2018/0178(COD) | [ParlTrack]

Proposal for a regulation
Title 1

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the establishment of a framework to facilitate sustainable fin~~vestment~~ance (Text with EEA relevance)

Amendment 125 #

Proposal for a regulation
Recital 1

(1) Article 3(3) of the Treaty on European Union aims to establish an internal market that works for the sustainable development of Europe, based among others on balanced economic growth and a high level of protection and improvement of the quality of the environment. The results achieved in terms of both economic growth and environmental protection are very far removed from the objectives referred to here.

Amendment 126 #

Proposal for a regulation
Recital 1

Amendment 127 #

Proposal for a regulation
Recital 3 a (new)

(3 a) In November 2017, the European Parliament, the Council and the Commission proclaimed and signed the European Pillar of Social Rights, in favour of a Europe that tackles unemployment, poverty and discrimination, giving equal opportunities to the young and vulnerable. A comprehensive and deep implementation of the pillar can be facilitated by making financial flows consistent with such a pathway.

Amendment 128 #

Proposal for a regulation
Recital 4

(4) Sustainability and the transition to a low-carbon and climate resilient, more resource-efficient and circular economy are key in ensuring long-term competitiveness of the Union’s economy. Sustainability has long been at the heart of the European ~~Union~~ project and the Treaties give recognition to its social and environmental dimensions, but it remains wishful thinking, considering how disappointing its results are from a social and environmental point of view.

Amendment 129 #

Luigi MORGANO

Proposal for a regulation
Recital 4 a (new)

(4 a) The High-Level Task force on Investing in Social Infrastructure in Europe published in January 2018 its Report, estimating the minimum gap in social infrastructure investment in the EU at EUR 100-150 billion per year, and a total gap of over EUR 1.5 trillion in 2018- 2030.

Amendment 130 #

Proposal for a regulation
Recital 4 a (new)

(4 a) Major trade deals such as TTIP, CETA, JEFTA etc and the resultant increased mass transit of goods can have a major negative environmental impact;

Amendment 131 #

Stefan GEHROLD

Proposal for a regulation
Recital 5

(5) In December 2016, the Commission mandated a High-Level Expert Group to develop an overarching and comprehensive Union strategy on sustainable finance. The report of the High-Level Expert Group published on 31 January 201824 calls for the creation of a technically robust classification system at Union level to establish clarity on which activities are ‘green’ or ‘sustainable’~~, starting with climate change mitigation~~. Activities which help to lessen the human influence on climate change should be classified first. _________________ 24 EU High-Level Expert Group on Sustainable Finance Final Report, Financing a Sustainable European Economy, available at: https://ec.europa.eu/info/sites/info/files/180 131-sustainable-finance-final- report_en.pdf.

Amendment 132 #

Proposal for a regulation
Recital 6

(6) In March 2018, the Commission published its Action Plan 'Financing Sustainable Growth'25 setting up an ambitious and comprehensive strategy on sustainable finance. One of the objectives set out in that Action Plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth. The establishment of a unified classification system for sustainable activities isand of indicators for identifying the degree of sustainability of activities are the most important and urgent action envisaged by the Action Plan. The Action Plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared, holistic understanding of ~~what 'sustainable' means~~the impact of economic activities and investments in terms of sustainability. As a first step, clear guidance on activities qualifying as contributing to environmental objectives, should help inform investors about the investments that fund environmentally sustainable economic activities. FIn parallel, further guidance on the activities contributing to ~~other sustainability objectives, including social objectives, may be developed at a later stage~~social objectives, are developed, recognising that the UN Sustainable Development Goals (SDG) cover all three pillars of sustainability: environmental, social and economic/governance. This also reflects the European Council conclusions of 20 June 2017 that confirmed the commitment of the Union and the Member States to the implementation of the 2030 Agenda in full, coherent, comprehensive, integrated and effective manner. _________________ 25 COM(2018) 97 final.

Amendment 133 #

Proposal for a regulation
Recital 6

(6) In March 2018, the Commission published its Action Plan 'Financing Sustainable Growth'25 setting up an ambitious and comprehensive strategy on sustainable finance. One of the objectives set out in that Action Plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth. The establishment of a unified classification system ~~for~~and of indicators for identifying sustainable activities isare the most important and urgent actions envisaged by the Action Plan. The Action Plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared, holistic understanding of ~~what 'sustainable' means~~economic activities and investments on environmental and social sustainability and resource efficiency. As a first step, clear guidance on activities qualifying as contributing to environmental objectives, should help inform investors about the investments that ~~fund environmentally~~ sustainable economic activities. Further guidance on the activities contributing to other sustainability objectives, including social objectives, may be developed at a later stage. _________________ 25 COM(2018) 97 final. COM(2018) 97 final.

Amendment 134 #

Proposal for a regulation
Recital 6

Amendment 135 #

Paul TANG, Pervenche BERÈS

Proposal for a regulation
Recital 6

Amendment 136 #

Proposal for a regulation
Recital 6

Amendment 137 #

Proposal for a regulation
Recital 6

(6) In March 2018, the Commission published its Action Plan 'Financing Sustainable Growth'25 setting up a~~n ambitious and comprehensive~~ strategy on sustainable finance. One of the objectives set out in that Action Plan is to reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth. The establishment of a unified classification system for sustainable activities is the most important and urgent action envisaged by the Action Plan. The Action Plan recognises that the shift of capital flows towards more sustainable activities has to be underpinned by a shared understanding of what 'sustainable' means. As a first step, clear guidance on activities qualifying as contributing to environmental objectives, should help inform investors about the investments that fund environmentally sustainable economic activities. Further guidance on the activities contributing to other sustainability objectives, including social objectives, may be developed at a later stage. _________________ 25 COM(2018) 97 final. COM(2018) 97 final.

Amendment 138 #

Proposal for a regulation
Recital 7 a (new)

(7 a) The European Parliament Report on Sustainable Finance of 29 May 2018 lays down essential elements of sustainability indicators and taxonomy, as an incentive for sustainable investment. Consistency should be ensured among relevant legislation.

Amendment 139 #

Proposal for a regulation
Recital 7 b (new)

(7 b) The importance of maintaining a balance between environmental, social and governance (ESG) dimensions of sustainable finance and investments should be underlined and ensured, enforcing an environmentally sensitive and socially inclusive sustainable growth.

Amendment 140 #

Proposal for a regulation
Recital 8 a (new)

(8 a) The scale of the challenge requires gradually moving the entire financial system and the economy to a position where they are able to function on a sustainable basis. To that end, sustainable finance needs to be brought into the mainstream, and a consideration needs to be made of sustainability impact in respect of financial products and services marketed as sustainable.

Amendment 141 #

Elisabetta GARDINI, Fulvio MARTUSCIELLO, Alberto CIRIO, Aldo PATRICIELLO

Proposal for a regulation
Recital 8 a (new)

(8 a) The scale of the challenge, which entails shifting the entire financial system and economy to a position where they are able to function on a sustainable basis, will require gradual movement and progressive transition over time.

Amendment 142 #

Costas MAVRIDES

Proposal for a regulation
Recital 8 a (new)

(8 a) The scale of the challenge requires gradually moving the entire financial system to support the economy to function on a sustainable basis.

Amendment 143 #

Miguel VIEGAS

Proposal for a regulation
Recital 9

(9) Offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities. National requirements for marketing as sustainable investments financial products and corporate bonds, in particular requirements set out to allow the relevant market actors to use a national label, aim to enhance investor confidence, to create visibility and to address concerns about “greenwashing”. Greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment- friendly, when in fact it does not meet basic environmental standards. Currently a few Member States have in place labelling schemes. They build on different taxonomies classifying environmentally sustainable economic activities. Given the political commitments under the Paris Agreement and at Union level, it The results announced at the recent 24th UN climate conference in Poland (COP24) reflect the failure of all market instruments implemented to date to resolve this clikely that more and more Member States will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable. In doing so, Member States would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable. If such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable, investors will be discouraged from investing across borders, due to difficulties in comparing the different investment opportmate change emergency. It is accordingly necessary to break with all environmental policy guidelines imposed unities. In addition, economic operators wishing to attract investment from across the Union would have to meet different criteria in the various Member States in order for their activities to qualify as environmentally sustainable for the purposes of the different labels. The absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators, amounting to an impediment to access cross-border capital markets for sustainable investments. The barriers to access to cross-border capital markets for the purposes of raising funds for sustainable projects are expected to grow further. The criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at Union level, in order to remove obstacles to the functioning of the internal market and prevent their future emergence. With such harmonisation economic operators will find it easier to raise funding for their green activities across borders, as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments. It will therefore facilitate attracting investment across borders within the Unionl now. A coherent regulatory approach based on the need to ensure public ownership of strategic sectors such as energy, banking and transport must be implemented as a matter of urgency. Unless these conditions are met, CO2 emissions will clearly never diminish sufficiently for achievement of the carbon neutrality indispensable to the survival of our planet.

Amendment 144 #

Proposal for a regulation
Recital 9

(9) Offering financial products which pursue environmentally and economically sustainable objectives is an effective way of gradually channelling private investments into sustainable activities. National requirements for marketing as sustainable investments financial products and corporate bonds, in particular requirements set out to allow the relevant market actors to use a national label, aim to enhance investor confidence, to create visibility and to address concerns about “greenwashing”. Greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment-friendly, when in fact it does not meet basic environmental standards. Currently a few Member States have in place labelling schemes. They build on different taxonomies classifying environmentally sustainable economic activities. Given the political commitments under the Paris Agreement and at Union level, it is likely that more and more Member States will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable. In doing so, Member States would be using their own national taxonomies for the purposes of determining which investments qualify as sustainableCurrently a few Member States have in place labelling schemes. They build on different taxonomies classifying environmentally sustainable economic activities. If such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable, investors will be discouraged from investing across borders, due to difficulties in comparing the different investment opportunities. In addition, economic operators wishing to attract investment from across the Union would have to meet different criteria in the various Member States in order for their activities to qualify as environmentally sustainable for the purposes of the different labels. The absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators, amounting to an impediment to access cross-border capital markets for sustainable investments. The barriers to access to cross-border capital markets for the purposes of raising funds for sustainable projects are expected to grow further. The criteria for determining whether an economic activity is environmentally and economically sustainable should therefore gradually be harmonised at Union level, in order to remove obstacles to the functioning of the internal market and prevent their future emergence. With such harmonisation economic operators will find it easier to raise funding for their green activities across borders, as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments. It will therefore facilitate attracting investment across borders within the Union.

Amendment 145 #

Proposal for a regulation
Recital 9

(9) Offering financial products and services which pursue environmentally sustainable objectives is an effective way of channelling and gradually shifting private investments into sustainable activities. National requirements for marketing as sustainable investments financial products and corporate bonds, in particular requirements set out to allow the relevant market actors to use a national label, aim to enhance investor confidence, to create visibility and to address concerns about “greenwashing”. Greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment-friendly, when in fact it does not meet basic environmental standards. Currently a few Member States have in place labelling schemes. They build on different taxonomies classifying environmentally sustainable economic activities. Given the political commitments under the Paris Agreement and at Union level, it is likely that more and more Member States will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable. In doing so, Member States would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable. If such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable, investors will be discouraged from investing across borders, due to difficulties in comparing the different investment opportunities. In addition, economic operators wishing to attract investment from across the Union would have to meet different criteria in the various Member States in order for their activities to qualify as environmentally sustainable for the purposes of the different labels. The absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators, amounting to an impediment to access cross-border capital markets for sustainable investments. The barriers to access to cross-border capital markets for the purposes of raising funds for sustainable projects are expected to grow further. The criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at Union level, in order to remove obstacles to the functioning of the internal market and prevent their future emergence. With such harmonisation economic operators will find it easier to raise funding for their green activities across borders, as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments. It will therefore facilitate attracting investment across borders within the Union.

Amendment 146 #

Proposal for a regulation
Recital 9

(9) Offering financial products which pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities. National requirements for marketing as sustainable investments financial products and corporate bonds, in particular requirements set out to allow the relevant market actors to use a national label, aim to enhance investor confidence, to create visibility and to address concerns about “greenwashing”. Greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment-friendly, when in fact it does not meet basic environmental standards. Currently a few Member States have in place labelling schemes. They build on different taxonomies classifying environmentally sustainable economic activities. Given the political commitments under the Paris Agreement and at Union level, it is ~~likely~~possible that more and more Member States will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable. In doing so, Member States would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable. If such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable, investors will be discouraged from investing across borders, due to difficulties in comparing the different investment opportunities. In addition, economic operators wishing to attract investment from across the Union would have to meet different criteria in the various Member States in order for their activities to qualify as environmentally sustainable for the purposes of the different labels. The absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators, amounting to an impediment to access cross-border capital markets for sustainable investments. The barriers to access to cross-border capital markets for the purposes of raising funds for sustainable projects are expected to grow further. The criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at Union level, in order to remove obstacles to the functioning of the internal market and prevent their future emergencIn order to remove obstacles to the functioning of the internal market and prevent their future emergence, one possible solution for consideration would be to harmonise the criteria for determining whether an economic activity is environmentally sustainable. With such harmonisation economic operators will find it easier to raise funding for their green activities across borders, as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments. It will therefore facilitate attracting investment across borders within the Union.

