{
  "url": "https://openlegislation.uk/eu-regulation-2020-1818/article-7",
  "json_url": "https://openlegislation.uk/eu-regulation-2020-1818/article-7.json",
  "legislation": "eur/2020/1818",
  "legislation_title": "Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards minimum standards for UK Climate Transition Benchmarks and UK Paris-aligned Benchmarks",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2020-1818",
  "path": "article/7",
  "kind": "article",
  "number": "7",
  "heading": "Setting a decarbonisation trajectory",
  "text": "1. The decarbonisation trajectory for UK Climate Transition Benchmarks and UK Paris-aligned Benchmarks shall have the following targets:\n(a) for equity securities admitted to a public market in the UK or in another jurisdiction, at least 7 % reduction of GHG intensity on average per annum;\n(b) for debt securities other than those issued by a sovereign issuer, where the issuer of those debt securities has equity securities admitted to a public market in the UK or in another jurisdiction, at least 7 % reduction of GHG intensity on average per annum or at least 7 % reduction of absolute GHG emissions on average per annum;\n(c) for debt securities other than those issued by a sovereign issuer, where the issuer of those debt securities does not have equity securities admitted to a public market in the UK or in another jurisdiction, at least 7 % reduction of absolute GHG emissions on average per annum.\n2. The targets referred to in paragraph 1 shall be calculated geometrically, which shall mean that the annual minimum 7 % reduction of GHG intensity or of absolute GHG emissions for year ‘n’ shall be calculated based on the GHG intensity or absolute GHG emissions for the year n-1, in a geometric progression from the base year.\n3. Where the average EVIC of the constituent securities of the benchmark has increased or decreased during the last calendar year, the EVIC of each constituent shall be adjusted by dividing it by an enterprise value inflation adjustment factor. That enterprise value inflation adjustment factor shall be calculated by dividing the average EVIC of the benchmark constituents at the end of a calendar year by the average EVIC of the benchmark constituents at the end of the previous calendar year.\n4. Administrators of UK Climate Transition Benchmarks and administrators of UK Paris-aligned Benchmarks shall, for each year in which the targets laid down in paragraph 1 are not achieved, compensate for those missed targets by upwardly adjusting the targets in their decarbonisation trajectory for the following year.\n5. Administrators of UK Climate Transition Benchmarks and administrators of UK Paris-aligned Benchmarks shall no longer be able to label their benchmarks as such where:\n(a) the targets laid down in paragraph 1 are not achieved in a given year and the target miss is not compensated in the following year; or\n(b) the targets laid down in paragraph 1 are not achieved on three occasions in any consecutive 10-year period.\nBenchmark administrators may relabel a benchmark as a UK Climate Transition Benchmark or as a UK Paris-aligned Benchmark where that benchmark meets the decarbonisation trajectory target for two consecutive years following the loss of the label, unless that benchmark lost that label twice.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in Ch. 2 s. 1 substituted (18.10.2021) by The Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021 (S.I. 2021/1074), regs. 1(2), 6(4)(a)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in Ch. 2 s. 1 substituted (18.10.2021) by The Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021 (S.I. 2021/1074), regs. 1(2), 6(4)(b)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Word in Art. 7(1) substituted (18.10.2021) by The Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021 (S.I. 2021/1074), regs. 1(2), 6(4)(e)(i)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in Art. 7(5) substituted (18.10.2021) by The Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021 (S.I. 2021/1074), regs. 1(2), 6(4)(e)(ii)(aa)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in Art. 7(5) substituted (18.10.2021) by The Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021 (S.I. 2021/1074), regs. 1(2), 6(4)(e)(ii)(bb)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2020/1818/article/7",
    "retrieved_at": "2026-11-01T14:42:19.280123+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}