The commission took the initiative to present proposals for a framework for sustainable finance in May last year. This framework is supposed to act as guidance for fund managers and customers investing in funds and to set up a green bond standard e.g. A large part of the sectors that are affected by this legislation was not focusing so much on this proposal in the beginning. But there is reason to look closer at the benchmarks that are created, and which can be used in other future legislation.

It is Swedenergy’s position that technological neutrality for climate friendly energy production is necessary to create a carbon neutral society by 2050. However, some of the current proposals are unfortunately not technology neutral and for the energy sector there has been a concern regarding which type of hydro power, waste-to-energy, biomass and nuclear power that can be considered eligible for sustainable finance. Swedenergy has therefore been active in sending suggested changes to the European Parliament and the Council.

We are also happy to see that the European Parliament also voted to make the Taxonomy Regulation more technology neutral, than was suggested by the European parliament from the outset, in the joint vote in the ECON -ENVI committee on March 11^th. However, the process is long from being over. We will now follow the next steps, ie. the adoption of a position by the Council scheduled for June this year and the work being conducted in the European Commission’s technical expert groups. Negotiations will only take place with newly elected European parliament and go over to the Finnish Presidency.

If the framework for sustainable finance is balanced and technology neutral it will certainly be a positive enabler for the climate transition in the energy sector.

Daniel Wennick

Head of Brussels office, Swedenergy