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
Featured Experts
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous Article
ECB Amends Guideline on Procedures for AnaCredit Data CollectionRelated Articles
BIS Paper Studies Impact of Fintech Lending on Small Businesses in US
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
EBA Launches EU-Wide Transparency Exercise in 2022
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
EC Rule Lists Advanced Economies for Market Risk Capital Calculations
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
