Activities of Andżelika Anna MOŻDŻANOWSKA related to 2021/0191(COD)
Plenary speeches (1)
European green bonds (debate)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on European green bonds
Amendments (19)
Amendment 229 #
Proposal for a regulation
Recital 3
Recital 3
(3) Environmentally sustainable bonds are one of the main instruments for financing investments related to low- carbon technologies, energy and resource efficiency as well as sustainable transport infrastructure and research infrastructure. Financial or non-financial undertakings or sovereigns can issue such bonds. Various existing initiatives for environmentally sustainable bonds do not ensure common definitions of environmentally sustainable economic activities. This prevents investors from easily identifying bonds the proceeds of which are aligned with, or are contributing to environmental objectives as laid down in the Paris Agreement. There is therefore a need to synchronise green bond standards and link the European Green Bond standard to existing global standards such as the Climate Bonds Standard and the Green Bond Principles.
Amendment 249 #
Proposal for a regulation
Recital 7 a (new)
Recital 7 a (new)
(7a) Existing global standards such as the Climate Bonds Standard and the Green Bond Principles, as well as possible future global standards, should be taken into account. The acquisition by law of EuGB status should be guaranteed for all issuances carried out on the basis of global standards that have not matured by the time the EuGB designation enters into force. As regards any future global standards, transparent criteria should be laid down for recognition of EuGB compliance of any issuance based on those standards.
Amendment 253 #
Proposal for a regulation
Recital 8
Recital 8
(8) In accordance with Article 4 of Regulation (EU) 2020/852, and in order to provide investors with clear, quantitative, detailed and common definitions, the requirements set out in Article 3 of that Regulation should be used to determine whether an economic activity qualifies as environmentally sustainable. PAt least 90% of the proceeds of bonds that use the designation ‘European green bond’ or ‘EuGB’ should exclusively be used to fund economic activities that either are environmentally sustainable and are thus aligned with the environmental objectives set out in Article 9 of Regulation (EU) 2020/852, or contribute to the transformation of activities to become environmentally sustainable. Those bonds can however be used both to finance such environmentally sustainable activities directly through the financing of assets and expenditures that relate to economic activities that meet the requirements set out in Article 3 of Regulation (EU) 2020/852, or indirectly through financial assets that finance economic activities that meet those requirements. It is therefore necessary to specify the categories of expenditures and assets that can be financed with the proceeds of bonds that use the designation ‘European green bond’ or ‘EuGB’.
Amendment 262 #
Proposal for a regulation
Recital 9
Recital 9
(9) The proceeds of European green bonds should be used to finance economic activities that have a lasting positive impact on the environment. Such lasting positive impact can be attained in several ways. Since fixed assets are long-term assets, a first way is to use the proceeds of such European green bonds to finance fixed tangible or fixed intangible assets that are not financial assets, provided that at least 90% of those fixed assets relate to economic activities that meet the requirements for environmentally sustainable economic activities set out in Article 3 of Regulation (EU) 2020/852 (‘taxonomy requirements’). Since financial assets can be used to finance economic activities with a lasting positive impact on the environment, a second way is to use those proceeds to finance financial assets, provided that the proceeds from those financial assets are allocated to economic activities that meet the taxonomy requirements. Since the assets of households can also have a long- term positive impact on the environment, those financial assets should also include the assets of households. Since capital expenditure and selected operating expenditure can be used to acquire, upgrade, or maintain fixed assets, a third way is to use the proceeds of such bonds to finance capital and operating expenditures that relate to economic activities that meet the taxonomy requirements or that will meet those requirements within a reasonably short period from the issuance of the bond concerned, which can be extended however where duly justified by the specific features of the economic activities and investments concerned. For the reasons outlined above, the capital and operating expenditures should also include the expenditures of households.
Amendment 265 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9a) Article 10(2) of Regulation (EU) 2020/852 distinguishes environmentally sustainable activities from transitional economic activities for which there are no low-carbon alternatives. With regard to the EuGB, the two types of activity should be considered equivalent and equally eligible for funding from bond proceeds.
Amendment 269 #
Proposal for a regulation
Recital 9 b (new)
Recital 9 b (new)
(9b) It should be recognised that the EuGB can also finance expenditure relating to energy generation from gas or nuclear power plants, which are important for a smooth transition to a low-carbon economy.
Amendment 271 #
Proposal for a regulation
Recital 10
Recital 10
(10) Sovereigns are frequent issuers of environmentally sustainable bonds and should therefore also be allowed to issue ‘European green bonds’, provided that the proceeds of such bonds are used to finance either assets or expenditure that meet the taxonomy, or assets or expenditure that willare to meet those requirements within a reasonably short period from the issuance of the bond concerned, which can be extended however where duly justified by the specific features of the economic activities and investments concerned. By way of exception, sovereigns should be able to use the proceeds of such bonds to fund environmentally sustainable assets or expenditure meeting the requirements of other classifications that are coherent with the taxonomy.
