Activities of José GUSMÃO related to 2021/0191(COD)
Plenary speeches (1)
European green bonds (debate)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on European green bonds
Amendments (19)
Amendment 236 #
Proposal for a regulation
Recital 5
Recital 5
(5) In ensuring alignment with the objectives of the Paris agreement, so as to ensure that business practices are compatible with the transition to a sustainable economy and limiting global warming to 1.5°C and given the existing divergences and absence of common rules, it is likely that Member States will adopt diverging measures and approaches, which will have a direct negative impact on, and create obstacles to, the proper functioning of the internal market, and be detrimental to issuers of environmentally sustainable bonds. The parallel development of market practices based on commercially driven priorities that produce divergent results causes market fragmentation and risks further exacerbating inefficiencies in the functioning of the internal market. Divergent standards and market practices make it difficult to compare different bonds, create uneven market conditions for issuers, cause additional barriers within the internal market, and risk distorting investment decisions.
Amendment 237 #
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 may lead to cases of greenwashing. 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 248 #
Proposal for a regulation
Recital 7
Recital 7
(7) A uniform set of specificset of harmonized requirements should therefore be laid down for bonds issued by financial or non- financial undertakings or sovereigns that voluntarily wish towish to the label ‘green’ and ‘environmentally sustainable’, including 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 of assessing those bonds for investors. based on the requirements for environmentally sustainable economic activities as outlined in Article 3 of Regulation (EU) 2020/852 regarding taxonomy across the Union, to increase market efficiency by reducing discrepancies and thereby also reducing the costs of assessing those bonds for investors. The designation ‘European green bond’ or ‘EuGB’ should progressively become mandatory for issuers of bonds marketed as environmentally sustainable, after an initial period of three years, following a review of this Regulation.. During the period in which the European green bond standard remains voluntary, bonds issued in the Union and marketed as environmentally sustainable without the designation ‘European green bond’ or ‘EuGB’ should also disclose their alignment with the requirements set out in Regulation (EU) 2020/852.
Amendment 258 #
Proposal for a regulation
Recital 8
Recital 8
(8) In accordance with Article 4 of Regulation (EU) 2020/852, and in order to provide investors with clear, quantitative, detailed and common definitions, the requirements set out in Article 3 of that Regulation should be used to determine whether an economic activity qualifies as environmentally sustainable. Proceeds of bonds that use the designation ‘European green bond’ or ‘EuGB’ should exclusively be used to fund economic activities that either are environmentally sustainable and are thus aligned with the environmental objectives set out in Article 9 of Regulation (EU) 2020/852, or contribute to the transformation of activities to become environmentally sustainable. For the purposes of this Regulation, economic activities relating to nuclear energy and natural gas should not qualify as environmentally sustainable. Those bonds can however be used both to finance such environmentally sustainable activities directly through the financing of assets and expenditures that relate to economic activities that meet the requirements set out in Article 3 of Regulation (EU) 2020/852, or indirectly through financial assets that finance economic activities that meet those requirements. It is therefore necessary to specify the categories of expenditures and assets that can be financed with the proceeds of bonds that use the designation ‘European green bond’ or ‘EuGB’.
Amendment 261 #
Proposal for a regulation
Recital 9
Recital 9
(9) The proceeds of European green bonds should be used to finance economic activities that have a lasting positive impact on the environment. Such lasting positive impact can be attained in several ways. Since fixed assets are long-term assets, a first way is to use the proceeds of such European green bonds to finance fixed tangible or fixed intangible assets that are not financial assets, provided that those fixed assets relate to economic activities that meet the requirements for environmentally sustainable economic activities set out in Article 3 of Regulation (EU) 2020/852 (‘taxonomy requirements’) and the social minimum safeguards. Since financial assets can be used to finance economic activities with a lasting positive impact on the environment, a second way is to use those proceeds to finance financial assets, provided that the proceeds from those financial assets are allocated to economic activities that meet the taxonomy requirements. Since the assets of households can also have a long -term positive impact on the environment, those financial assets should also include the assets of households. Since capital expenditure and selected operating expenditure can be used to acquire, upgrade, or maintain fixed assets, a third way is to use the proceeds of such bonds to finance capital and operating expenditures that relate to economic activities that meet the taxonomy requirements or 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. For the reasons outlined above, the capital and operating expenditures should also include the expenditures of households.
Amendment 264 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9a) This Regulation builds on current market best practices for green bonds and should therefore not create distortions. Existing standards for green bonds exclude the financing of nuclear energy and fossil gas from green bond proceeds. Thus, to ensure the integrity of the European green bond standard, the proceeds of European green bonds should not finance activities relating to electricity generation from nuclear energy or natural gas. Equally, any activities that undermine long-term environmental goals, including the priority objectives set out in Decision (EU) 2022/… [Proposal for a Decision of the European Parliament and of the Council on a General Union Environment Action Programme to 2030] should not be funded by green bonds.
