EU Aims to Tackle Climate Change With Newly Adopted 'Green Finance' Guidelines
Newly adopted guidelines set forth by the European Commission Tuesday aim to tackle climate change by way of the financial sector. The move comes to bolster the success of the Sustainable Action Plan published last year to reorient capital flows toward sustainable investment and manage financial risks from climate change, environmental degradation and social issues.
In short, the guidelines help define an environmentally friendly investment by providing companies with recommendations on how to report the impact of their activities on the climate, as well as how climate change impacts their business.
"The climate emergency leaves us with no choice but transit to a climate-neutral economy model," said Valdis Dombrovskis, vice-president responsible for financial stability, financial services and capital markets union. "Today's new guidelines will help companies to disclose the impact of the climate change on their business as well as the impact of their activities on climate and therefore enable investors make more informed investment decisions."
Efforts will ensure that 6,000 European Union (EU) companies, banks and insurance agencies transition to a climate-neutral economy, furthering 2030 climate and energy framework seeking to cut carbon emissions by 2030. The European Commission takes that goal one step further by seeking to reduce emissions to zero by 2050, which will require many sectors to find an additional annual investment of between 175 and 290 billion euros.
Public and private investments are needed to transform the continent's ability to deliver on climate-focused goals, according to the EU. To do this, financial planners have defined sustainable finance as a viable method of achieving climate change-related objectives, including climate change mitigation and adaptation, sustainable use and protection of water and marine resources, the transition to a circular economy, waste prevention and recycling, pollution prevention and promoting healthy ecosystems.
Among other things, the new guidelines classify sustainable activities to create a "common language," establish EU labels for green financial products and strengthen the transparency of companies' impacts on the environment. The report sets parameters on how businesses can qualify as "green" based on their contributions to the EU's six environmental objectives without negatively affecting other businesses, reports Reuters.
The guidelines do not include coal and nuclear power and instead support 2030 goals that agree to establish at least one-third share of renewables in final energy consumption, a one-third energy savings when compared to business-as-usual scenarios, and establish a minimum cut of 40 percent in greenhouse gas emissions when compared to 1990 levels.
"The aim of these guidelines is to help companies disclose high quality, relevant, useful, consistent and more comparable non-financial (environmental, social and governance-related) information in a way that fosters resilient and sustainable growth and employment, and provides transparency to stakeholders," reads the report text, adding that the "non-binding guidelines could represent best practice for all companies that disclose non-financial information."
By Melissa Gaskill
Two decades ago scientists and volunteers along the Virginia coast started tossing seagrass seeds into barren seaside lagoons. Disease and an intense hurricane had wiped out the plants in the 1930s, and no nearby meadows could serve as a naturally dispersing source of seeds to bring them back.
Restored seagrass beds in Virginia now provide habitat for hundreds of thousands of scallops. Bob Orth, Virginia Institute of Marine Science / CC BY 2.0<p>The paper is part of a growing trend of evidence suggesting seagrass meadows can be easier to restore than other coastal habitats.</p><p>Successful seagrass-restoration methods include <a href="https://www.sciencedirect.com/science/article/abs/pii/S0304377099000078?via%3Dihub" target="_blank">transplanting shoots</a>, <a href="https://onlinelibrary.wiley.com/doi/10.1111/j.1061-2971.2004.00314.x" target="_blank" rel="noopener noreferrer">mechanized planting</a> and, more recently, <a href="https://www.nature.com/articles/s41467-020-17438-4" target="_blank" rel="noopener noreferrer">biodegradable mats</a>. Removing threats, proximity to donor seagrass beds, planting techniques, project size and site selection all play roles in a restoration effort's success.