EU Adopts Long-Term Climate Change Strategy for Submission to UNFCCC
European Council adopted the long-term low greenhouse gas emission development strategy of EU on behalf of the EU and its member states. This will now be forwarded to the United Nations Framework Convention on Climate Change (UNFCCC) as required by the Paris Agreement. The EU strategy refers to the endorsement by the European Council of the objective of achieving a climate-neutral EU by 2050. Individual member states are also required to prepare their own national strategies for submission to the UNFCCC. EU urges all parties to the Paris Agreement to communicate their strategies by 2020, in accordance with the Paris Agreement.
European Council endorses the objective of achieving a climate-neutral EU by 2050, in line with the objectives of the Paris Agreement. The endorsement of the climate neutrality objective was reached following an inclusive institutional and societal debate based on the strategic long-term vision, proposed by EC, which includes a detailed analysis of solutions that could be pursued for the transition to a net zero greenhouse gas emissions economy and insights regarding the corresponding strategic priorities and an enabling framework that would allow reaching climate neutrality by 2050. One Member State, at this stage, cannot commit to implement this objective as far as it is concerned and the European Council will come back to this in June 2020. The EU strategy recalls the full commitment of EU and its member states to the Paris Agreement and its long-term goals.
By agreeing and delivering on this ambitious social and economic transformation, EU and its member states are aiming to inspire global climate action and demonstrate that moving toward climate neutrality is not only imperative but also feasible and desirable. Earlier, on March 04, 2020, EC has also proposed the European Climate Law, which will make the 2050 climate neutrality objective legally binding. Achieving climate neutrality will, however, require overcoming serious challenges. Thus, the European Council recognizes the need to put in place an enabling framework that benefits all member states and encompasses adequate instruments, incentives, support, and investments to ensure a cost-effective as well as socially balanced and fair transition, taking into account different national circumstances in terms of starting points.
As conclusions to the December 12, 2019 meeting of the European Council state, all relevant EU legislation and policies need to be consistent with, and contribute to, the fulfillment of the climate neutrality objective while respecting a level playing field. Therefore, the European Council invites EC to examine whether this requires an adjustment of the existing rules, including on state aid and public procurement. It also invites the Commission to report regularly on the environmental and socio-economic impact of the transition to climate neutrality.
Related Links
Keywords: Europe, EU, Banking, Insurance, Securities, ESG, UNFCCC, Paris Agreement, Climate Neutrality 2050, Climate Change Risk, EC, European Council
Previous Article
ECB Amends Guideline on Procedures for AnaCredit Data CollectionRelated Articles
HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA Proposes Standards for Supervisory Cooperation Under IFD
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE Sets Out Plan to Transform Data Collection from Financial Sector
BoE has set out a three-phased plan to transform data collection from the UK financial sector over the next decade.
BIS Issues Updates on Technology Initiatives on Cross-Border Payments
BIS recently made a couple of announcements with respect to the planned and ongoing work in the area of financial technology.
ESRB Updates List of Macro-Prudential Measures in February 2021
ESRB updated the list of national macro-prudential measures applied by each member state in the European Economic Area.
BoE Survey Shows Positive COVID Impact on Outsourced Banking Services
BoE has set out results of a survey on the impact of COVID-19 events on the use of machine learning and data science.
ECB Issues Opinion on Proposal to Regulate Crypto-Asset Markets in EU
In response to a request from the European Council and Parliament, ECB published an opinion on the proposed regulation on markets in crypto-assets.
APRA Announces Aggregate Committed Liquidity Facility for Banks
APRA announced the updated aggregate amounts for the 2021 Committed Liquidity Facility (CLF) established between the Reserve Bank of Australia (RBA) and certain locally incorporated authorized deposit-taking institutions that are subject to the Liquidity Coverage Ratio (LCR).
ECB and UK Authorities Agree on Post-Brexit Supervisory Cooperation
ECB published supervisory Memorandums of Understanding (MoUs) with UK as well as other European and non-European authorities.
EIOPA Outlines Strategic Supervisory Priorities for Insurance Sector
EIOPA identified business model sustainability and adequate product design as the two EU-wide strategic supervisory priorities.