To ensure transparency, the Commission will amend the Taxonomy Disclosure Delegated Act so that investors can identify if activities include gas or nuclear activities, and to what extent, so they can make an informed choice.
The 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.
The EU Taxonomy guides and mobilises private investment in activities
that are needed to achieve climate neutrality in the next 30 years. The
existing energy mix in Europe today varies from one Member State to
another. Some parts of Europe are still heavily based on high
carbon-emitting coal. The Taxonomy provides for energy activities that
enable Member States to move towards climate neutrality from such
different positions.
Taking account of scientific advice and current technological
progress, as well as varying transition challenges across Member States,
the Commission considers there is a role for natural gas and nuclear as
a means to facilitate the transition towards a predominantly
renewable-based future. Within the Taxonomy framework, this would mean
classifying these energy sources under clear and tight conditions (for
example, gas must come from renewable sources or have low emissions by
2035), in particular as they contribute to the transition to climate
neutrality.
In addition, to ensure transparency, the Commission will amend the
Taxonomy Disclosure Delegated Act so that investors can identify if
activities include gas or nuclear activities, and to what extent, so
they can make an informed choice.
The activities covered in this complementary Delegated Act would
accelerate the phase out of more harmful sources, such as coal, and in
moving us towards a more low-carbon greener energy mix.
As for the other activities under the Taxonomy Regulation, the
criteria for the gas and nuclear activities will be updated as
technology evolves.
Next steps
The Platform on Sustainable Finance and the Member States Expert
Group on Sustainable Finance must be consulted on all Delegated Acts
under the Taxonomy Regulation, given their expert role foreseen by the
Taxonomy Regulation. They will have until 12 January to provide their
contributions.
The Commission will analyse their contributions and formally adopt
the complementary Delegated Act in January 2022. It will be then sent to
the co-legislators for their scrutiny.
Similar to the first Climate Delegated Act, the European Parliament
and the Council (who have delegated the power to the Commission to adopt
this Delegated Act) will have four months to scrutinise the document,
and, should they find it necessary, to object to it. In line with the
Taxonomy Regulation, both institutions may request for additional two
months of scrutiny time. The Council will have the right to object to it
by reverse reinforced qualified majority (which means that at least 72%
of MS (i.e. at least 20 MS) representing at least 65% of the EU
population are needed to object to the Delegated Act), and the European
Parliament by a majority (i.e. at least 353 MEPs) in Plenary.
Once the scrutiny period is over and assuming neither of the
co-legislators object, the (complementary) Delegated Act will enter into
force and apply.
Commission
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