Eurogas Response: Sustainable Finance Disclosure Regulation (SFDR)

Download the full statement here.

Eurogas response to the European Commission’s public consultation on the revision of the Sustainable Finance Disclosure Regulation (SFDR), the paper underlines an overarching recommendation to ensure that the future framework better supports credible energy transition pathways while remaining aligned with the EU’s climate, competitiveness and energy security objectives.

Eurogas welcomes the proposed introduction of three product categories: Sustainable, Transition and ESG Basics, with the aim to better guide investment toward sustainable and transitional activities. At the same time, Eurogas stresses that the revised framework must reflect the specific characteristics of the energy sector, including long asset lifecycles, capital intensity and security of supply considerations.

A central focus of the response is the proposed exclusion criteria under Article 7.1(c) for the Transition category. Eurogas argues that the current wording risks excluding companies that are actively investing in emissions reductions, renewable and low-carbon gases, hydrogen, biomethane and CCUS technologies. The association therefore calls for the deletion of Article 7.1(c), or for mechanisms that better recognise companies making credible progress toward decarbonisation.

In addition the paper also calls for:

• exemptions for “use of proceeds” instruments financing Taxonomy-aligned activities;
• stronger alignment between SFDR and other EU frameworks, including the Taxonomy and Benchmark Regulation;
• clearer definitions regarding “gaseous fuels”, Taxonomy-aligned activities and gas distribution infrastructure.

Overall, the paper argues that the revised SFDR should incentivise investment in realistic and effective transition pathways, rather than unintentionally limiting access to transition finance for sectors that play a key role in achieving the EU’s climate ambitions.