Yes. This has potential, and it has positive impacts because it clarifies the ground rules.
It actually solves two problems, one of which is a coordination issue. Professor Damodaran discussed it. This causes people to use the same words and definitions, which isn't currently the case. As a result, when you refer to a green project, you understand what that means, and the same is true when you refer to a taxonomy. This can solve disclosure-related information problems by requiring people to disclose the degree to which they're aligned with the taxonomy's objectives.
However, that doesn't prevent the financing of certain activities.