Amendment 147 #

Proposal for a regulation
Recital 9

(9) Offering financial products which are marketed as and pursue environmentally sustainable objectives is an effective way of channelling private investments into sustainable activities. National requirements for marketing as sustainable investments financial products and corporate bonds, in particular requirements set out to allow the relevant market actors to use a national label, aim to enhance investor confidence, to create visibility and to address concerns about “greenwashing”. Greenwashing refers to the practice of gaining an unfair competitive advantage by marketing a financial product as environment-friendly, when in fact it does not meet basic environmental standards. Currently a few Member States have in place labelling schemes. They build on different taxonomies classifying environmentally sustainable economic activities. Given the political commitments under the Paris Agreement and at Union level, it is likely that more and more Member States will set up labelling schemes or other requirements on market actors in respect of financial products or corporate bonds marketed as environmentally sustainable. In doing so, Member States would be using their own national taxonomies for the purposes of determining which investments qualify as sustainable. If such national requirements are based on different criteria as to which economic activities qualify as environmentally sustainable, investors will be discouraged from investing across borders, due to difficulties in comparing the different investment opportunities. In addition, economic operators wishing to attract investment from across the Union would have to meet different criteria in the various Member States in order for their activities to qualify as environmentally sustainable for the purposes of the different labels. The absence of uniform criteria will thus increase costs and create a significant disincentive for economic operators, amounting to an impediment to access cross-border capital markets for sustainable investments. The barriers to access to cross-border capital markets for the purposes of raising funds for sustainable projects are expected to grow further. The criteria for determining whether an economic activity is environmentally sustainable should therefore be harmonised at Union level, in order to remove obstacles to the functioning of the internal market and prevent their future emergence. With such harmonisation economic operators will find it easier to raise funding for their green activities across borders, as their economic activities can be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments. It will therefore facilitate attracting investment across borders within the Union.

Amendment 148 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Recital 9 a (new)

(9 a) The taxonomy framework for investing in sustainable investments should primarily serve to facilitate investment of this type and should not be a tool for forced reallocation of investment from other projects. The taxonomy framework for investing in sustainable investments should not fundamentally affect the availability/costs of other forms of financing. It is necessary to consider what impacts the “sustainable” instruments can have on the “non-sustainable” ones that have been realised earlier. Also it is important to stipulate that this Regulation should only be applicable to new investments to avoid retroactivity effect.

Amendment 149 #

Proposal for a regulation
Recital 9 a (new)

(9 a) In addition, where appropriate, labelling financial products or corporate bonds as environmentally harmful with uniform criteria would provide additional market information with regard to economic activities that significantly harm environmental objectives and would enable the financial market to gradually channel private investments towards environmentally neutral economic activities, which have no specific label, or environmentally sustainable economic activities. It will also enable the Union and Member States to end public financial support for investments that significantly harm environmental objectives.

Amendment 150 #

Nils TORVALDS, Fredrick FEDERLEY, Anneli JÄÄTTEENMÄKI, Jytte GUTELAND, Ulrike MÜLLER, Elsi KATAINEN, Petri SARVAMAA

Proposal for a regulation
Recital 9 a (new)

(9 a) In order for the Union to reach its environmental and climate commitments, private investments need to be mobilized. Achieving this requires long-term planning as well as regulatory stability and predictability for investors. In order to guarantee a coherent policy framework for sustainable investments, it is therefore important that the provisions of this Regulation build upon existing Union legislation.

Amendment 151 #

Christofer FJELLNER, Gunnar HÖKMARK

Proposal for a regulation
Recital 9 a (new)

(9 a) Achieving the Union’s environmental and climate commitments requires private investments. To mobilise private investments it is necessary to guarantee a coherent policy framework for sustainable investments. This requires regulatory stability and predictability for investors in the long-term. Therefore, it is important that the provisions of this Regulation build upon existing Union legislation.

Amendment 152 #

Proposal for a regulation
Recital 10

(10) Moreover if market participants do not ~~provide any explanation to investors of~~disclose how the activities they invest in contribute to environmental objectives, or if they use different ~~concepts in their explanation of~~metrics and criteria for determining what is a ‘sustainable’ economic activity, investors will find it disproportionately burdensome to check and compare these different financial products. It has been found that this discourages investors from investing into ~~green~~sustainable financial products. Furthermore, the lack of investor confidence has major detrimental effects on the market for sustainable investment. It has further been shown that national rules or market-based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market. If financial market participants disclose how the financial products they claim are environment- friendly meet environmental objectives, and they use for such disclosures common criteria across the Union of what is an environmentally sustainable economic activity, this will help investors compare the environment~~-friendly~~al impact of investment opportunities across borders. Investors will invest in green financial products with higher confidence across the Union, improving the functioning of the internal market.

Amendment 153 #

Proposal for a regulation
Recital 10

(10) Moreover if market participants do not ~~provide any explanation to investors of~~disclose how the activities they invest in contribute to environmental objectives, or if they use different ~~concepts in their explanation of~~metrics and criteria for determining what is a ‘sustainable’ economic activity, investors will find it disproportionately burdensome to check and compare these different financial products. It has been found that this discourages investors from investing into ~~green~~sustainable financial products. Furthermore, the lack of investor confidence has major detrimental effects on the market for sustainable investment. It has further been shown that national rules or market-based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market. If financial market participants disclose how the financial products they claim are environment- friendly meet environmental objectives, and they use for such disclosures common criteria across the Union of what is an environmentally sustainable economic activity, this will help investors compare environment- friendly investment opportunities across borders. Investors will invest in green financial products with higher confidence across the Union, improving the functioning of the internal market.

Amendment 154 #

Proposal for a regulation
Recital 10

(10) Moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives, or if they use different concepts in their explanation of what is a ‘sustainable’ economic activity, investors will find it disproportionately burdensome to check and compare these different financial products. It has been found that this discourages investors from investing into green financial products. Furthermore, the lack of investor confidence has major detrimental effects on the market for sustainable investment. It has further been shown that national rules or market-based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market. If financial market participants disclose how the financial products they claim are environment-friendly meet environmental objectives, and they use for such disclosures common criteria across the Union of what is an environmentally sustainable economic activity, this will help investors compare environment- friendly investment opportunities across borders and will incentivise investee companies to make their business models more sustainable. Investors will invest in green financial products with higher confidence across the Union, improving the functioning of the internal market.

Amendment 155 #

Proposal for a regulation
Recital 10

(10) Moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives, or if they use different concepts in their explanation of what is a ‘sustainable’ economic activity, investors will find it disproportionately burdensome to check and compare these different financial products. It has been found that this discourages investors from investing into ~~green~~sustainable financial products. Furthermore, the lack of investor confidence has major detrimental effects on the market for sustainable investment. It has further been shown that national rules or market-based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market. If financial market participants disclose how the financial products they claim are environment-friendly meet environmental objectives, and they use for such disclosures common criteria across the Union of what is an environmentally sustainable economic activity, this will help investors compare environment- friendly investment opportunities across borders. Investors will invest in ~~green~~sustainable financial products with higher confidence across the Union, improving the functioning of the internal market.

Amendment 156 #

Proposal for a regulation
Recital 10

(10) Moreover if market participants do not provide any explanation to investors of how the activities they invest in contribute to environmental objectives, or if they use different concepts in their explanation of what is a ‘sustainable’ economic activity, investors will find it disproportionately burdensome to check and compare these different financial products. It has been found that this discourages investors from investing into green financial products. Furthermore, the lack of investor confidence has major detrimental effects on the market for sustainable investment. It has further been shown that national rules or market-based initiatives taken to tackle this issue within national borders will lead to fragmenting the internal market. If financial market participants disclose how the financial products they claim are environment-friendly meet environmental objectives, and they use for such disclosures common criteria across the Union of what is an environmentally sustainable economic activity, this will help investors compare environment- friendly investment opportunities across borders. Investors will invest in green financial products with higher confidence across the Union, improving the functioning of the internal market.Does not affect the English version.)

Amendment 157 #

Proposal for a regulation
Recital 10 a (new)

(10 a) The indicators should be harmonised based on existing undertakings, such as the work of the Commission, the European Environmental Agency, and the OECD, among others, and should capture environmental impact on CO2 and other emissions, biodiversity, production of waste, the use of energy and renewable energy, raw materials, water, and direct and indirect land use, as laid out in the Commission monitoring framework on the circular economy (COM/2018/29 final), the EU action plan for the Circular Economy (COM/2015/0614 final) and in the European Parliament's resolution of 9 July 2015 on resource efficiency: moving towards a circular economy (2014/2208(INI)). Furthermore the indicators should be designed also taking into account the recommendations of the Support to Circular Economy Financing Expert Group of the European Commission. The Commission should evaluate how to integrate the work of this expert group with the TEG. Indicators should take into account internationally recognized sustainable standards.

Amendment 158 #

Proposal for a regulation
Recital 10 a (new)

(10 a) The indicators should be harmonised based on existing undertakings such as developed by the Commission, the European Environmental Agency, and the OECD among others, and should capture environmental impact on CO2 and other emissions, biodiversity, production of waste, the use of energy, raw materials, water, and direct and indirect land use, as laid out in the Commission monitoring framework on the circular economy (COM/2018/29 final), the EU Action plan for the Circular Economy (COM/2015/0614 final) and the European Parliament's resolution on resource efficiency: moving towards a circular economy (2014/2208(INI)). Furthermore, the indicators should be designed also taking into account the recommendations of the support to Circular Economy Financing Expert Group of the European Commission. The Commission should evaluate how to integrate the work of this expert group with the TEG. Indicators should take into account internationally recognized sustainable standards.

Amendment 159 #

Proposal for a regulation
Recital 10 a (new)

(10 a) In order to deliver an effective environmental and sustainability impact, to decrease unnecessary administrative burden on financial market participants and to facilitate the growth of European financial markets funding sustainable economic activities, the taxonomy should be based on harmonised, comparable and uniform criteria. Any overlap in regulation or pre-emptive legislative action must be avoided which would not be in line with the principles of better regulation and proportionality, the aim to create a consistent terminology and a clear regulatory framework or would lead to an unnecessary burdening of both, authorities and financial institutions.

Amendment 160 #

Proposal for a regulation
Recital 11

(11) To address existing obstacles to the functioning of the internal market and to prevent the emergence of such obstacles in the future, Member States shcould be ~~requir~~invited to use a common concept of environmentally sustainable investment when setting up requirements for market actors for the purpose of labelling financial products or corporate bonds marketed as environmentally sustainable at national level. For the same reasons, fund managers and institutional investors that hold themselves out as pursuing environmental objectives should use the same concept of environmentally sustainable investment when disclosing how they pursue those objectives.

Amendment 161 #

Proposal for a regulation
Recital 12

(12) Establishing criteria for environmentally sustainable economic activities may encourage firms to disclose on their websites, on a voluntary basis, information on the environmentally sustainable economic activities they carry out. This information will not onlyThe information on the environmental and social impact of activities will help relevant actors in the financial markets to easily ide~~ntify which firms carry out environmentally sustainable economic activities, but it will~~termine the degree of sustainability of the economic activities carried out by firms, also facilitat~~e for these~~ing firms to raise funding for their ~~green~~sustainable activities.

Amendment 162 #

Proposal for a regulation
Recital 12

(12) Establishing criteria for environmentally sustainable economic activities may encourage firms to disclose on their websites, on a voluntary basis, information on the environmentally sustainable economic activities they carry out. This information will not only help relevant actors in the financial markets to easily identify which firms carry out environmentally sustainable economic activities, but it will also facilitate for these firms to raise funding for their ~~green~~sustainable activities.

Amendment 163 #

Proposal for a regulation
Recital 12

(12) Establishing criteria for environmentally sustainable economic activities may encourage firms to disclose on their websites, on a voluntary basis, information on the environmentally sustainable economic activities they carry out. This information will not only help relevant actors in the financial markets to easily identify which firms carry out environmentally sustainable economic activities, but it will also facilitate for these firms to raise funding for their ~~green~~sustainable activities.

Amendment 164 #

Proposal for a regulation
Recital 13

(13) A Union ~~classification of environmentally sustainable~~-wide indicators determining the environmental impact of economic activities should enable the development of future Union policies, including Union- wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the Union. Uniform legal requirements for ~~considering investments as~~assessing the environmentally sustainableility of investments, based on uniform criteria for determining the environmentally sustainableility of economic activities~~, are necessary as a reference for future Union legislation aiming at enabling those investments~~ and common indicators for assessing the environmental impact of investments, are necessary as a reference for future Union legislation aiming at facilitating the shift from investments with a negative environmental impact to investments with a positive impact.

