A first delegated act on reporting obligations of companies was adopted on 6 July 2021. WebLEGAL ELEMENTS OF THE DELEGATED ACT. This Delegated Act specifies the content, methodology and presentation of information to be disclosed by financial and non-financial undertakings concerning the proportion of environmentally sustainable economic activities in their business, investments or lending activities. A first delegated act on reporting obligations of companies was adopted on 6 July 2021. The IPCC AR6 report and the IEA Net-Zero Roadmap have shown that the EU emissions budget has no room for new, unabated fossil gas. EU Taxonomy The public consultation launched in May 2020 by the EU on its Renewed Sustainable Finance Strategy (RSFS) to which more than 600 actors have participated revealed 58% of respondents believe that Major additional policy actions are needed to accelerate the systematic sustainability transition of the EU financial sector. However, there are still mixed positions on a number of topics including the usability of the EU Taxonomy for the public sector or for EU-level public spending frameworks. It now sets the criteria for Climate Change Mitigation and Adaptation objectives in more than 60 economic activities. The public consultation launched in May 2020 by the EU on its . Except for professional, scientific & technical and for financial and insurance activities, there is a unique technical screening criterion for substantial contribution to climate change adaptation for the 98 activities assessed. The Commission launched an educational and user-friendly website the EUtaxonomynavigator- offering a series of online tools to help users better understand what the EUtaxonomy is in a simple and practical manner, which activities/sectors and technical screening criteria are covered, and how the reporting obligations work in practice. Publication of a Complementary Climate Delegated Act in the Official Journal, including, under strict conditions, specific nuclear and gas energy activities in the list of economic activities covered by the EU taxonomy. Amendments to add economic activities to the list of those substantially contributing to the objectives of climate change mitigation and adaptation, and to clarify the reporting obligations for the additional activities. The criteria for the specific gas and nuclear activities are in line with EUclimate and environmental objectives and will help accelerate the shift from solid or liquid fossil fuels, including coal, towards a climate-neutral future. The tool allows users to navigate easily through the contents of the Climate Delegated Act. Any reference to a financial organisation or debt instrument or investment product is for information purposes only. The focus of this briefing is the two delegated acts determining which activities should be considered as sustainable and contributing to the fight against climate change, and be reported as such. One notices that the EU is sparing no effort to support transition action towards sustainable growth, balancing social, economic and environmental sustainability. Last Thursday the EU Taxonomy Regulation became law when its final review period expired. The Commission adopted on 13June2023 a new package that builds on and strengthens the foundations of our sustainable finance agenda. The European Commissions adoption of the Taxonomy is a welcome sign that the EU is taking its climate commitments seriously. Mandate of the High-level expert group on sustainable finance. WebBy June 2021, the Commission will complement the recently adopted Taxonomy Regulation with a Delegated Act setting forth requirements for undertakings subject to the NFRD (i.e. Frequently asked questions: What is the EUtaxonomy Article8 delegated act and how will it work in practice? The use cases of the Taxonomy are manifold, as exemplified by the French governement, which plans to use the EU classification for its public export climate supporting mechanism (see our article this month). Moreover, the adaptation solutions implemented should not adversely affect the adaptation efforts of other economic activities; favour nature-based solutions or rely on blue or green infrastructure, are consistent with local, sectoral, regional or national adaptation efforts and are measured against pre-defined indicators. Adoption of a Delegated Act for economic activities substantially contributing to the objectives of. WebCOMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS EU Taxonomy, Corporate Sustainability Reporting, Sustainability Preferences and Fiduciary Duties: Directing finance towards the European Green Deal COM/2021/188 TheTaxonomy Regulationentered into force on 12July2020. The reports and these reviews will inform the Commissions decision making. Delegated Different means can be required for an activity to make a substantial contribution to each objective. Factsheet: How does the EUTaxonomy fit within the sustainable finance framework? We have provided feedback to the European Commissions (EC) draft delegated act on the first set of European Sustainability Reporting Standards (ESRS). The Club of Rome is calling for the taxonomy to support global climate goals and not allow progress to be undermined by national interests. It helps direct investments to the economic activities most needed for the transition, in line with the European Green Deal objectives. WebDelegated act - Climate. WebA first delegated act on reporting obligations of companies was adopted on 6 July 2021. First mandate of the Platform on Sustainable Finance. Factsheet: Sustainable finance: Investing in a sustainable future, Factsheet: EUtaxonomy accelerating sustainable investments, Factsheet: Sustainable finance package of April 2021. C(2021)2800 WebBy June 2021, the Commission will complement the recently adopted Taxonomy Regulation with a Delegated Act setting forth requirements for undertakings