EU Taxonomy & CSRD Alignment¶

Carbon Connect is built specifically for the EU carbon funding landscape. Our platform deeply integrates with the regulatory frameworks that shape European sustainability policy -- the EU Taxonomy, the Corporate Sustainability Reporting Directive (CSRD), the European Green Deal, and the Fit for 55 package.

This page explains what these frameworks are, why they matter, and how Carbon Connect supports compliance.

EU Taxonomy for Sustainable Finance¶

What It Is¶

The EU Taxonomy is a classification system that defines which economic activities qualify as "environmentally sustainable." It was created so that investors, banks, and companies can speak a common language about what counts as "green."

Why It Matters for Grant Matching¶

Many EU grants now require or prioritize activities that are taxonomy-aligned. Carbon Connect automatically classifies grants and company activities against the Taxonomy's six environmental objectives:

How Carbon Connect Supports It¶

Corporate Sustainability Reporting Directive (CSRD)¶

What It Is¶

The CSRD is the EU's mandatory sustainability reporting framework, expanding from approximately 11,000 companies under the previous rules to over 50,000 companies between 2024 and 2026. Companies subject to the CSRD must:

• Report on their environmental impact using standardized European Sustainability Reporting Standards (ESRS)
• Disclose Scope 1, 2, and 3 greenhouse gas emissions
• Explain their climate transition plans
• Describe their governance of sustainability matters

Why It Matters for Carbon Connect Users¶

The CSRD creates a dual opportunity:

1. Compliance need -- Companies now need tools to measure and report their carbon footprint. Carbon Connect's carbon profiling powered by Climatiq fills this need.

2. Funding access -- Many grants specifically support CSRD compliance activities. Companies that demonstrate they are working toward compliance become more eligible for sustainability funding.

How Carbon Connect Supports It¶

European Green Deal¶

What It Is¶

The European Green Deal is the EU's comprehensive strategy to make Europe the first climate-neutral continent by 2050. It underpins virtually all EU climate funding and includes initiatives across energy, transport, agriculture, industry, and finance.

How Carbon Connect Supports It¶

Grants in the Carbon Connect database are tagged with Green Deal alignment, meaning users can:

• Filter specifically for grants that support Green Deal objectives
• See which of their activities align with Green Deal priorities
• Prioritize applications to Green Deal-aligned programs, which often have larger budgets and higher success rates

The matching algorithm applies a 1.2x bonus to carbon-focused grants, many of which are directly linked to Green Deal implementation.

Fit for 55 Package¶

What It Is¶

The Fit for 55 package is the EU's set of legislative proposals to achieve a 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. It includes reforms to emissions trading, renewable energy targets, energy efficiency standards, and the Carbon Border Adjustment Mechanism (CBAM).

Why It Matters¶

Fit for 55 is driving a massive increase in carbon-related funding at both EU and national levels. Every member state must implement measures to contribute to the 55% target, creating new grant programs and expanding existing ones.

How Carbon Connect Supports It¶

Carbon Categories in the Platform¶

Carbon Connect classifies all grants and company activities across 14 carbon categories that span the full spectrum of the green transition:

Science Based Targets Initiative (SBTi) Integration¶

Companies committed to or validated by SBTi receive enhanced matching because:

• Many carbon grants prioritize companies with science-based targets
• SBTi commitment demonstrates serious decarbonization intent
• The platform tracks SBTi status as a certification: SBTi_COMMITTED or SBTi_VALIDATED
• The matching algorithm's carbon score component recognizes SBTi certification

How This Translates to Better Grant Matches¶

All of these regulatory frameworks feed directly into the matching algorithm:

flowchart LR
    A[Company Carbon Profile] --> D[Carbon Score<br>25% of Match]
    B[EU Taxonomy Alignment] --> D
    C[Certifications<br>SBTi, ISO 14001, CDP] --> D
    D --> E[Final Match Score]
    F[Grant Carbon Requirements] --> D
    G[Grant Taxonomy Objectives] --> D
    H[CSRD/Green Deal Tags] --> D

    style D fill:#059669,stroke:#047857,color:#fff
    style E fill:#0284c7,stroke:#0369a1,color:#fff

A company with a complete carbon profile, EU Taxonomy alignment, and relevant certifications will consistently receive higher match scores for the grants most likely to fund their specific decarbonization projects. This is the core value proposition of a carbon-first matching platform.