The IPSF is, essentially, a collaboration between the EU and China to create a common Taxonomy, starting from the EU version perhaps but with a very strong lead by China.
It will be very interesting to see the evolution of that initiative and how it may collide with the EU internal debates on whether, for instance, Gas-Fired Power and Nuclear Energy are classified as Green activities in the Taxonomy and are not excluded under DNSH (Do No Significant Harm) principles!
|The Common Ground Taxonomy is…||The Common Ground Taxonomy is not…|
|– An analysis on approaches of the EU taxonomy and China taxonomy, and the methodology for comparing and identifying commonalities and differences between some features of the two taxonomies||– A legal documentation by the EU and China which entails requirement/obligation for either jurisdiction to change their taxonomy.|
|– An evolving tool that may help different actors to understand the types of activities that could be covered under the respective taxonomies within the scope of the comparison exercise||– A single taxonomy or exclusive definition of environmentally sustainable economic activities covering all environmental objectives, such as biodiversity, pollution prevention, etc.|
|– A technical document for voluntary reference by interested parties within the limits of the scope of the comparison exercise||– Covering all eligibility features or all activities in the EU and China taxonomies as explained in the instruction report.|
|– An analytical tool or reference for other jurisdictions to consider when developing their own taxonomies||– A proposal for international standards or legal document that imposes any global standard on other jurisdictions.|
The European Commission page to find all the information about the ISPF is here: https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance/international-platform-sustainable-finance_en