Sustainable finance is an increasingly important topic in European policy making. A proposed regulation by the European Commission on this topic will have a major impact on the private financial sector, and its relationship with geothermal and other renewable energy investments.
The proposed Sustainable Finance Regulation will serve multiple purposes:
For the geothermal sector, this Regulation will have a major impact, as it will define the type of projects that may be financed by the private sector.
The Regulation proposal includes a draft Taxonomy that establishes criteria for the technologies that may be eligible. For the geothermal sector, these criteria notably include limits for life-cycle emissions of projects. The response from EGEC is that the criteria put for the elibility of geothermal to Sustainable Finance should not be discriminatory, and be applied in a similar manner to all technologies that may be eligible under the regulation.