ERT position on Sustainable Finance
Initial Position paper on EU Taxonomy
ERT Member companies are ready to contribute to the implementation of the Paris Agreement. Climate action has become part of their strategic business agenda, which was demonstrated by various case studies in ERT’s “Naturally active for the climate” -http://active4climate.ert.eu/.
However, low-carbon investment and innovation can only thrive with a globally competitive European industry that is able to deliver the solutions for a successful low-carbon transition.
1. We share the European Commission’s view that meeting Europe’s 2030 climate goals and Paris Agreement commitments will require huge, transformative investments by both the private and public sectors. We therefore welcome the legislative proposals on sustainable finance, including the Regulation on the establishment of a framework to facilitate sustainable investment.
2. We agree with the Commission that a common framework (taxonomy) would be a useful measure in order to support businesses, investors, issuers and other market participants to identify to what degree economic activities can be considered environmentally-sustainable and provide greater clarity to the markets.
3. However, this regulatory approach must be both science-based and evidence-led and it should better reflect the latest sustainability efforts and investments in technology and elsewhere being planned and undertaken by Europe’s real economy sectors. “Real Economy” voices must be represented in the Commission’s expert advisory groups. Otherwise the Regulation risks undermining European industry’s existing investments and technological innovations and therefore Europe’s ability to respond to climate change and other sustainability challenges, while remaining a competitive region to do business and invest.