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Electricity transmission and distribution under the EU Taxonomy
Grids are the quiet giant of Taxonomy alignment: infrastructure within the interconnected European electricity system qualifies broadly, on the logic that the system is on a decarbonisation trajectory and grid investment enables it. The main exclusions are direct connections to fossil generation, and the DNSH points are refreshingly specific: SF6 in switchgear, and biodiversity along routes.
Why this activity matters
Electrification is the backbone of the EU’s net-zero pathway, and it requires historic levels of grid investment: transmission expansion, distribution reinforcement, smart metering and interconnection. The Taxonomy accommodates this with a system-level approach: T&D infrastructure in the interconnected European system qualifies, rather than requiring line-by-line emissions arithmetic.
For network operators and infrastructure investors this is commercially significant: regulated grid CapEx programmes translate substantially into Taxonomy-aligned investment, feeding green bond frameworks and fund KPIs. The exceptions matter at the edges: infrastructure dedicated to connecting fossil-fuel generation does not qualify, and equipment choices (notably SF6-insulated switchgear) surface in DNSH.
What alignment requires
A system-level qualification with targeted exclusions. In summary:
| Area | What is required (summarised) |
|---|---|
| Interconnected system | T&D infrastructure and equipment within the interconnected European electricity system qualifies, reflecting the system’s decarbonisation trajectory; equivalent logic applies to systems meeting defined emissions trajectories. |
| Direct connections | Infrastructure dedicated to creating or expanding a direct connection to fossil-fuel electricity generation is excluded from qualification. |
| Enabling equipment | Smart metering, EV charging connections, storage interconnection and equipment increasing renewable hosting capacity qualify within the activity. |
Summarised for orientation; the assessment itself applies the full criteria text of the Delegated Acts as amended.
Where DNSH scrutiny falls
The signature grid item: SF6 in switchgear is a potent greenhouse gas; procurement policies and leakage monitoring are the standard evidence.
Route-level screening for overhead lines and substations: protected areas, bird collision measures, and vegetation management.
Network CRVA: storm, flood and heat resilience are material for long-lived linear assets.
Documentation that typically supports the assessment
- Programme or asset description within the interconnected system
- Confirmation no component is a dedicated fossil-generation connection
- SF6 policy, inventory and leakage monitoring data
- Route screening / EIA documentation for new lines
- Network climate resilience assessment
How Censatim assesses it
Grid assessments run at programme level as naturally as asset level: our questioning confirms the system qualification, screens for the fossil-connection exclusion, then covers the SF6 and route-level DNSH evidence. For regulated CapEx programmes, the output maps directly onto green financing framework categories.
Censatim is an expert-built EU Taxonomy assessment tool: describe the asset or activity in plain language, upload supporting documents, and answer a short set of targeted questions. The result is a criterion-by-criterion view with an In-line / Partial / Not aligned / Undetermined rating and a confidence level for each dimension. See the full methodology.
Frequently asked questions
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