Amendment 165 #

Elisabetta GARDINI, Fulvio MARTUSCIELLO, Alberto CIRIO, Aldo PATRICIELLO

Proposal for a regulation
Recital 13

(13) A Union classification of environmentally sustainable economic activities should enable the development of ~~future Union policies, including~~ Union- wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the Union. Uniform legal requirements for considering investments as environmentally sustainable investments, based on uniform criteria for environmentally sustainable economic activities, are necessary as a reference for future Union legislation aiming at enabling those investHowever, those standards for environmentally sustainable economic activities should not be the basis for prudential requirements such as own funds or capital requirements.

Amendment 166 #

Jakob von WEIZSÄCKER

Proposal for a regulation
Recital 13

(13) The Platform on Sustainable Finance and the recurring reviews of this Regulation by the Commission should cover whether it is necessary to move from common criteria for classifying economic activities as environmentally sustainable to a Union classification of environmentally sustainable activities and investments, especially in view of incentives for national governments to more generously classify economic activities as environmentally sustainable in order to attract more investment. A Union classification of environmentally sustainable economic activities should furthermore enable the development of future Union policies, including Union- wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the Union. Uniform legal requirements for considering investments as environmentally sustainable investments, based on uniform criteria for environmentally sustainable economic activities, are necessary as a reference for future Union legislation aiming at enabling those investments, including the introduction of a brown-penalising factor into the prudential framework for financial institutions in order to adequately account for climate change risks associated with carbon-intensive assets.

Amendment 167 #

Proposal for a regulation
Recital 13

(13) A Union classification of environmentally and economically sustainable ~~economic~~ activities should gradually enable the development of future Union policies, including Union- wide standards for ~~environmentally~~ sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the Union. Uniform legal requirements for considering ~~investments as environmentally~~ sustainable investments as such, based on uniform criteria for ~~environmentally~~a certain number of sustainable ~~economic~~ activities, are necessary as a reference for future Union legislation aiming at enabling those investments.

Amendment 168 #

Lieve WIERINCK, Thierry CORNILLET, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS, Caroline NAGTEGAAL

Proposal for a regulation
Recital 13

(13) A Union classification of environmentally sustainable economic activities should enable the development of future Union policies and strategies, including Union- wide standards for environmentally sustainable financial products and eventually the establishment of labels that formally recognise compliance with those standards across the Union. Uniform legal requirements for considering investments as environmentally sustainable investments, based on uniform criteria for environmentally sustainable economic activities, are necessary as a reference for future Union legislation aiming at enabling those investments.

Amendment 169 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Recital 13

Amendment 170 #

Christofer FJELLNER, Gunnar HÖKMARK

Proposal for a regulation
Recital 13 a (new)

(13 a) To ensure effective and efficient legislative action without creating potential overlaps, bureaucratic burden or additional costs for the real economy, the scope and use of the technical screening criteria as well as the link to other initiatives should be clearly defined before the taxonomy and pertaining criteria enter into force.

Amendment 171 #

Nils TORVALDS, Fredrick FEDERLEY, Anneli JÄÄTTEENMÄKI, Jytte GUTELAND, Ulrike MÜLLER, Elsi KATAINEN, Petri SARVAMAA

Proposal for a regulation
Recital 13 a (new)

(13 a) Setting harmonised criteria for environmentally sustainable economic activities should not undermine the division of competences between Member States and the Union in different policy areas.

Amendment 172 #

Proposal for a regulation
Recital 13 a (new)

(13 a) Setting harmonised criteria for environmentally sustainable economic activities should not undermine the division of competences between Member States and the Union.

Amendment 173 #

Stefan GEHROLD

Proposal for a regulation
Recital 14

(14) In the context of achieving SDGs in the Union, policy choices such as the creation of a European Fund for Strategic Investment, have proven to be effective in contributing to channel private investment alongside public spending towards sustainable investments. Regulation (EU) 2015/1017 of the European Parliament and of the Council27 specifies a 40% climate investment target for infrastructure and innovation projects designed to lessen the human influence on climate change under the European Fund for Strategic Investment. Common criteria for the sustainability of economic activities could underpin future similar initiatives of the Union supporting investment pursuing climate-related or other environmental objectives. _________________ 27 Regulation (EU) 2017/2396 of the European Parliament and of the Council of 13 December 2017 amending Regulations (EU) No 1316/2013 and (EU) 2015/1017 as regards the extension of the duration of the European Fund for Strategic Investments as well as the introduction of technical enhancements for that Fund and the European Investment Advisory Hub (OJ L 345, 27.12.2017, p. 34).

Amendment 174 #

Othmar KARAS

Proposal for a regulation
Recital 14

(14) In the context of achieving SDGs in the Union, policy choices such as the creation of a European Fund for Strategic Investment, have proven to be effective in contributing to ~~channel~~mobilise private investment alongside public spending ~~towards~~in sustainable investments. Regulation (EU) 2015/1017 of the European Parliament and of the Council27 specifies a 40% horizontal climate investment target for infrastructure and innovation projects under the European Fund for Strategic Investment. Common criteria for the sustainability of economic activities ~~could~~may underpin future similar initiatives of the Union ~~support~~mobilising investment pursuing climate-related or other environmental objectives. _________________ 27 Regulation (EU) 2017/2396 of the European Parliament and of the Council of 13 December 2017 amending Regulations (EU) No 1316/2013 and (EU) 2015/1017 as regards the extension of the duration of the European Fund for Strategic Investments as well as the introduction of technical enhancements for that Fund and the European Investment Advisory Hub (OJ L 345, 27.12.2017, p. 34).

Amendment 175 #

Proposal for a regulation
Recital 15

(15) To avoid market fragmentation as well as harm to consumer interests due to divergent notions of the environmentally sustainable of economic activities, national requirements that market actors should comply with when they wish to market financial products or corporate bonds as defined in this Regulation being environmentally sustainable, should build on the uniform criteria for environmentally sustainable economic activities. Those market actors include financial market participants offering ~~“green”~~sustainable financial products or services and non- financial companies issuing ~~“green”~~sustainable corporate bonds.

Amendment 176 #

Proposal for a regulation
Recital 15

(15) To avoid market fragmentation as well as harm to consumer interests due to divergent notions of environmentally sustainable economic activities, national requirements that market actors should comply with when they wish to market financial products or corporate bonds as being environmentally sustainable, should build on the uniform criteria for environmentally sustainable economic activities. Those market actors include financial market participants offering ~~“green”~~sustainable financial products and non- financial companies issuing ~~“green”~~sustainable corporate bonds.

Amendment 177 #

Proposal for a regulation
Recital 15

(15) To avoid market fragmentation as well as harm to consumer interests due to divergent notions of environmentally sustainable economic activities, national requirements that market actors should comply with when they wish to market financial products or corporate bonds as being environmentally sustainable, shcould build on the uniform criteria for environmentally sustainable economic activities. Those market actors include financial market participants offering “green” financial products and non- financial companies issuing “green” corporate bonds.

Amendment 178 #

Othmar KARAS

Proposal for a regulation
Recital 15 a (new)

(15 a) In line with the principle of proportionality the requirements of this Regulation should not apply to small and non-complex institutions as defined under [PO insert reference to relevant Article of Regulation (EU) 575/2013].

Amendment 179 #

Proposal for a regulation
Recital 16

(16) To avoid harming consumer interests, fund managers and institutional investors offering financial products as environmentally sustainable, should disclose how and to what extent the criteria for environmentally sustainable economic activities are used to determine the environmental sustainability of the investments. The information disclosed should enable investors to understand the share of the investment funding environmentally sustainable economic activities as a percentage of all economic activities and thus the degree of environmental sustainability of the investment. The Commission should specify the information that needs to be disclosed for that purpose. That information should enable national competent authorities to verify compliance with the disclosure obligation easily, and to enforce that obligation in accordance with applicable national law.relevant information in line with the provisions outlined in the Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU)2016/2341;

Amendment 180 #

Proposal for a regulation
Recital 16

(16) To ~~avoid harming consumer interests~~inform retail investors and ensure consumer protection, fund managers and institutional investors offering financial products as environmentally sustainable, should disclose ~~how and to what extent the criteria for~~the degree of environmentally sustainab~~le economic activities are used to determine the environmental sustainability of the investments. The information disclosed should enable investors to understand the share of the investment funding~~ility of the investments and their environmental impact. The information disclosed should enable investors to understand the criteria and indicators used for identifying the environmental impact, the degree of environmentally sustainab~~le economic activities as a percentage of all economic activities and thus the degree of~~ility of the investment as well as the percentage of investee companies' turnover supporting activities that qualify as environmentally sustainab~~ility of the investmen~~le or with negative environmental impact. The Commission should specify the information that needs to be disclosed ~~for that purpose. That~~in audited annual and management reports for that purpose and to be audited by independent auditors as part of integrated reporting. That audited and verified information should enable national competent authorities, and when necessary to the ESAs, to verify compliance with the disclosure obligation easily, and to enforce that obligation in accordance with applicable national ~~law~~and Union law. The disclosure requirements should be in line with global disclosure requirement initiatives such as the Global Reporting Initiative and the UN Principles for Responsible Investment. The independent auditors should be subject to authorisation by the ESAs.

Amendment 181 #

Proposal for a regulation
Recital 16

Amendment 182 #

Elisabetta GARDINI, Fulvio MARTUSCIELLO, Alberto CIRIO, Aldo PATRICIELLO

Proposal for a regulation
Recital 16

Amendment 183 #

Proposal for a regulation
Recital 16

(16) To avoid harming consumer interests, fund managers and institutional investors offering financial products as environmentally sustainable, ~~should~~may choose to disclose how and to what extent the criteria for ~~environmentally~~ sustainable economic activities are used to determine the ~~environmental~~ sustainability of the investments. The information disclosed shcould enable investors to understand the share of the investment funding ~~environmentally~~ sustainable economic activities as a percentage of all economic activities and thus the degree of ~~environmental~~ sustainability of the investment. The Commission should specify the information that needs to be disclosed for that purpose. That information should enable national competent authorities to verify compliance with the disclosure obligation easily, and to enforce that obligation in accordance with applicable national law.

Amendment 184 #

Christofer FJELLNER, Gunnar HÖKMARK

Proposal for a regulation
Recital 16

(16) To avoid harming consumer interests, fund managers and institutional investors offering financial products as environmentally sustainable, should disclose how and to what extent the criteria for environmentally sustainable economic activities are used to determine the environmental sustainability of the investments. The information disclosed should enable investors to understand the share of the investment funding environmentally sustainable economic activities as a percentage of all economic activities and thus the degree of environmental sustainability of the investment. The Commission should specify the information that needs to be disclosed for that purpose as well as the frequency, format and recipients of the disclosure. That information should enable national competent authorities to verify compliance with the disclosure obligation easily, and to enforce that obligation in accordance with applicable national law. The Commission should ensure that any new disclosure requirements complement those already required under existing legislation and do not lead to unnecessary duplication of reporting.

Amendment 185 #

Proposal for a regulation
Recital 16 a (new)

(16 a) To further innovation, research and development in the area of climate change, where a high level of long-term investments are required, this Regulation should be aligned with other Union legislation. Thus, providing long-term stability in the regulatory framework without worsening the possibility for long- term investments.

Amendment 186 #

Nils TORVALDS, Fredrick FEDERLEY, Anneli JÄÄTTEENMÄKI, Jytte GUTELAND, Ulrike MÜLLER, Elsi KATAINEN, Petri SARVAMAA

Proposal for a regulation
Recital 16 a (new)

(16 a) To avoid harming the innovation climate in the EU and the Member States, this Regulation should be aligned with other Union legislation incentivising innovation, research and development, especially in the area of climate change, where a high level of long-term investments are required.

Amendment 187 #

Markus FERBER, Christophe HANSEN

Proposal for a regulation
Recital 17

(17) To avoid circumvention of the disclosure obligation, that obligation should also apply where financial products are offered as having similar characteristics as environmentally sustainable investments, including those having as their target environmental protection in a broad sense. Financial market participants should not be required to invest only in environmentally sustainable economic activities determined in accordance with the technical screening criteria set out in this Regulation. They should be encouraged to inform the Commission if they consider that an economic activity that does not meet the technical screening criteria, or for which such criteria have not been established yet, should be considered environmentally sustainable, to help the Commission to evaluate the appropriateness of complementing or updating the technical screening criteria.deleted

Amendment 188 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Recital 17

Amendment 189 #

Proposal for a regulation
Recital 17

(17) To avoid circumvention of the disclosure obligation, that obligation should also apply where financial products are offered as having similar characteristics as environmentally sustainable investments, including those having as their target environmental protection in a broad sensepply to all financial products. Financial market participants should not be required to invest only in environmentally sustainable economic activities determined in accordance with the technical screening criteria set out in this Regulation. ~~They~~Financial market participants and other actors should be encouraged to inform the Commission if they consider that an economic activity ~~that does not meet~~is incorrectly considered to fulfil or not fulfil the technical screening criteria, or for which such criteria have not been established yet, ~~should be considered environmentally sustainable,~~ to help the Commission to evaluate the appropriateness of complementing or updating the technical screening criteria.

