MEPs of the European Parliament’s Economic Affairs Committee (ECON) will vote on Thursday 13 December on the draft report by Neena Gill (S&D, UK) on the proposed regulation creating a new category of benchmark to help investors compare the carbon footprint of investments (see EUROPE 11977).
Initially scheduled for Monday 3 December, the vote was postponed at the request of Pervenche Berès (S&D, France), who said that the positions of the political groups had not yet been “completely refined“. On Monday 10 December, due to time constraints, MEPs recorded a further postponement of the vote, which should finally take place on Thursday.
MEPs should support the creation of two green benchmarks that are aligned with the Paris Agreements in terms of reducing carbon emissions.
According to their vision, the "low carbon" index proposed by the Commission would then be replaced by the "climate transition" index, whose minimum requirements would also be that asset issuer’s emission reduction plans must include measurable time-based targets that are robust and evidence-based.
As for the "positive carbon impact" benchmark, it would be replaced by ‘Paris aligned benchmark’, where the underlying assets are be selected on the basis that the resulting benchmark portfolio’s carbon emissions are aligned with a 1.5°C Paris Climate Agreement commitment. In addition, assets exposed to companies engaged in the exploration, extraction, distribution or processing of fossil fuels would be excluded.
A key provision for the EPP Group should be the one on transitional measures for critical benchmarks. A compromise has been reached between the political groups to clarify that any existing benchmark, designated as critical by an implementing act adopted by the Commission in accordance and which does not meet the requirements to obtain authorisation by 1 January 2020, may, if its discontinuation would affect financial stability, continue to be used until 31 December 2021.
If this provision is not adopted on Thursday, the EPP should still vote in favour of the report as a whole, but could vote against the mandate to start negotiations with the Council, which should adopt its position on 19 December. (Original version in French by Marion Fontana)