Amendment 281 #
Proposal for a regulation
Recital 11
Recital 11
(11) Article 4 of Regulation (EU) 2020/852 requires Member States and the Union to apply the criteria set out in Article 3 of that Regulation to determine whether an economic activity qualifies as environmentally sustainable for the purposes of any measure setting out requirements for financial market participants or issuers in respect of financial products or corporate bonds that are made available as environmentally sustainable. It is therefore logical that the technical screening criteria referred to in Article 3, point (d), of Regulation (EU) 2020/852 should determine which fixed assets, expenditures and financial assets canshould primarily be financed by the proceeds of European green bonds. In view of the expected technological progress in the field of environmental sustainability, the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852 are likely to be reviewed and amended over time. Regardless of such changes, in order to provide legal certainty to issuers and investors and prevent amendments to the technical screening criteria from having a negative impact on the price of European green bonds that have already been issued, issuers should be able to apply the technical screening criteria applicable at the moment the European green bond was issued when allocating the proceeds of such bonds to eligible fixed assets or expenditures, until maturity of the bond. To ensure legal certainty for European green bonds whose proceeds are allocated to financial assets, it is necessary to clarify that the underlying economic activities funded by those financial assets should comply with the technical screening criteria applicable at the moment the financial assets were created. WhereAny amendment to the relevant delegated acts are amended, the issuer shouldshall not affect the issuer’s obligations; in particular, it shall not require the allocateion of proceeds by applying the amended delegated acts within five yearto be adapted to the new requirements.
Amendment 283 #
Proposal for a regulation
Recital 12
Recital 12
Amendment 298 #
Proposal for a regulation
Recital 15
Recital 15
(15) Issuers of European green bonds should abide by their commitments to investors and allocate the proceeds of their bonds within a reasonably short time after issuance. At the same time, issuers should not be penalised for allocating bond proceeds to economic activities that do not yet meet the taxonomy requirements, but will do so within the five year period (or extended ten year period). In that case, issuers should draft a taxonomy- alignment plan setting out when those activities will meet the taxonomy requirements, whereby any change in the TSC after the bonds have been issued shall not require correction of the plan. Issuers should in any case allocate all proceeds of their European green bonds before the maturity of each bond.
Amendment 302 #
Proposal for a regulation
Recital 16
Recital 16
(16) Unlike issuers that are financial or non-financial undertakings, issuers that are sovereigns can use the proceeds of European green bonds to indirectly finance economic activities that are aligned, or seeking alignment, with the taxonomy requirements through the use of programmes of tax expenditures or programmes of transfers, including subsidies. In such cases, sovereigns ensure that economic activities funded by such programmes comply with the terms and conditions of those programmes. For that reason, when providing pre- and post- issuance reviews of European green bonds issued by sovereigns and the proceeds of which are allocated to tax expenditures or subsidies in accordance with terms and conditions that are aligned with taxonomy requirements, external reviewers should not be required to assess the taxonomy- alignment of each economic activity funded by such programmes. Where that is the case, it should be sufficient for external reviewers to assess the alignment ofwhether the terms and conditions of the funding programmes concerned are sufficiently aligned with the taxonomy requirements.
Amendment 355 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1
Article 6 – paragraph 1 – subparagraph 1
Amendment 370 #
Proposal for a regulation
Article 6 – paragraph 1 a (new)
Article 6 – paragraph 1 a (new)
Amendment 384 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 2
Article 7 – paragraph 1 – subparagraph 2
Where the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852 are amended following the issuance of the bond, the issuer shall not be required to amend the allocateion of bond proceeds to the uses referred to in the first subparagraph by applying the amended delegated acts within five years after their entry into applicatibut shall continue to be bound by the provisions resulting from the delegated acts in force at the time of issuance of the bond.
Amendment 393 #
Proposal for a regulation
Article 7 – paragraph 2 – subparagraph 3
Article 7 – paragraph 2 – subparagraph 3
Where the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852 are amended following the creation of the debt referred to in the first subparagraph, the issuer shall not be required to amend the allocateion of bond proceeds to the debt referred to in the first subparagraph by applying the amended delegated acts within five years after their entry into applicationbut shall be bound in this respect by the delegated acts applicable at the point in time when the debt was created.
Amendment 401 #
Proposal for a regulation
Article 7 a (new)
Article 7 a (new)
Article 7a Link to global green bond standards 1. Green bonds which were issued in accordance with existing global standards – i.e. Climate Bonds Standard and Green Bond Principles – and did not mature before this Regulation entered into force shall be deemed to comply with the requirements of the European Green Bond. 2. Future issuances in line with global standards may be considered to comply with the requirements of European Green Bonds and equivalent, provided that the Commission considers the international standard to be sufficient in terms of: (a) requirements concerning the allocation of bond proceeds to environmentally sustainable activities; (b) transparency, information requirements and control procedures; (c) supervision of the application of the standard.
Amendment 433 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Issuers of European green bonds shall, after the full allocation of the proceeds of such bonds and at least once during the lifetime of the bond, draw up a European green bond impact report on the environmental impact of the use of the bond proceeds by using the template laid down in Annex III.
Amendment 438 #
Proposal for a regulation
Article 13 – paragraph 2 – point a
Article 13 – paragraph 2 – point a
(a) where the European green bonds are offered to the public or are listed on a market in only one Member State, in a language accepted by the competent authority, as referred to in Article 36 of this Regulation,the official language of that Member State;
Amendment 439 #
Proposal for a regulation
Article 13 – paragraph 2 – point b
Article 13 – paragraph 2 – point b
(b) where the European green bonds are offered to the public or are listed on a market in two or more Member States, either in a language accepted by the competent authority, as referred to in Article 37 of this Regulation, of each Member State, or in a language customary inin the official languages of each Member State, or in English or in the official language of the sphertate of international financethe issuer, at the choice of the issuer.