Amendment 190 #

Nils TORVALDS, Fredrick FEDERLEY, Anneli JÄÄTTEENMÄKI, Jytte GUTELAND, Elsi KATAINEN, Christofer FJELLNER, Gunnar HÖKMARK, Petri SARVAMAA

Proposal for a regulation
Recital 18

(18) For the purposes of determining whether an economic activity is environmentally or socially sustainable, an exhaustive list of environmental and social objectives based on indicators measuring the environmental and social impact should be laid down.

Amendment 191 #

Proposal for a regulation
Recital 18

(18) For the purposes of determining whether an economic activity is environmentally sustainable, an exhaustive list of environmental objectives should be laid down, ensuring coherence with existing Union legislation, such as the Clean Energy Package.

Amendment 192 #

Françoise GROSSETÊTE, Alain LAMASSOURE, Anne SANDER

Proposal for a regulation
Recital 18

(18) For the purposes of determining whether an economic activity is environmentally sustainable, an exhaustive list of environmental objectives should be laid down, taking into account its impact on the entire industrial value chain.

Amendment 193 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Recital 18

(18) For the purposes of determining whether an economic activity is environmentally sustainable or environmentally harmful, an exhaustive list of environmental objectives should be laid down.

Amendment 194 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Recital 20

(20) For each environmental objective, uniform criteria for considering economic activities to be substantially contributing to that objective should be laid down. ~~One~~Another element of the uniform criteria should be ~~to avoid~~identifying economic activities that significantly harm to any of the environmental objectives set out in this Regulation. This is in order to avoid that investments are considered environmentally sustainable although the economic activities benefitting from those investments cause harm to the environment to an extent outweighing their contribution to an environmental objective. The conditions for substantial contribution and for ~~not~~ causing significant harm should enable investments into environmentally sustainable economic activities to make a real contribution to the environmental objectives and should enable to gradually shift investments away form environmentally harmful economic activities.

Amendment 195 #

Markus FERBER, Christophe HANSEN

Proposal for a regulation
Recital 20

(20) For each environmental objective, uniform criteria for considering economic activities to be substantially contributing to that objective should be laid down. One element of the uniform criteria should be to avoid significant harm to any of the environmental objectives set out in this Regulation. This is in order to avoid that investments are considered environmentally sustainable although the economic activities benefitting from those investments cause harm to the environment to an extent outweighing their contribution to an environmental objective. The conditions for substantial contribution and for not causing significant harm should enable investments into environmentally sustainable economic activities to make a real contribution to the environmental objectives. However, the establishment of the criterion to avoid significant harm to any of the environmental objectives should not lead to the creation of a black list or brown list.

Amendment 196 #

Proposal for a regulation
Recital 20

(20) For each environmental objective, uniform and precise criteria for considering economic activities to be substantially contributing to that objective should be laid down. One element of the uniform criteria should be to avoid significant harm to any of the environmental objectives set out in this Regulation. This is in order to avoid that investments are considered environmentally sustainable although the economic activities benefitting from those investments cause harm to the environment to an extent outweighing their contribution to an environmental objective. The conditions for substantial contribution and for not causing significant harm should enable investments into environmentally sustainable economic activities to make a real contribution to the environmental objectives.

Amendment 197 #

Proposal for a regulation
Recital 21

(21) Recalling the joint commitment of the European Parliament, the Council and the Commission to pursue the principles enshrined in the European Pillar of Social Rights in support of sustainable and inclusive growth and recognising the relevance of international minimum human and labour rights and standards, compliance with minimum safeguards should be a condition for economic activities to qualify as environmentally sustainable. For that reason economic activities should only qualify as environmentally sustainable where they are carried out observing, firstly, the International Labour Organisation’s (‘ILO’) declaration on Fundamental Rights and Principles at Work and the eight ILO core conventions. The ILO core conventions define human and labour rights that companies are due to respect. Several of these international standards are also enshrined the Charter of Fundamental Rights of the European Union, in particular the prohibition of slavery and forced labour and the principle of non-discrimination. Secondly, the UN Principles for Responsible Investment - Reporting Framework should be observed. Thirdly, investors should take in account the OECD Due Diligence Guidance for Responsible Business Conduct (2018). Due diligence in this context means the procedures undertakings carry out to identify, prevent, mitigate and account for sustainability risks as defined in [PO insert reference to Regulation on disclosures relating to sustainable investments and sustainability risks and its Annex I ]. Those minimum safeguards are without prejudice to the application of more stringent requirements on environment, health and safety and social sustainability set out in Union law, where applicable.

Amendment 198 #

Proposal for a regulation
Recital 21

(21) Recalling the joint commitment of the European Parliament, the Council and the Commission to pursue the principles enshrined in the European Pillar of Social Rights in support of sustainable and inclusive growth and recognising the relevance of international minimum human and labour rights and standards, compliance with minimum safeguards should be a condition for economic activities to qualify as environmentally sustainable. For that reason economic activities should only qualify as environmentally sustainable where they are carried out observing the International Labour Organisation’s (‘ILO’) declaration on Fundamental Rights and Principles at Work and the eight ILO core conventions. The ILO core conventions define human and labour rights that companies are due to respect and therefore serve as a sufficient yardstick for sustainable economic activity. Several of these international standards are also enshrined the Charter of Fundamental Rights of the European Union, in particular the prohibition of slavery and forced labour and the principle of non-discrimination. Those minimum safeguards are without prejudice to the application of more stringent requirements on environment, health and safety and social sustainability set out in Union law, where applicable.

Amendment 199 #

Proposal for a regulation
Recital 21 a (new)

(21 a) The European Investment Bank (EIB) has an extensive experience in green bonds through mainly the Climate Awareness bond, which contributed to green bonds of 18 billion euro and 160 projects related to renewable energy, which unfortunately were distributed regionally in an uneven way without the appropriate long-term and regionally balanced planning. Nevertheless, public sector bodies such as the EIB and the ESAs, could monitor key developments to ensure the progressive scale-up and adaptability of the EU sustainability taxonomy.

Amendment 200 #

Proposal for a regulation
Recital 22

(22) Given the specific technical details needed to assess the environmental impact of an economic activity and the fast- changing nature of both science and technology, the criteria ofrelevant for determining the environmentally sustainableility of economic activities should be adapted regularly to those changes. For the criteria and indicators to be up to date, based on scientific evidence and input from experts as well as relevant stakeholders, the conditions for substantial contribution and significant harm should be specified with more granularity for different economic activities and should be updated regularly. To that purpose, granular and calibrated technical screening criteria and a set of harmonised indicators for the different economic activities should be laid down by the Commission, on the basis of the technical input of a multi-stakeholders Platform on Sustainable Finance.

Amendment 201 #

Jo LEINEN

Proposal for a regulation
Recital 23

(23) Some economic activities have a negative impact on the environment, and a substantial contribution to one or more environmental objectives can be achieved by reducing that negative impact. For those economic activities, it is appropriate to set out technical screening criteria that require a substantial improvement in environmental performance compared to, inter alia, the industry average. Those criteria should consider also the long term impact of a specific economic activity, in particular the environmental benefits of products and services and the contribution of intermediate products, and thus provide an assessment of the impact of all the phases of manufacturing and use throughout the value chain and life cycle.

Amendment 202 #

Proposal for a regulation
Recital 23

(23) Some economic activities have a negative impact on the environment, and a substantial contribution to one or more environmental objectives can be achieved by reducing that negative impact. For those economic activities, it is appropriate to set out technical screening criteria that require a substantial improvement in environmental performance compared to, inter alia, the industry average~~. Those criteria should consider also the long term impact of a specific economic activity~~ in order to consider whether that the activity may deliver a substantial contribution to one or more environmental objectives. Those criteria should consider also the long term impact of a specific economic activity and should ensure that economic activities contributing to carbon intensive lock-in effects are not considered sustainable economic activities.

Amendment 203 #

Proposal for a regulation
Recital 23

(23) Some economic activities ~~have a negative impact~~- such as major trade deals - have a negative impact not just on local manufacturers, who often cannot compete with lower-cost production bases from outside the European Union, but also on the environment, and a substantial contribution to one or more environmental objectives can be achieved by reducing that negative impact. For those economic activities, it is appropriate to set out technical screening criteria that require a substantial improvement in environmental performance compared to, inter alia, the industry average. Those criteria should consider also the long term impact of a specific economic activity.

Amendment 204 #

Proposal for a regulation
Recital 23

Amendment 205 #

Proposal for a regulation
Recital 23

Amendment 206 #

Proposal for a regulation
Recital 24

(24) An economic activity should not be considered environmentally sustainable if it ~~causes more harm to the environment than~~does not bring about a net benefit to the ben~~efits it brings~~vironment. The technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives. When establishing and updating the technical screening criteria, the Commission should ensure that those criteria are based on available scientific evidence and are updated regularly. Where scientific evaluation does not allow for the risk to be determined with sufficient certainty, the precautionary principle should apply, in line with Article 191 TFEU.

Amendment 207 #

Proposal for a regulation
Recital 24

(24) An economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings and it should also not significantly harm any of the other environmental objectives. The technical screening criteria based on harmonised indicators should identify the minimum requirements necessary to avoid a significant harm to other objectives. When establishing and updating the technical screening criteria and harmonised indicators, the Commission should ensure that those criteria and indicators are based on available scientific evidence and are updated regularly. Where scientific evaluation does not allow for the risk to be determined with sufficient certainty, the precautionary principle should apply, in line with Article 191 TFEU.

Amendment 208 #

Françoise GROSSETÊTE, Alain LAMASSOURE, Anne SANDER

Proposal for a regulation
Recital 24

(24) An economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings, and in this regard major trade deals should all have an independent impact study completed before they are implemented. The technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives. When establishing and updating the technical screening criteria, the Commission should ensure that those criteria are based on available scientific evidence and are updated regularly. Where scientific evaluation does not allow for the risk to be determined with sufficient certainty, the precautionary principle should apply, in line with Article 191 TFEU.

Amendment 209 #

Proposal for a regulation
Recital 24

(24) An economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings. The technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives. When establishing and updating the technical screening criteria, the Commission should ensure that those criteria are based on available scientific evidence ~~and~~, are updated regularly and take account of the whole value chain and the life cycle of technologies. It should also ensure that they are updated regularly. Where scientific evaluation does not allow for the risk to be determined with sufficient certainty, the precautionary principle should apply, in line with Article 191 TFEU.

Amendment 210 #

Anne SANDER, Françoise GROSSETÊTE

Proposal for a regulation
Recital 24

(24) An economic activity should not be considered environmentally sustainable if it causes more harm to the environment than the benefits it brings. The technical screening criteria should identify the minimum requirements necessary to avoid a significant harm to other objectives. When establishing and updating the technical screening criteria, the Commission should ensure that those criteria are reasonable, proportionate and based on available scientific evidence and are updated regularly. Where scientific evaluation does not allow for the risk to be determined with sufficient certainty, the precautionary principle should apply, in line with Article 191 TFEU.

Amendment 211 #

Proposal for a regulation
Recital 26

(26) When establishing and updating the technical screening criteria the Commission should also take into account the specificities of the ~~infrastructure~~different sectors and take into account environmental, social and economic externalities within a cost- benefit analysis. As for energy sector, the Commission should take into account article 194 of the TFEU and the Member State's right to determine the conditions for exploiting the energy sources, its choice between different energy sources and the general structure of its energy supply. In that regard, the Commission should consider the work of international organisations, such as the OECD, relevant Union legislation and standards, including Directive 2001/42/EC of the European Parliament and of the Council42 , Directive 2011/92/EU of the European Parliament and of the Council43 Directive 2014/23/EU of the European Parliament and of the Council44 , Directive 2014/24/EU of the European Parliament and of the Council45 , Directive 2014/25/EU of the European Parliament and of the Council46 , and current methodology. In that context, the technical screening criteria should promote appropriate governance frameworks integrating environmental, social and governance factors, as referred to in the United Nations-supported Principles for Responsible Investment47 , at all stages of a project's lifecycle. _________________ 42 Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment (OJ L 197, 21.7.2001, p. 30). 43 Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ L 26, 28.1.2012, p. 1). 44 Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts (OJ L 94, 28.3.2014, p. 1). 45 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65). 46 Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243). 47 https://www.unpri.org/download?ac=1534.

Amendment 212 #

Lieve WIERINCK, Thierry CORNILLET, Ramon TREMOSA i BALCELLS, Caroline NAGTEGAAL

Proposal for a regulation
Recital 26

(26) When establishing and updating the technical screening criteria the Commission should also take into account the specificities of the ~~infrastructure~~different sectors and take into account environmental, social and economic externalities within a cost- benefit analysis. In that regard, the Commission should consider the work of international organisations, such as the OECD, relevant Union legislation and standards, including Directive 2001/42/EC of the European Parliament and of the Council42 , Directive 2011/92/EU of the European Parliament and of the Council43 Directive 2014/23/EU of the European Parliament and of the Council44 , Directive 2014/24/EU of the European Parliament and of the Council45 , Directive 2014/25/EU of the European Parliament and of the Council46 , and current methodology. In that context, the technical screening criteria should promote appropriate governance frameworks integrating environmental, social and governance factors, as referred to in the United Nations-supported Principles for Responsible Investment47 , at all stages of a project's lifecycle. _________________ 42 Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment (OJ L 197, 21.7.2001, p. 30). 43 Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ L 26, 28.1.2012, p. 1). 44 Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts (OJ L 94, 28.3.2014, p. 1). 45 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65). 46 Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243). 47 https://www.unpri.org/download?ac=1534.

Amendment 213 #

Proposal for a regulation
Recital 26 a (new)

(26 a) In defining the technical screening criteria, the Commission should also take into account transitional measures towards activities that support the transition to a more sustainable, low- carbon economy.

Amendment 214 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Recital 26 a (new)

(26 a) In defining the technical screening criteria, the Commission should also take into account transitional measures towards activities that support the transition to a sustainable low-carbon economy.

Amendment 215 #

Proposal for a regulation
Recital 27

(27) To encourage environmentally sustainable innovation and to avoid distorting competition when raising financing for environmentally sustainable economic activities, the technical screening criteria should ensure that all relevant economic activities within aeconomic macro spec~~ific sector~~tors (ie. NACE sectors such as agriculture, forestry and fishing, manufacturing, electricity, gas, steam and air conditioning supply, construction, transportation and storage services) can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this Regulation while not significantly harming any other environmental objectives referred to in Articles 3 and 12. The potential capacity to contribute towards those environmental objectives may however vary across sectors, which should be reflected in the technical screening criteria. However, within each economic macro sector, those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter while not significantly harming any other environmental objectives referred to in Articles 3 and 12.

Amendment 216 #

Karl-Heinz FLORENZ

Proposal for a regulation
Recital 27

(27) To encourage environmentally sustainable innovation and to avoid distorting competition when raising financing for environmentally sustainable economic activities, the technical screening criteria should ensure that all relevant economic activities within amajor economic spec~~ific sector~~tors, including among others agriculture, construction, energy, chemicals, transportation and production, can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this Regulation. The potential capacity to contribute towards those environmental objectives may however vary across sectors, which should be reflected in the criteria. However, within each sector, those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter.

Amendment 217 #

Proposal for a regulation
Recital 27

(27) To encourage environmentally sustainable innovation and to avoid distorting competition when raising financing for environmentally sustainable economic activities, the technical screening criteria should ensure that all relevant economic activities within a specific sector, including among others manufacturing, agriculture, construction, energy and transportation can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this Regulation. The potential capacity to contribute towards those environmental objectives may however vary across sectors, which should be reflected in the criteria. However, within each sector, those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter.

Amendment 218 #

Markus FERBER, Christophe HANSEN

Proposal for a regulation
Recital 27

(27) To avoid distorting competition when raising financing for environmentally sustainable economic activities, the technical screening criteria should ensure that ~~all~~ relevant economic activities within amajor economic spec~~ific sector~~tors, including among others agriculture, construction, energy, transportation and production, can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this Regulation. The potential capacity to contribute towards those environmental objectives may however vary across sectors, which should be reflected in ~~the~~industry specific criteria. However, within each sector, those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter.

Amendment 219 #

Proposal for a regulation
Recital 27

(27) To avoid distorting competition when raising financing for environmentally sustainable economic activities, the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this Regulation. The potential capacity to contribute towards those environmental objectives may however vary across sectors, which should be reflected in the criteria. Therefore, the screening criteria should not result in the creation of a black list or brown list. However, within each sector, those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter.

Amendment 220 #

Proposal for a regulation
Recital 27

(27) To avoid distorting competition when raising financing for environmentally sustainable economic activities, the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if, in the way these activities are carried out, they contribute equally towards one or more of the environmental objectives laid out in this Regulation. The potential capacity to contribute towards those environmental objectives may however vary across sectors, which should be reflected in the criteria. However, within each sector, those criteria should not unfairly disadvantage certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter.

Amendment 221 #

Proposal for a regulation
Recital 27

(27) To avoid distorting competition when raising financing for environmentally sustainable economic activities, the technical screening criteria should ensure that all relevant economic activities within a specific sector can qualify as environmentally sustainable and are treated equally if they contribute equally towards one or more of the environmental objectives laid out in this Regulation. The potential capacity to contribute towards those environmental objectives may however vary across sectors, which should be reflected in the criteria. However, within each sector, those criteria should ~~not unfairly disadvantage~~be applied to all market participants equally, certain economic activities over others if the former contribute towards the environmental objectives to the same extent as the latter.

Amendment 222 #

Karl-Heinz FLORENZ

Proposal for a regulation
Recital 27 a (new)

(27 a) Environmentally sustainable activities are the result of technologies and products developed all along the value-chain. For this reason, the technical screening criteria should consider the role of the whole value- chain, from the processing of raw materials to the final product and its waste phase, in the final delivery of environmental sustainable activities.

Amendment 223 #

Proposal for a regulation
Recital 27 a (new)

(27 a) To avoid disrupting well- functioning value-chains, the technical screening criteria should consider that environmentally sustainable activities are enabled by technologies and products developed by multiple economic actors.

Amendment 224 #

Proposal for a regulation
Recital 28

(28) When establishing technical screening criteria, the Commission should assess ~~whether~~potential transition risks, whether the pace of the adoption of those criteria for environmentally sustainable activities would give rise to stranded assets or deliver inconsistent incentives, and whether it would have any negative impact on liquidity in financial markets.

Amendment 225 #

Proposal for a regulation
Recital 30

(30) To ensure that investments are channelled towards economic activities that make the biggest positive impact on the environmental objectives, the Commission should give priority to the establishment of technical screening criteria for the economic activities that potentially contribute most to the environmental objectives. Screening criteria should be based on the outcomes of projects to facilitate the identification and development of new technologies as well as to take duly into account of the scalability of these technologies.

Amendment 226 #

Françoise GROSSETÊTE, Alain LAMASSOURE, Anne SANDER

Proposal for a regulation
Recital 30

(30) To ensure that investments are channelled towards economic activities that make the biggest positive impact on the environmental objectives, the Commission should give priority to the establishment of technical screening criteria for the economic activities that potentially contribute most to the environmental objectives, and as matter of priority to climate mitigation. The technical screening criteria should be flexible enough to introduce progressively new technologies and innovations.

Amendment 227 #

Proposal for a regulation
Recital 31

(31) Appropriate technical screening criteria should be established for the transport sector, including for mobile assets, which should take into account the whole life cycle of technologies and the fact that the transport sector, including international shipping, contributes close to 26% of total greenhouse gas emissions in the Union. As evidenced in the Action Plan on Financing Sustainable Growth48 the transport sector represents about 30% of additional annual investment needs for sustainable development in the Union, including by increasing electrification or transition to cleaner modes of transport by promoting modal shift and traffic management. _________________ 48 COM(2018) 97 final.

Amendment 228 #

Proposal for a regulation
Recital 32

(32) It is of particular importance that the Commission when preparing the development of the technical screening criteria, carry out appropriate consultations in line with Better Regulation requirements. The process for the establishment and the update of the technical screening criteria and the harmonised indicators should also involve relevant stakeholders and build on scientific evidence, best practice and existing work and entities, notably, the European Commission Circular Economy Platform, and the advice of experts with proven knowledge and experience in the relevant areas. For that purpose, the Commission should set up a Platform on sustainable finance. This Platform should be composed of experts representing both the public and the private sector. Public sector representatives should include experts from the European Environmental Agency~~, the European Supervisory Authorities~~ and national environment protection agencies, the European Supervisory Authorities, the European Financial Reporting Advisory Group, and the European Investment Bank. Private sector experts should include representatives of relevant stakeholders, including financial market actors, universities, research institutes, associations and organisations. The Platform should advise the Commission on the development, analysis and review of technical screening criteria and the harmonised indicators, including their potential impact on the valuation of assets that until the adoption of the technical screening criteria ~~were considered as green assets~~based on harmonised indicators were considered as sustainable assets or assets having a negative environmental impact under existing market practices. The Platform should also advise the Commission on whether the technical screening criteria and indicators are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment. The Platform should advise the Commission on the development of sustainability accounting standards and integrated reporting standards for corporates and financial market participants, including through the revision of Directive 2013/34/EU.

Amendment 229 #

Proposal for a regulation
Recital 32

(32) It is of particular importance that the Commission when preparing the development of the technical screening criteria, carry out appropriate consultations in line with Better Regulation requirements. The process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and global experience in the relevant areas. For that purpose, the Commission should set up a Platform on sustainable finance. This Platform should be composed of experts representing both the public and the private sector. Public sector representatives should include experts from the European Environmental Agency, the European Supervisory Authorities and the European Investment Bank. Private sector experts should reflect the breadth of the sector and include representatives of relevant stakeholders, including financial market actors, universities, research institutes, associations and organisations. Where necessary the Platform should be allowed to request advice from non-members. The Platform should advise the Commission on the development, analysis and review of technical screening criteria, including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices. The Platform should also advise the Commission on whether the technical screening criteria are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment.

Amendment 230 #

Proposal for a regulation
Recital 32

(32) It is of particular importance that the Commission when preparing the development of the technical screening criteria, carry out appropriate consultations in line with Better Regulation requirements. The process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on scientific evidence, socio-economic impact, best practice and the advice of experts with proven knowledge and experience in all of the relevant areas. For that purpose, the Commission should set up a Platform on sustainable finance. This Platform should be composed of a wide range of experts representing both the public and the private sector to ensure that the specificities of all relevant sectors are duly taken into account. Public sector representatives should include experts from the European Environmental Agency, the European Supervisory Authorities and the European Investment Bank. Private sector experts should include representatives of relevant stakeholders, including financial market actors, representatives of the real economy including the manufacturing industry, universities, research institutes, associations and organisations. The Platform should advise the Commission on the development, analysis and review of technical screening criteria, including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices. The Platform should also advise the Commission on wthe~~ther~~ suitability of the technical screening criteria ~~are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment~~.

Amendment 231 #

Proposal for a regulation
Recital 32

(32) It is of particular importance that the Commission when preparing the development of the technical screening criteria, carry out appropriate consultations in line with Better Regulation requirements. The process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas. For that purpose, the Commission should set up a Platform on sustainable finance. This Platform should be composed of experts representing both the public and the private sector. Public sector representatives should include experts from the European Environmental Agency, the European Supervisory Authorities and the European Investment Bank. Private sector experts sh~~ould~~all include representatives of relevant stakeholders, including financial market actors, representatives of the real economy representing a wide range of industries, universities, research institutes, associations and organisations. The Platform should advise the Commission on the development, analysis and review of technical screening criteria, including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices. The Platform should also advise the Commission on whether the technical screening criteria are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment.

Amendment 232 #

Karl-Heinz FLORENZ

Proposal for a regulation
Recital 32

(32) It is of particular importance that the Commission when preparing the development of the technical screening criteria, carry out appropriate consultations in line with Better Regulation requirements. The process for the establishment and the update of the technical screening criteria should also involve relevant stakeholders and build on the advice of experts with proven knowledge and experience in the relevant areas. For that purpose, the Commission should set up a Platform on sustainable finance. This Platform should be composed of experts representing both the public and the private sector. Public sector representatives should include experts from the European Environmental Agency, the European Supervisory Authorities and the European Investment Bank. Private sector experts should include representatives of relevant stakeholders, including financial market actors, universities, research institutes, associations and organisations and major economic sectors, including among others agriculture, construction, energy, chemicals, transportation and production. The Platform should advise the Commission on the development, analysis and review of technical screening criteria, including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices. The Platform should also advise the Commission on whether the technical screening criteria are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment.

Amendment 233 #

Proposal for a regulation
Recital 32

(32) It is of particular importance that the Commission when preparing the development of the technical screening criteria, carry out appropriate consultations in line with Better Regulation requirements. The process for the establishment and the update of the technical screening criteria and the harmonised indicators should also involve relevant stakeholders and build on scientific evidence, best practice and the advice of experts with proven knowledge and experience in the relevant areas. For that purpose, the Commission should set up a Platform on sustainable finance. This Platform should be composed of experts representing both the public and the private sector. Public sector representatives should include experts from the European Environmental Agency, the European Supervisory Authorities and the European Investment Bank. Private sector experts should include representatives of relevant stakeholders, including financial market actors, universities, research institutes, associations and organisations. The Platform should advise the Commission on the development, analysis and review of technical screening criteria and the harmonised indicators, including their potential impact on the valuation of assets that until the adoption of the technical screening criteria were considered as green assets under existing market practices. The Platform should also advise the Commission on whether the technical screening criteria and indicators are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment.

