After a marathon trilogue of almost 9 hours on Thursday 5 December, representatives of the European Parliament and the EU Council managed to find an overall compromise on the regulation laying the foundations for the future taxonomy on sustainable finance (see EUROPE 12026/4).
According to our information, the compromise would ultimately maintain three separate categories, namely “dark green” activities, but also the “transitional” and “enabling” activities that the EU Council wanted.
It was reportedly decided that, for an activity to be considered “transitional”, it must be demonstrated that there are no low-carbon alternatives, that it does not hinder the development and deployment of low-carbon alternatives and that it does not lead to “carbon locking”. In addition, the definition of “transitional” activities should be evaluated and reviewed at least every 3 years, as requested by Parliament.
Gas and nuclear energy are apparently neither included or excluded in the taxonomy. Coal, on the other hand, would clearly be excluded.
In the area of governance, the system of implementing acts requested by the EU Council was reportedly abandoned (see EUROPE 12381/13), but another solution was found to give Member States more influence over the drafting of delegated acts.
The compromise also apparently includes a review clause asking the Commission to prepare an impact assessment by the end of 2021, with a view to possibly extending the scope to investments with significant adverse environmental impacts - a long-standing request from several groups in Parliament, supported in particular by the Greens/EFA.
However, according to a European source, it is not yet possible to speak of an “agreement”, since negotiators will now have to consult the political groups in Parliament and the Member States in order to obtain their approval. A last trilogue has reportedly been scheduled on 16 December to formally conclude the agreement. (Original version in French by Marion Fontana)