On 6 December, ECON and ENVI will jointly consider the above draft report that seeks to strengthen the future EU framework for determining environmentally sustainable financial activities (the so-called taxonomy regulation). The report includes a 'brown' taxonomy to be added, defined as "criteria for economic activities with a negative environmental impact". This contrasts with the Commission's proposal, which only aims at a positive approach, disregarding environmentally harmful activities.
The draft report also provides for the taxonomy to be based on a set of harmonised indicators, which should include "at least the circular economy indicators". These should capture the environmental impact on "CO2 and other emissions, biodiversity, production of waste, the use of energy and renewable energy, raw materials, water, and direct and indirect land use". Credit institutions and 'investee companies' should also, according to the draft report, be subject to disclosure requirements regarding the green impact of loans. Financial supervision at European level will be the responsibility (in their respective sectors of coverage) of the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority.