Brussels: The European Union has passed the first part of the rules about climate-friendly investment, which starting next year will define which activities can be labeled as green in the sector including transportation and buildings.
The first part of the EU sustainable financial taxonomy will apply from January 1, 2022, after passing the supervision period ending Wednesday night.
The rules set environmental criteria for investment include renewable energy, shipping and manufacturing cars – with zero emissions vehicles the only type that can be labeled green from 2026.
By limiting green investment labels only with activities that are considered climate friendly, EU.
Aim to direct cash to low carbon projects and stop the company or investor from making unfounded environmental claims.
“This will help channel sustainable finances on projects and businesses to help achieve our climate target,” said Mancuinness Mancuinness UE Financial Services in Tweet on Thursday.
Around a dozen countries – among them France, Poland, Finland and Hungary – have objected to the rules, but do not have the majority needed to prevent them, EU officials said.
The most politically sensitive part of UE’s taxonomy will still come.
The EU will decide this month whether to label gas investment and nuclear energy as green.
The decision has divided the EU countries and was postponed by one year in the midst of an intense political lobby.
European Union Climate Policy Frans Timmermans said the rules need to reflect that gas and nuclear needed for the EU transition to achieve nallular zero emissions in 2050.
“I think we need to find a way to recognize that these two energy sources play a role in the energy transition.
It doesn’t make them Green, “he told the Politico on Wednesday night.
Pro-nuclear countries include France citing CO2 emissions energy sources of energy, while opponents warn the environmental impact of radioactive waste.
Gas both divisions, with divided countries between those who say gas investment is needed to help them stop with more striking coal, and those who warn fossil fuels because green is not credible.
Luca Bonaccorsi, Sustainable Finance Director in Transport & Environmental NGOs, said gas labeling as green is at risk “destroying the credibility of the overall European Union financial agenda”.
The EU passed the first discount of green investment rules, the controversial sector still came