Amendment 275 #
Proposal for a regulation
Recital 10
Recital 10
(10) Sovereigns are frequent issuers of 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. Public investments that contribute to achieving the Sustainable Development Goals should be exempted from the SGP deficit calculations.
Amendment 286 #
Proposal for a regulation
Recital 12
Recital 12
(12) The time needed to transform an asset to align the economic activity to which it relates with the taxonomy requirements should reasonably not exceed five years, except in certain circumstances where it may take up to ten years. For that reason, eligible capital expenditure should relate to economic activities that meet or will meet the taxonomy requirements within five years from the issuance of the bond, unless a longer period of up to ten years is justified by the specific features of the economic activities and investments concerned.
Amendment 338 #
Proposal for a regulation
Article 2 – paragraph 1 – point 3 – point f
Article 2 – paragraph 1 – point 3 – point f
Amendment 340 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5 a (new)
Article 2 – paragraph 1 – point 5 a (new)
(5a) ‘bond marketed as green or environmentally sustainable’ means a bond whose issuer provides investors with a science-based commitment that the proceeds of that bond are allocated to an economic activity that is environmentally sustainable.
Amendment 361 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1
Article 6 – paragraph 1 – subparagraph 1
The use of proceeds referred to in Article 4 shall relbe allocated to economic activities that meet the taxonomy requirements, or that will meet the taxonomy requirements within a defined period of time as set out in a taxonomy-alignment plan.
Amendment 366 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 3
Article 6 – paragraph 1 – subparagraph 3
The period referred to in the first and second subparagraph shall not exceed five years from bond issuance, unless a longer period of up to ten years is justified by the specific features of the economic activities concerned as documented in a taxonomy- alignment plan.
Amendment 378 #
Proposal for a regulation
Article 6 – paragraph 2b (new)
Article 6 – paragraph 2b (new)
2b. The taxonomy-alignment plan referred to in paragraph 1 shall describe the annual intermediate steps to be achieved in order for an economic activity to meet the taxonomy requirements. Whether or not those steps are achieved shall be verified by the reviewer. Where intermediate steps are not achieved, the issuer shall no longer be authorised to use the designation of European green bond for the bond issuance concerned by that taxonomy-alignment plan.
Amendment 399 #
Proposal for a regulation
Article 7 – paragraph 2 a (new)
Article 7 – paragraph 2 a (new)
2a. By way of derogation from paragraphs 1 and 2, the designation of ‘European green bond’ and ‘EuGB’ shall not be used when any of the proceeds are allocated to: (a) nuclear power generation; or (b) electricity generation, or cogeneration from heat/cool and power, or production of heat/cool from fossil gaseous fuels unless the life-cycle GHG emissions are lower than 100gCO2e/kWh.
Amendment 406 #
Proposal for a regulation
Article 7 a (new)
Article 7 a (new)
Article 7a Entity level requirements to issuers of European green bonds 1. Issuers of European green bonds shall adhere to the principle of ‘do no significant harm’ referred to in Regulation (EU) 2019/2088 and in the regulatory technical standards adopted pursuant to that Regulation that further specify that principle. For the purposes of the first subparagraph, issuers of European green bonds shall demonstrate that they have considered all of the following prior to issuing such bonds: (a) the principal adverse impacts of investment decisions on sustainability factors; (b) the integration of sustainability risks in the investment decision-making process; and (c) alignment with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights. 2. Non-sovereign issuers and any of their related third parties that are located in jurisdictions listed in Annex I or II to the EU list of non-cooperative jurisdictions for tax purposes shall not be authorised to use the designation of ‘European green bond’ or ‘EuGB’, unless they can demonstrate real economic activity in the listed jurisdiction. Sovereign issuers that are listed in Annex I or II to the EU list of non-cooperative jurisdictions for tax purposes shall not be authorised to use the designation of ‘European green bond’ or ‘EuGB’. 3. Issuers shall disclose the requirements stipulated in this Article in the template for the European sustainable bond factsheet laid down in Annex I.
Amendment 408 #
Proposal for a regulation
Article 7 b (new)
Article 7 b (new)
Article 7b Transition plan 1. Issuers of European green bonds and issuers of sustainability-linked bonds shall develop a transition plan outlining how they will adhere to a 1.5 °C global warming scenario and reach climate neutrality by 2050. The transition plan shall include annual and verifiable targets. 2. ESMA shall develop draft regulatory technical standards specifying minimum requirements for transition plans. ESMA shall submit those draft regulatory standards to the Commission by [18 months after the date of entry into force of this Regulation]. Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
Amendment 410 #
Proposal for a regulation
Article 7 c (new)
Article 7 c (new)
Article 7c Use of the European green bond standard by Union institutions and bodies Union institutions and bodies shall use the European green bond standard and apply the criteria of Articles 4 to 7a for any issuance of use of proceeds bond that has environmental sustainability as its objective.
Amendment 431 #
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 onceevery five years during the lifetime 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 499 #
Proposal for a regulation
Article 63 a (new)
Article 63 a (new)