Europe’s regulatory landscape is shifting as the EU implements a range of initiatives to meet its international environmental commitments and targets, from its Action Plan on sustainable finance to the EU Green Deal. These efforts include major regulatory changes to help the EU reach its goal of net-zero carbon emissions by 2050 and maintain a stable and sustainable financial system.
To help you stay on top of all of the moving pieces, the Association for Financial Markets in Europe has assembled a timeline for the rollout of EU regulation related to sustainable finance. For more, see the full report State of Play: Status of European Regulatory Developments on Sustainable Finance from February 2020.
Note: Some items are expected to be delayed where noted below, and there may be additional delays to come, particularly given the current COVID-19 pandemic.
- Commission announces the Sustainable EU Investment Plan, the investment pillar of the Green Deal
- Commission launches consultation on the Just Transition Fund proposal to support workers and citizens most affected by the transition
- European Banking Authority (EBA) launches consultation on climate-risk stress-testing
- Commission’s Technical Expert Group on Sustainable Finance (TEG) publishes its final report on taxonomy for climate risk mitigation and adaptation as well as a Usability Guide for the EU Green Bond Standard
- ESAs to launch consultation on the draft Regulatory Technical Standards (RTSs) on the EU Disclosure Regulation (expected to be delayed)
Commission to launch consultations on:
- The new Sustainable Finance strategy, the “Renewed Sustainable Finance Action Plan” (expected to be delayed)
- Review of the Non-financial reporting directive (NFRD), with the objective of increasing transparency in ESG reporting
- Draft Delegated Acts on the EU Benchmark Regulation (expected to be delayed)
- EBA to launch consultation on incorporation of ESG into risk management and supervision
- EBA to launch consultation on Pillar 3 ESG disclosure requirements included in the Capital Requirements Regulation
- Commission to adopt Delegated Acts on the Benchmark Regulation, based on TEG’s final report on climate benchmarks and responses to a public consultation.
- Commission to launch consultation on draft Delegated Acts to MiFIDII
- Commission to announce the new Sustainable Finance strategy
- Commission to launch proposal for the review of the NFRD
- ESAs to draft RTSs on the Disclosure Regulation
- Commission’s Joint Research Centre (JRC) to publish final criteria for the EU Ecolabel for retail financial products
- Commission to draft Delegated Acts on Taxonomy disclosure for NFRD reporters
- EBA to publish final draft Implementing Technical Standard (ITS) on Pillar 3 disclosure (ESG)
- Commission to adopt Delegated Acts on taxonomy for climate risk mitigation and adaptation
- Commission to publish draft review of Shareholders Rights Directive II (SRD)
- Commission to adopt Delegated Acts on Taxonomy for remaining environmental objectives
- EBA to launch discussion paper on prudential treatment of green exposures
- EBA to publish guidelines on ESG integration in risk management and supervision
- EBA to publish final report on prudential treatment of green exposures
Source: Association for Financial Markets in Europe (AFME), State of Play: Status of European Regulatory Developments on Sustainable Finance, Feb 2020
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