TAILIEUCHUNG - IRECTIVE 2011/61/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

Many green projects are currently often not viable on a stand-alone basis due to mispricing in the markets which makes traditional or „black‟ projects more attractive, due to climate change externalities not being priced into these projects or mispricing due to government policies, such as fossil fuel subsidies (and the introduction of carbon pricing through schemes such as the European Emissions Trading Scheme has not significantly altered this). 16 These fuel subsidies, still prevalent in many countries, deteriorate the economics of low-carbon projects. The IEA (2010b) has estimated that government support for renewables will rise from USD 57 billion. | I EN I Official Journal of the European Union L 174 1 I Legislative acts DIRECTIVES DIRECTIVE 2011 61 EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003 41 EC and 2009 65 EC and Regulations EC No 1060 2009 and EU No 1095 2010 Text with EEA relevance THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION Having regard to the Treaty on the Functioning of the European Union and in particular Article 53 1 thereof Directive therefore aims at establishing common requirements governing the authorisation and supervision of AIFMs in order to provide a coherent approach to the related risks and their impact on investors and markets in the Union. Having regard to the proposal from the European Commission Having regard to the opinion of the European Central Bank 1 Having regard to the opinion of the European Economic and Social Committee 2 Acting in accordance with the ordinary legislative procedure 3 Whereas 1 Managers of alternative investment funds AIFMs are responsible for the management of a significant amount of invested assets in the Union account for significant amounts of trading in markets for financial instruments and can exercise an important influence on markets and companies in which they invest. 2 The impact of AIFMs on the markets in which they operate is largely beneficial but recent financial difficulties have underlined how the activities of AIFMs may also serve to spread or amplify risks through the financial system. Uncoordinated national responses make the efficient management of those risks difficult. This I1 OJ C 272 p. 1. 2 oJ C 18 p. 90. 3 Position of the European Parliament of 11 November 2010 not yet published in the Official Journal and decision of the Council of 27 May 2011. 3 Recent difficulties in financial markets have underlined that many AIFM strategies are vulnerable to some or several important risks in relation to .

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