One element of the uniform criteria should be to avoid significant harm to any of the environmental objectives set out in this Regulation. An economic activity shall qualify as contributing substantially to pollution prevention and control where that activity contributes substantially to environmental protection from pollution by: preventing or, where that is not practicable, reducing pollutant emissions into air, water or land, other than greenhouse gasses; improving levels of air, water or soil quality in the areas in which the economic activity takes place whilst minimising any adverse impact on, human health and the environment or the risk thereof; preventing or minimising any adverse impact on human health and the environment of the production, use or disposal of chemicals; cleaning up litter and other pollution; or, supplement paragraph 1 of this Article by establishing technical screening criteria for determining the conditions under which a specific economic activity qualifies as contributing substantially to pollution prevention and control; and, Substantial contribution to the protection and restoration of biodiversity and ecosystems. Substantial contribution to pollution prevention and control. (25) Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, p. 3). The Platform shall carry out its tasks in accordance with the principle of transparency. Any reduction in the content of hazardous substances in materials and products throughout the life cycle, including by replacing them with safer alternatives, should, as a minimum, be in accordance with Union law. (24) Directive 2006/66/EC of the European Parliament and of the Council of 6 September 2006 on batteries and accumulators and waste batteries and accumulators and repealing Directive 91/157/EEC (OJ L 266, 26.9.2006, p. 1). Public-sector experts should include representatives of the European Environmental Agency, the ESAs, the European Investment Bank and the European Union Agency for Fundamental Rights. Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector. The European Parliament had approved the text of the Taxonomy Regulation on 18 June 2020, having reached a political agreement on the Taxonomy Regulation on … Achieving the SDGs in the Union requires the channelling of capital flows towards sustainable investments. The technical screening criteria referred to in paragraph 1 shall ensure that power generation activities that use solid fossil fuels do not qualify as environmentally sustainable economic activities. One of the objectives set out in that action plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth. It directly affects all regulations i… Regulation 2019/2088 on sustainability-related disclosures in the financial services sector (Text with EEA relevance) THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof, Having regard to the proposal from the European Commission, Taxonomy Regulation, Article 8 “Transparency of undertakings in non-financial statements”. (54) Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84). The Commission shall regularly review the technical screening criteria referred to in paragraph 1 and, where appropriate, amend the delegated acts adopted in accordance with this Regulation in line with scientific and technological developments. The process for the establishment and update of the technical screening criteria should involve relevant stakeholders and should build on the advice of experts who have proven knowledge and experience in the relevant areas. To enforce compliance, Member States should in addition lay down rules on measures and penalties, which should be effective, proportionate and dissuasive. Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups, as amended. On 18 June 2020, the European Parliament adopted the regulation on the establishment of a framework to facilitate sustainable investment  (the Taxonomy Regulation), a milestone in the EU’s Action Plan on Sustainable Finance (the Action Plan). (3) Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 282, 19.10.2016, p. 1). The EU Taxonomy Regulation was published on 22 June 2020 and came into force on 12 July 2020. The Commission shall adopt a delegated act in accordance with Article 23 to: supplement paragraphs 1 and 2 of this Article by establishing technical screening criteria for determining the conditions under which a specific economic activity qualifies as contributing substantially to climate change mitigation; and. whether it is a transitional activity as referred to in Article 10(2); take into account the potential market impact of the transition to a more sustainable economy, including the risk of certain assets becoming stranded as a result of such transition, as well as the risk of creating inconsistent incentives for investing sustainably; cover all relevant economic activities within a specific sector and ensure that those activities are treated equally if they contribute equally towards the environmental objectives set out in Article 9 of this Regulation, to avoid distorting competition in the market; and. (30) Directive (EU) 2019/904 of the European Parliament and of the Council of 5 June 2019 on the reduction of the impact of certain plastic products on the environment (OJ L 155, 12.6.2019, p. 1). the potential adverse impact of climate change on the environment within which the economic activity takes place. That information should enable national competent authorities to easily verify compliance with that disclosure obligation, and to enforce such compliance in accordance with applicable national law. In addition, economic operators that wish to attract investment from across the Union would have to meet different criteria in different Member States in order for their activities to qualify as environmentally sustainable. The EU Technical Expert Group (TEG) on Sustainable Finance has released its highly anticipated final recommendations for the EU taxonomy, including a technical annex with updated technical screening criteria.. 3. Those screening criteria should take into account the fact that the transport sector, including international shipping, contributes close to 26 % of total greenhouse gas emissions in the Union. