Featured Product

    EU Launches Green Team Initiative, Prolongs State Aid Framework

    November 18, 2021

    The European Union has launched a Green Team Europe Initiative in partnership with the Association of Southeast Asian Nations (ASEAN)/South East Asia. This initiative is expected to strengthen the EU partnership with the region in the areas of climate action, environmental and biodiversity protection, and clean energy transition. The initiative provides the framework for coordinated green action between participating Team Europe partners (Austria, Denmark, France, Germany, Romania, and the European Investment Bank) and ASEAN and its member states, seeking synergies between their respective political frameworks: in particular the European Green Deal and the ASEAN Community Vision 2025. In addition, the European Commission (EC) has decided to prolong the State aid Temporary Framework until June 30, 2022.

    EC also introduced a number of targeted adjustments, including two new tools to support the ongoing recovery of the European economy in a sustainable way: 

    • Investment support measures to help member states address the investment gap left behind by the crisis. Member states may create incentives for investments undertaken by companies and use this tool to accelerate the green and digital transitions. The measure includes safeguards to avoid undue distortions to competition, such as the fact that they should target a wide group of beneficiaries and the aid amounts should be limited in size. This instrument is available to member states until December 31, 2022
    • Solvency support measures to leverage private funds and make them available for investments in small and medium-sized enterprises (SMEs), including start-ups, and small midcaps. Member states may grant guarantees to private intermediaries, creating incentives to invest in these types of companies and provide them with easier access to such equity financing that is often difficult for them to attract individually. This instrument is available to member states until December 31, 2023.

    In another development, EC adopted a communication on a competition policy fit for new challenges, which frames the important role of competition policy for Europe's path toward recovery, the green and digital transitions, and a resilient single market. The communication highlights the in-built ability of competition policy to adapt to new market circumstances, policy priorities, and customer needs. Additionally, the European Council approved the 2020 climate finance figure of EUR 23.39 billion. This figure was committed by the European Union and its 27 member states to support developing countries in reducing their greenhouse gas emissions and adapting to the impacts of climate change. In 2020, close to 50% of the funding for developing countries was dedicated to either climate adaptation or cross-cutting action and close to half of the total funding was committed in the form of grants. The EU and its member states are determined to continue scaling up their international climate finance toward the developed countries' collective goal of mobilizing USD 100 billion per year, applicable through to 2025. They have recently made concrete pledges to enhance their contributions in the coming years as part of a climate finance delivery plan, which was published in October 2021.

     

    Related Links

    Keywords: Europe, Asia Pacific, EU, Banking, COVID-19, Climate Change Risk, ESG, Green Team Initiative, State Aid Rules, State Aid Temporary Framework, Green Finance, ASEAN, EC, European Council

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8280