Beyond taxonomy design: new research explores what drives taxonomy uptake

Key highlights 

• New Climate Bonds research examines taxonomy uptake across 13 countries using a newly developed Taxonomy Uptake Index (TUI).  
• Financial incentives are the factor most strongly associated with taxonomy uptake in the study, with jurisdictions offering at least one material incentive achieving significantly higher uptake scores.  
• The research finds only a weak relationship between taxonomy age and market uptake, challenging the assumption that adoption naturally increases over time.  
• Countries with broader uptake tend to combine mandatory classification and reporting requirements with financial incentives and dedicated implementation support.  
• The report identifies five practical considerations for policymakers and taxonomy developers seeking to strengthen taxonomy uptake.  

 
London, 10 September, 10:00am BST: Climate Bonds Initiative today published Taxonomy Uptake: Used or Shelved? new research examining how taxonomies are being used in practice and what factors appear to support broader uptake across financial systems. 

As sustainable finance taxonomies continue to expand globally, much of the discussion has focused on taxonomy design, technical screening criteria and interoperability. This research looks beyond taxonomy design to ask a practical question: what happens once a taxonomy is in place? 

The study assessed 13 national taxonomies that had been operational for at least two years as of April 2026. Using a newly developed Taxonomy Uptake Index (TUI), the research analysed 46 indicators across policy integration, market signals, incentives and support, and visibility and guidance. 

The results reveal significant differences in uptake across jurisdictions. Mongolia, Bangladesh and South Korea recorded broader uptake, while Russia, Georgia, Colombia, Malaysia and Singapore demonstrated selective uptake. Mexico, Sri Lanka, Indonesia, Kazakhstan and South Africa were classified as having initial uptake. 

 
Financial incentives emerge as a key factor 

Among the variables examined, financial incentives showed the strongest association with overall taxonomy uptake. 

Financial incentives emerged as the strongest factor associated with taxonomy uptake. Jurisdictions offering at least one direct financial incentive recorded a mean TUI score of 23.7, compared with 7.6 among those without one. These incentives include interest-rate subsidies, credit guarantees, risk-weight reductions, cashback grants and below-market refinancing. 

The findings suggest that mandates can create the foundation for taxonomy use, but financial incentives can help turn that requirement into market activity. Mandatory classification and reporting make taxonomy use visible and measurable, while financial incentives can make taxonomy-aligned finance more commercially attractive. 

The research also challenges the assumption that uptake naturally increases over time. Taxonomy age showed only a weak relationship with market signals, suggesting that the policy, institutional and financial ecosystem surrounding a taxonomy may play a more important role than the length of time since publication. 

 
Beyond the taxonomy itself 

The report highlights the importance of a broader ecosystem supporting taxonomy implementation. Factors associated with stronger uptake include taxonomy-aligned retail and small or medium-sized enterprise products, dedicated financing facilities, implementation guidance and institutional arrangements that connect taxonomies to key financial decision-makers. 

At the same time, the research finds that no single factor guarantees success. Country experiences vary considerably, highlighting the importance of local market conditions, regulatory structures and implementation pathways.  
 
Matteo Bigoni, Head of Taxonomies, Climate Bonds Initiative, said: “A taxonomy sitting on a shelf does not change capital allocation. The real test is what happens after a taxonomy is launched. Our research shows that the countries seeing broader uptake are not simply those with older taxonomies, but those that have built the right conditions for them – particularly the right policy frameworks, regulatory requirements and practical market support. The message for policymakers is clear: publishing a taxonomy is not enough, it needs an ecosystem that gives the market a reason to use it.” 

 
Practical lessons for policymakers 

Drawing on both quantitative analysis and stakeholder interviews, the report identifies five practical considerations for policymakers and taxonomy developers: 

• Align taxonomy ownership with the channels through which capital flows.  
• Pair publication with mandatory classification and reporting.  
• Match technical requirements with market readiness.  
• Attach meaningful financial incentives.  
• Connect taxonomies with committed sources of capital.  

The research does not seek to measure climate impact or determine which taxonomy is "best". Instead, it focuses on understanding whether taxonomies are being used and what factors support their uptake. 

Read the full report here  

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For interviews and more information, please contact:    

Gabriel Carhart,  
Communications Specialist 
Climate Bonds Initiative   

info@climatebonds.net   

Notes for journalists:  

 
About Climate Bonds Initiative: Climate Bonds is the leading international non-governmental organisation mobilising global capital for climate action. We drive the growth of the green and sustainable debt market through science-aligned frameworks including our taxonomies and standards, our Certification, our data and insights, and our provision of expert policy and technical advice. More information on our website here.