3. Green Objectives
Transactions are labeled as ‘green’ if they make a substantial contribution to global climate objectives such as climate change mitigation and adaptation, or other environmental goals. Definitions are based on the EU Taxonomy.[1]
[1] Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088
3.1 Climate goals
Climate mitigation
Activities that contribute substantially to the stabilization of greenhouse gas concentrations by reducing or preventing emissions or promoting the removal of greenhouse gases. Climate mitigation reduces the rate of climate change.
Climate adaptation
Activities that contribute substantially to reducing or preventing the adverse effects of current or projected future climate, or the risks of such adverse effects, whether on the activity itself or on people, nature or assets.
3.2 Environmental objectives
Biodiversity
Activities that contribute substantially to protecting, conserving or restoring biodiversity or to achieving a good condition of ecosystems, or to protecting ecosystems that are already in good condition, through: a) nature and biodiversity conservation b) sustainable land use and management c) sustainable agricultural practices d) sustainable forest management e) enabling any of the activities listed in points a) to d).
Pollution prevention and control
Activities that substantially contribute to environmental protection against pollution by: (a) preventing or, where that is not feasible, reducing polluting emissions to air, water or land, other than greenhouse gases; (b) improving the quality of air, water or soil in the areas where the economic activity takes place, while minimizing adverse effects on human health and the environment or the risk thereof (c) preventing or minimizing adverse effects on human health and the environment from the production, use or disposal of chemicals; (d) cleaning up waste and other pollution; or (e) enabling any of the activities listed in (a) to (d).
Sustainable use and protection of water and marine resources
Activities that contribute substantially to achieving the good status of bodies of water, including bodies of surface water and groundwater or to preventing the deterioration of bodies of water that already have good status, or contribute substantially to achieving the good environmental status of marine waters or to preventing the deterioration of marine waters that are already in good environmental status.
Circular economy
Activities that contribute substantially to the circular economy by preserving the value of products, materials and resources in the economy for as long as possible and minimizing the creation of waste.
In assessing whether transactions contribute to climate or environmental goals, Atradius DSB will, in accordance with international frameworks, include activities that:
i) directly contribute substantially through their own performance;
ii) directly enable other activities that contribute substantially to climate or environmental objectives (enabling activities); and
iii) cannot yet be replaced by technologically and economically feasible low-carbon alternatives, but do support the transition to a climate-neutral economy (transition activities).
4. International frameworks
Atradius DSB follows the CCSU for green classification, and where insufficient, uses the EU Taxonomy and MDB CP.
Climate Change Sector Understanding (CCSU)
The Arrangement on Officially Supported Export Credits is a non-binding, intergovernmental agreement—often called a “gentlemen's agreement”—that governs how export credit agencies (ECAs) from participating countries can support exports, ensuring fair competition and minimizing trade distortions. EU countries must comply since the EU has made it legally enforceable within its jurisdiction.
The CCSU provides sector-specific rules and incentives to support exports that address climate change and water-related challenges. The CCSU is focused on export transactions and applied by all Arrangement participating countries (EU and non-EU), which makes it suitable as a starting point for green classification.
However, following the CCSU is not sufficient because criteria are missing for several project classes, for example because of ongoing negotiations. Moreover, the CCSU only focuses on activities that contribute to climate objectives and not on activities that contribute to (other) environmental objectives. To fill these gaps, Atradius DSB uses the EU taxonomy.
EU taxonomy
The EU taxonomy is a comprehensive classification system designed by the European Commission to create a common classification system for environmentally sustainable economic activities. The EU taxonomy has technical screening criteria that define when an economic activity can be considered environmentally sustainable and contributes substantially to one of the environmental objectives (substantial contribution). Criteria have also been developed to ensure that activities do no significant harm to the other objectives. In addition, the EU taxonomy has minimum safeguards that economic activities must meet to qualify as sustainable. In the Green Label methodology, Atradius DSB uses the substantial contribution criteria only. Do no significant harm and minimum safeguards aspects are part of the E&S policy and compliance policy.
The EU taxonomy is already used by some of Atradius' clients. In addition, the EU taxonomy is used by many other European ECAs (whether in addition to the CCSU or not).
MDB CP
The Common Principles for Climate Mitigation Finance Tracking (MDP CP) are used for agriculture-related activities, not covered by the CCSU or EU Taxonomy. These are commonly used by development banks (e.g. MDBs, DFIs) for classification and reporting on green.
5. Special notes
Gas and nuclear activities, although included under strict conditions in the EU Taxonomy, are not part of the Green List. Decisions on their inclusion will be made later. Nuclear activities and gas activities that fall under the limited exceptions of the fossil exclusion policy (exclusion list) are eligible for coverage under regular conditions.