Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

EU has failed to create gold standard for green finance, Spain says

Published 09/02/2022, 14:24
Updated 09/02/2022, 14:28
© Reuters. FILE PHOTO: High-tension electrical power lines are seen near the Golfech nuclear plant on the border of the Garonne River between Agen and Toulouse, France, July 18, 2018. REUTERS/Regis Duvignau/File Photo
GC
-

By Isla Binnie and Kate Abnett

MADRID/BRUSSELS (Reuters) - European countries and companies could end up defining their own standards on green investments if Brussels fails to impose the "gold standard" and classifies spending on gas and nuclear energy as sustainable, a Spanish minister said on Wednesday.

The European Union has split opinion among member states with its plan to include gas and nuclear plants - provided they meet certain criteria - in its sustainable finance taxonomy, a rulebook of investments that limits which can be labelled as green.

"I guess that we will have a silver standard," Spanish Energy and Environment Minister Teresa Ribera told an online conference organised by German media Der Tagesspiegel, Die Zeit, Handelsblatt and Wirtschaftswoche.

"But there will be many member states and many companies that could try to say that they do not include these technologies in their own portfolio. So I think that it is almost unavoidable that we will have different standards," she said, adding she would have preferred a "green gold standard".

The move has also split investors, with some planning to exclude the fuels from their "sustainable" funds, despite the EU labelling them as such.

Spain says gas and nuclear technologies should have a role in the transition to green energy, but this should be dealt with separately from the investment framework - which was designed to give a green investment label to only activities that are aligned with the rapid emissions cuts needed to avert disastrous climate change.

© Reuters. FILE PHOTO: High-tension electrical power lines are seen near the Golfech nuclear plant on the border of the Garonne River between Agen and Toulouse, France, July 18, 2018. REUTERS/Regis Duvignau/File Photo

While a handful of EU states have publicly opposed the plan, at least 20 would need to veto it - a threshold seen as unlikely. Austria and Luxembourg have threatened legal action over the plan to label nuclear investments as green, citing concerns about waste disposal.

A majority in the European Parliament could also block it, and Green lawmakers say they will campaign to reach the roughly 350 lawmakers needed for a veto.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.