With the adoption of the Delegated Act specifying the detailed criteria for Taxonomy qualification, the EU’s Sustainable Finance Initiative is now live. ‘Green’ financial products will be limited to investing in Taxonomy compliant activities, and financial institutions and large EU companies will need to report the percentage of their activities that are taxonomy compliant. Institutional lenders will come under pressure to finance predominantly or exclusively Taxonomy compliant activities, as will investment funds.
Given that energy activities are a central pillar of the Taxonomy list, this will have a huge effect on the industry. Companies that focus on non-Taxonomy activities will find it more difficult to attract finance or need to pay more than their ‘green’ counterparts. Shareholders are likely to insist that management focus on compliant activities.
In addition, the Taxonomy list is likely to have wider importance than ‘just’ sustainable finance. It will become the EU (and possibly global) reference for what are ‘Paris compatible’ activities. This may become the starting point for other legal and regulatory actions; guarantees of origin for hydrogen, support schemes for renewable energy and hydrogen, and the revision of the Energy and Environment State aid guidelines, for example.
Most energy activities are already covered by the Taxonomy Delegated Act, they are in, or out. Understanding this is crucial. In relation to natural gas and nuclear energy, however, the issue remains open, and the Commission has committed to tabling draft measures on this issue in the near future.
This event seeks to examine these issues, considering the scope and application of the Delegated Act and adopted legislation, and discuss the question ‘what should be the position on natural gas and nuclear?’
Draft Programme:
Moderators: Christopher Jones and Andris Piebalgs | FSR
9.30 – 9.40 Introduction to the debate
Andrea Beltramello | European Commission
9.40 – 10.40 Panel debate
Fabio Marchetti | Generali Group
James Watson | Eurogas
10.40 – 10.55 Q&A
10.55 – 11.00 Concluding remarks
Christopher Jones | FSR
Andris Piebalgs | FSR
#FSRDebates
The focus of this debate series is on policy issues to be discussed by a panel of experts. Learn more about the FSR series.