The EU Taxonomy Regulation imposes a binary, evidence-based compliance standard that transforms sustainable finance from voluntary labelling to legally binding technical verification. The Zero-Alignment Rule in Article 17 creates horizontal risk: a single Do No Significant Harm failure triggers total asset de-classification. Emerging enforcement actions, including the DWS Group precedents, establish Process Liability — scrutiny of internal governance failures rather than asset-level performance. The 2035 Fuel Switch requirement introduces Embedded Obsolescence for transitional gas assets. This dossier establishes the Green Bond Firewall: a multi-layered verification protocol designed to withstand regulatory invalidation and protect the legal integrity of green financial instruments.
David Yeoman (Thu,) studied this question.