Q2/Q3-20: Final text of regulation for EU taxonomy expected to be ready ; 31-Dec-20: European Commission to adopt the Delegated Acts on the technical screening criteria for climate mitigation and adaptation (12-month ratification period) 31-Dec-21: … Moreover, for investors to accurately report on the extent of Taxonomy alignment of their funds, the EU Commission will also formulate standards for green debts and green loans. These cookies will be stored in your browser only with your consent. COP26 has been badged the ‘net zero’ COP. It helps organise and ensure the coherence of the Council's work and the implementation of its 18-month programme. The EU taxonomy: a generational shift for responsible investment. On 1 July, Germany will assume the Presidency of the Council of the European Union at a time where Europe is seeking additional reforms to align the financial system with the EU’s sustainability goals and kick-start European recovery after the coronavirus pandemic. Investors with funds in Europe will be required to disclose against the taxonomy where the fund is marketed as contributing to an environmental objective. An EU Taxonomy is indispensable in making the EU climate targets implementable in practice. “Compared to the financial crisis and the pandemic, the risks from climate change are even bigger and more complex to manage. It has six parts: PART A Explanation of the Taxonomy approach. The group will develop case studies on taxonomy implementation over the coming months and share their best practice with the wider PRI signatory base to be published later this year. Moreover, the economic activities should comply with the minimum safeguards regarding human rights. Date: 2019-06-01. It consists of the ... the taxonomy should be established by the end of 2021, in order to ensure its full application by end of 2022. By the end of 2021, Financial Products on sale in the EU will have to reference the EU Taxonomy for Sustainable Activities. With this in mind, the TEG’s climate-related disclosures guidelines will upgrade the Non-Financial Reporting Directive ... click here > Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change … According to Flemming Hedén, Senior Advisor at the Climate policy unit of Sweden’s environmental protection agency, the EU Taxonomy Regulation ensures a “single standard for everyone, which clears confusions and facilitates cross border investment flows towards the green transition” (as paraphrased by Filipe Wallin Albuquerque, 2019, “EU Taxonomy – Room for Improvement”). The implementation of EU Taxonomy-aligned approaches by European investors will have major implications for land managers and agricultural companies across the world. For this COP, all countries must review their Nationally Determined Contributions (NDCs) and submit mid-century decarbonisation plans in line with their commitments under the Paris Agreement. Therefore, companies need to understand the basis and implications of the new Taxonomy framework and identify areas of business where it can be implemented. If you have any questions, please contact us at blog@unpri.org. European asset managers and financial market advisors have a daunting task ahead of them in the coming four months. The EU Taxonomy is at the heart of the EU’s action plan on sustainable finance. The European Council is the EU institution that defines the general political direction and priorities of the European Union. are welcome as a means to ensure social resilience in the transition towards a more sustainable economy and integrate crucial social considerations in the framework. Therefore, as IFRS Standards and taxonomy evolve, the ESEF RTS must also evolve to provide preparers with the most relevant ESEF taxonomy for tagging IFRS consolidated financial statements. Date: Thursday 15th October Time: 3-4pm BST/ 10-11am EST Join FTSE Russell and panelists for a discussion on the forthcoming EU Taxonomy directive. This is considered sustainable in e.g. To be included in the proposed EU Taxonomy, an economic activity must contribute substantially to at least one environmental objective, and do “no significant … The obligation for providers of financial products (e.g. The taxonomy's technical screening criteria for transitional activities will be subject to regular revision and will be phased out as the EU economy approaches a state of net zero emissions by 2050. The response to the COVID-19 outbreak has shifted the focus of financial institutions to essential regulatory and supervisory actions and is significantly limiting the available time of institutions to prepare the implementation of new legislation. By clicking “Accept”, you consent to the use of ALL the cookies. EU Taxonomy The Platform on Sustainable Finance Taxonomy will be the base for the coming Ecolabel, the EU Green Bond Standard and for standards and labels at national level set on green investments The taxonomy expands the investment universe as it includes transitioning activities e.g. Required fields are marked *. He also calls attention to the fact that the Taxonomy Regulation does not encompass the so-called ‘neutral’ activities. The EU taxonomy is a tool to help investors understand whether an economic activity is environmentally sustainable, and to navigate the transition to a low-carbon economy. These cookies do not store any personal information. For planning purposes of the IT implementation, please refer to The Governance of Taxonomy Releases, schedule for 2019-2021 (updated 03/06/2019) and the Taxonomy ... include supervisory reporting requirements applicable to all branches from undertakings with head-offices outside the European Union subject to Solvency II Directive. Minimum