Sustainable solar power: top takeaways from the EU taxonomy requirements
Solar power is expected to be a key enabler for a transition to a low-carbon society. However, while it is an eligible activity in the EU taxonomy, it is not automatically considered to be a sustainable activity. The technical screening criteria set out a number of requirements for solar power to qualify as sustainable.
Here are some top takeaways that you should know about solar power and the taxonomy:
- Generating electricity from solar power is enough to qualify as making a substantial contribution to climate change mitigation, but there are also requirements that the activity does no significant harm in other key areas.
- Solar power installations should use equipment and components of high durability, recyclability and that are easy to refurbish and dismantle in order to be in compliance.
- A climate risk and vulnerability assessment will need to be carried out to identify physical climate risks that may impact the activity.
- Solar power can also make a substantial contribution to pollution prevention and control if installations meet pollutant thresholds set out in the new draft annex.
- There are currently five pollution thresholds covering life-cycle emissions. They address the most significant air pollutant emissions resulting from solar power production in the European Union.
- An Environmental Impact Assessment should be completed for the activity to identify possible risks as well as mitigation or compensation measures required to protect the environment.
ESG reporting: necessary reporting standards and requirements
Read this blog to know about different ESG reporting standards in the EU.
Principal Adverse Impact (PAI) indicators in SFDR
Read this blog to understand PAI indicators in relation to SFDR.