EFAMA position on EU taxonomy in view of trialogues
19 November 2019
The European asset management industry supports the EU’s political objective to fight climate change and meet the Paris agreement goals. EFAMA recognises the urgency and is committed to facilitate the capital flows needed to finance a transition to a sustainable economy.
A well-designed EU taxonomy has the potential to bring clarity on what constitutes sustainable investments, enhance comparability for investors and prevent green washing.
EFAMA‘skey recommendation in view of the ongoing trialogues are:
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Scope and purpose
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EU taxonomy regulation should serve as a reference framework for disclosures, without imposing any thresholds that would turn it into a label-providing regulation.
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The scope, especially regarding disclosure obligations (Art. 4), should be confined to sustainable investments contributing to an environmental objective as per sustainability related disclosures regulation.
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Transition activities should be properly included as they are key to enable a transition to a sustainable and circular economy.
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The taxonomy should be scientific and evidence-based, without any a priori exclusion at level 1 and respect a strict technologically neutral approach.
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Ensure effective supervision without creating unnecessary delays, market disruptions or hampering product innovation.
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Appropriate governance, competences, role, resources, structure and composition of the Platform on Sustainable Finance.
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Appropriate transition period and realistic implementation timelines.
Full position on EFAMA
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