(BFM Bourse) – A coalition of managers would like aeronautics not to be included in the European taxonomy.
Is aviation soluble in green finance? Yes, a priori, according to the European Commission. As part of proposals to develop sustainable finance, Brussels on Tuesday proposed a “package” of new measures to strengthen the European legal framework.
Contacted by BFM Bourse, a spokesperson for the European Commission explained that the Commission had, in particular, decided “to include aviation activities mainly as ‘transitional’ activities for their potential contribution to mitigating climate change. “.
This measure “highlights the importance of decarbonizing air transport”, he adds. The overall idea is to define criteria to encourage good practices such as “the development of zero-emission technologies as well as the manufacture and adoption of latest generation aircraft that replace earlier models, thus promoting the renewal of the fleet with best-in-class aircraft in terms of fuel efficiency,” the spokesperson said in an email. They also promote increased use of sustainable aviation fuels.
Adoption expected next year
Thus, aviation would be included in the European taxonomy, i.e. the Brussels nomenclature aimed to direct funding towards activities deemed “sustainable”.
All of the European Commission’s proposals will be subject to feedback before submission for in-depth examination by the European Parliament and the European Council. Before an adoption expected in January 2024.
This is not to the liking of an association called “Responsible Finance Actors” which initiated a coalition of asset managers in France in order to officially ask the European Commission to withdraw the aviation sector from the taxonomy, “at the risk of seriously undermining the credibility of this tool of sustainable finance”. According to this collective, the asset managers who have joined the coalition represent 280 billion euros in assets under management.
In a letter, this coalition argues that planes powered by fossil fuels cannot “make a substantial contribution” to the fight for the climate. “The collective recognizes the need for the aviation sector to adapt and transform. However, it is important to us that the taxonomy remains a positive tool to direct capital towards economic activities that are fully compatible with the European Union commitment to climate neutrality by 2050,” she wrote.
“Most importantly, the non-inclusion of the aviation sector in the taxonomy does not amount to a ban on funding. The taxonomy is a specific tool to identify and classify economic activities compatible with climate objectives and environmental. It does not impose on companies the obligation to invest exclusively in these activities”, she continues.
Among the members of this coalition are well-known asset managers in Paris, such as La Financière de l’échiquier or Mirova.
Julien Marion – ©2023 BFM Bourse