Summary:
Cefic considers that the ‘Taxonomy Proposal’ may help mobilise finance towards environmentally beneficial projects and foster cross-border investments by defining a common language for environmentally beneficial investments, which in turn may promote retail and institutional investors’ interest for such investments. This may promote retail and institutional investors’ interest for such investments. Nonetheless, the ‘Taxonomy Proposal’ does not provide a definition of sustainable investments, since the social and economic aspects of sustainability are only partially covered.
To ensure that the ‘Taxonomy Proposal’ supports a transformation of the European economy while creating a competitive advantage for the EU industry in innovative and sustainable technologies, Cefic:
- Calls for a broad definition of “environmentally sustainable investments” ensuring comprehensive support for the low-carbon circular economy transition.
- Recommends that basic manufacturing industries, such as chemicals, be recognised for their essential contributions to sustainable technologies and included in the sustainable investment framework.
- Advocates for the inclusion of manufacturing industry representatives in the elaboration process of technical screening criteria for defining sustainable activities, to ensure practical and innovative solutions are developed and financed.