Share this on social media
Climate-focused investors give warm welcome to EU masterplan
(EurActiv, 16 Jul 2021) A European Union climate masterplan to raise the cost of pollution and eliminate emissions is a step towards a single carbon price that many investors striving to make companies more sustainable say can help to engineer deeper change.
In its biggest climate package yet, the European Commission, the EU’s executive body, on Wednesday (14 July) announced 13 policy proposals spanning energy, shipping, transport and manufacturing.
“The EU is to be applauded for its level of ambition in these targets and for aspiring to be a pioneer on climate change – it certainly sets a strong template for other industrialised nations to follow,” said Mark Wade, Head of Sustainability Research and Stewardship at Allianz Global Investors.
Central to the policy proposals are plans to reform the 27-member bloc’s Emissions Trading System, which forces polluters to pay for their emissions.
It has long been contentious as representatives of European industry say they are placed at a competitive disadvantage when manufacturers in other countries do not face such costs.
The European Commission is addressing the discrepancy with a proposed border levy – or Carbon Border Adjustment Mechanism (CBAM) – that would add a cost to imports to adjust for their emissions. It could in theory move the world closer to a single carbon price, something asset managers say is needed to drive sustainable practice.
External link
EurActiv, 16 Jul 2021: Climate-focused investors give warm welcome to EU masterplan
