Featured Product

    EC Expert Group Outlines Tools for Recovery from COVID-19 Pandemic

    April 27, 2020

    EC published a statement from the EU Technical Expert Group on Sustainable Finance, established to advise EC on implementation of the Action Plan on Financing Sustainable Growth, believes that the Sustainable Taxonomy, EU Green Bond Standard, and Paris-Aligned and Climate Transition Benchmarks can guide public- and private-sector plans for recovery from the pandemic, including the European Council’s recently announced Roadmap to Recovery.

    The Group states that scientists have warned that loss of biodiversity and disease outbreak are closely related and to expect a volatile climate as a result of human contribution to climate change. As plans for economic recovery from the COVID-19 pandemic are being prepared, governments and the private sector must be attentive to the details of what a resilient, sustainable, and fair recovery looks like in practice—to ensure greater resilience to further environmental and social crises ahead. The Expert Group has developed three tools that can guide both government and private-sector plans: 

    • The Sustainable Taxonomyprovides a framework for future recovery measures. It shows the environmental performance and minimum social standards that are necessary for economic activities to reach climate and environmental goals, including climate neutrality by 2050 and ambitious 2030 targets. The Taxonomy is particularly relevant for new investments, which are needed to transition economy, showing how and where to cut carbon emissions, build climate resilience, optimize supply chains toward sustainability, and stimulate jobs.
    • The Green Bond Standard, which presents a best practice model and the elements of which can be applied by all bond issuers to explain how their funding contributes to the wider sustainability strategy and resulting environmental and social impact of the issuer. The framework of the Green Bond Standard can also be applied to increase transparency of social impact and outcomes of finance.
    • The Paris-Aligned and Climate Transition Benchmarks are tools to support allocation of a large amount of private capital toward climate transition. They do so by aligning the portfolio selection of investors with the climate change objectives.

    The statement highlights that members of the European Council identified the central role of the Green Deal in its Roadmap for Recovery from the COVID-19 pandemic. The Green Deal includes 2050 climate neutrality and a pending 2030 climate goal. These climate goals must be used to calibrate recovery responses. Recovery plans should not support environmentally or socially harmful activities, which would worsen the current and future crises, locking in highly polluting infrastructure or promoting activities that do not contribute to social well-being for decades to come. According to the Expert Group, the private sector also has a clear role in ensuing access to finance in a sustainable recovery. Private-sector plans must be transparent and clear on their alignment with the environmental and social objectives to increase the effective targeting of public recovery measures.

     

    Related Link: Statement

     

    Keywords: Europe, EU, Banking, Insurance, Securities, Green Deal, Climate Change Risk, COVID-19, ESG, Sustainable Taxonomy, Climate Transition Benchmarks, Climate Neutrality 2050, Sustainable Finance, EC

    Featured Experts
    Related Articles
    News

    BIS Quarterly Review Discusses Developments in Fintech and ESG Space

    BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.

    September 20, 2021 WebPage Regulatory News
    News

    BCBS to Consult on Supervisory Practices for Climate Risks by Year-End

    The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards

    September 20, 2021 WebPage Regulatory News
    News

    OCC Identifies Operational Risk Deficiencies in MUFG Union Bank

    The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.

    September 20, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News
    News

    ECB to Consider Climate Risks When Reviewing Collateral Framework

    In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.

    September 17, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News
    News

    ACPR Publishes Corrective Version of RUBA Taxonomy

    The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7487