Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment (EU Taxonomy)

Creates the EU classification system for environmentally sustainable economic activities, with 'transition to a circular economy' as one of its six defined environmental objectives. By setting technical screening criteria that investments must meet to be labelled sustainable, it channels private capital and disclosure obligations toward circular activities such as recycling, re-use, durable design and secondary-raw-material use. The lever is financial: it steers investment flows rather than mandating product behaviour.