Recently, plans by the Commission to significantly soften the original science-based proposals under pressure from member states became known. If enacted, investments
in fossil gas or unsustainable forestry, for example, would receive the
Sustainable Finance label.
The planned softening of the rules was clearly criticised by the
Chair of the Sustainable Finance Platform, Nathan Fabian, in an open letter to the EU Commission yesterday.
Together with the other leading members of the Platform, he urged
orientation towards scientific criteria instead of political interests.
The Platform is the central advisory body of the European Sustainable
Finance Project. A fortnight ago, nine members of the Platform had
already announced in a letter to the EU Commission that they would reconsider their membership in the Platform if the planned far-reaching softening were to take place.
The European Parliament and the EU states had negotiated for a long
time and in the end found a compromise. But now, under pressure from
some member states, the EU Commission could do a U-turn on the concrete
implementation and weaken the criteria. This would mean that, among
other things, investments in fossil gas would be considered sustainable
finance. In an open letter to the responsible Commissioners McGuinness
and Dombrovskis, initiated by the financial expert Kristina Jeromin and
the MEP Sven Giegold, more than 1,000 signatories, including 250+
experts from the sustainable finance sector, demand credible rules
instead of the planned weakening. The EU Commission will prepare the
decision on the crucial delegated acts this week and formally announce
it next week. Sven Giegold, financial and economic policy spokesperson
of the Greens/EFA group comments:
“The credibility of the European Green Deal is at stake. Investments
in fossil gas must not be given a sustainability label. Ursula von der
Leyen and Frans Timmermans must prevent damage to the Green Deal. After
the Common Agricultural Policy, the financial sector would be the second
economic sector in which the goals of the Green Deal are undermined. If
the EU Commission gives way to pressure from individual member states,
its ability to enforce the Green Deal will be severely damaged. If the
EU Commission already buckles under transparency rules for the financial
sector, the climate rules for the car and construction industries will
be in even greater danger. The Green Deal is a long obstacle race and
the EU Commission must not stumble at the smaller hurdles. The EU should
lead the way in sustainable finance instead of keeping one foot in the
fossil past. Only a label with credible rules can set the global
standard for sustainable finance that is urgently needed in view of the
climate crisis. Caving in to the special interests of some member states
would seriously damage the growing sustainable finance sector. The
industry is protesting against this attack on the credibility of
sustainability criteria. Sustainable finance is a win-win situation for
the climate and the economy. The EU Commission must not turn it into a
lose-lose situation. Truly sustainable companies will be penalised if
the label also applies to gas investments. The EU Commission should
defend its Green Deal and adopt credible rules for sustainable finance
products and investments.”
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Open letter from Nathan Fabian, Chair of the Sustainable Finance Platform, to the EU Commission:
https://twitter.com/nathanafabian/status/1381633783779229697?s=20
Letter from nine members of the Platform for Sustainable Finance to the EU Commission:
https://politico.us8.list-manage.com/track/click?u=e26c1a1c392386a968d02fdbc&id=abc1594340&e=50c161d296
Open Letter to the EU Commission – signed by more than 250 experts in the field of Sustainable Finance (keep signing):
https://actionnetwork.org/petitions/open-letter-sustainable-finance-rules/