</p><p>Human assistance isn't always necessary, though. In areas where some beds remain, seagrass can even recover on its own when stressors are reduced or removed. For example, seagrass began to recover when Tampa Bay improved its water quality by reducing nitrogen loads from runoff by roughly 90%.</p><p>But more and more, seagrass meadows struggle to hang on.</p><p>The marine flowering plants have declined globally since the 1930s and currently disappear at a rate equivalent to a football field every 30 minutes, according to the <a href="https://www.unep.org/resources/report/out-blue-value-seagrasses-environment-and-people" target="_blank" rel="noopener noreferrer">United Nations Environment Programme</a>. And research published in 2018 found the rate of decline is <a href="https://agupubs.onlinelibrary.wiley.com/doi/full/10.1029/2018GB005941" target="_blank" rel="noopener noreferrer">accelerating</a> in many regions.</p><p>The causes of decline vary and overlap, depending on the region. They include thermal stress from climate change; human activities such as dredging, anchoring and coastal infrastructure; and intentional removal in tourist areas. In addition, increased runoff from land carries sediment that clouds the water, blocking sunlight the plants need for photosynthesis. Runoff can also carry contaminants and nutrients from fertilizer that disrupt habitats and cause algal blooms.</p><p>All that damage comes with a cost.</p>
The Value of Seagrass<p>As with ecosystems like rainforests and <a href="https://therevelator.org/mangroves-climate-change/" target="_blank">mangroves</a>, loss of seagrass increases carbon dioxide emissions. And that spells trouble not just for certain habitats but for the whole planet.</p><p>Although seagrass covers at most 0.2% of the seabed, it <a href="https://www.unenvironment.org/news-and-stories/story/seagrass-secret-weapon-fight-against-global-heating" target="_blank">accounts for 10%</a> of the ocean's capacity to store carbon and soils, and these meadows store carbon dioxide an estimated 30 times faster than most terrestrial forests. Slow decomposition rates in seagrass sediments contribute to their <a href="https://www.researchgate.net/publication/238506081_Assessing_the_capacity_of_seagrass_meadows_for_carbon_burial_Current_limitations_and_future_strategies" target="_blank" rel="noopener noreferrer">high carbon burial rates</a>. In Australia, according to <a href="https://onlinelibrary.wiley.com/doi/10.1111/gcb.15204" target="_blank" rel="noopener noreferrer">research</a> by scientists at Edith Cowan University, loss of seagrass meadows since the 1950s has increased carbon dioxide emissions by an amount equivalent to 5 million cars a year. The United Nations Environment Programme reports that a 29% decline in seagrass in Chesapeake Bay between 1991 and 2006 resulted in an estimated loss of up to 1.8 million tons of carbon.</p>
Eelgrass in the river delta at Prince William Sound, Alaska. Alaska ShoreZone Program NOAA / NMFS / AKFSC; Courtesy of Mandy Lindeberg / NOAA / NMFS / AKFSC<p>Seagrasses also protect costal habitats. A healthy meadow slows wave energy, reduces erosion and lowers the risk of flooding. In Morro Bay, California, a 90% decline in the seagrass species known as eelgrass caused extensive erosion, according to a <a href="https://www.sciencedirect.com/science/article/abs/pii/S0272771420303528?via%3Dihub" target="_blank" rel="noopener noreferrer">paper</a> from researchers at California Polytechnic State University.</p><p>"Right away, we noticed big patterns in sediment loss or erosion," said lead author Ryan Walter. "Many studies have shown this on individual eelgrass beds, but very few studies looked at it on a systemwide scale."</p><p>In the tropics, seagrass's natural protection can reduce the need for expensive and often-environmentally unfriendly <a href="https://www.nioz.nl/en/news/zeegras-spaart-stranden-en-geld" target="_blank" rel="noopener noreferrer">beach nourishments</a> regularly conducted in tourism areas.</p><p>Seagrass ecosystems improve water quality and clarity, filtering particles out of the water column and preventing resuspension of sediment. This role could be even more important in the future. By producing oxygen through photosynthesis, meadows could help offset decreased oxygen levels caused by warmer water temperatures (oxygen is less soluble in warm than in cold water).