EU ECO-FRIENDLY FINANCE STANDARDS MEET STIFF RESISTANCE FROM STAUNCH GAS AND BIOFUEL LOYALISTS

The European Union has procrastinated over to late April with plans to finalise sustainable finance rules. This is what officials declared in the aftermath of stiff opposition from some member states over gas and biofuels.

The European Commission had envisaged a plan to publish the penultimate climate portion of a list of sustainable economic activities in the hope of funnelling cash into low-carbon projects in January.

But a draft in November jeopardized the final straw in the hat as last-minute pushback from countries sought to label gas power as sustainable.

Thousands of citizen reactions also asked the EU to not alter the alignment of the rules with its sustainable goals. This moved the commission to put them on hold and ask suggestion givers for further recommendations.

The final stricture of the rules is now due in the second half of April, EU officials told Reuters.

The Commission could not all of a sudden be reached for comment.

The design of the so-called taxonomy has jumpstarted months of frenzied lobbying from industries keen to make their economic agendas attractive to the billions of euros in investments seeking a ‘green’ home.

TAXONOMY DEBATE

Faced with tough options  from some businesses and governments, sources said the EU’s options include  softening  the criteria economic activities must meet to earn a “green” label, creating new, “semi eco-friendly” labels for those not completely compatible with EU climate goals.

For now, the taxonomy considers “transitional” activities that cannot yet be made fully sustainable, but which have discharges below industry average and do not comprise polluting assets or swamp out low-carbon alternatives.

The rules also validate green investments made by polluting companies. If an oil company did invest in a wind farm, it could mark that expenditure as green.

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