How green is your bond? EU battle lines drawn on investment rules

(Reuters News, 22 Oct 2019) A battle is expected over whether oil, coal and nuclear fuel can count as "green".

A battle over whether oil, coal and nuclear fuel can classify as "green" is expected to begin on Wednesday when EU states and lawmakers begin talks on sustainable investment rules.

Brussels proposed the law as part of a plan to make Europe the world's first climate neutral continent by 2050 but also to widen the market in green bonds and securities.

Any delay on introducing eco-labels on financial investments could deter investors from eco-friendly assets.

The negotiations, due to finish in December, will pit the more conservative European Union countries against a European Parliament, where Green parties have a louder voice.

The European Commission first proposed legislation in May 2018 to tackle "greenwashing", where banks and other companies claim undeserved environmental credentials for investments.

The European Council, which is made up of the bloc's 28 member states, generally supports the Commission's proposals.

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Reuters News, 22 Oct 2019: How green is your bond? EU battle lines drawn on investment rules