Sustainable Finance: Commission welcomes the advice by the Platform on Sustainable Finance on financing the transition
The European Commission has welcomed today the advice on financing the transition provided by the Platform on Sustainable Finance. The Commission will consider the advice when finalising the draft delegated act on climate mitigation and climate adaptation, in the context of the Taxonomy Regulation, and when preparing its Renewed Sustainable Finance Strategy and other sustainable-finance related initiatives. This input by the Platform comes at the request by the Commission, made in January 2021, to provide further input on how the Taxonomy framework, and the existing sustainable finance framework more broadly, can facilitate all companies in their transition towards improving their environmental performance. In particular, the Commission considered that it was important to seek the Platform’s advice on a number of questions raised in the feedback received during a four-week public consultation, which gathered 46591 answers. In its advice provided today, the Platform provides recommendations on how to strengthen the potential of transition financing through the Taxonomy criteria. The Platform also highlights the importance of bank lending for the transition towards a green economy and the need to ensure that the forthcoming reporting and disclosure standards are coherent, pragmatic and enable all market participants, from corporates to SMEs, to access the green finance for the transition. Overall, the Platform underlines the importance of the EU Taxonomy to identify the investments that are much needed to reach the Green Deal goals, and its role as a tool for companies to plan and finance transition investments to reach the Green Deal and climate targets. The EU has set climate and energy targets for 2030, and aims to be climate-neutral by 2050. The Commission remains committed to continue working towards creating a common language that investors can use everywhere when investing in projects and economic activities that have a substantial positive impact on the climate and the environment. The full text of the advice is available here.
State aid: Commission approves €45 million Irish scheme to support companies active in the beef sector in the context of the coronavirus outbreak
The European Commission has approved a €45 million Irish scheme to support the beef sector in the context of the coronavirus outbreak. The scheme was approved under the State Aid Temporary Framework. The public support, which will take the form of direct grants, will be open to farmers and companies active in the beef sector in Ireland. The aim of the scheme is to address the liquidity needs of the beneficiaries and to help them continue their activities during and after the outbreak. The Commission found that the Irish scheme is in line with the conditions of the Temporary Framework. In particular, (i) the aid does not exceed €225,000 per beneficiary as provided by the Temporary Framework for undertakings in the primary agricultural sector and (ii) the scheme will run until 31 December 2021. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measures under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.62293 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Read the European Commission Daily News in full here.