15 Amendments of Nicola BEER related to 2021/0191(COD)
Amendment 217 #
Proposal for a regulation
Recital 1
Recital 1
(1) The transition to a low-carbon-neutral, more sustainable, resource-efficient, circular and fair economy is key to ensuring the long-term competitiveness of the economy of the Union and the well- being of its peoples. In 2016, the Union concluded the Paris Agreement31. Article 2(1), point (c), of the Paris Agreement sets out the objective of strengthening the response to climate change by, among other means, making finance flows consistent with a pathway towards low greenhouse gas emissions and climate- resilient development. __________________ 31Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 282, 19.10.2016, p. 4).
Amendment 231 #
Proposal for a regulation
Recital 3
Recital 3
(3) Both private and public investment are essential in order to achieve the transition to a carbon-neutral environment. Environmentally sustainable bonds are one of the main instruments for financing investments related to low- carbon technologies, energy and resource efficiency as well as sustainable transport infrastructure and research infrastructure which are needed to deliver a carbon- neutral future. Financial or non-financial undertakings or sovereigns can issue such bonds. Various existing initiatives for environmentally sustainable bonds do not ensure common definitions of environmentally sustainable economic activities. This prevents investors from easily identifying bonds the proceeds of whichwhich bonds are aligned with, or are contributing to environmental objectives as laid down in the Paris Agreement.
Amendment 238 #
Proposal for a regulation
Recital 6
Recital 6
(6) The lack of harmonised rules for the procedures used by external reviewers to review environmentally sustainable bonds and the diverging definitions of environmentally sustainable activities make it increasingly difficult for investors to effectively compare bonds across the internal market with respect to their environmental objectives. The market for environmentally sustainable bonds is inherently international, with market participants trading bonds and making use of external review services from third party providers across borders, including those from third countries. Action at Union level could reduce the risk of fragmentation of the internal market for environmentally sustainable bonds and bond-related external review services, and ensure the application of Regulation (EU) 2020/852 of the European Parliament and of the Council34 in the market for such bonds. __________________ 34 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).
Amendment 246 #
Proposal for a regulation
Recital 7
Recital 7
(7) A uniform set of specific requirements should therefore be laid down for bonds issued by financial or non- financial undertakings or sovereigns that voluntarily wish to use the designation ‘European green bond’ or ‘EuGB’ for such bonds. Specifying quality requirements for European green bonds in the form of a Regulation should ensure that there are uniform conditions for the issuance of such bonds by preventing diverging national requirements that could result from a transposition of a Directive, and should also ensure that those conditions are directly applicable to issuers of such bonds. Issuers that voluntarily use the designation ‘European green bond’ or ‘EuGB’ should follow the same rules across the Union, to increase market efficiency by reducing discrepancies and thereby also reducing the costs ofassociated with assessing those bonds for investors. A uniform, reliable standard with integrity would also help incentivise cross-border investment in such bonds.
Amendment 279 #
Proposal for a regulation
Recital 11
Recital 11
(11) Article 4 of Regulation (EU) 2020/852 requires Member States and the Union to apply the criteria set out in Article 3 of that Regulation to determine whether an economic activity qualifies as environmentally sustainable for the purposes of any measure setting out requirements for financial market participants or issuers in respect of financial products or corporate bonds that are made available as environmentally sustainable. It is therefore logical that the technical screening criteria referred to in Article 3, point (d), of Regulation (EU) 2020/852 should determine which fixed assets, expenditures and financial assets can be financed by the proceeds of European green bonds. In view of the expected technological progress in the field of environmental sustainability, the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852 are likely to be reviewed and amended over time. Regardless of such changes, in order to provide legal certainty to issuers and investors and prevent amendments to the technical screening criteria from having a negative impact on the price of European green bonds that have already been issued, issuers should be able to apply the technical screening criteria applicable at the moment the European green bond was issued when allocating the proceeds of such bonds to eligible fixed assets or expenditures, until maturity of the bond. To ensure legal certainty for European green bonds whose proceeds are allocated to financial assets, it is necessary to clarify that the underlying economic activities funded by those financial assets should comply with the technical screening criteria applicable at the moment the financial assets were created. Where the relevant delegated acts are amended, the issuer should allocate proceeds by applying the amended delegated acts within five years.
