Activities of Billy KELLEHER related to 2021/0191(COD)
Plenary speeches (1)
European green bonds (debate)
Shadow opinions (1)
OPINION on the proposal for a regulation of the European Parliament and of the Council on European green bonds
Amendments (24)
Amendment 45 #
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 47 #
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 toin 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 52 #
Proposal for a regulation
Recital 4
Recital 4
(4) Diverging rules on the disclosure of information, on the transparency and accountability of external reviewers reviewing environmentally sustainable bonds, and on the eligibility criteria for eligible environmentally sustainable projects, has impeded the ability of investors to identify, trust, and objectively compare environmentally sustainable bonds, and the ability of issuers to use environmentally sustainable bonds to transitionfund their activtransitieson towards more environmentally sustainable business models.
Amendment 55 #
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 and their impact on the environment. 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 61 #
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 gGreen bBonds 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 gGreen bBond’ 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 76 #
Proposal for a regulation
Recital 10
Recital 10
(10) Sovereigns are frequent issuers of bonds marketed as environmentally sustainable bonds and should therefore also be allowed to issue ‘European gGreen bBonds’, provided that the proceeds of such bonds are used to finance either assets or expenditure that meet the taxonomy, or assets or expenditure that will meet those requirements within a reasonably short period from the issuance of the bond concerned, which can be extended however where duly justified by the specific features of the economic activities and investments concerned.
Amendment 86 #
Proposal for a regulation
Recital 14
Recital 14
(14) Investors should benefit from cost- effective access to reliable information about the European gGreen bBonds. Issuers of European Green Bonds should therefore contract independent external reviewers to provide a pre-issuance review of the European gGreen bBond factsheet, and post- issuance reviews of European gGreen bBond annual allocation reports.
Amendment 89 #
Proposal for a regulation
Recital 15
Recital 15
(15) Issuers of European gGreen bBonds should abide by their commitments to investors and allocate the proceeds of their bonds within a reasonably short time after issuance. At the same time, issuers should not be penalised for allocating bond proceeds to economic activities that do not yet meet the taxonomy requirements, but will do so within the five year period (or extended ten year period). Issuers should in any case allocate all proceeds of their European gGreen bBonds before the maturity of each bond.
Amendment 95 #
Proposal for a regulation
Recital 18
Recital 18
(18) To improve transparency, issuers should also disclose the environmental impact of their bonds by means of the publication of impact reports, which should be published at least ontwice during the lifetime of the bond, and when it reaches maturity. In order to provide investors with all information relevant to assess the environmental impact of European green bonds, impact reports should clearly specify the metrics, methodologies and assumptions applied in the assessment of the environmental impacts. To strengthen the comparability of European green bonds and to facilitate the localisation of relevant information, it is necessary to lay down templates for the disclosure of such information.
Amendment 99 #
Proposal for a regulation
Recital 22
Recital 22
(22) To strengthen transparency towards investors on how the alignment of bond proceeds with the taxonomy requirements is assessed, external reviewers should disclose to users of pre-issuance reviews and, post-issuance reviews and environmental impact reports, the methodologies and key assumptions they use in their external review activities in sufficient detail, whilst taking due account of the protection of proprietary data and intellectual property.
Amendment 155 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Issuers of European green bonds shall, after the full allocation of the proceeds of such bonds and at least ontwice during the lifetime of the bond, and at the maturity of the bond, draw up a European green bond impact report on the environmental impact of the use of the bond proceeds by using the template laid down in Annex III.
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 235 #
Proposal for a regulation
Recital 4
Recital 4
(4) Diverging rules on the disclosure of information, on the transparency and accountability of external reviewers reviewing environmentally sustainable bonds, and on the eligibility criteria for eligible environmentally sustainable projects, has impeded the ability of investors to identify, trust, and compare environmentally sustainable bonds, and the ability of issuers to use environmentally sustainable bonds to transitionfund their activtransitieson towards more environmentally sustainable business models.
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 273 #
Proposal for a regulation
Recital 10
Recital 10
(10) Sovereigns are frequent issuers of bonds marketed as environmentally sustainable bonds and should therefore also be allowed to issue ‘European green bonds’, provided that the proceeds of such bonds are used to finance either assets or expenditure that meet the taxonomy, or assets or expenditure that will meet those requirements within a reasonably short period from the issuance of the bond concerned, which can be extended however where duly justified by the specific features of the economic activities and investments concerned.
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 307 #
Proposal for a regulation
Recital 18
Recital 18
(18) To improve transparency, issuers should also disclose the environmental impact of their bonds by means of the publication of impact reports, which should be published at least ontwice during the lifetime of the bond, and when it reaches maturity. In order to provide investors with all information relevant to assess the environmental impact of European green bonds, impact reports should clearly specify the metrics, methodologies and assumptions applied in the assessment of the environmental impacts. To strengthen the comparability of European green bonds and to facilitate the localisation of relevant information, it is necessary to lay down templates for the disclosure of such information.
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 422 #
Proposal for a regulation
Article 9 – paragraph 7 – point a
Article 9 – paragraph 7 – point a
(a) an assessment of whether the issuer has allocated the proceeds of the bond in compliaccordance with Articles 4 to 7 based on the information provided to the external reviewer;
Amendment 425 #
Proposal for a regulation
Article 9 – paragraph 7 – point b
Article 9 – paragraph 7 – point b
(b) an assessment of whether the issuer has complialigned with the intended use of proceeds set out in the green bond factsheet based on the information provided to the external reviewer;
Amendment 432 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Issuers of European green bonds shall, after the full allocation of the proceeds of such bonds and at least ontwice during the lifetime of the bond, and at the maturity of the bond, draw up a European green bond impact report on the environmental impact of the use of the bond proceeds by using the template laid down in Annex III.
Amendment 449 #
Proposal for a regulation
Article 15 – paragraph 1 – point a
Article 15 – paragraph 1 – point a
(a) the full name of the applicant, the address of the registered office within the Union, the applicant’s website and, where available, the legal entity identifier (LEI);