{"id":35043,"date":"2025-12-08T15:53:13","date_gmt":"2025-12-08T11:53:13","guid":{"rendered":"https:\/\/cue.edu.ge\/?post_type=articles&p=35043"},"modified":"2026-01-21T14:41:12","modified_gmt":"2026-01-21T10:41:12","slug":"comparative-analysis-of-sustainable-finance-taxonomies-georgia-and-the-european-union","status":"publish","type":"articles","link":"https:\/\/cue.edu.ge\/en\/articles\/comparative-analysis-of-sustainable-finance-taxonomies-georgia-and-the-european-union\/","title":{"rendered":"Comparative Analysis of Sustainable Finance Taxonomies: Georgia and the European Union"},"content":{"rendered":"

Malkhaz Dzadzua<\/strong><\/p>\n

Doctor of Economics, Assistant Professor, Central University of Europe<\/p>\n

malkhaz.dzadzua@unik.edu.ge<\/a><\/p>\n

Abstract<\/strong><\/span><\/p>\n

Sustainable Finance Taxonomies provide classification systems that define which economic activities can be considered environmentally and socially sustainable. They are essential tools for directing private or public capital flows, preventing green washing and ensuring comparability across financial markets.<\/p>\n

This paper compares the sustainable finance taxonomies of Georgia and the European Union (EU). While the EU Taxonomy is a science-based, legally binding classification system covering six environmental objectives, Georgia\u2019s Sustainable Finance Taxonomy adopts a broader approach by including both green and social finance categories. The paper highlights key similarities and differences, evaluates implementation challenges and discusses implications for convergence.<\/p>\n

The examples from selected Georgian commercial banks illustrate how the taxonomy is being applied in practice and what are the main challenges Georgian banks face when applying the Taxonomy in practice.<\/p>\n

The comparative analysis concludes that Georgia\u2019s sustainable taxonomy is innovative in its inclusion of social finance along with green finance, but requires further institutionalization and alignment with EU standards to attract international impact investments.<\/p>\n

Keywords<\/strong>: Sustainable Finance, Taxonomy Regulation, ESG, Green Finance, Social Finance.<\/p>\n

JEL<\/strong>: Q01, Q56, G21, G32<\/p>\n

DOI: <\/strong>10.52244\/c2025.2<\/p>\n

Article<\/strong><\/a><\/p>\n

References<\/strong><\/p>\n

Bank of Georgia. (2024). Sustainability Report. https:\/\/ramad.bog.ge\/s3\/BogGroup\/Sustainability-Report-2024.pdf<\/a><\/p>\n

D\u0103nil\u0103, A. et al. (2022). Good practices on ESG reporting in the context of the European Green Deal. Amfiteatru Economic Journal. Vol. 24, Iss. 61, pp. 847-860, https:\/\/www.econstor.eu\/handle\/10419\/281666<\/a><\/p>\n

Directive (EU) 2022\/2464 of the European Parliament and of the Council of 14 December 2022 as regards corporate sustainability reporting. Official Journal of the European Union. https:\/\/eur-lex.europa.eu\/eli\/dir\/2022\/2464\/oj\/eng<\/a><\/p>\n

Dzadzua, M. (2024). The role of commercial banks in promoting sustainable development. International Scientific Conference Proceedings. DOI: 10.52244\/c.2024.11.3<\/p>\n

Dzadzua, M. (2025). Building a Sustainable Financial Future: Exploring Georgia\u2019s path to green finance. Journal of Development Studies. No.1(5). DOI: 10.52340\/jds.2024.05.05.02<\/p>\n

European Commission. (2025). Sustainable Finance. https:\/\/finance.ec.europa.eu\/sustainable-finance_en<\/a><\/p>\n

Friede, G., Busch, T., Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210\u2013233. https:\/\/doi.org\/10.1080\/20430795.2015.1118917<\/p>\n

National Bank of Georgia. (2025). Sustainable Finance Roadmap. https:\/\/nbg.gov.ge\/en\/page\/sustainable-finance-roadmap-1<\/a><\/p>\n

National Bank of Georgia. (2022). Sustainable Finance Taxonomy for Georgia. https:\/\/nbg.gov.ge\/en\/page\/sustainable-finance-taxonomy<\/a><\/p>\n

National Bank of Georgia. (2022). Order \u2116 93\/04 Of the Governor of the National Bank of Georgia on Approval of Regulation on Loan Classification and Reporting according to the Sustainable Finance Taxonomy.<\/p>\n

Newtral. (2024). Financial vs. Impact Materiality: Understanding the Two Dimensions. https:\/\/newtral.io\/blogs\/article\/financial-vs-impact-materiality<\/a><\/p>\n

Regulation (EU) 2020\/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019\/2088. Official Journal of the European Union. https:\/\/eur-lex.europa.eu\/eli\/reg\/2020\/852\/oj\/eng<\/a><\/p>\n

Regulation (EU) 2019\/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability\u2010related disclosures in the financial services sector. Official Journal of the European Union. https:\/\/eur-lex.europa.eu\/eli\/reg\/2019\/2088\/oj\/eng<\/a><\/p>\n

Sustainable Banking and Finance Network, International Finance Corporation. (2024). Global Progress Brief 2024. https:\/\/www.sbfnetwork.org\/global-progress-brief-2024<\/a><\/p>\n

TBC Bank. (2024). Sustainability Report 2024. https:\/\/www.tbcbankgroup.com\/esg\/sustainability-reports<\/a><\/p>\n","protected":false},"featured_media":0,"template":"","meta":{"_acf_changed":false},"gonisdziebebi":[103],"class_list":["post-35043","articles","type-articles","status-publish","hentry","gonisdziebebi-2025-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/cue.edu.ge\/en\/wp-json\/wp\/v2\/articles\/35043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cue.edu.ge\/en\/wp-json\/wp\/v2\/articles"}],"about":[{"href":"https:\/\/cue.edu.ge\/en\/wp-json\/wp\/v2\/types\/articles"}],"wp:attachment":[{"href":"https:\/\/cue.edu.ge\/en\/wp-json\/wp\/v2\/media?parent=35043"}],"wp:term":[{"taxonomy":"gonisdziebebi","embeddable":true,"href":"https:\/\/cue.edu.ge\/en\/wp-json\/wp\/v2\/gonisdziebebi?post=35043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}