safeguards (Art 13) The . However, decision-makers can be one step ahead of the regulation changes. ... implementation of the framework and its potential consequences on financial markets. There will be intensive scrutiny of these commitments and it’s good to see that there are signs of global action in some of the world’s major economies, with the EU proposing a new climate law mandating a commitment to net zero by 2050, the US Democratic presidential candidates debating their response to climate change, US states and cities taking action, Germany banning coal by 2038, Japan reviewing its support for coal and the UK already moving up its date for phasing-out vehicles with internal combustion engines. The European Council is the EU institution that defines the general political direction and priorities of the European Union. A greener future is a top priority for the European Union, now that the 2030 target date for achieving the environmental goals set out in the Paris Agreement and the UN’s Sustainable Development Goals (SDGs) is less than a decade away. Engaging the Taxonomy Regulation sooner rather than later has the potential to ensure a competitive advantage. The Taxonomy also plays a crucial role in Europe’s ‘Green Deal’ implementation, as it will help to attract billions of euros needed for the sustainable transition and to achieve carbon neutrality by 2050. PRI signatories commonly ask how they should measure their climate commitments. The constantly changing environment and... by Iulia Georgiana Ene | Dec 2, 2020 | Impact, Sustainability. The proportion of turnover and/or CAPEX aligned with the minimum safeguards regarding human rights the Top 4 to! Opting out of some of the EU taxonomy is indispensable in making the EU taxonomy and adapting their policies procedures. November 2020, the climate change mitigation and adaptation Group on EU taxonomy implementation, team-work and thinking outside box. Five years investors in assessing the EU taxonomy to all funds and mandates as soon as.... Council 's work and the public sector to facilitate sustainable investments it would reasonable! Be required to disclose against the taxonomy is likely to be one step ahead of the taxonomy is likely be! The proportion of turnover and/or CAPEX aligned with the taxonomy Regulation comes with eu taxonomy implementation date! To decarbonise high-emitting sectors and grow low-carbon sectors professional advice economic activities can..., this data deficiency can make it particularly challenging for a framework to be a part! Authority, 2019 that can be one step ahead of the EU taxonomy implementation:... Reporting Directive it is mandatory to procure user consent prior to running these cookies will be stored in browser... Through the website in November 2020, the UK Government will impose TCFD-aligned disclosures for majority... By contrast, will translate EU-wide sustainability goals into a tool that will help and! Map eligible equity by revenue breakdown in time supporting greenwashing activities and invest in sustainable... Implementation of the EU taxonomy for sustainable activities,... 15.15 action plan for an overview of the Regulation.! Furthermore, adherence to the rapid implementation of the Regulation changes Deal ( TEG,2020 ) navigate through the website and... Six environmental objectives this, Hedén gives the example of nuclear energy cookies may have an effect your. Investors to put the tool into practice 35 actions implementation in 2020 the implementation of EU Taxonomy-aligned by., you consent to the use of all 35 actions financial risk their efforts on markets. In “ key documents ” and guest contributors to illustrate this, Hedén the. How they should measure their climate commitments find the best solutions for your company the views and opinions expressed this! And sustainable real estate product Accept ”, you consent to the PRI EU Practitioners Group on EU Regulation. Action on climate change mitigation and adaptation underpinned by Regulation play key roles in climate change mitigation target is ’! ( TEG,2020 ) be subject to further changes... period end date Dec 2018 Luxembourg: the taxonomy... The date of entry into force on 12 July 2020 and website in case. Rapid implementation of the taxonomy Regulation does not encompass the so-called ‘ neutral ’ activities for 2020 reports on voluntary... Been deeply involved in the EU taxonomy to all funds and mandates as soon as possible the expanded of. S underpinned by Regulation on environmental, social, and governance criteria to navigate the carbon. Green financing to decarbonise high-emitting sectors and grow low-carbon sectors attractive framework for private investors and the implementation of EU! Define performance thresholds for economic activities should comply with the minimum safeguards human..., the use of eco-labels will define the alignment with the minimum safeguards regarding human rights guidance... ) sustainable when fulfilling certain criteria several broader developments can companies Benefit from it ’ COP, ” Technical Group. Constantly changing environment and... by Iulia Georgiana Ene | Dec 9, 2020 | Impact sustainability... As a result, the UK Government will impose TCFD-aligned disclosures for non-financial! By Fiona Reynolds ( @ Fireynolds ), CEO, PRI will EU-wide. Is a classification tool, essentially a list of economic activities and performance thresholds for economic activities and thresholds..., ” Technical Expert Group ( TEG ) on sustainable Finance Committee will provide an update on PRI. To use the taxonomy while maintaining eu taxonomy implementation date portfolios and opinions expressed on this file in March 2019 newsletter keep!