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EU turns to finance to achieve ‘climate neutral continent’
(EurActiv, 7 Jul 2021) Europe plans to funnel hundreds of billions of euros into sustainable investments each year through EU banks and markets to create the first “climate-neutral continent” by 2050.
The European Union’s sustainable finance framework, published on Tuesday, sets out detailed milestones and measures for finance, companies and households to reach its climate goal.
It builds on a 2018 initiative which set the stage for the bloc’s ‘taxonomy’, or classification of truly green investments, and mandatory climate-related corporate disclosure.
“Today’s Sustainable Finance Strategy is key to generate private finance to reach our climate targets and tackle other environmental challenges,” said Valdis Dombrovskis, EU Commission vice-president in charge of economy and finance.
“As the scale of investment required is well beyond the capacity of the public sector, the main objective … is to channel private financial flows into relevant economic activities,” the European Commission said.
EU states will be asked to assess by June 2023 how their financial markets contribute to eliminating the bloc’s net carbon emissions by 2050, including asset managers, pension funds, banks and insurers.
EU authorities and the European Central Bank will then calibrate the right pace for the transition by setting intermediate targets for the financial sector.
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EurActiv, 7 Jul 2021: EU turns to finance to achieve ‘climate neutral continent’