subject to the NFRD (i.e. The scientific report does not imply a policy position of the European Commission. Sustainable finance. WebCOMMISSION DELEGATED REGULATION (EU) / amending Delegated Regulation (EU) 2021/2139 as regards economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities C/2022/0631 final Expand all Collapse all Languages and formats available BG ES CS DA DE It uses a science-based approach consistent with Europes 2030 targets. Taking a technology agnostic approach, the Taxonomy implements a key recommendation of the EUs Technical Expert Group on Sustainable Finance: an electricity generation threshold of 100g CO2e/kWh, declining every three years until 2050. Sustainable finance package Then, the EUs sustainable finance agenda could better consider and encourage the transition of the European economy. EUR-Lex - 52021DC0188 - EN - EUR-Lex Delegated The right to adopt delegated acts is provided for under Articles 10(3) and 11(3) of the Taxonomy Regulation. The delegated act applies as of January2023. The EU Taxonomy Climate Delegated Act aims to support sustainable investment by making it clearer which economic activities most contribute to meeting the EUs environmental objectives. To achieve this, a common language and a clear definition of what is sustainable is needed. WebThe EU Taxonomy: Natural gas and nuclear power are not sustainable investments On 1 December 2021, the European Commission is expected to publish the supplementary EU Taxonomy Climate Delegated Act. Taxonomy A qualifying activity must: 1 Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a In this regard, we urge the Commission to recognise the immense journey it is asking companies to embark on as they adapt to the new reporting requirements. The European accountancy profession calls the EC to: align the ESRS with the International Sustainability Standards Boards standards before adopting the delegated EU taxonomy It does not reflect the creditworthiness of the issuer or the designated debt or other green financing. The Commission also adopted six amending Delegated Acts on fiduciary duties, investment and insurance advice will ensure that financial firms, e.g. The focus of this briefing is the two delegated acts determining which activities should be considered as sustainable and contributing to the fight against climate change, and be reported as such. The Taxonomy, a common language for sustainable activities, gives investors, issuers, governments, and regulators confidence in green investment. objectives economic activity causes no significant harm to any delegated act delegated acts On 2 February 2022, the Commission approved in principle a Complementary Climate Delegated Act including, under strict conditions, specific nuclear and gas energy activities in the list of economic activities covered by the EU taxonomy. This legal text specifies the technical screening criteria under which specific economic activities qualify as contributing substantially to climate change mitigation andadaptation and for determining whether those economic activities cause significant harm to any of the other relevant environmental objectives. The focus of this briefing is the two delegated acts determining which activities should be considered as sustainable and contributing to the fight against climate change, and be reported as such. On 27 June2023, the Commission adopted a Taxonomy Environmental Delegated Act, including a new set of EUtaxonomy criteria for economic activities making a substantial contribution to one or more of the non-climate environmental objectives, namely: sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control and protection and restoration of biodiversity and ecosystems. The By enabling investors to re-orient investments towards more sustainable technologies and businesses, these measures will be instrumental in making Europe climate neutral by2050. Sustainable finance. - 5-minute read - On November 20, 2020 the European Commission published the long-awaited Draft Delegated Act under the Taxonomy Regulation[1], on climate change mitigation and climate change adaptation.This legal text specifies the technical screening criteria under which specific economic activities qualify as contributing All Rights Reserved, Sector Criteria Available for Certification, Location Specific Criteria for Commercial Buildings, Location Specific Criteria for Residential Buildings & Calculator, Forestry, Land Conservation and Restoration, Accelerating the Fossil Gas Transition to Net Zero, InfraInvest: Sustainable Infrastructure for Brazil, Investor Roadshow for Brazils New Economy, The Green Bond Endorsed Project Catalogue 2021 Edition, Hong Kong Green Bond Market Briefing 2019, Comparing Chinas Green Definitions with the EU Sustainable Finance Taxonomy (Part 1), Social & Sustainability Bond Database Methodology, Green Infrastructure Investment Opportunities, Transition Finance for Transforming Companies, Standard & Certification Newsletter Archive. WebThe European Commission began consultations yesterday with the Member States Expert Group on Sustainable Finance and the Platform on Sustainable Finance on a draft text of a Taxonomy Complementary Delegated Act covering certain gas and nuclear activities. [emailprotected] EU taxonomy - 5-minute read - On November 20, 2020 the European Commission published the long-awaited Draft Delegated Act under the Taxonomy Regulation[1], on climate change mitigation and climate change adaptation.This legal text specifies the technical screening criteria under which specific economic activities qualify as contributing A recent draft text for the European Council meeting states that 55% cut to 1990 levels of emissions would be delivered collectively, taking into account national circumstances. On 13 June 2023, the Commission approved in principle a Taxonomy Environmental Delegated Act including a new set of EU taxonomy