</p><p>The meadows also provide vital habitat for a wide variety of marine life, including fish, sea turtles, birds, marine mammals such as manatees, invertebrates and algae. They provide nursery habitat for <a href="https://wedocs.unep.org/bitstream/handle/20.500.11822/32636/seagrass.pdf?sequence=1&isAllowed=y" target="_blank" rel="noopener noreferrer">roughly 20%</a> of the world's largest fisheries — an <a href="https://www.floridamuseum.ufl.edu/science/seagrass-meadows-harbor-wildlife-for-centuries/" target="_blank" rel="noopener noreferrer">estimated 70%</a> of fish habitats in Florida alone.</p><p>Conversely, their disappearance can contribute to die-offs of marine life. The loss of more than 20 square miles of seagrass in Florida's Biscayne Bay may have helped set the stage for a widespread <a href="https://www.wlrn.org/2020-08-14/the-seagrass-died-that-may-have-triggered-a-widespread-fish-kill-in-biscayne-bay" target="_blank">fish kill</a> in summer 2020. Lack of grasses to produce oxygen left the basin more vulnerable when temperatures rose and oxygen levels dropped as a result, says Florida International University professor Piero Gardinali.</p>
Damaged Systems, a Changing Climate<p>Governments and conservationists around the world have already put a lot of effort into coastal restoration efforts. And that's helped some seagrass populations.</p><p>Where stressors remain, though, restoration grows more complicated. <a href="https://www.rug.nl/research/portal/en/publications/the-future-of-seagrass-ecosystem-services-in-a-changing-world(3a8c56db-7bed-4c9e-ac7f-c72453e2a102).html" target="_blank">Research</a> published this September found that only 37% of seagrass restorations have survived. Newly restored meadows remain vulnerable to the original stressors that depleted them, as well as to storms — and <a href="https://www.ecowatch.com/tag/climate-crisis">climate change</a>.</p>
Seagrass in Dry Tortugas National Park, Florida. Alicia Wellman / Florida Fish and Wildlife / CC BY-NC-ND 2.0<p>In Chesapeake Bay a cold-water species of seagrass is currently hitting its heat limit, especially in summer, according to Alexander Challen Hyman of University of Florida's School of Natural Resources and Environment. As waters continue to warm due to climate change, the species likely will disappear there.</p><p>Climate-driven sea-level rise complicates the problem as well. Seagrasses thrive at specific depths — too shallow and they dry out or are eaten, too deep and there isn't enough light for photosynthesis.</p>
But There’s Good News, Too<p>Luckily, left to its own devices, a seagrass meadow can flourish for hundreds of years, according to a <a href="https://royalsocietypublishing.org/doi/10.1098/rspb.2019.1861" target="_blank" rel="noopener noreferrer">paper</a> published last year by Hyman and other researchers from the University of Florida. The researchers arrived at their conclusion by looking at shells of living mollusks and fossil shells to estimate the ages of meadows in Florida's Big Bend region on the Gulf Coast.</p><p>That area has extensive, relatively pristine seagrass meadows. "Our motivation was to understand the past history of these systems, and shells store a lot of history," said co-author Michal Kowalewski.</p><p>A high degree of similarity between living and dead shells indicates a stable area, while a mismatch suggests an area shifted from seagrass to barren sand. The researchers found that long-term accumulations of shells resembled living ones, suggesting that the seagrass habitats have been stable over time.</p><p>That stability allows biodiversity to thrive, creating conditions where specialist species can survive and flourish, according to Hyman.</p><p>Discovering the long-term stability of seagrass meadows has implications for choosing restoration sites, Kowalewski notes.</p><p>"There must be reasons they thrive in one place, while a mile away they don't and fossil data says they probably never did," he said. "If we remove a seagrass patch, we cannot hope to plant it somewhere else. It's not just the seagrass that is special. The location at which it's found is special, too."</p><p>A better approach is conserving these habitats in the first place, but we're not doing enough of that right now. The UN reports that marine protected areas safeguard just 26% of recorded seagrass meadows, compared with 40% of coral reefs and 43% of mangroves.</p>
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