As the voice of the European asset management industry, EFAMA strongly welcomes the development of the EU Taxonomy and its proposed technical screening criteria in the Delegated Acts. EFAMA sees the Taxonomy as a critical tool to unleash the potential of sustainable finance in Europe by assisting issuers, project promoters, companies, investors, and other financial market participants in identifying truly sustainable economic activities.
The Delegated Acts will make the EU Taxonomy operational by determining which investments substantially contribute to climate change mitigation and adaptation, while avoiding harm to other environmental or social objectives. The technical screening criteria will be fundamental in guiding investment decisions of financial market participants and, increasingly so, public authorities. Moreover, given the scale of the EU internal market, the Taxonomy is likely to have an impact also in non-EU jurisdictions.
To that effect, EFAMA voices a few key concerns regarding the current proposal for the Delegated Acts by the European Commission:
Given the globalized nature of financial markets, EFAMA also suggests increasing the international relevance of the EU Taxonomy and leading a conducive dialogue with jurisdictions showing interest in sustainable finance policies. The role of the International Platform on Sustainable Finance could be key in this respect.
The full public consultation response of EFAMA can be found here.
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Notes to editors:
European Commission Consultation page: Sustainable finance EU classification system for green investments (europa.eu)
International Platform on Sustainable Finance: International platform on sustainable finance | European Commission (europa.eu)
About the European Fund and Asset Management Association (EFAMA):
EFAMA, the voice of the European investment management industry, represents 28 Member Associations, 60 Corporate Members and 24 Associate Members. At end Q3 2020, total net assets of European investment funds reached EUR 17.6 trillion. These assets were managed by more than 34,200 UCITS (Undertakings for Collective Investments in Transferable Securities) and almost 29,400 AIFs (Alternative Investment Funds). At the end of Q2 2020, assets managed by European asset managers as investment funds and discretionary mandates amounted to an estimated EUR 24.9 trillion. More information is available at www.efama.org.