Simon Jessop, Kate Abnett

LONDON, (Reuters) – The European Commission’s advisers Monday suggested that the bloc expand its sustainable finance rules in order to improve grade activities like gas-fired power stations which aren’t yet eco-friendly.

Intense lobbying was conducted over the last one year to decide whether or not gas should be included within the European Union’s flagship “taxonomy”, which is a collection of green activities that help the bloc meet its climate targets.

Many European governments and politicians reacted negatively to the Commission’s proposal of defining gas “green”, using greater emissions thresholds than the ones originally proposed by experts.

The advisers suggested that the problem be solved by expanding the scope and use of taxonomy with a traffic light system. This would include an intermediate or “amber” category, which is for activities that are not sustainable but could eventually become sustainable.

The group also supported the creation of a “red” category to identify activities that cause significant harm to the environment and that must be stopped or transitioned immediately, along with another one for activities that have a minimal impact on our environment.

Nancy Saich is Chief Climate Change Expert for the European Investment Bank, and a member the expert advisory panel.

The taxonomy’s role can be expanded to make it easier for companies to obtain finance. This will allow them to transition to a low carbon economy faster. Investors, on the other hand, would see more information about which funds they have funded at portfolio level.

Sebastien Gottinot, senior economist at the WWF European Policy Office said “One piece does not make a complete picture.”

To clarify our current position and speed up the transition to sustainable economies, we need a taxonomy.