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- While global warming is a reality that cannot be ignored, several jurisdictions have implemented measures to fight this systemic threat. Among these effective measures, the European Commission implemented the European Taxonomy Regulation which represents the first legal document providing a scientific-based and global definition of sustainable economic activities. Similarly, through its objective definition, the European Taxonomy aims to provide the financial market with a clear guidance to efficiently reallocate financial flows toward sustainable projects while preventing greenwashing. This thesis assesses the potential of the EU Taxonomy to provide a concrete impact to the financial market and puts forward proposals on how it could be enhanced to effectively contribute to the European environmental transition. In this regard, the study conducted several semi-structured interviews with experts in the sustainable finance sector. The interview scripts were then coded through a thematic approach to identify key themes that helped us answering our research question. Our findings conclude that the EU Taxonomy depicted a step forward in the sustainable finance area by disrupting sustainability reporting practices. More precisely, the regulatory and objective dimensions of the EU Taxonomy contribute to greater transparency toward sustainability performance within the financial market. Nevertheless, to foster the impact of the European Taxonomy, regulators should implement mandatory measures which would explicitly mandate organizations and financial actors to align on this classification system.