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EU Council allows fossil fuel expansion in sustainable funds amid heatwave

The Council of the European Union has revised its Sustainable Finance Disclosure Regulation (SFDR) to allow fossil fuel expansion to qualify for "transition" funds. This decision, made during a record-breaking heatwave, removes a previous exclusion that kept such activities out of sustainable investment categories. The new rules require companies to align approximately 20% of their capital expenditure with the EU taxonomy for green activities and adopt a plan to reduce operational emissions, but notably exclude Scope 3 emissions, which represent the vast majority of a fossil fuel producer's environmental impact. AI

RANK_REASON Policy change by a major regulatory body (EU Council) impacting financial markets and environmental standards. [lever_c_demoted from significant: ic=1 ai=0.1]

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EU Council allows fossil fuel expansion in sustainable funds amid heatwave

COVERAGE [1]

  1. Forbes — Innovation TIER_1 English(EN) · Ingmar Rentzhog, Contributor ·

    EU Council Lets Oil Expansion Qualify For Sustainable Funds

    Europe's proposed SFDR rules let expanding oil companies qualify as "green" investments, ignoring Scope 3, the bulk of their emissions.