Proposal for a regulation
Article 1 – paragraph 1 – point 52 a (new)
Regulation (EU) No 575/2013
Article 133a (new)
(52 a) the following article is inserted : Article 133a Fossil fuel sector equity exposures for corporates 1. The following shall be considered companies having activities relating to existing fossil fuel resources: (i)companies in the sectors of the economy which produce, process, store or use fossil fuels as defined in Article 2(62) of Regulation (EU) 2018/1999 of the European Parliament and of the Council (ii)companies active in fossil fuel sectors, excluding the ones which invest in expansion or exploration and plan to add fossil fuel resources to their production portfolio (iii)companies exploiting power plants that burn fossil fuels to generate power. Fossil fuel resources and resource fields referred to in this subparagraph must have been explored and known as of 31 December 2021. 2. The following shall be considered companies having activities relating to new fossil fuel resources: (i) companies in the sectors of the economy which produce, process, store or use fossil fuels as defined in Article 2(62) of Regulation (EU) 2018/1999 of the European Parliament and of the Council This includes all projects which have not received a final investment decision (FID) before 31 December 2021 (i) companies active in fossil fuel sectors, which invest in expansion and exploration and plan to add fossil fuel resources to their production portfolio (iii) companies exploiting power plants that burn fossil fuels to generate power; the FID for the exploration or expansion of such fossil fuels must have been on or after 1 January 2022. Exploration or expansion of fossil fuel resources and resource fields referred to in this must have started on or after 1 January 2022. 3. Equity exposures in companies having activities relating to existing fossil fuel resources, as referred to in paragraph 1 of this Article, shall be assigned a risk weight of 400 % 4. Equity exposures in companies having activities relating to new fossil fuel resources, as referred to in paragraph 2 of this Article, shall be assigned a risk weight of 1250 % 5. Corporates publishing a transition plan as defined in article 19a, paragraph 2, point (iii), of Directive 2013/34/EU and as specified in the delegated acts adopted in accordance with Article 29b of Directive 2013/34/EU, shall not be subject to the treatment set out in this Article. For this rule to apply, the transition plan shall be subject to an assurance engagement respecting the dispositions set out in Directive [CSRD] for the assurance of sustainability reporting.