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The European Commission appears serious in its commitment to meeting the demands of the Paris Agreement, with the latest series of proposals looking into leveraging the private sector in support of decarbonising the European economy as a whole. The proposals were tabled on 24 May, and directly concern the idea of fostering and strengthening private investment in renewable energy and other low-carbon solutions. Furthermore, emphasis is also being placed on safeguarding against greenwashing, with proposals aimed toward increasing transparency in sustainable finance.

How can we incentivise the #EU financial sector contribute to the fight against climate change? Today we propose to put our #SustainableFinanceEU strategy into law. Our press remarks with @jyrkikatainenhttps://t.co/QYyYotAjnG #COP21 #OnePlanet pic.twitter.com/04ISX3pfJ9

— Valdis Dombrovskis (@VDombrovskis) May 24, 2018

“Meeting our climate commitments will require large scale investments. For Europe alone, we need an estimated €180 billion of additional investment every year until 2030,” said  Valdis Dombrovskis, the European Commission Vice-president in charge of Financial Stability.

“No public authority has this kind of money,” added Jyrki Katainen, Commissioner for Jobs, Growth, Investment and Competitiveness, saying private capital needs to be mobilised “in favour of our planet”.

How can we make the EU financial sector a powerful actor in fighting climate change?

✅ unified EU classification system

✅ investors’ duties and disclosures

✅ low-carbon benchmarks

✅ better advice to clients on sustainabilityhttps://t.co/gagnqfEYLk #SustainableFinanceEUpic.twitter.com/Ydc5n4hcV8

— European Commission 🇪🇺 (@EU_Commission) May 24, 2018

As reported by Reuters, “it would be the first time the EU had developed a classification system for environmentally-friendly investments, as the “EU commission dropped an initial plan to lower capital charges for banks and investors who decide to invest in green projects after warnings from credit rating agencies that such a move could weaken banks’ financial stability”.

Learn more.

For tips on green finance and investment, visit the ethical money section of The Good Shopping Guide.

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