Amendment 234 #

Proposal for a regulation
Recital 32

(32) It is of particular importance that the Commission when preparing the development of the technical screening criteria, carry out appropriate consultations in line with Better Regulation requirements. The process for the establishment and the update of the technical screening criteria and the harmonised indicators should also involve relevant stakeholders and build on scientific evidence, best practice and the advice of experts with proven knowledge and experience in the relevant areas. For that purpose, the Commission should set up a Platform on sustainable finance. This Platform should be composed of experts representing both the public and the private sector. Public sector representatives should include experts from the European Environmental Agency, the European Supervisory Authorities ~~and~~, the European Investment Bank and National Promotional Banks and Institutions. Private sector experts should include representatives of relevant stakeholders, including financial market actors, manufacturing industries, universities, research institutes, associations and organisations. The Platform should advise the Commission on the development, analysis and review of technical screening criteria~~, including their potential impact on the valuation of assets that until the adoption of the technical screening criteria~~ and based on harmonised indicators were considered as ~~green~~sustainable assets under existing market practices. The Platform should also advise the Commission on whether the technical screening criteria and indicators are suitable for further uses in future Union policy initiatives aimed at facilitating sustainable investment.

Amendment 235 #

Proposal for a regulation
Recital 32

Amendment 236 #

Proposal for a regulation
Recital 32

Amendment 237 #

Giovanni LA VIA

Proposal for a regulation
Recital 32

Amendment 238 #

Barbara KAPPEL

Proposal for a regulation
Recital 33

(33) In order to specify the requirements set out in this Regulation, and particularly to establish and update granular and calibrated technical screening criteria for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the information required to comply with the disclosure obligation set out in Article 4 (3), and the technical screening criteria mentioned in Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2) and Article 11(2). It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, tThe European Parliament and the Council should receive all documents at the same time as Member States’ experts, and the experts of the European Parliament and the Council should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Amendment 239 #

Costas MAVRIDES

Proposal for a regulation
Recital 33

(33) In order to specify the requirements set out in this Regulation, and particularly to establish and update granular and calibrated technical screening criteria for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the information required to comply with the disclosure obligation set out in Article 4 (3), and the technical screening criteria mentioned in Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2) and Article 11(2). It is of particular importance that the Commission carry out appropriate, extensive consultations during its preparatory work, including at expert ~~level,~~and user level, that impacts on the economy are carefully assessed and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States’ experts, and the experts of the European Parliament and the Council should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Amendment 240 #

Paul TANG, Pervenche BERÈS

Proposal for a regulation
Recital 33

(33) In order to specify the requirements set out in this Regulation, and particularly to establish and update granular and calibrated technical screening criteria for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental and social objectives, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the information required to comply with the disclosure obligation set out in Article 4 (3), and the technical screening criteria mentioned in Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2), Article 11(2) and Article 11a(2). It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States’ experts, and the experts of the European Parliament and the Council should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Amendment 241 #

Proposal for a regulation
Recital 33

(33) In order to specify the requirements set out in this Regulation, and particularly to establish and update granular and calibrated technical screening criteria for different economic activities as to what constitutes a substantial contribution and significant harm to the environmental objectives, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the information required to comply with the disclosure obligation set out in Article 4 (3), and the technical screening criteria mentioned in Article 6(2), Article 7(2), Article 8(2), Article 9(2), Article 10(2) and Article 11(2). It is of particular importance that the Commission carry out appropriate public consultations during its preparatory work, ~~including at expert level,~~ and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States’ experts, and the experts of the European Parliament and the Council should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Amendment 242 #

Proposal for a regulation
Recital 34

(34) To give sufficient time to the relevant actors to familiarise themselves with the criteria for environmentally sustainable economic activities set out in this Regulation and to prepare for their application, the obligations set out in this Regulation should become applicable, for each environmental objective, ~~six~~twelve months after the relevant technical screening criteria have been adopted.

Amendment 243 #

Proposal for a regulation
Recital 35

(35) The application of this Regulation should be reviewed regularly and at least after two years in order to assess the progress on the development of technical screening criteria and harmonised indicators for environmentally and socially sustainable activities, the use of the definition of environmentally and socially sustainable investment, and whether compliance with the obligations requires the establishment of a verification mechanism. The first review ~~should~~by 31 December 2021 will also include ~~also~~ an assessment of wthe~~ther~~ extended to which, and when, the scope of this Regulation shcould be extended to cover ~~social sustainability objectives~~objectives relating to the social aspects of the Sustainable Developments Goals meant to become the EU's new long-term development strategy.

Amendment 244 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Recital 35

(35) The application of this Regulation should be reviewed regularly in order to assess the progress on the development of technical screening criteria for environmentally and socially sustainable activities, the use of the definition of environmentally and socially sustainable investment, and whether compliance with the obligations requires the establishment of a verification mechanism. ~~The review should include also an assessment of whether the scope of this Regulation should be extended to cover social sustainability objectives.~~

Amendment 245 #

Proposal for a regulation
Recital 35

(35) The application of this Regulation should be reviewed regularly in order to assess the progress on the development of technical screening criteria for environmentally sustainable and environmentally harmful activities, and the use of the definition of environmentally sustainable investment~~, and whether compliance with the obligations requires the establishment of a verification mechanism~~. The review should include also an assessment of whether the scope of this Regulation should be extended to cover social sustainability objectives. By 31 March 2020, the Commission should, where appropriate, publish legislative proposals on the establishment of a verification mechanism of compliance.

Amendment 246 #

Proposal for a regulation
Recital 35

(35) The application of this Regulation should be reviewed regularly and at least annually in order to assess the progress on the development of technical screening criteria and harmonised indicators for environmentally sustainable activities, the use of the definition of environmentally sustainable investment, and whether compliance with the obligations requires the establishment of a verification mechanism. The review should include also an assessment of ~~whether~~the provisions required for extending the scope of this Regulation should be extended to cover social sustainability objectives.

Amendment 247 #

Proposal for a regulation
Recital 35

(35) The application of this Regulation should be reviewed regularly in order to assess the progress on the development of technical screening criteria for environmentally sustainable activities, the use of the definition of environmentally sustainable investment, and whether compliance with the obligations requires the establishment of a verification mechanism. The review should include also an assessment of whether the scope of this Regulation should be extended to cover social and economic sustainability objectives.

Amendment 248 #

Proposal for a regulation
Article 1 – paragraph 1

1. This Regulation establishes the carbon based criteria for determining whether an economic activity is environmentally sustainable for the purposes of establishing the ~~degree of~~ environmental sustainability of an in~~vestmen~~dividual investment project.

Amendment 249 #

Proposal for a regulation
Article 1 – paragraph 1

1. This Regulation establishes the criteria for determining whether an economic activity is environmentally sustainable for the purposes of establishing the ~~degree of~~ environmental sustainability of a~~n investment~~ particular investment project, based on its carbon exposure.

Amendment 250 #

Françoise GROSSETÊTE, Alain LAMASSOURE, Anne SANDER

Proposal for a regulation
Article 1 – paragraph 1

1. This Regulation establishes the criteria for determining the degree of environmental impact and sustainability of an economic activity and thereby whether an economic activity is environmentally sustainable for the purposes of establishing the degree of environmental sustainability of an investment made within the European Union.

Amendment 251 #

Proposal for a regulation
Article premier – paragraph 1

1. This Regulation establishes the criteria for determining whether an economic activity, a technology or a service is environmentally sustainable for the purposes of establishing the degree of environmental sustainability of an investment.

Amendment 252 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Article 1 – paragraph 1

1. This Regulation establishes the criteria for determining whether an economic activity is environmentally sustainable or environmentally harmful for the purposes of establishing the degree of environmental sustainability of an investment.

Amendment 253 #

Proposal for a regulation
Article 1 – paragraph 1

1. This Regulation establishes the criteria for determining whether an economic activity is environmentally sustainable for the purposes of establishing the degree of environmental sustainability of an investment made within the Union.

Amendment 254 #

Proposal for a regulation
Article 1 – paragraph 1

1. This Regulation establishes the criteria for determining whether an economic activity is environmentally or socially sustainable for the purposes of establishing the degree of environmental or social sustainability of an investment.

Amendment 255 #

Proposal for a regulation
Article 1 – paragraph 1

Amendment 256 #

Proposal for a regulation
Article 1 – paragraph 1

1. This Regulation establishes the criteria for determining whether an economic activity is ~~environmentally~~ sustainable for the purposes of establishing the degree of ~~environmental~~ sustainability of an investment.

Amendment 257 #

Proposal for a regulation
Article 1 – paragraph 2 – point a

(a) measures adopted by Member States or by the Union setting out any sustainability-related requirements on market actors in respect of financial products or corporate bonds ~~that are market~~labelled as environmentally sustainable in order to prevent greenwashing.

Amendment 258 #

Lieve WIERINCK, Thierry CORNILLET, Ramon TREMOSA i BALCELLS, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point a

(a) measures adopted by Member States or by the Union setting out any sustainability requirements on market actors in respect of financial products or corporate bonds that are marketed as environmentally and socially sustainable.

Amendment 259 #

Proposal for a regulation
Article 1 – paragraph 2 – point a

(a) measures adopted by Member States or by the Union setting out any requirements on ~~market actor~~financial market participants in respect of financial products or corporate bonds that are marketed as environmentally sustainable.

Amendment 260 #

Proposal for a regulation
Article 1 – paragraph 2 – point a

Amendment 261 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Article 1 – paragraph 2 – point a

(a) measures adopted by Member States or by the Union setting out any requirements on market actors in respect of financial products or corporate bonds ~~that are marketed as environmentally sustainable~~.

Amendment 262 #

Proposal for a regulation
Article 1 – paragraph 2 – point a

Amendment 263 #

Proposal for a regulation
Article 1 – paragraph 2 – point a

(a) measures adopted by Member States or by the Union setting out any requirements on market actors in respect of financial products or corporate bonds that are marketed to EU clients as environmentally sustainable.

Amendment 264 #

Proposal for a regulation
Article 1 – paragraph 2 – point a

(a) measures adopted by Member States or by the Union setting out any requirements on market actors in respect of financial products or corporate bonds that are marketed as environmentally and socially sustainable.

Amendment 265 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Article 1 – paragraph 2 – point a

(a) measures adopted by Member States or by the Union setting out any requirements on relevant market actors in respect of financial products or corporate bonds ~~that~~which are marketed as environmentally sustainable.

Amendment 266 #

Proposal for a regulation
Article 1 – paragraph 2 – point a a (new)

(a a) public financial assistance by Member States or by the Union to investments.

Amendment 267 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Article 1 – paragraph 2 – point b

(b) financial market participants offering financial products ~~as environmentally sustainable investments or as investments having similar characteristics~~, where the use of the taxonomy set out in this Regulation and disclosure requirements set out in Article 4 paragraph 2 to define whether a financial product is environmentally sustainable or environmentally harmful is optional for a financial market participant acquiring a financial product and does not establish additional requirements beyond those set out in Directive 2007/36/EC.

Amendment 268 #

Proposal for a regulation
Article 1 – paragraph 2 – point b

(b) financial market participants offering financial products ~~as environmentally sustainable investments or as investments having similar characteristics~~.

Amendment 269 #

Proposal for a regulation
Article 1 – paragraph 2 – point b

(b) financial market participants offering financial products labelled as environmentally sustainable, in~~vestments or as investments having similar characteristics~~ order to prevent greenwashing.

Amendment 270 #

Proposal for a regulation
Article 1 – paragraph 2 – point b

(b) financial market participants offering financial products advertised as environmentally sustainable ~~investments or as investments having similar characteristics~~.

Amendment 271 #

Proposal for a regulation
Article 1 – paragraph 2 – point b

(b) financial market participants offering financial products or corporate bonds as environmentally sustainable investments or as investments having similar characteristics.

Amendment 272 #

Proposal for a regulation
Article 1 – paragraph 2 – point b

(b) financial market participants offering financial products as environmentally and socially sustainable investments or as investments having similar characteristics.

Amendment 273 #

Proposal for a regulation
Article 1 – paragraph 2 – point b

(b) financial market participants offering financial products as environmentally and socially sustainable investments or as investments having similar characteristics.

Amendment 274 #

Proposal for a regulation
Article 1 – paragraph 2 – point b

(b) financial market participants which are offering financial products as environmentally sustainable investments or as investments ~~having~~that have similar characteristics.

Amendment 275 #

Proposal for a regulation
Article 1 – paragraph 2 – point b

(b) financial market participants offering EU clients financial products as environmentally sustainable investments or as investments having similar characteristics.

Amendment 276 #

Lieve WIERINCK, Thierry CORNILLET, Ramon TREMOSA i BALCELLS, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point b

(b) financial market participants offering financial products marketed as environmentally sustainable investments or as investments having similar characteristics.

Amendment 277 #

Proposal for a regulation
Article 1 – paragraph 2 – point b a (new)

(b a) The criteria mentioned in Article 1 (1) may be used for the purpose mentioned in that paragraph by financial services providers that are not addressed by Article 1 (2) on a voluntary basis, and with respect to other financial products than those established in Article 2, paragraph 1 point (c).