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. (27) Directive 2011/65/EU of the European Parliament and of the Council of 8 June 2011 on the restriction of the use of certain hazardous substances in electrical and electronic equipment (OJ L 174, 1.7.2011, p. 88). Sustainability and the transition to a safe, climate-neutral, climate-resilient, more resource-efficient and circular economy are crucial to ensuring the long-term competitiveness of the Union economy. By signing up, you agree to receive commercial messages from us. It will become law by means of a taxonomy regulation, the proposed text of which was agreed by the EC, the European Parliament and the EU Council in December 2019. Gas, and nuclear energy production are not explicitly excluded from the regulation, however. (8) Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006 (OJ L 140, 5.6.2009, p. 114). EUBA members have written a joint letter to Member State authorities on the EU Taxonomy Regulation’s draft delegated act on climate-related objectives and its annexes. The Taxonomy Regulation establishes an EU-wide classification system or ‘framework’ intended to provide businesses and investors with a common language to identify to what degree economic activities can be considered environmentally sustainable. 1. The six environmental objectives that this Regulation should cover are: climate change mitigation; climate change adaptation; the sustainable use and protection of water and marine resources; the transition to a circular economy; pollution prevention and control; and the protection and restoration of biodiversity and ecosystems. For the criteria to be up to date, based on scientific evidence and input from experts as well as relevant stakeholders, the conditions for ‘substantial contribution’ and ‘significant harm’ should be specified with more granularity for different economic activities and should be updated regularly. 5. The Commission shall adopt the delegated act referred to in paragraph 3 by 31 December 2020, with a view to ensuring its application from 1 January 2022. Access all of the content that you have previously selected to bookmark. The ESAs shall, through the Joint Committee, develop draft regulatory technical standards to specify the details of the content and presentation of the information to be disclosed pursuant to paragraphs 1 and 2 of this Article.’; ‘4. The power to adopt delegated acts referred to in Articles 8(4), 10(3), 11(3), 12(2), 13(2), 14(2) and 15(2) shall be conferred on the Commission for an indeterminate period from 12 July 2020. the European Union Agency for Fundamental Rights; experts representing relevant private stakeholders, including financial and non-financial market participants and business sectors, representing relevant industries, and persons with accounting and reporting expertise; experts representing civil society, including persons with expertise in the field of environmental, social, labour and governance issues; experts appointed in a personal capacity, who have proven knowledge and experience in the areas covered by this Regulation; experts representing academia, including universities, research institutes and other scientific organisations, including persons with global expertise. European Union Brussels , 1 April 2020 (OR. does not lead to a lock-in of carbon-intensive assets, considering the economic lifetime of those assets. A key objective of the Action Plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth. 3. https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/EU-Taxonomy-Political-Agreement-ICMA-December-2019final-191219.pdf (39) Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 2016 on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC (OJ L 344, 17.12.2016, p. 1). Insert free text, CELEX number or descriptors. For the purposes of this Regulation, the following shall be environmental objectives: the sustainable use and protection of water and marine resources; the protection and restoration of biodiversity and ecosystems. The 2030 Agenda has at its core the Sustainable Development Goals (SDGs) and covers the three dimensions of sustainability: economic, social and environmental. To avoid harming investor interests, fund managers and institutional investors that make available financial products should disclose how and to what extent they use the criteria for environmentally sustainable economic activities to determine the environmental sustainability of their investments. Political agreement on the Taxonomy Regulation text was confirmed by the Council’s Committee of Permanent Representatives (COREPER) on 5 February 2020, marking another step towards its finalisation. advise the Commission on the technical screening criteria referred to in Article 19, as well as on the possible need to update those criteria; analyse the impact of the technical screening criteria in terms of potential costs and benefits of their application; assist the Commission in analysing requests from stakeholders to develop or revise technical screening criteria for a given economic activity; advise the Commission, where appropriate, on the possible role of sustainability accounting and reporting standards in supporting the application of the technical screening criteria; monitor and regularly report to the Commission on trends at Union and Member State level regarding capital flows into sustainable investment; advise the Commission on the possible need to develop further measures to improve data availability and quality; advise the Commission on the usability of the technical screening criteria, taking into account the need to avoid undue administrative burdens; advise the Commission on the possible need to amend this Regulation; advise the Commission on the evaluation and development of sustainable finance policies, including with regard to policy coherence issues; advise the Commission on addressing other sustainability objectives, including social objectives; advise the Commission on the application of Article 18 and the possible need to supplement the requirements thereof. 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