Consultation Response – Sustainable Finance EU Classification System for Green Investments

The European Commission adopted its “Action Plan on Financing Sustainable Growth” in March 2018 which proposes concrete actions that will help achieve the Sustainable Development Goals and the objectives set in the Paris Agreement on Climate Change.

The final Delegated Acts (DAs) will define the future role and uptake of the Taxonomy, and above all its ability to direct capital to sustainable investment projects. Through our analysis of the DAs published on the 20th of November we have identified several steps and recommendations to ensure the climate impact credibility of the Taxonomy, and support its long-term relevance and uptake.

Bellona Europa has indeed  included 9 recommendations to the European Commission. Some of our key points in order for ensuring proper emission accounting are:

  • Safeguarding the scientific basis of the DAs through the technology neutral climate mitigation threshold set at 100g CO2e/kWh
  • Reinstating absolute measures and full life-cycle climate change mitigation
  • Removing exemption allowing projects with a lifespan below 10 years to be assessed against “downscaled climate projections”

Furthermore we urge EU leadership to ensure a science-based definition of Carbon Dioxide Removal (CDR) to be included in the future Taxonomy.

Find our complete consultation response here.

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