Bonds

Developments continue at pace at EU level, with trilogue negotiations beginning on the proposed EU Green Bond Standard (read our recent update for more information: EU Green Bond Standard: State-of-play) and leading industry bodies such as the ICMA and AFME highlighting key issues from an industry perspective which they hope to see addressed as part of those discussions (see here (ICMA) and here (AFME)).

The European Commission’s plan to include specific nuclear and gas energy activities in the list of environmentally sustainable economic activities covered by the EU Taxonomy Regulation will be voted on at a full plenary session of the European Parliament on 4-7 July 2022

 

Industry will also benefit from the updated Green Bond Principles, Social Bond Principles and other supporting materials in relation to green, social, and sustainability-linked bonds published by the ICMA at the end of June 2022.

​Taxonomy Regulation

The European Commission’s plan to include specific nuclear and gas energy activities in the list of environmentally sustainable economic activities covered by the EU Taxonomy Regulation will be voted on at a full plenary session of the European Parliament on 4-7 July 2022. The Parliament and the EU Council have until 11 July 2022 to decide whether to veto the Commission’s proposal. In June 2022, the Parliament’s Economic and Monetary Affairs Committee and its Environment, Public Health and Food Safety Committee both objected to the proposal.

The Commission’s first Article 26 report on the functioning of the EU Taxonomy Regulation is due on 13 July 2022, but it is not yet clear whether that deadline will be met.

Integrating Sustainability Considerations

The effective dates for EU delegated acts incorporating sustainability considerations into a range of EU financial services legislation are fast approaching.

The effective dates for EU delegated acts incorporating sustainability considerations into a range of EU financial services legislation are fast approaching.

The EU delegated regulations incorporating sustainability considerations into MiFID II (here), AIFMD (here), the Insurance Distribution Directive (here) and the Solvency II Directive (here) will have direct effect in Ireland from 1 August 2022.

Irish transposing legislation is required by 31 July 2022 for the EU delegated directive (here) incorporating sustainability considerations into the UCITS Directive.

Irish transposing legislation is also required by 22 August 2022 for the EU delegated directive (here) which will integrate sustainability considerations into MiFID II’s product governance rules from 22 November 2022.

Corporate Sustainability Reporting Directive (CSRD)

Work will also continue on finalising the text of the proposed CSRD following provisional political agreement on the text (see our Corporate Group’s briefing here for more information: Significant Progress on Corporate Sustainability Reporting Directive).