Activities of Ilan DE BASSO related to 2021/0191(COD)
Shadow opinions (1)
OPINION on the proposal for a regulation of the European Parliament and of the Council on European Green Bonds
Amendments (11)
Amendment 11 #
Proposal for a regulation
Recital 1
Recital 1
(1) The transition to a low-carbon, more sustainable, resource-efficient, circular, socially inclusive and fair economy is key to ensuring the long-term competitiveness of the economy of the Union and the well- being of its peoples. In 2016, the Union concluded the Paris Agreement31 . Article 2(1), point (c), of the Paris Agreement sets out the objective of strengthening the response to climate change by, among other means, making finance flows consistent with a pathway towards low greenhouse gas emissions and climate- resilient development. __________________ 31Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 282, 19.10.2016, p. 4).
Amendment 13 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) Sustainability has long been central to the Union project, and the Treaty on European Union and the Treaty on the Functioning of the European Union (TFEU) reflect both its social and environmental dimensions. Action to achieve the Union's environmental and climate objectives needs to be carried out in conjunction and be compatible with the European Pillar of Social Rights. In this respect, this Regulation should contribute to the implementation of the European Pillar of Social Rights, in a full, coherent, comprehensive, integrated and effective manner.
Amendment 15 #
Proposal for a regulation
Recital 1 b (new)
Recital 1 b (new)
(1b) Following the joint commitment of the European Parliament, the Council and the Commission to pursue the principles enshrined in the European Pillar of Social Rights in support of sustainable and inclusive growth, and recognising the relevance of international standards on minimum human and labour rights, the Union has adopted a broad concept of sustainability, including environmental, social and governance aspects. In that context, and in line with the definition of sustainable investment set out in Regulation (EU) 2019/20881a of the European Parliament and of the Council, environmentally sustainable activities should not harm social sustainability objectives. Therefore, environmentally sustainable bonds should adhere to the principle of ‘do no significant harm’ referred to in Regulation (EU) 2019/2088, and take into account the regulatory technical standards adopted pursuant to that Regulation that further specify that principle. That includes alignment with the OECD Guidelines for Multinational Enterprises and UN Guiding Principles on Business and Human Rights, including the declaration on Fundamental Principles and Rights at Work of the International Labour Organisation (ILO), the eight fundamental conventions of the ILO and the International Bill of Human Rights. The fundamental conventions of the ILO define human and labour rights that undertakings should respect. Several of those international standards are also enshrined in the Charter of Fundamental Rights of the European Union, in particular the prohibition of slavery and forced labour and the principle of non- discrimination. __________________ 1aRegulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability- related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1)
Amendment 19 #
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 and socially sustainable economic activities. This prevents investors from easily identifying bonds the proceeds of which are aligned with, or are contributing to environmentalsustainability objectives as laid down in the Paris Agreement and the UN Sustainable Development Goals.
Amendment 31 #
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 technologically and economically feasible low-carbon alternatives. Bonds whose proceeds guarantee transitional activities should be designated as European Green Bonds under certain conditions. In this respect, companies that have a clear and credible pathway to becoming sustainable and that adhere to the Paris Agreement, to Regulation (EU) 2021/1119 of the European Parliament and of the Council (‘European Climate Law’) and to a 1.5 °C global net warming scenario could use the European Green Bond standard for transitional activities.
Amendment 46 #
Proposal for a regulation
Recital 18
Recital 18
(18) To improve transparency, issuers should also disclose the environmentalsustainability impact of their bonds by means of the publication of impact reports, which should be published at least once during the lifetime of the bond. In order to provide investors with all information relevant to assess the environmental and social impact of European green bonds, impact reports should clearly specify the metrics, methodologies and assumptions applied in the assessment of the environmental impactsand social impacts. Impact reports should also include an outline of the issuer's transition plan. To strengthen the comparability of European green bonds and to facilitate the localisation of relevant information, it is necessary to lay down templates for the disclosure of such information. To ensure accuracy of impact reports and protect investors from greenwashing, impact reports should be subject to an external review.
Amendment 66 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5 a (new)
Article 2 – paragraph 1 – point 5 a (new)
(5a) ‘sustainable investment’ means sustainable investments as defined in Article 2, point 17, of Regulation (EU) 2019/2088;
Amendment 95 #
Proposal for a regulation
Article 7 a (new)
Article 7 a (new)
Article 7a Transition plan 1. Issuers of European green bonds shall develop a transition plan outlining how they will adhere to a 1.5 °C global warming scenario and reach climate neutrality by 2050, while respecting the principle of ‘do no significant harm’" pursuant to Article 2a of Regulation (EU) 2019/2088. The transition plan shall include verifiable annual targets. 2. ESMA shall develop draft regulatory technical standards specifying minimum requirements for transition plans and submit them to the Commission by ...[18 months after the date of entry into force of this Regulation]. The Commission is empowered to adopt delegated acts in accordance with Article 60 of this Regulation to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph. The power to adopt regulatory technical standards is conferred on the Commission subject to the conditions laid down in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
Amendment 121 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
An issuer that is a sovereign may obtain pre-issuance and post-issuance reviews from an external reviewer, or from a state auditor or any other public entity that is mandated by the sovereign to assess compliance with this Regulation. For non- Union sovereign issuers, the state auditor or other public entity shall be required to receive pre-approval from ESMA in line with Title III Chapter 1.
Amendment 152 #
Proposal for a regulation
Article 25 – paragraph 6 – point b a (new)
Article 25 – paragraph 6 – point b a (new)
(ba) the identification and subsequent elimination, management or disclosure of any actual or potential conflicts of interest of third party service providers within the meaning of Article 27(4a) of this Regulation;
Amendment 157 #
Proposal for a regulation
Article 27 – paragraph 4 a (new)
Article 27 – paragraph 4 a (new)
4a. A conflict of interest shall be deemed to exist where: (a) the external reviewer is directly or indirectly linked to the reviewed entity or a related third party by control; (b) the reviewed entity or related third party holds a significant amount of either the capital or the voting rights of the external reviewer; (c) the external reviewer has ownership interests in the reviewed entity or a related third party; (d) a person referred to in paragraph 1 is a member of the administrative or supervisory board of the reviewed entity or a related third party, or is otherwise in a position to exercise influence on the business activities of the external reviewer, including through the ownership of shares in the reviewed entity.