Electricity | Policy Brief
The importance of the EU taxonomy : the example of electricity storage
16 March 2021
The legislative results of the Commission’s Sustainable Finance Initiative will play an increasingly important role on investment decisions in the energy sector. The Taxonomy Regulation, adopted last June, provides that investment funds and large EU companies must disclose information on their activities by reference to the EU Taxonomy. It also requires that any national or EU-level labels relating to sustainable investing or any other sustainability-related requirements imposed on investors must be designed by reference to the EU Taxonomy. In substance, this means that ‘green funding’ will have to finance predominantly, if not exclusively, the commercial activities that are ‘taxonomy compliant’. This will have an increasingly significant influence on the attractiveness of energy investments in future. There is a need for coherence in the use of all instruments designed for achieving Green Deal objectives, and the EU Taxonomy is therefore an important such instrument. The existence of adequate and affordable electricity storage will play an important role in the EU’s ability to meet its renewable energy objectives. In this respect, for example, the Commission’s draft Taxonomy Delegated Act takes a different approach to pumped hydrostorage than the recommendations of the Technical Expert Group on Taxonomy, essentially including one form of pumped hydro-storage while excluding another. This is difficult to understand, given the importance of this product for the Green Deal, and merits careful attention and to ensure that a fully reasoned, justified and coherent position results in the finally adopted version.
logo cadmus Read it on Cadmus Download in open access

LATEST FSR PUBLICATIONS

Technical Report
This special issue of Network Industries Quarterly is dedicated to the greening of infrastructure assets. Despite the unprecedented challenges brought about by the COVID-19 pandemic, the European Commission has reaffirmed [...]
Technical Report
This deliverable consists of an introduction and two main parts. Each part consists of two sections:Data exchange and interoperability and Demand-side flexibility. The two main topics of this interim deliverable, [...]
Working Paper
The digitalization of the electricity infrastructure is transforming the power industry and enabling its decarbonization and decentralization. In the electricity sector, digitalization is not a novelty but a process that [...]
Working Paper
The assumption that electricity consumers have no alternative but the grid for their electricity needs is currently being challenged by affordable Behind-The-Meter (BTM) technologies such as distributed PV systems and [...]
Working Paper
European Energy Policy is changing and multifold. It would be better to say that EU had six very different policies for energy since 1980. I will look deeper at only [...]
Article
This paper analyses the role that companion policies have had in the reduction of emissions regulated by the EU Emissions Trading System (EU ETS) and the related policy interactions, with [...]

Join our community

To meet, discuss and learn in the channel that suits you best.

scroll

top