Featured Product

    European Council Adopts Harmonized EU Taxonomy on Sustainable Finance

    April 15, 2020

    European Council adopted, at first reading, a regulation setting out an EU-wide taxonomy or classification system for environmentally sustainable activities. This regulation will be key to enabling the EU to become climate neutral by 2050 and to achieve the 2030 targets of the Paris agreement. These targets include a 40% cut in greenhouse gas emissions, for which EC estimates that EU has to fill an investment gap of about EUR 180 billion per year. The expectation is to establish the EU taxonomy for climate change mitigation and adaptation by the end of 2020.

    The taxonomy is intended to provide businesses and investors with a common language to identify the economic activities that are considered environmentally sustainable. The future framework will be based on six EU environmental objectives:

    • Climate change mitigation
    • Climate change adaptation
    • Sustainable use and protection of water and marine resources
    • Transition to a circular economy
    • Pollution prevention and control
    • Protection and restoration of biodiversity and ecosystems

    As per the adopted regulation, the taxonomy for climate change mitigation and climate change adaptation should be established by the end of 2020 to ensure its full application by end of 2021. For the four other objectives, the taxonomy should be established by the end of 2021 for application by the end of 2022. The text of the regulation was adopted by written procedure, which means that the European Council has adopted its position at first reading. The regulation now needs to be adopted by the European Parliament at a second reading before it can be published in the Official Journal of the European Union and can enter into force. This regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. Upon finalization, this regulation will help establish a framework to facilitate sustainable investment and will amend the EU Regulation 2019/2088.

     

    Related Links

    Keywords: Europe, EU, Banking, Insurance, Securities, Climate Change Risk, Taxonomy, ESG, Regulation 2018/2088, Disclosures, Sustainable Finance, European Council

    Related Articles
    News

    ECB Amends Guideline on Temporary Collateral Easing Measures

    ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.

    June 17, 2021 WebPage Regulatory News
    News

    EIOPA Releases Report on Artificial Intelligence Governance Principles

    EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.

    June 17, 2021 WebPage Regulatory News
    News

    HKMA to Increase Focus on Suptech and Regtech Cloud Adoption

    HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.

    June 17, 2021 WebPage Regulatory News
    News

    EC Consults on Improving Transparency in Secondary Markets for NPLs

    EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).

    June 16, 2021 WebPage Regulatory News
    News

    BIS and Nordic Central Banks Launch Innovation Hub in Stockholm

    BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.

    June 16, 2021 WebPage Regulatory News
    News

    FDIC Tech Sprint Aims to Explore Technologies to Reach Unbanked

    FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.

    June 16, 2021 WebPage Regulatory News
    News

    EC Releases Sustainable Finance Taxonomy Compass

    EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.

    June 16, 2021 WebPage Regulatory News
    News

    FDIC Proposes Amendments to Real Estate Lending Standards

    FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.

    June 15, 2021 WebPage Regulatory News
    News

    EIOPA to Consider Liquidity Risk in Stress Test for 2021

    EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.

    June 15, 2021 WebPage Regulatory News
    News

    ESRB Paper Discusses Measurement of Impact of Bank Failure via Lending

    The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.

    June 15, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7116