The European Commission has begun consultations with the Member States Expert Group 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
The EU Taxonomy is a robust, science-based transparency tool for companies and investors. It creates a common language that investors can use when investing in projects and economic activities that have a substantial positive impact on the climate and the environment. It will also introduce disclosure obligations on companies and financial market participants.
The Taxotomy 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, and 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. 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.
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
Taxonomy Disclosure Delegated Act
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.
The activities covered in the Delegated Act of the EU Taxonomy would accelerate the phase out of more harmful sources, such as coal
The next steps
- The Platform on Sustainable Finance and the Member States Expert Group on Sustainable Finance will be consulted on al Delegated Acts under the Taxonomy regulation and provide their contributions by 12 January.
- The Commission will analyse these contributions and make the Complementary Delegated Act official in January 2022.
- The European Parliament and Council will have four months to scrutinise the documents and make any objections, if necessary. Once the scrutiny period is over, and assuming there are no objections from the co-legislators, the Delegated Act will enter into force.
Source: European Commission