IIGCC publishes open letter calling for gas to be excluded from the EU Taxonomy
- Inclusion of gas risks channelling capital towards activities not compatible with EU’s commitment to climate neutrality by 2050
- Taxonomy is critical for investors trying to align their portfolios and investments with net zero emissions
- IIGCC publishes open letter to EU Member State representatives and MEPs
The Institutional Investors Group on Climate Change (IIGCC) has published an open letter to EU Member State representatives and MEPs, calling for gas to be excluded from the EU Taxonomy.
IIGCC is the leading European membership body enabling the European investment community in driving significant and real progress by 2030 towards a net zero and resilient future. IIGCC’s 370+ members, representing €50 trillion AUM, are in a position to catalyse real world change through their capital allocation decisions, stewardship and engagement with companies and the wider market, as well as through their policy advocacy.
Stephanie Pfeifer, CEO, IIGCC, said: “As the cornerstone of the EU’s sustainable finance agenda, the inclusion of gas would undermine the credibility of the taxonomy as well as the EU’s own commitment to climate neutrality by 2050. While there is a place for gas as a short-term bridge as part of a period of transition, it cannot honestly be classified as green.”
“For institutional investors, the inclusion of gas will limit their ability to align their portfolios and investment with net zero. At a time when we need clarity, the inclusion of gas creates an unhelpful precedent and muddies the waters for investors looking to do the right thing.”
“The inclusion of gas also risks channelling material levels of capital towards initiatives that undermine a sustainable, net zero future. We urge policymakers to vote accordingly.”
Will Martindale, Group Head of Sustainability, Cardano, said: “Many investors, both asset owners and asset managers, are trying to chart a course that supports a 1.5°C future. The inclusion of gas in the taxonomy risks undermining this ambition and creates an unnecessary headache for those looking to align their portfolios and investments with net zero.”
“This is a landmark piece of legislation that sets the tone for the investment community globally. The ramifications of this must not be forgotten when policymakers make their final decision.”