criteria for economic activities making a substantial contribution to one or more of the non-climate environmental objectives, namely: sustainable use and protection of water and marine resources, On November 20, 2020 the European Commission published the long-awaited Draft Delegated Act under the Taxonomy Regulation[1], on climate change mitigation and climate change adaptation. COVER NOTE DELACT 90 CCG 21 DRS 37 AGRIORG 79 Taxonomy This Communication builds on the transition finance report adopted by the Platform on Sustainable Finance in March2021. France maps green and brown expenses over 2021 budget proposal auspicious developments for climate change mainstreaming and sustainable finance, Frances strategy on export financing: a stick and carrot approach with fossil fuels funding phasing out and a supporting factor for EU Taxonomy compliant activities, Natixis 2022 - This website includes all information about Natixis CIB, The European Commission released draft Delegated Act of the Taxonomy criteria, On November 20, 2020 the European Commission published the long-awaited Draft, An annex for climate change mitigation objective (Annex I - 233 pages), An annex for climate change adaptation objective (Annex II - 281 pages), Compared to the TEGs March 2020 report (see our report , Meanwhile, several thresholds still need to be completed with . We have provided feedback to the European Commissions (EC) draft delegated act on the first set of European Sustainability Reporting Standards (ESRS). The European Commission must now continue this strong approach as it develops the rest of the Taxonomy. delegated act As a first step, the Joint Research Centre the in-house science and knowledge service of the Commission drafted a technical report on the do no significant harm aspects of nuclear energy. advisers, asset managers or insurers, include sustainability in their procedures and their investment advice to clients. nor does confirm compliance with national or international laws. European Commission Second mandate of the Platform on Sustainable Finance. Taxonomy Delegated Act clears Council EU taxonomy The power of the Taxonomy rests in its ability to provide a common understanding of Paris-aligned action. Nevertheless, we question whether the draft Delegated Act (DA) on Article 8 in its current version is fit for purpose. The EUs action on sustainable finance is ambitious[3] and the EU Taxonomy is undoubtedly at the core of its strategy. EU taxonomy The focus of this briefing is the two delegated acts determining which activities should be considered as sustainable and contributing to the fight against climate change, and be reported as such. EU Moreover, as far as we know, the information for the period 2021-2026 is not yet available on such EU-ETS performances, and it is unclear when it will be [2]. This provides clear guidance to the electricity sector on how to align with net-zero and has been replicatedin other national taxonomies. To make it easier to use the EU Taxonomy, the Commission launched an IT tool on the EUtaxonomy for sustainable activities (the EUTaxonomyCompass). EU taxonomy [1] See the European Commission press release here (Nov. 2020). This site is managed by the Directorate-General for Financial Stability, Financial Services and Capital Markets Union, Implementing and delegated acts - Taxonomy Regulation, Expert groups, comitology and other committees, Supplementary supervision of financial conglomerates, International Platform on Sustainable Finance, Equivalence of non-EU financial frameworks, educational and user-friendly website the EUtaxonomynavigator-, Text of the Environmental Delegated Act and amending the Disclosures Delegated Act, AnnexI: Sustainable use and protection of water and marine resources, AnnexII: Transition to a circular economy, AnnexIII: Pollution prevention and control, AnnexIV: Protection and restoration of biodiversity and ecosystems, AnnexV: Amendments to Annex I, II, III, IV, V, VI, VIII and X of the Disclosures Delegated Act, AnnexVI: Revised Annex VI of the Disclosures Delegated Act, AnnexVII: Revised Annex VIII of the Disclosures Delegated Act, Register of delegated acts: Translations of the Environmental Delegated Act and its annexes, Register of delegated acts: Translations of the Climate Delegated Act and its annexes, Commission Staff Working Document accompanying the Environmental and Climate Delegated Acts, Timeline of the delegated acts and stakeholder's feedback, Text of the Commission Delegated Regulation (EU) 2022/1214 of 9March2022 amending Delegated Regulation (EU) 2021/2139 as regards economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities, Factsheet: EUtaxonomy accelerating sustainable investments, technical report on the do no significant harm aspects of nuclear energy, Group of Experts on radiation protection and waste management under Article31 of the Euratom Treaty, Scientific Committee on Health, Environmental and Emerging Risks, SCHEER review of the JRC report on technical assessment of nuclear energy with respect to the do no significant harm criteria of Regulation (EU) 2020/852, Opinion of the Group of Experts referred to in Article 31 of the Euratom Treaty on Joint Research Centres report technical assessment of nuclear energy with respect to do no significant harm criteria of Regulation (EU) 2020/852, Text of the Commission Delegated Regulation (EU) 2021/2178 of 6July2021 supplementing Regulation (EU) 2020/852 by specifying the content and presentation of information to be disclosed by undertakings subject to Articles19a or29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation, Staff working document accompanying the Delegated Regulation supplementing Regulation (EU) 2020/852 by specifying the content and presentation of information to be disclosed by undertakings subject to Article19a or29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation.