Position paper regarding the report of the Platform on Sustainable Finance on Taxo4

key messages

• Eurelectric welcomes the proposal of the Platform on Sustainable Finance to allow the classification of restoration and conservation of habitats as substantially contributing to the biodiversity objective as outlined in chapter 8.2 of the report.
• In our view, any environmental refurbishment at sites related to industrial activity is covered by activity 8.2 “Restoration of biodiversity and ecosystems”.
• In the upcoming delegated act, two principles must be respected. First, the principle of technology neutrality to ensure a level playing field which shall be implied for all electricity generation – no technology shall be excluded. Second, compliance with the overarching regulation to provide a stable regulatory framework to foster investments in sustainable activities. Referencing existing law such as the Water Framework Directive provides clear guidance on environmental standards in the delegated act. However, the reference must be completely in line with existing law and should not exceed its scope.
• Hydropower supports the energy transition by providing renewable energy and storage, as well as flexibility and ancillary services. Additionally, it enables the integration of volatile RES like wind and solar. Thus, hydropower actively counteracts climate change, which remains a considerable threat to biodiversity.
• Furthermore, hydropower can significantly contribute to accelerating and strengthening European energy independence, as well as increasing security of supply – key goals highlighted in the REPowerEU communication by the European Commission.