EU extends consultation deadline on nuclear and gas taxonomy after criticism

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Deadline extended until January 21

The European Commission has extended the deadline for experts to contribute to a consultation on whether to classify nuclear power and natural gas in its taxonomy of sustainable finance as an in-depth dispute between member states on the issue.

European Commission chief spokesman Eric Mamer said in a press briefing this week that advisers would have until January 21 to respond to the proposal, instead of January 12 as it had originally been. foreseen.

The decision to include both energy sources in the taxonomy was published in a draft proposal leaked late last year after months of debates on how to make a proper transition in the fight against climate change.

The European Commission then opened a consultation on January 1 for experts from industry, non-governmental organizations and the financial sector to give their opinion.

“The deadline has been pushed back by a week and the reason is basically to give the platform a little more time to give its opinion,” said Mamer.

The proposal has sparked a split between EU member states between those who favor the use of natural gas and nuclear power as part of the transition to a greener economy and those who believe its inclusion would undermine his credibility as a climate leader.

As part of the consultation, the European Commission said any inclusion of gas or nuclear would be subject to strict conditions, such as coming from renewable sources or having low emissions by 2035.

He added that he would amend the Taxonomy Disclosure Act so that investors “can determine whether the activities include gas or nuclear activities, and to what extent, so they can make an informed choice.”

The problem highlights the complexity of introducing standardized regulation in EU member states with conflicting interests and values.

The lack of transparency and consistency in ESG data has been a huge problem for the asset management industry.

Currently, the absence of standardized regulations in all countries means that investors depend on voluntarily reported data and data estimated by vendors.

In November, the International Organization of Securities Commissions (IOSCO) called on regulators to crack down on ESG ratings and data products in an attempt to stamp out greenwashing.

That same month, a new global body was created to tackle greenwashing in financial products, including a “comprehensive global base of sustainability-related disclosure standards.”

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