Ahead of the forthcoming 22nd Conference of the Parties in Morocco (COP22), the European Financial Services Round Table (EFR), whose members are Chairmen and CEOs of EU-headquartered international banks and insurers, would like to take the opportunity to reiterate our commitment to help deliver the Paris Agreement and set out where we believe action at EU level would help manage the transition. Prior to the 21st Conference of the Parties in Paris last year (COP21), the EFR called for a strong, ambitious agreement to tackle climate change.
Given the need for an ambitious implementation of the Paris Agreement, a first and important step is swift ratification of the agreement by its signatories. We therefore welcome the EU's ratification of the Paris agreement, which will help ensure the EU remains a leading actor on climate change. Of course it is important that the European Commission also encourages all EU Member States to ratify shortly.
The EFR welcomes the establishment of an expert group to develop a comprehensive European strategy on sustainable finance and would encourage the EU to ensure the strategy includes initiatives to:
- Create national capital raising plans and project pipelines to build a sustainable future including measures to ensure climate resilience;
- Unlock green finance by considering incentives both to stimulate the supply of green projects, and to align public financing tools with the COP21 commitments, including ways to properly reflect the economic risk profile of long-term assets in regulatory frameworks;
- Understand the risks of the transition to a low-carbon and more sustainable economy;
- Increase transparency by bringing forward swiftly the Non-Financial Reporting Directive Guidelines, by considering a global effort to create common standards for the disclosure of Environmental Social and Governance (ESG) performance of firms and investors, and by promoting greater transparency and consistency of climate-related financial risk disclosure across the non-financial and financial sectors taking forward the work of the FSB Taskforce.