That would likely rule out French oil major TotalEnergies, for example, because it allocates 35 percent of its capital expenditure to new oil and gas activities, and only around one quarter to low-carbon energy.
The European Commission’s initial proposal suggested a blanket exclusion of the fossil fuel industry, a tougher stance than the Parliament. Member countries propose the most lenient rules, agreeing in June that oil and gas companies could be included in the transition category if they spend one fifth of their capex on green activities, as defined under the EU taxonomy.
MEPs in the economic committee will vote on the Parliament’s position on Sept. 10, before a plenary vote the following week. If approved, it will open the way for member countries and lawmakers to begin negotiations to reach a compromise.
An overhaul of the SFDR was tabled by the Commission in November, following greenwashing concerns and complaints from fund managers about its complexity and costliness.
