Response to the inception impact assessment “Commission Delegated Regulation on a climate change mitigation and adaptation taxonomy”

This document lays out FuelsEurope and IOGP’s response to the inception impact assessment “Commission Delegated Regulation on a climate change mitigation and adaptation taxonomy”.

IOGP and FuelsEurope welcome the EU’s efforts to establish a sustainable finance framework that unlocks private investments in projects and technologies to reduce the impact on the environment, reduce greenhouse gas (GHG) emissions and support the transition of industry to a sustainable future.

The two associations call for an alignment between the taxonomy and its thresholds with the least-cost pathway to climate neutrality recognising all technologies available to reduce emissions.

Key Points

This document provides IOGP and FuelsEurope’s recommendations:

• The principle of GHG emission reduction based on a life-cycle analysis & technology neutrality should drive the development of the Taxonomy delegated acts
• The delegated acts should clearly define “transitional activities”
• The delegated acts should introduce gradual thresholds
• Delivering the energy transition with CCUS and hydrogen
• Inclusive approach is key to the EU Taxonomy success
• Setting reasonable timelines to implement the EU Taxonomy in an effective manner