“Green transition underway”, the French stock market regulator ponders a definition

The AMF is working on defining the criteria for the environmental transition of companies in order to provide a framework for green finance, although the existing European taxonomy has its limits. This is a complex task and the debate on the optimal transition remains open.

Share:

How do you define a company in the process of environmental transition? The answer does not exist in European regulations for the moment, but the French Financial Markets Authority(AMF) is working to develop the legal framework.

In its broad “Green Pact”The European Commission has taken an interest in green finance and the creation of rules to regulate it. But its definition of “sustainable investment” is for the moment too vague for the sector’s actors and its “green taxonomy”, which classifies economic activity sectors according to their impact on the climate and the objective of mitigating and adapting to climate change, has its limits.

For Jérôme Reboul, Director of International Regulation at the AMF, a “binary” conception – green or not green – of sustainable finance can prevent certain companies, considered “brown” because of their heavy climate impact, from obtaining financing. While precisely “many transition projects are in the hands” of companies “very +brune”, he justifies.

In the UK, the regulator has decided to create five categories of funds with different levels of requirements, including a “transition” classification, one “aligned” with the taxonomy (which therefore includes a large proportion of sustainable activities) and one “impact”, which aims to generate a positive social or environmental impact.

In its reflections on the notion of transition, the AMF is considering assessing a company’s transition based on the reports it must publish each year, explains Mr. Reboul, while by 2026 the European directive on sustainability reporting (CSRD) “will require” companies “to establish and communicate a transition plan.

Relying on these self-published reports by companies is an easy solution to implement since the legal framework is already in place, but with a downside: it is a “business logic”, which may not be up to the task of “achieving a transition on the scale of the entire economy”, warns Jérôme Reboul. He cites the example of an energy producer that “will be able to present a flawless transition plan by selling its coal-fired plants…

But on an economic scale, we need to close coal plants, not just sell them!” Ideally, the AMF would like to take a more macroeconomic view and classify economic activities into three categories: those that are already sustainable, those that contribute to an orderly transition plan and those that need to be stopped. Such a typology would complement the existing European taxonomy, according to Reboul, but devising it represents “a titanic task even more complicated than the taxonomy” that the European Commission has been working on for several years.

In addition, “the question arises as to what is the optimal transition”, with, for example, a debate on the place of natural gas in the energy transition, says Reboul.

Iberdrola strengthens its financial position with a new five-year credit facility, signed with 32 banks, to support investments in power grids and renewable energy, particularly in the United States.
Kinder Morgan, Inc. reports strong financial results for the second quarter of 2025, with net profit up 24% and a project backlog boosted by major new investments in natural gas transportation.
CenterPoint Energy remains vigilant as Invest 93L approaches, deploying emergency plans and pursuing upgrades to its electrical infrastructure across the Greater Houston area.
The Georgia Public Service Commission approves the 2025 Integrated Resource Plan, which includes major investments in generation, storage and the grid to address the strong rise in electricity demand.
Norwegian industrial group Aker ASA achieved a strong surge in its share price in the first half, expanded its diversification into real estate, and executed major transactions despite global energy market volatility.
ADNOC announces the transfer of 24.9% of its shares in OMV to its subsidiary XRG, continuing the streamlining of its international assets and preparing the creation of Borouge Group International.
The SMI China Forum brings together international and Chinese leaders for dialogue on supply chains, investment and energy innovation, marking a major step in public-private sector cooperation.
Mining group BHP sees low-emission iron production in Australia as unprofitable, just as Canberra and Beijing announce closer cooperation to decarbonise the global steel industry.
Aker Carbon Capture distributed $162mn in dividends to its shareholders, a direct consequence of significant asset disposals and a substantial restructuring of its balance sheet in the second quarter of 2025.
Equinor ASA acquired 2.1 mn of its own shares on the Oslo Stock Exchange for a total of $201 mn between July 7 and 11, continuing the second phase of its 2025 buyback programme.
Norwegian group Aker Horizons transfers all its activities to a subsidiary of Aker ASA, sells major assets and prepares its new strategy after a half-year net loss of $220mn.
South Texas Electric Cooperative is seeking proposals for the acquisition or purchase of energy for 500 MW of dispatchable capacity, aiming to strengthen long-term supply security in the ERCOT region.
A federal funding package of $16mn aims to accelerate grid modernisation, renewable energy development and carbon capture in Canada’s Maritime provinces.
RTE and Nexans announce the creation of a recycling chain dedicated to aluminium from electrical cables, targeting 600 tonnes annually and covering the entire industrial cycle from collection to production.
Three scientists from China, the United States and Russia are laureates of the 2025 Global Energy Prize, honoured for their work on high-voltage power lines, fuel-cell catalysts and pulsed energy technologies.
Rio Tinto’s new CEO inherits a significant stock market discount and will need to overcome major regulatory, operational, and financial hurdles to swiftly restore the company's appeal to international investors, according to a Wood Mackenzie analysis.
Westbridge Renewable Energy enters digital infrastructure market with Fontus, a 380 MW data centre campus in Colorado, positioned to meet strong growth in US cloud and artificial intelligence services.
Offshore drilling company Borr Drilling Limited announced the completion of an initial tranche issuance of 30 million ordinary shares out of the planned 50 million, raising $61.5mn towards the total goal of $102.5mn.
EDF announces a new internal organization with key executive appointments to enhance decision-making efficiency and expedite the revival of nuclear and hydroelectric projects central to its industrial strategy.
Rubis announces half-year results of its liquidity agreement managed by Exane BNP Paribas, totalling 241,328 shares exchanged for an aggregate amount of €6.5mn in the first half of 2025.