The tool is designed to help direct investments in environmentally friendly practices like low-GWP heat pumps.
The European Union (EU) is seeking public comments until September 13 for its the so-called “Taxonomy” report, which presents a classification system of environmentally sustainable economic activities.
This mapping tool provides practical guidance for policy makers, industry and investors on how best to invest in economic activities that contribute to achieving a climate-neutral economy. It is scheduled to be integrated into an upcoming legislative proposal at the EU level.
The Taxonomy report identifies refrigerants with a GWP under 10 for electric heat pumps with a seasonal coefficient of performance (COP) threshold above 3.33 as one of the climate change mitigation criteria that would substantially improve the environmental performance of industries. Moreover, technical experts recognize the possibility of extending the scope in order to cover more sectors, depending on the collected contributions during the public consultation period.
Once adopted, the Taxonomy report is expected to have an international impact thanks to the influence it will have on the current development of ISO standards for “Green Debt Instruments”.
It is part of the European Commission’s ambition to make the financial sector a powerful actor in fighting climate change and meeting the UN’s sustainable development goals (SDGs) by further aligning industry with the Paris Agreement and the UN 2030 Agenda for Sustainable Development.