EMIR regulation must take green financial instruments into account and raise clearing thresholds

In its discussion paper, the European Securities and Markets Authority ESMA is reviewing the clearing regime under the derivatives regulation EMIR.

In our position paper, we argue that financial instruments concluded in a sustainability context, e.g. renewable energies, should also be recognised as hedging instruments. Accordingly, these financial instruments should not count against the clearing thresholds. Furthermore, we call for higher clearing thresholds in our statement. This will ensure the supply and liquidity of commodity derivatives used in the procurement of renewable energies.