EC welcomed the provisional agreement between the co-legislators (that is negotiators of European Council and European Parliament) on the European Climate Law. As one of the key elements of the European Green Deal, the European Climate Law enshrines the EU's commitment to reaching climate neutrality by 2050 and the intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030, compared to the 1990 levels. This agreement on the European Climate Law is a key milestone for the von der Leyen Commission, delivering on one of the commitments announced in the President's Political Guidelines in July 2019.
In addition to the 2050 climate-neutrality target, the provisional agreement strengthens the European framework for climate action by introducing the following elements:
- An ambitious 2030 climate target of at least 55% reduction of net emissions as compared to 1990, with clarity on the contribution of emission reductions and removals
- Recognition of the need to enhance the EU's carbon sink through a more ambitious land use, land use change and forestry (LULUCF) regulation, for which EC will make proposals in June 2021
- A process for setting a 2040 climate target, taking into account an indicative greenhouse gas budget for 2030-2050 to be published by EC
- A commitment to negative emissions after 2050
- Establishment of European Scientific Advisory Board on Climate Change, that will provide independent scientific advice
- Stronger provisions on adaptation to climate change
- Strong coherence across Union policies with the climate-neutrality objective
- Commitment to engage with sectors to prepare sector-specific roadmaps charting the path to climate-neutrality in different areas of the economy
EC tabled its proposal for a European Climate Law on March 04, 2020. The provisional political agreement is subject to approval by the Council and Parliament, before going through the formal steps of the adoption procedure. After approval, the European Climate Law will be published in the Official Journal of the Union and will enter into force.
Keywords: Europe, EU, Banking, Insurance, Securities, European Climate Law, European Green Deal, Climate Change Risk, ESG, Low-Carbon Economy, European Council, European Parliament, EC
Previous ArticleMNB Issues Recommendation on Climate and Environmental Risks
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.
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 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 clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.
The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.
The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.
The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).
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 Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).
The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.