Amendment 287 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12a) Issuers of European green bonds should use such bonds as part of their overarching sustainability strategy. As such, issuers should adhere to certain entity-level sustainability requirements. That includes aligning to minimum safeguards as set out in Article 18 of Regulation (EU) 2020/852. Issuers should also not be engaged in tax avoidance practices via countries on the EU list of non-cooperative jurisdictions for tax purposes.
Amendment 297 #
Proposal for a regulation
Recital 14
Recital 14
(14) Investors should benefit from cost- effective access to reliable information about the European green bonds. Issuers of European Green Bonds should therefore contract independent external reviewers to provide a pre-issuance review of the European green bond factsheet, and post- issuance reviews of European green bond annual allocation reports.
Amendment 327 #
Proposal for a regulation
Recital 36 a (new)
Recital 36 a (new)
(36a) The application of this Regulation should be reviewed in order to assess, inter alia, the uptake of the European green bond standard, the functioning of the market of external reviewers, whether the standard should be converted to a mandatory standard.
Amendment 330 #
Proposal for a regulation
Recital 37
Recital 37
(37) The objectives of this Regulation are twofold. On the one hand, it aims to ensure that uniform requirements apply to the use of the designation of ‘European green bond’ or ‘EuGB’. On the other hand, it aims to establish a simple registration system and supervisory framework for external reviewers by entrusting a single supervisory authority with the registration and supervision of external reviewers in the Unionof EuGB. Both aims should facilitate capital raising for projects that pursue environmentally sustainable objectives. Since those objectives cannot be sufficiently achieved by the Member States but can be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,
Amendment 346 #
Proposal for a regulation
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. Before maturity of the bond, the proceeds of European green bonds shall be exclusively and fully allocated, withoutafter deducting costs directly linked to issuance, to the following, or a combination thereof:
Amendment 373 #
Proposal for a regulation
Article 6 – paragraph 2 a (new)
Article 6 – paragraph 2 a (new)
2a. By way of derogation from Article 6(1), up to 20 % of the proceeds of European green bonds may be allocated to environmentally sustainable activities that are aligned with the taxonomy principles set out in Article 3, points (a) to (c) of Regulation (EU) 2020/852, but only for the following: (a) economic activities for which the technical screening criteria referred to in Article 3, point (d), of Regulation (EU) 2020/852 have not yet entered into force; (b) economic activities for which, due to their innovative or complex nature or their location, those technical screening criteria are not directly applicable; (c) non-economic activities with environmental objectives, pursued by a sovereign issuer, such as but not limited to fundamental research, (geo-) spacial technologies, nature conservation and international climate/development finance. Where the proceeds are intended to be allocated in accordance with this sub- paragraph, the issuer shall explain: (i) why the technical screening criteria referred to in point (d) of Article 3 of Regulation (EU) 2020/852 are not applicable to those bond proceeds; (ii) how the activities for the allocation of those bond proceeds were or will be evaluated and selected, and which criteria were or will be applied; (iii) how the taxonomy principles set out in Article 3, points (a) to (c) of Regulation (EU) 2020/852 are or will be met. Those explanations shall be included in the European green bond factsheet, the allocation and impact report and be validated by an external reviewer in form of a detailed assessment with a positive opinion in the pre- and post-issuance reviews. The external reviewer shall validate in the post-issuance review that the proceeds have been allocated in accordance with the stated environmental objectives and provide an assessment of the environmental quality of the bond proceeds.
Amendment 404 #
Proposal for a regulation
Article 7 a (new)
Article 7 a (new)
Amendment 413 #
Proposal for a regulation
Article 8 – paragraph 2
Article 8 – paragraph 2
2. A European green bond factsheet may relate to one or several European green bond issuances. Factsheets may be published jointly.
Amendment 420 #
Proposal for a regulation
Article 9 – paragraph 6
Article 9 – paragraph 6
6. Issuers of European green bonds shall provide the allocation reports referred to in paragraph 3, 4, and 5 to an external reviewer within 390 days following the end of the year to which the allocation reports refer. The post-issuance review must be made public within 90 days following the receipt of the allocation report.
Amendment 465 #
Proposal for a regulation
Article 23 – paragraph 1
Article 23 – paragraph 1
1. External reviewers shall adopt and implement measures to ensure that their pre-issuance reviews as referred to in Article 8 and their post-issuance reviews as referred to in Article 9 are based on a thorough analysis of all the information that is available to them and that, according to their transparent and public methodologies, is relevant to their analysis.