It's not the case. A taxonomy just creates a label.
If you want to issue a green bond, everybody knows what should be in a green bond. If you want to issue a transition bond, everybody knows what's in a transition bond. You might still want to issue a regular bond or a brown bond—call it whatever you like—but at least for these specific criteria, we know what it means. Everybody agrees on the criteria that must be met. This allows us to avoid this “disclosure diarrhea” that Mr. Damodaran mentioned.
This way, we're sure we're all playing by the same rules. We know what the words mean. If some people then want to invest in green, good for them. If some people want to keep traditional investment strategies, well, we won't say, “Good for them”, but they still have the opportunity to do it.
Anyway, it would be provincial regulators regulating these bonds at the end of the day. The taxonomy cannot achieve that in its current framework.