Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

EU to define what makes a 'green' investment in transport, industry, buildings: draft

CommoditiesApr 16, 2021 04:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels 2/2

By Kate Abnett

BRUSSELS (Reuters) - The European Union will next week lay out conditions that transport, industry and buildings must meet to be classed as a sustainable investment in Europe, but delay a decision on whether to label gas and nuclear power as green, according to a draft document seen by Reuters.

The EU's "sustainable finance taxonomy" is a long list of economic activities and the rules they must meet to be labelled as sustainable investments in the EU from next year.

The landmark regulation aims to make green activities more visible and attractive to investors, and ensure that a sustainable investment label is only given to economic activities that comply with EU targets to slash greenhouse gas emissions.

A draft of the rules, seen by Reuters and due to be published on April 21, omits natural gas. EU countries are split over whether gas-fuelled power plants should be deemed green, and the Commission plans to address the fuel, along with nuclear power, in a separate proposal later this year.

The draft rules include detailed definitions of what will count as a sustainable investment in other sectors, including transport, energy generation from sources including wind and hydropower, building renovations, and manufacturing of cement, steel and batteries.

For example, cement plants must have emissions below 0.72 tonnes of CO2 equivalent per tonne of grey clinker produced.

Meanwhile, car manufacturing can be labelled as a sustainable investment until the end of 2025 if the vehicles emit less than 50g of CO2 per km. After that date, only the manufacture of zero-emission cars will be deemed green.

The Commission declined to comment on the draft document, which is subject to change before publication.

By cutting out gas and nuclear, the Commission aims to win EU countries' approval for the rules. But the sectors of forestry and bioenergy have also proved contentious, with nine of the Commission's expert advisers threatening to resign over its proposals for those sectors and gas, which they said would discredit Europe's climate policies.

To earn a sustainable label, an activity must make substantial contribution to one of six environmental aims and not impede the other five. The draft rules cover two of those six aims - fighting climate change, and adapting to its impacts.

EU to define what makes a 'green' investment in transport, industry, buildings: draft
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email