Co-op News - February 2020

EUROPE
Co-op banks welcome EU green
investment rules despite red tape concerns
The European Parliament and the
European Council have agreed a
classification system for sustainable
economic activities, to help investors
check their portfolios against the EU’s
goal to become carbon neutral by 2050.
The system sets out six environmental
objectives: climate change mitigation;
climate change adaptation; sustainable
use and protection of water and marine
resources; transition to a circular
economy; pollution prevention and
control; and protection and restoration of
biodiversity and ecosystems.
To qualify as sustainable, economic
activities must provide a substantial
contribution to at least one of these
objectives; avoid significant harm to any
of the other objectives; comply with robust
and science-based technical screening
criteria; and have in place social and
governance safeguards.
The Commission’s executive vicepresident
for an economy that works
for people, Valdis Dombrovskis, said:
“This piece of legislation will be a gamechanger
in terms of tackling climate
change, because it will enable billions in
green investments to flow.
“Investors and industry will for the first
time have a definition of what is ‘green’,
which will give a real boost to sustainable
investments. That will be crucial for the
European Green Deal to become a reality.”
The European Association of
Co-operative Banks (EACB) welcomed the
taxonomy but said it had concerns about
potential red tape for SMEs. It said its
members would apply their knowledge
and experience to make the taxonomy
work in practice and help organisations
complete the technical screening stage.
“Co-operative banks support the new
dynamic approach with the inclusion of
transition activities and different shades
of green,” said Hervé Guider, EACB
general manager. “However, the final
negotiations have led to a rather complex
and bureaucratic regime compared to the
simple framework necessary to accelerate
the shift to sustainability.
“The use of the new taxonomy,
especially if indirectly applied to
loans, seems to raise challenges for
enterprises, especially SMEs, in terms of
providing the necessary ESG data to their
financing partners.”
EACB says the climate-related data of
listed companies should become publicly
available so bank and other financial
institutions can differentiate between
different shades of green, transition
activities and enabling activities.
The new rules are expected to take
effect at the end of 2021.
EUROPE
Agri co-operatives voice
worries over Green Deal
Agri co-ops in Europe have asked the
European Commission to clarify aspects of
its new Green Deal, voicing concern about
proposals to curb the use of pesticides
and fertilisers.
The Commission says its Farm to Fork
Strategy for Sustainable Food will be
presented this spring, as a key component
of the European Green Deal.
In a statement published in December,
Copa-Cogeca, the organisation for
European farmers and agri co-ops, said
its members were ready to play their role
in fulfilling the vision but called for a
“concrete and realistic project” that does
not leave anyone behind.
The apex body noted that many farmers
across Europe had taken to the streets to
call for coherent policies, a decent income
and the end to what they see as an unfair
depiction of the agricultural sector.
European farmers and co-ops are also
asking the Commission to clarify certain
aspects of the Green Deal, such as how
the European budget would factor in
the ambitions of the Green Deal, as
well as those of the upcoming Farm to
Fork strategy. The sector is requesting
details about how these policies will be
taken into account when setting out the
Common Agricultural Policy, which is in
the process of being reformed.
The Green Deal mentions a “significant
reduction” in pesticides and fertilisers
without giving specific targets. It also states
that the potential role of new innovative
technologies will be considered” without
further details about these.
18 | FEBRUARY 2020