Amendment 278 #

Herbert DORFMANN

Proposal for a regulation
Article 1 – paragraph 2 – point b a (new)

(b a) 'credit institutions' as defined in point (1) of Article 4 (1) of Regulation (EU) No 575/2013 which provides investment or credit risk-management processes with the exception of small and non-complex institutions defined under [PO insert reference to relevant Article] of Regulation (EU) No 575/2013];

Amendment 279 #

Costas MAVRIDES

Proposal for a regulation
Article 1 – paragraph 2 – point b a (new)

Amendment 280 #

Barbara KAPPEL

Proposal for a regulation
Article 1 – paragraph 2 – point b a (new)

(b a) 'credit institutions' as defined in point (1) of Article 4 (1) of Regulation (EU) No 575/2013 which provides investment or credit risk-management processes with the exception of non- complex institutions defined under [PO insert reference to relevant Article] of Regulation (EU) No 575/2013];

Amendment 281 #

Luigi MORGANO

Proposal for a regulation
Article 1 – paragraph 2 – point b a (new)

Proposal for a Regulation
Article 1 – paragraph 2 – point b a (new)

(b a) 'credit institutions' as defined by Article 4(1), point 1, of Regulation 575/2013/EU, which provide investment or credit-risk management processes, except for small and non-complex institutions, as defined by [PO please insert reference to relevant Article of Regulation (EU) 575/2013];

Amendment 282 #

Lieve WIERINCK, Thierry CORNILLET, Fredrick FEDERLEY, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point b b (new)

(b b) financial market participants that use the taxonomy to define whether a financial product or service and/or investments is unsustainable. The use of the taxonomy to define whether a financial product or service and/ or investments is unsustainable shall be optional. Disclosure requirements, as defined under Article 4, paragraph 2, of this Regulation shall also be optional.

Amendment 283 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Article 1 – paragraph 2 a (new)

2 a. The criteria referred to in Article 1 (1) may be used for the purpose mentioned in that paragraph by financial services providers that are not addressed by Article 1(2) on a voluntary basis, and with respect to other financial products than those established in the first paragraph of Article 2.

Amendment 284 #

Proposal for a regulation
Article 1 – paragraph 2 a (new)

2 a. These criteria shall apply to investment decisions falling under the scope of this Regulation which are taken after the entry into force of this Regulation.

Amendment 285 #

Proposal for a regulation
Article 1 – paragraph 2 a (new)

2 a. Major trade deals between the European Union and any other major country or conglomerate, and investments arising therefrom;

Amendment 286 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Article 1 a (new)

Article 1 a Exclusions This Regulation shall not apply to: - financial instruments or financial products that are not marketed as environmentally sustainable; - loan origination; - investments made outside the European Union; - financial market participants that do not offer financial products that are marketed as sustainable or having similar characteristics; - credit institutions; - investment decisions made prior to the date of application of this regulation;

Amendment 287 #

Proposal for a regulation
Article 2 – paragraph 1 – point a a (new)

(a a) 'environmentally harmful' means an investment that funds one or several economic activities that qualify under this Regulation as environmentally harmful.

Amendment 288 #

Proposal for a regulation
Article 2 – paragraph 1 – point a a (new)

(a a) 'socially sustainable investment' means an investment that funds one or several economic activities that qualify under this Regulation as socially sustainable;

Amendment 289 #

Proposal for a regulation
Article 2 – paragraph 1 – point g a (new)

(g a) 'socially sustainable investment' means an investment in an economic activity that contributes substantially to a socíal objective, and in particular an investment that contributes to tackling inequality, an investment fostering social cohesion, social integration and labour relations, and an investment in human capital or economically or socially disadvantages communities.

Amendment 290 #

Proposal for a regulation
Article 2 – paragraph 1 a (new)

1 a. 'sustainable investment' means an investment that funds one or several economic activities that meet the environmental, social and governance (ESG) targets;

Amendment 291 #

Proposal for a regulation
Article 2 – paragraph 1 – point a a (new)

(a a) ‘socially sustainable investment’ means an investment that funds one or several economic activities that qualify under this Regulation as socially sustainable;

Amendment 292 #

Proposal for a regulation
Article 2 – paragraph 1 – point a a (new)

(a a) Major trade deals shall mean any trade deal between the European Union and entities such as the USA, Canada, Japan, the Mercosur countries, etc.;

Amendment 293 #

Proposal for a regulation
Article 2 – paragraph 1 – point b

(b) ‘financial market participants’ mean ~~financial~~s any of the following: (i) an insurance undertaking which marke~~t participants as defined in Article 2 (a) of [Commission proposal for a Regulation on disclosures relating to sustainable investments and sustainabilit~~s available an IBIP, an AIFM, an investment firm which provides portfolio management, an IORP or a provider of a pension product; (ii) a manager of a qualifying venture capital fund registered in accordance with Article 14 of Regulation (EU) No 345/2013; (iii) a manager of a qualifying social entrepreneurship fund registered in accordance with Article 15 of Regulation (EU) No 346/2013; (iv) a UCITS management company; (v) any ris~~ks and amending Directive~~suers of issuances under the Prospectus Directive 2003/71/EC and the Prospectus Regulation (EU) 201~~6/2341];~~7/1129 not covered by points (i) to (iv)

Amendment 294 #

Proposal for a regulation
Article 2 – paragraph 1 – point b a (new)

(b a) ‘insurance undertaking’ means an insurance undertaking authorised in accordance with Article 18 of Directive 2009/138/EC or as defined in Article 13(1) of Directive 2009/138/EC, when providing an insurance coverage to an undertaking;

Amendment 295 #

Proposal for a regulation
Article 2 – paragraph 1 – point c a (new)

(c a) ‘insurance undertaking’ means an insurance undertaking as defined in Article 13(1) of Directive 2009/138/EC, when providing an insurance coverage to an undertaking;

Amendment 296 #

Proposal for a regulation
Article 2 – paragraph 1 – point b b (new)

(b b) ‘IBIP’ means either of the following: (i) an insurance-based investment product as defined in Article 4(2) of Regulation (EU) No 1286/2014 the European Parliament and of the Council; (ii) an insurance product, made available to a professional investor, which offers a maturity or surrender value and where that maturity or surrender value is wholly or partially exposed, directly or indirectly, to market fluctuations;

Amendment 297 #

Proposal for a regulation
Article 2 – paragraph 1 – point b c (new)

(b c) ‘AIFM’ means an AIFM as defined in Article 4(1)(b) of Directive 2011/61/EU;

Amendment 298 #

Proposal for a regulation
Article 2 – paragraph 1 – point c

(c) 'financial products' mean financial products as defined in Article 2 (j) of [Commission proposal for a Regulation on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341] as well as issuances referred to in the Directive 2010/73/EU (Prospectus Directive);

Amendment 299 #

Lieve WIERINCK, Thierry CORNILLET, Ramon TREMOSA i BALCELLS, Caroline NAGTEGAAL

Proposal for a regulation
Article 2 – paragraph 1 – point c a (new)

(c a) 'issuers' means listed undertaking referred to in the Directive 2010/73/EU (Prospectus Directive);

Amendment 300 #

Stefan GEHROLD

Proposal for a regulation
Article 2 – paragraph 1 – point d

(d) 'climate change mitigation' means the process of holding the increase in the global average temperature to well below 2 °C above pre-industrial levels and limiting the temperature increase to 1.5 °C above pre-industrial levels;lessening the human influence on climate change' reflects the fact that a precise distinction must be drawn between climate changes brought about solely by human action and climate changes which are part of an ongoing natural process. Human influence on climate change should not bring about a temperature increase in excess of 2°C.

Amendment 301 #

Proposal for a regulation
Article 2 – paragraph 1 – point d

Amendment 302 #

Simona BONAFÈ, Elena GENTILE, Luigi MORGANO

Proposal for a regulation
Article 2 – paragraph 1 – point g

(g) 'circular economy' means maintaining the value of products, materials and other resources in the economy for as long as possible, thus reducing environmental impact and minimising waste, including through the application of the waste hierarchy as laid down in Article 4 of Directive 2008/98/EC of the European Parliament and of the Council~~;50 _________________ 50 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, p. 3).~~ and minimising the use of resources based on key circular economy indicators as set out in the monitoring framework on progress towards a circular economy, covering different stages of production, consumption, waste management and secondary raw materials;

Amendment 303 #

Proposal for a regulation
Article 2 – paragraph 1 – point g

(g) 'circular economy' means maintaining the value of products, materials and resources in the economy for as long as possible, and minimising waste, including through the application of the waste hierarchy as laid down in Article 4 of Directive 2008/98/EC of the European Parliament and of the Council and minimising the use of resources based on key circular economy indicators as set out in the monitoring framework on progress towards a circular economy, covering different stages of production, consumption, waste management and secondary raw materials;50 _________________ 50 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, p. 3).

Amendment 304 #

Nils TORVALDS, Fredrick FEDERLEY, Anneli JÄÄTTEENMÄKI, Jytte GUTELAND, Elsi KATAINEN, Christofer FJELLNER, Gunnar HÖKMARK, Petri SARVAMAA

Proposal for a regulation
Article 2 – paragraph 1 – point g

(g) 'circular economy' means maintaining the value of products, materials and resources in the economy for as long as possible, and minimising waste, including through the application of the waste hierarchy as laid down in Article 4 of Directive 2008/98/EC of the European Parliament and of the Council~~;50 _________________ 50 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, p. 3)~~ and minimising the use of resources based on key circular economy indicators as set out in the monitoring framework on progress towards a circular economy covering different stages production, consumption, waste management and secondary raw materials.

Amendment 305 #

Proposal for a regulation
Article 2 – paragraph 1 – point g

(g) 'circular economy' means maintaining the value and usage of products, materials and resources in the economy for as long as possible, and minimising waste, including through the application of the waste hierarchy as laid down in Article 4 of Directive 2008/98/EC of the European Parliament and of the Council;50 _________________ 50 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, p. 3).

Amendment 306 #

Simona BONAFÈ, Elena GENTILE, Luigi MORGANO

Proposal for a regulation
Article 2 – paragraph 1 – point h – point i

(i) the direct or indirect introduction, as a result of human activity, of substances, vibrations, heat, noise, light or other pollutants into air, water or land which may be harmful to human health or the quality of the environment, may result in damage to material property, or may impair or interfere with amenities and other legitimate uses of the environment;

Amendment 307 #

Proposal for a regulation
Article 2 – paragraph 1 – point h – point ii a (new)

(ii a) in the context of water environment, pollution as defined in Article 2 (33) of Directive 2000/60/EC of the European Parliament and of the Council;

Amendment 308 #

Nils TORVALDS, Fredrick FEDERLEY, Anneli JÄÄTTEENMÄKI, Jytte GUTELAND, Ulrike MÜLLER, Elsi KATAINEN, Christofer FJELLNER, Gunnar HÖKMARK, Petri SARVAMAA

Proposal for a regulation
Article 2 – paragraph 1 – point j

(j) 'energy efficiency' means ~~using~~ energy ~~more~~ efficientlcy a~~t all the stages of the energy chain from production to final consumption~~s defined in Article 2(4) of Directive 2012/27/EU;

Amendment 309 #

Herbert DORFMANN, Franc BOGOVIČ

Proposal for a regulation
Article 2 – paragraph 1 – point j

(j) 'energy efficiency' means ~~using energy more efficiently at all the stages of the energy chain from production to final consumption;~~the ratio of output of performance, service, goods or energy, to input of energy.

Amendment 310 #

Nils TORVALDS, Fredrick FEDERLEY, Anneli JÄÄTTEENMÄKI, Jytte GUTELAND, Ulrike MÜLLER, Elsi KATAINEN, Christofer FJELLNER, Gunnar HÖKMARK, Petri SARVAMAA

Proposal for a regulation
Article 2 – paragraph 1 – point n

(n) 'sustainable forest management' means using forests and forest land in a way, and at a rate, that maintains their biodiversity, productivity, regeneration capacity, vitality and their potential to fulfil, now and in the future, relevant ecological, economic and social functions, at local, national, and global levels, and that does not cause damage to other ecosystems.deleted

Amendment 311 #

Proposal for a regulation
Article 2 – paragraph 1 – point n

(n) '’sustainable forest management'’ means using forests and forest land in a way, and at a rate, that maintains their biodiversity, productivity, regeneration capacity, vitality and their potential to fulfil, now and in the future, relevant ecological, economic and social functions, at local, national, and global levelsccordance with applicable national legislation building on the sustainable forest management definition adopted in the Pan-European Ministerial Conference on the Protection of Forests in Europe (MCPFE), the commitments stemming from the Regulation on the integration of land use, land ~~that does not cause damage to other ecosystems~~use change and forestry (LULUCF), as well as the EU Timber Regulation.

