Europe

EU parliament rejects bond core, gas backtracking

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Tihange’s nuclear Belgian power plant near Huy shown on May 6

Photo provider: AFP

EU lawmakers have abandoned plans to withdraw nuclear and gas electricity from green bond standards in widespread opposition.

Members of the European Parliament’s Economic Commission have built sufficient support for amendments that will exclude the two controversial techniques from the rules, according to an email sent by Congressman Paul Tang to Congressman Bloomberg. could not.

EU green bond standards are part of Block’s efforts to counter the practice of “greenwashing” where the environmental credit of an asset or company is misrepresented or exaggerated. Launched earlier this year, the taxonomy aims to outline which economic activities are on a climate-neutral path.

This decision will be made prior to the Commission’s vote on Green Bond Standards and Regulations on Monday. The changes proposed to strengthen it mean that sustainability-linked bonds in all greens need to be accompanied by a transition plan in line with Block’s own 2050 Net Zero target. .. Transparency requirements for the entire green bond market have also been strengthened so that EU-labeled securities can be compared to other securities.

Investors can take legal action against issuers if some of the value of green bonds is lost as a result of non-compliance with climate change efforts.

The Commission’s proposal to include gas and nuclear weapons in the Green Rulebook earlier this year is now in the hands of Member States and Parliament. Mr. Tang said in his email that he intends to focus on getting Congress to reject it in a vote scheduled before the summer.

When the Green Bond standard passes the Economic Commission on Monday, it goes to a wider parliamentary vote. Member states and lawmakers then negotiate the final form of legislation.

© 2022 Bloomberg LP

http://www.luxtimes.lu/en/business-finance/eu-lawmakers-refuse-to-backtrack-on-nuclear-gas-in-bonds-627e8024de135b92365e7af0 EU parliament rejects bond core, gas backtracking

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