|Author (Corporate)||European Commission|
|Series Details||COM (2018) 355|
Legislative proposal - published by the European Commission in May 2018 - which sets up a new generation of low-carbon benchmarks, aimed at boosting investment in sustainable projects and assets.
The proposed Regulation aims to include environmental, social and governance considerations in the decision-making process of investors and asset managers. It introduces further requirements for making the methodology of the new categories of benchmarks transparent, so as to make them more comparable and to enable better decision making by portfolio managers. The objective is to enhance transparency and to put forward standards for the methodology of low-carbon benchmarks in the European Union (EU). The proposals adds ules establishing and governing the provision of low carbon and positive carbon impact benchmarks.
The draft law was adopted on 24 May 2018 as part of a legislative package on sustainable finance, aimed at connecting finance with needs of the economy and the EU’s sustainable development agenda. It was also a follow-up to an earlier Action Plan on the role of finance in a well-performing economy that also delivers on environmental and social goals. Ambassadors from Member States adopted a general approach in December 2018, while the European Parliament's plenary session endorsed a mandate for negotiations on 16 January 2019. An informal agreement between the institutions on a compromise text was reached on 25 February. The Parliament formally endorsed it on 25 March, followed by the Council of the European Union on 8 November.
|Subject Categories||Economic and Financial Affairs, Environment|
|Subject Tags||Capital Markets Union [CMU], Sustainable Development|
|International Organisations||European Union [EU]|