EC launched a consultation for the new climate change adaptation strategy, the comment period for which ends on August 20, 2020. The plan is to put forward this strategy in early 2021, as part of the European Green Deal. This adaptation strategy will build on the strategy that was adopted in 2013. EC also published the results of the new project on Projection of Economic impact of climate change in Sectors of the EU, based on the bottom-up Analysis (PESETA).
The European Green Deal aims to make Europe the first climate-neutral continent in the world. The new adaptation strategy should continue and expand on the ongoing efforts. As part of its Green Deal, EC launched this strategy to help the EU adapt to the effects of climate change, by focusing on encouraging investment in eco-friendly solutions, climate-proofing the economy, making key infrastructure more resilient, adding climate factors to risk management practice, and stepping up prevention and preparedness. Throughout EU and the globe, it will be important that investors, insurers, businesses, cities, and citizens are able to access data and develop instruments to integrate climate change into their risk management practices.
The new adaptation strategy should continue and expand on current efforts. The policy actions to be continued and expanded as under the 2013 Strategy include:
- Further mainstreaming and integrating adaptation in EU legislation and instruments.
- Continuing to support, monitor, and share member state adaptation action and goals, including through the Climate Law, via Climate-ADAPT, reporting under the National Energy and Climate Plans and the Energy Union Governance Regulation, and through regular exchanges
- Closing further gaps in adaptation-relevant knowledge through the regular programming of research and innovation activities under Horizon 2020 and its successor, Horizon Europe as well as through trends and forecasts
- Financially supporting adaptation actions, including cross-border inter alia through continued support from EU funds
- By fostering and incentivizing private investment in adaptation in relation with the Renewed Sustainable Finance Strategy and the EU taxonomy (the first Taxonomy Delegated Act will focus on climate change mitigation and adaptation).
The new adaptation strategy should also tackle new priorities. The additional priorities that the EU could pursue toward climate-resilience, in full synergy with the other strategic initiatives announced in the European Green Deal, include more and better data, deeper knowledge and faster deployment of solutions, closing the climate protection gap, preventing damage to infrastructure and beyond, and reinforced global action for climate resilience. Overall, efforts to measure (increased) resilience to climate change need to be continued and upgraded and linked to a more ambitious monitoring and evaluation system. What could be envisioned is the development of relevant indicators that help measure progress and that are more comparable across countries; for example, in case of similar types of climate hazards and related adaptation actions and policies.
The 2013 strategy relied on a scoreboard to assess preparedness; the new strategy could use a dashboard to assess resilience and subsequently monitor the trend over time, with regular progress reports on specific targets. Strengthening effective monitoring and evaluation tools for adaptation policies and measures in partner countries will continue to be of central interest in EU’s international action and support.
Comment Due Date: August 20, 2020
Keywords: Europe, EU, Banking, Insurance, Securities, European Green Deal, Climate Change Risk, ESG, Sustainable Finance, Adaptation Strategy, EC
Previous ArticleAPRA Updates List of Validation Rules for Reporting
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.
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
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.
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.
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.
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.
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.
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.
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.
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.