900 | 18% |
| 🇳🇱 Netherlands | 4 | 8992 | 15% |
| 🇪🇸 Spain | 4 | 7534 | 12% |
| 🇫🇷 France | 6 | 7220 | 12% |
| Supranationals | 1 | 7000 | 12% |
| 🇮🇹 Italy | 5 | 6100 | 10% |
| 🇧🇪 Belgium | 2 | 2125 | 4% |
| 🇸🇪 Sweden | 4 | 1955 | 3% |
| 🇩🇰 Denmark | 1 | 1780 | 3% |
| 🇳🇴 Norway | 2 | 1500 | 2% |
| 🇫🇮 Finland | 2 | 1000 | 2% |
| 🇵🇹 Portugal | 1 | 1000 | 2% |
| 🇨🇿 Czech Republic | 1 | 750 | 1% |
| 🇱🇻 Latvia | 2 | 720 | 1% |
| 🇦🇹 Austria | 1 | 700 | 1% |
| 🇱🇺 Luxembourg | 1 | 550 | 1% |
| 🇮🇪 Ireland | 1 | 500 | 1% |
| Totals | 44 | 60326 | 100% |
Table 2: Breakdown of EuGB market by country (ordered, highest to lowest issuance)
Issuance factsheets cover all environmental objectives and 73 economic activities of the EU Taxonomy, most of them linked to climate change mitigation (55). The most common activities are transmission and distribution of electricity, acquisition and ownership of buildings, and electricity generation using solar photovoltaic technology.
So far in 2026, EuGB issuance represented 15% of the European green bond market[7], demonstrating the Standard’s growing attractiveness to allocate significant private capital towards environmentally sustainable investments across the EU.
Notes
1. These figures are based on reporting by around 2,200 companies in scope of the Non-Financial Reporting Directive. “Reporting companies” are those disclosing positive values for Taxonomy-eligible key performance indicators (KPIs). The latest data relates to financial year 2025 and covers the EU, Norway, Switzerland and the UK. Figures may differ slightly from those published by the Platform on Sustainable Finance due to different data sources (Bloomberg and Morningstar) and sector classifications.
2. Total corporate investment” is measured by gross fixed capital formation (GFCF), in accordance with the European System of Accounts (ESA 2010). Source: Eurostat (ESA code P.51g)
3. Data collected up to 9 September 2026. Figures have been revised since the previous factsheet to reflect the latest available data. 2025 figures are expected to increase as further reporting becomes available and are not directly comparable with 2024 data published previously, mainly because utility and manufacturing holding companies are now assigned to their operating sectors rather than to financial and insurance activities.
4. Between December 2023 and September 2025, the Commission received over 795 suggestions through the Stakeholder Request. Mechanism, including requests for clarifications on existing activities and proposals of new activities. Public consultations on the EU
Taxonomy receive, on average, more than 400 responses from stakeholders across sectors of the economy.
5. The GAR is the percentage of Taxonomy-aligned assets relative to total covered banking book assets. Its increase is mainly due to a smaller denominator, largely reflecting the 2025 Omnibus I changes to the Taxonomy Disclosures Delegated Act, which exclude certain exposures to companies not subject to mandatory sustainability reporting.
6. Source: European Investment Bank (EIB) Sustainable Finance Unit, data up to 7 October 2026.
7. Green bond issuance from the European Economic Area (EEA).