Climate Bonds Initiative welcomes the adoption of EU Taxonomy Regulation by the European Council

 

Climate Bonds Initiative welcomes the adoption of EU Taxonomy Regulation 
by the European Council

Brussels 09/12/2022 12:00 CET: The Council’s review period for the European Union’s Taxonomy for Sustainable Finance expired at midnight last night. The Taxonomy Regulation First Delegated Act on sustainable activities for climate change adaptation and mitigation will enter into force from 1 January 2022.

The Taxonomy supports sustainable investments by making it clear which economic activities contribute to meeting the EU’s environmental objectives. The first Delegated Act sets the criteria for Climate Change Mitigation and Adaptation objectives in 60+ economic sectors.  

Sean Kidney, CEO Climate Bonds Initiative: 

“The EU Taxonomy provides a clear common language on what is a green investment. The approval of this Delegated Act brings the two vital objectives of climate mitigation and adaptation into force.” 

The EU Technical Expert Group (TEG) on sustainable finance, of which Sean Kidney was a member, developed recommendations for technical screening criteria for economic activities that make a substantial contribution to climate change mitigation and adaptation. The TEG proposed science-based thresholds to align the EU Taxonomy with the Paris Agreement and enable the EU to meet its 2050 net zero goal. 

The adoption of many of these important thresholds into the Delegated Act have ensured the Taxonomy is seen as a credible and scientific assessment of economic activities’ Paris alignment. 

One of the cornerstone thresholds of the Delegated Act is the 100g CO2e/kWh declining threshold for electricity generation. This provides clear guidance to Europe’s electricity sector on how to align their activities with net zero, and has been replicated in other national taxonomies. 

Maintenance of this clear definition of green electricity generation will be important for the continued scientific credibility of the EU Taxonomy. 

The Platform on sustainable finance is continuing the work of the TEG and developing criteria for the remaining four objectives of the Taxonomy Regulation; water, circular economy, pollution, and biodiversity, alongside work on Taxonomy usability and extension to social criteria and significantly harmful and low impact activities. 

 

<ENDS>

 

Contact Information:

Leena Fatin,
Senior Communications & Digital Manager, 
Climate Bonds Initiative (London).
+44 (0) 7593 320 198 

 

Communications Officer,
Climate Bonds Initiative (London).
+44 7546 645 591

 

About Climate Bonds Initiative: is an investor-focused not-for-profit, working to mobilise global capital for climate action. It undertakes advocacy and outreach to inform and stimulate the market, provides policy models and government advice, and administers the Climate Bonds Certification Scheme. For more information, please visit www.climatebonds.net.

 

Ends

 

-------------------------------------------------------------------

Disclaimer: The information contained in this communication does not constitute investment advice in any form and the Climate Bonds Initiative is not an investment adviser. Any reference to a financial organisation or debt instrument or investment product is for information purposes only. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.

The Climate Bonds Initiative is not endorsing, recommending or advising on the financial merits or otherwise of any debt instrument or investment product and no information within this communication should be taken as such, nor should any information in this communication be relied upon in making any investment decision.

Certification under the Climate Bond Standard only reflects the climate attributes of the use of proceeds of a designated debt instrument. It does not reflect the credit worthiness of the designated debt instrument, nor its compliance with national or international laws.
A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind, for any investment an individual or organisation makes, nor for any investment made by third parties on behalf of an individual or organisation, based in whole or in part on any information contained within this, or any other Climate Bonds Initiative public communication.