Amendment 312 #

Proposal for a regulation
Article 2 – paragraph 1 – point n

(n) '’sustainable forest management'’ means using forests and forest land in a ~~way, and at a rate, that maintains their biodiversity, productivity, regeneration capacity, vitality and their p~~ccordance with applicable national legislation building on the SFM definition adopted in the Ministerial Conference of Protencti~~al to fulfil, now and in the future, relevant ecological, economic and social functions, at local, national, and global levels, and that does not cause damage to other ecosystems~~on of Forests in Europe (MCPFE), the commitments stemming from the LULUCF Regulation as well as from the EU Timber Regulation.

Amendment 313 #

Paul TANG, Pervenche BERÈS

Proposal for a regulation
Article 2 – paragraph 1 – point n

(n) 'sustainable forest management' means using forests and forest land in a way, that restores and at a rate, that maintains their biodiversity, productivity, regeneration capacity, vitality and their potential to fulfill and that delivers at least at equal scale, now and in the future, relevant ecological, economic and social functions, at local, national, and global levels, and that does not cause damage to other ecosystems, while taking into account national forest legislation, EU Timber Regulation, EU LULUCF Regulation as well as in the case of wood- based bioenergy the requirements of EU Renewable Energy Directive.

Amendment 314 #

Proposal for a regulation
Article 2 – paragraph 1 – point n

(n) 'sustainable forest management' means using degraded forests and degraded forest land in a way~~, and at a rate,~~ that maintains and restores their biodiversity, productivity, regeneration capacity, vitality and their potential to fulfil, and deliver at least at equal scale, now and in the future, relevant ecological, economic and social functions, at local, national, and global levels, and that does not cause damage to other ecosystems.;

Amendment 315 #

Proposal for a regulation
Chapter 2 – title

Environmentally and socially sustainable economic activities

Amendment 316 #

Proposal for a regulation
Chapter 2 – title

Environmentally and socially sustainable economic activities

Amendment 317 #

Françoise GROSSETÊTE, Alain LAMASSOURE, Anne SANDER

Proposal for a regulation
Article 3 – title

3 Criteria for environmentally and socially sustainable economic activities

Amendment 318 #

For the purposes of establishing the degree of environmental sustainability of an investment, an economic activity, a technology or a service shall be environmentally sustainable where ~~that activ~~ity complies with all of the following criteria:

Amendment 319 #

Proposal for a regulation
Article 3 – paragraph 1 – introductory part

For the purposes of establishing the degree of environmental or social sustainability of an investment, an economic activity shall be environmentally and socially sustainable where that activity complies with all of the following criteria:

Amendment 320 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) the economic activity contributes or will contribute substantially to one or more of the environmental or social objectives set out in Article 5 in accordance with Articles 6 to 11a;

Amendment 321 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) the economic activity contributes substantially to one or more of the environmental and social objectives set out in Article 5 in accordance with Articles 6 to 11a;

Amendment 322 #

Lieve WIERINCK, Thierry CORNILLET, Ramon TREMOSA i BALCELLS, Caroline NAGTEGAAL

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) the economic activity contributes substantially to one or more of the environmental or social objectives set out in Article 5 in accordance with Articles 6 to 11(a);

Amendment 323 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) the economic activity contributes or will contribute substantially to one or more of the environmental objectives set out in Article 5 in accordance with Articles 6 to 11;

Amendment 324 #

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) the economic activity contributes or will contribute substantially to one or more of the environmental objectives set out in Article 5 in accordance with Articles 6 to 11;

Amendment 325 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) the economic activity does not or will not significantly harm any of the environmental objectives set out in Article 5 in accordance with Article 12, nor the socially sustainable objective set out in Article 11a;

Amendment 326 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) the economic activity does not or will not significantly harm any of the environmental objectives set out in Article 5 in accordance with Article 12;

Amendment 327 #

Proposal for a regulation
Article 3 – paragraph 1 – point b

(b) the economic activity does not significantly harm any of the environmental and social objectives set out in Article 5 in accordance with Article 12;

Amendment 328 #

Françoise GROSSETÊTE, Alain LAMASSOURE, Anne SANDER

Proposal for a regulation
Article 3 – paragraph 1 – point d

(d) the economic activity complies with technical screening criteria, including sustainable performance indicators at company or plant levels belonging to the economic activity, where the Commission has specified those in accordance with Articles 6(2), 7(2), 8(2), 9(2), 10(2) and 11(2). Those technical screening criteria shall take into account planned investments pursuing one or more of the environmental objectives set out in Article 5.

Amendment 329 #

Proposal for a regulation
Article 3 – paragraph 1 – point d

(d) ~~the economic activ~~ity complies with technical screening criteria, where the Commission has specified those in accordance with Articles 6(2), 7(2), 8(2), 9(2), 10(2) and 11(2). Those criteria shall take into account planned investments that contribute substantially to one or more of the environmental objectives listed in Article 5.

Amendment 330 #

Proposal for a regulation
Article 3 – paragraph 1 – point d

(d) the economic activity complies with technical screening criteria, including sustainable performance indicators at company or plan levels belonging to the economic activity, where the Commission has specified those in accordance with Articles 6(2), 7(2), 8(2), 9(2), 10(2) and 11(2).

Amendment 331 #

Proposal for a regulation
Article 3 – paragraph 1 – point d

(d) the economic activity complies with technical screening criteria, where the Commission has specified those, basing them on harmonised indicators, in accordance with Articles 6(2), 7(2), 8(2), 9(2), 10(2), 11(2) and 11a(2).

Amendment 332 #

Molly SCOTT CATO

Proposal for a regulation
Article 3 – paragraph 1 – point d a (new)

(d a) Irrespective of the technical screening criteria referred to in point (d), the following economic activities shall not be considered environmentally sustainable: (i) the exploration, extraction, production, distribution, storage and processing of fossil fuels; (ii) the generation and distribution of nuclear power, including the construction of new nuclear power stations, the decommissioning of nuclear power stations as well as the exploration and extraction of fissile materials for the generation of nuclear power; (iii) the production of weapons of war of any kind and all other firearms; (iv) the cultivation, processing and sale of tobacco; (v) agricultural activities that are intensive and highly dependent on the use of chemicals, including intensive animal farming; (vi) the construction, operation and maintenance of aviation infrastructure;

Amendment 333 #

Proposal for a regulation
Article 3 – paragraph 1 – point d a (new)

(d a) the economic activity is carried out in compliance with procedures and internal rules adopted by the undertaking in order to mitigate any negative impact on sustainability.

Amendment 334 #

Proposal for a regulation
Article 3 – paragraph 1 a (new)

1a The criteria shall take into account the specificities of the different sectors, geographical dispositions, environmental, social and economic externalities within a cost-benefit analysis. Relevant economic activities within major economic sectors, including among others agriculture, construction, energy, transportation and production, should qualify as environmentally sustainable and should be treated equally if they contribute towards one or more of the environmental objectives laid out in this Regulation. The potential capacity to contribute towards those environmental objectives may vary across sectors and regions, which should be reflected in the criteria.

Amendment 335 #

Proposal for a regulation
Article 3 – paragraph 1 a (new)

1a. Significant differences in Member States regarding their economies, sectors and geographical dispositions shall be reflected in the criteria. Economic activity which contributes to any of the environmental objectives laid out in this Regulation shall be treated as sustainable.

Amendment 336 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Article 3 a (new)

Article 3 a Criteria for socially sustainable economic activities For the purposes of establishing the degree of social sustainability of an investment, an economic activity shall be socially sustainable where that activity complies with all of the following criteria: (a) the economic activity contributes substantially to the social objectives set out in Article 5 in accordance with Articles 11a; (b) the economic activity does not significantly harm any of the environmental objectives set out in Article 5 in accordance with Article 12, nor the social objectives set out in Article 11a; (c) the economic activity is carried out in compliance with the minimum safeguards laid down in Article 13 and does not lead to denial of basic needs including food, shelter and medical care, does not use conflict minerals, nor is carried out in cooperation with parties that infringe political and civil rights or supply strategic products and services to parties that directly contribute to the violation of political and civil rights; (d) does not relate to speculative financial activities, such as high frequency trading, short selling or speculative trading on commodities; (e) the economic activity meets the requirements of sound and transparent management structures and due diligence procedures, employee relations, transparent remuneration policies of relevant staff and tax compliance, whose ratio does not exceed the value of 5:1; (f) the economic activity complies with technical screening criteria, where the Commission has specified those in accordance with Articles 11a.

Amendment 337 #

Molly SCOTT CATO

Proposal for a regulation
Article 3 a (new)

Article 3 a Criteria for economic activities with a negative environmental impact For the purposes of establishing the degree of environmental sustainability of an investment, an economic activity shall be considered to be an economic activity with a negative environmental impact if it significantly harms any of the environmental objectives set out in Article 5, in accordance with Article 12. Irrespective of the technical screening criteria referred to in Article 12 paragraph 1 a (new), the following economic activities shall be considered economic activities with a significant negative environmental impact: (i) the exploration, extraction, production, distribution, storage and processing of fossil fuels; (ii) the generation and distribution of nuclear power, including the construction of new nuclear power stations as well as the exploration and extraction of fissile materials for the generation of nuclear power; (iii) the production of weapons of war of any kind and all other firearms; (iv) the cultivation, processing and sale of tobacco; (v) agricultural activities that are intensive and highly dependent on the use of chemicals, including intensive animal farming; (vi) the construction, operation and maintenance of aviation infrastructure;

Amendment 338 #

Proposal for a regulation
Article 3 a (new)

Article 3 a Criteria for environmentally harmful economic activities For the purposes of establishing the degree of environmental sustainability of an investment, an economic activity shall be environmentally harmful where that activity complies with the following criteria: (a) the economic activity significantly harms any of the environmental objectives set out in Article 5 in accordance with Article 12; (b) the economic activity fulfils the technical screening criteria for harmful activities, where the Commission has specified those in accordance with Articles 6(2), 7(2), 8(2), 9(2), 10(2) and 11(2). (c) the economic activity does not significantly support the sustainable transition by contributing to the environmental objecives set out in Article 5 in accordance with Article 12.

Amendment 339 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Article 3 b (new)

Article 3 b Criteria for economic activities with a significant negative environmental impact For the purposes of establishing the degree of environmental sustainability of an investment, an economic activity shall be considered an economic activities with a significant negative environmental impact if it significantly harms any of the environmental objectives set out in Article 5 in accordance with Article 12.

Amendment 340 #

Proposal for a regulation
Article 4 – title

Use of the criteria for environmentally sustainable and environmentally harmful economic activities

Amendment 341 #

Proposal for a regulation
Article 4 – title

4 Use of the criteria for environmentally and socially sustainable economic activities

Amendment 342 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Article 4 – title

4 Use of the criteria for environmentally and socially sustainable economic activities

Amendment 343 #

Proposal for a regulation
Article 4 – paragraph 1

1. Member States shall apply the criteria for determining environmentally sustainable economic activities set out in Article 3 and the criteria for environmentally harmful economic activities set out in Article 3a for the purposes of any measures setting out requirements on market actors in respect of financial products or corporate bonds ~~that are marketed as ‘environmentally sustainable’~~.

Amendment 344 #

Elisabetta GARDINI, Fulvio MARTUSCIELLO, Alberto CIRIO, Aldo PATRICIELLO

Proposal for a regulation
Article 4 – paragraph 1

1. Member States shall apply the criteria for determining ~~environmentally~~ sustainable ~~economic~~ activities set out in Article 3 for the purposes of any measures setting out requirements on market actors in respect of financial products or corporate bonds that are marketed as ‘~~environmentally~~ sustainable’.

Amendment 345 #

Proposal for a regulation
Article 4 – paragraph 1

1. Member States shall apply the criteria for determining environmentally and socially sustainable economic activities set out in Article 3 for the purposes of any measures setting out requirements on market actors in respect of financial products or corporate bonds ~~that are marketed as ‘environmentally sustainable’~~.

Amendment 346 #

Proposal for a regulation
Article 4 – paragraph 1

1. Member States shall apply the criteria for determining environmentally and socially sustainable economic activities set out in Article 3 for the purposes of any measures setting out sustainability requirements on market actors in respect of financial products or corporate bonds ~~that are marketed as ‘environmentally sustainable’~~.

Amendment 347 #

Gerben-Jan GERBRANDY, Carolina PUNSET, Sophia IN 'T VELD

Proposal for a regulation
Article 4 – paragraph 1

1. Member States shall apply the criteria for determining environmentally or socially sustainable economic activities set out in Article 3 for the purposes of any measures setting out requirements on market actors in respect of financial products or corporate bonds that are marketed as ‘environmentally sustainable’ or ‘socially sustainable’.

Amendment 348 #

Proposal for a regulation
Article 4 – paragraph 1 a (new)

1 a. The Union and the Member States shall also apply the criteria for determining environmentally sustainable economic activities set out in Article 3 and the criteria for environmentally harmful economic activities set out in Article 3a for the purposes of requirements for Union and Member State public financial assistance to investments inter alia in the form of guaranties, equity, lending, subsidies, grants, export credits or public contracts. The Union and the Member States shall not support with public financial assistance environmentally harmful economic activities.

Amendment 349 #